I friends, we are at lecture three. Now, this is part of previous lecture on value of six sigma. On completion of this lecture, you would understand what is process impact of process inputs, outputs and feedback on large organization. Fine, it's time to do the mind six sigma. Well, people familiar with six sigma might have heard a lot about it in different ways, such as it is a 3.4 defects per million opportunities. It's about 99.99966 percentage of accuracy.
It's a data driven approach for eliminating defects might also have heard. It's a philosophy and set of tools that reduce variation in process. So what is six sigma then how will define it. Well, Six Sigma is all of those, we can define Six Sigma in many ways. However, the best definition could be six sigma is a rigorous and disciplined methodology that uses data and statistical analysis to measure and improve a company operational excellence by identifying and eliminating defects in manufacturing and service related processes. commonly defined as 3.4 defects per million opportunities by definition, but not understood at once, no worries, let us comprehend the whole into three distinct perspectives.
Six Sigma as a metric, Six Sigma as a methodology, Six Sigma as a philosophy instead of tombs, we will understand it more thoroughly. First, it is a metric or a measurement parameter, where ultimately we wish to reach by a six sigma capable process, we mean it will not produce more than 3.4 defects in 1 million opportunities. In other words, process will be operating in 99.99966 percentage of accuracy. Secondly, it is a problem solving methodology. In order to achieve our metric of 3.4 Db Mo, we need to overcome the problems in process and in order to solve the problems, Motorola developed the Define, measure, analyze improve and control methodology known as D Mac approach. Similarly, as a philosophy, the concept of y is a function of x.
This is explained in later slides. Finally, it is a set of tools such as SPC, FMEA, etc. So, far, I have been using the word process numerous times, let us understand what is process. The process can be defined as a set of interrelated activities that transform inputs into output. simple and clear definition. It means there are certain input for a process and there is an outward or set of outputs for a process.
Fine. business systems are a collection of complicated and interrelated processes and have big impact The business results of large organization Well, before understanding the complex process parameters, let us understand a very simple and familiar process. A process of preparing a tee point fine. What are the inputs for preparing tea? Water, tea leaves, milk, sugar and of course, some form of eat well, what are the processes? Fine, boil water, add leaves Add milk and sugar.
What is the output? Of course, at SDT fine, we had an iced tea Oh, did you say something? Yes The tea is different from what I made today morning or yesterday evening and yes, of course every time Tea is made, the quality and taste varies. Why this variation? Let us review we are going to discuss the basic philosophy as well as the gist of Six Sigma means, the quality of output that is why depends upon the quality of input and the quality of process parameters that is x. This is the gist of Six Sigma philosophy often referred as y is equals to f of x or y is a function of x.
Here, y refers to the output parameter and could be quality parameter of output or variation in output, whatever it may be and x refers to The input and process parameters by six sigma strategy, we are identifying the critical input and process parameters that cause the variation and control those parameters in order to control the process variation. Now, compare it with any other business process, especially with large organizations, process of large organization vary through its criticality, uniqueness and simplicity was a West complexity. Imagine the impact of input and process parameter and large complex business processes and their feedbacks. Even a minor variation in the input parameters could lead to loss of millions of dollars Six Sigma play a major role in process stability and improvement leading to million dollar saving. That's all for this lecture value of six sigma. hope you have understood the stated objective.
Please go through once again if you have not else, let us proceed to the next lecture. Organization drivers and metric based on Sq B Okay, one, a two