Hi friends, we are at lecture two Now, with this lecture, we are going to start first section of Sq B okay the overview Six Sigma and organization the lecture is on value of Six Sigma the corresponding section of V okay is as shown on the screen on completion of this lecture, you will understand why organization use Six Sigma, how organization apply its philosophy and Gold's origin of six sigma. Six Sigma has been the buzzword in progressive organization for a couple of decades. The question before us is why do organization use Six Sigma? Well, this is preliminary to the large question such as what is the biggest challenge lunch before business in this millennium. What's the biggest challenge before business in this Millennium is not just to become successful, but to remain successful, consistently. Examples of memorable companies that have vanished are in front of us.

You know companies like RCA Compaq virgin chef. We're all household names once upon a time, but now, not anymore. It is well known that business follow a cyclic path with all its ups and downs. How do we overcome the cycle to remain successful? The answer lies in six sigma. Well, much of the six sigma is not new.

What is new is the way Six Sigma Apple its principal and set of tools into a coherent program backed by data mined management leadership, it is a powerful strategy for sustained success. Most of the techniques found in Six Sigma have been available for centuries. Thanks to the groundbreaking work of professionals in the field of quality science, let us learn about a few of them. Walter Shuar pioneer of all, also referred as the father of statistical quality control. As you see, he developed the concept of control charts. control chart is a major tool used during the measure and analyze phase of six sigma.

He was the first honorary member of American Society of quality Dr. Deming was among the initiator to use the short control chart. Japan invited Dr. Deming after world war two for teaching the Sq c techniques to their company managers. demings classes led to quality revolution in Japan and make that country to become the world leader in quality. Japan had honored him by creating demings Quality Award, which now has a status equivalent to Nobel Prize in quality. demings contribution includes the development of plan, do check Act, the PDCA cycle of quality improvement, as well as 14 principles of quality management. Dr. Joseph Duran was another legendary philosopher of quality Duran also conducted lectures to see you Japan companies after World War Two, Duran assisted both Schubert and Deming, he developed the urine technology.

Three managerial processes such as quality planning, quality control, and quality improvement for managing quality and a similar way of managing finance. Phillips Crosby originated the zero defect concept. He wasn't a Sq honorary member and past president. He also had developed the 14 steps to quality management. Armand was an ASU honorary member and served as a Sq president for two consecutive term he had originated the concept of total quality control. He listed three steps to quality, quality leadership, modern quality technology And the organizational commitment, Ishikawa developed the famous fishbone diagram, which is also known as cause and effect diagram.

He had worked with Deming through union of Japanese scientists and engineers known as juice. Another major contribution from Ishikawa was the concept of quality circle for managing quality improvement. In addition to these noted individuals, there were a lot of quality philosophers from Japan, whose contribution to quality was greatly emphasized by quality world. Most of them were from Toyota Motor Company, to name a few Chicago Shingo with single minute exchange of dye concept, gain citta, Gucci, with design of experiment etc. Let us move forward to the origin of six sigma. For this purpose, we need to have historical perspective of quality philosophies and its evolution timeline.

Concept of quality can be traced back to the era of pre Industrial Age, where buyers and suppliers had one to one interaction. The Craftsman was a producer, marketer, quality manager and all quality was the face value of the producer and pre Industrial Age, then gain the industrial age during 18th century Industrial Revolution broke down the traditional buyer supplier relation the craftsmen became factory worker focus was on mass production quality was given least importance still some form of quality inspection existed in some companies. The major event that transformed the traditional quality concept was World War Two. As we rightly say, Necessity is the mother of all inventions. Many of the quality control techniques had been emerged when its requirement was badly felt during the World War Two, two decades after the war world witnessed the emergence of Japan as quality leaders. Japan, who was once known for its bad quality products, has surprised the world with world class quality products that virtually Blitz the global companies.

USA and Europe started responding to Japan's shift from low quality products to high quality products, as world market was almost captured by Japan electronics and auto products All Together, these countries contributed to various quality philosophies like total quality management, ISO 9001, quality management system, statistical quality control, statistical process control, etc. During 1990s based on these traditional philosophies, contemporary quality strategies like lean manufacturing, Six Sigma, etc, had been emerged by the end of 1990. World witnessed rapid spread of these concepts to other developing countries as part of globalization and ongoing competition. Well, tracing the root of six sigma origin, Karl Frederick's introduction of normal curve was a major milestone for six sigma evolution. However, the real origin of Six Sigma can be traced back in 1980s. during those periods, Motorola was struggling with the heat of global competition.

It was then the CEO Bob Galvin set a goal of improvement for Motorola, noted as 10 x improvement, the focus was on global competitiveness quality and training goal was subsequently raised to 10 x improvement in every two years instead of five years. During the improvement journey, build Smith, one of the reliability engineer with Motorola found statistical correlation between product complexity and process capability and system failure. It was Bill who coined the term six sigma. Motorola then developed Six Sigma as a new standard in 1987 and created a paradigm shift from the traditional way of measuring defects. Traditionally, defects were measured in hundred opportunities. Motorola defined a new measuring paradigm defects in million opportunities.

This is covered in depth in later lectures. Similarly, Motorola also defined the required cultural change associated for effective implementation of Six Sigma strategy. during those periods, adopting Six Sigma strategy, it received huge benefits such as 30% profit growth every year, cumulative saving of $14 billion. It also helped Motorola to became the first winner of prestigious Malcolm Baldrige Quality Award in 1988. Spreading the success story made other companies to adopt this strategy like GE, Honeywell, Bank of America, etc. That's all for this lecture value of six sigma.

Hope you have understood the stated objectives. Please go through once again if you have not else, let us proceed to the next lecture on