24th June2008

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Evolution of Six Sigma Latest trends, Current
challenges and Future outlook

• 24th June-2008

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Overview
Six Sigma - Current Trend Challenges
Future Outlook
Way Forward for Breakthrough Results
Question Answer
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Patni - a Leading Global IT Services Provider
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Infrastructure

• Investment of over 100 million in Infrastructure
  to support growth (100 in next 2 years)
• Global Development Centers across India, UK, US
  in operation (India 15, US 3, UK 1)
• Centers in China and Latin America being
  established
• Geographically spread network of centers for
  distributed disaster recovery
• Dedicated areas to enable Captive service
  centers as extensions to customer organization
• Co-investment opportunities in innovation centers

Knowledge Park Mumbai
Knowledge Park - Chennai
Cybercity - Pune
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Six Sigma Current Trends and Challenges

• Rapid spread in Service sector including public
  administration
• Expanding horizon of Six Sigma through
  integration with other concepts like Lean
• Ever increasing application of Six Sigma in new
  areas

• Weak alignment of Six Sigma Projects with
  Business Needs
• Inadequate time for improvements due to
  operational/ delivery pressures

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Six Sigma Current Trends and Challenges

• Limited involvement of support departments to
  bring Breakthrough Results
• Over emphasis on DMAIC projects at the cost of
  innovative product/ service based DFSS projects
• Over emphasis on statistical rigor and past data
• Six Sigma is considered add-on
• Inadequate commitment from management

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Future Outlook for Breakthrough Results
Judicious mix of DMAIC / DFSS

• Simplify
• De-jargonize
• De-Mystify

• Hourly training Capsule
• Walk the Talk
• Catch them Young

Success Levers
Appropriate tools
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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen, TOC, BPM

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Integrated Six Sigma Approach
4. Paradigm Shift ( 45 Days) (Advanced Lean,
TOC,TRIZ and Six Sigma)
3. Breakthrough Innovation/ Improvements (15
Days) (Advanced TRIZ Tools, TOC and Six Sigma)
2. Significant Innovation/ Improvements (5
Days) (Advanced Lean Tools and TRIZ)
1. Quick Hit Innovation/ Improvements (2
Days) (Through BPM, Kaizen and Simple Lean Tools)
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Kaizen An Energizing Force

• For Quick hit small improvements
• Mass involvement
• Elimination of Non-value added activities like
• Rework
• Duplication / overlap of activities
• Excessive Reviews/ testing
• Multiple approvals
• Waiting time / Set up delays
• Data transfer
• Through process changes, simplification, mistake
  proofing, automation merging/combining process
  steps

Pilot Kaizen drive in a account saved 0.5 million
USD in 2007 and target for 2008 is for 1.0
million USD.
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Need of Triz in Six Sigma

• Traditional DMAIC/DFSS-
• Insufficient tools for creative solution
  development
• Team tends to be caught in Psychological inertia

• TRIZ integrated with DMAIC/ DFSS-
• Tips and tools for creative solution development
• Team can think out of box to overcome
  Psychological inertia

• TRIZ helps to develop breakthrough creative
  solutions overcoming psychological inertia.
• TRIZ strengthens and enriches Improve tool
  basket.

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Pillars of Triz
TRIZ Based Problem Solving
Concept of Technical System
Levels of Innovations/ Inventions
Concept of Contradiction
Law of Ideality
Use of Resources
Patterns of Evolution
These TRIZ Pillars (or concepts) can be applied
individually or in combination to solve real life
problems.
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Example of Technical System for Organizational
Profitability
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Triz - 40 Principles
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Technical System Contradictions- An Example
Technical System (BU/ Project Profitability)
Applicable Triz Principles to Resolve
Contradictions 2- Separation 35-Parameter Change
13- Other way round 25- Self Service 26-
Copying 16- Partial/ Excessive action
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Business Excellence _at_ Patni
Thought Leadership

• Research on Lean, Six Sigma, Kaizen, BPM CMMI,
  TRIZ and Simulation Models
• White Paper presentations at World Congress on
  Total Quality, SEPG Asia and Europe, ICSPI-US,
  Lean Six Sigma Summit (Singapore and Kuala
  Lumpur) and Six Sigma for IT (Chicago)

Benefits Reaped
Over 24 Million USD
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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen

• Intensive focus on P-T-A approach

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P-T-A Approach
P-T-A ( Project with Principles-Train-Apply)
4. Implement improvement plans and senior leader
reviews (2 to 3 months)
3. Refine Improvement plans (2-15 Days)
2. Conduct Business Excellence Workshop for teams
(2- 5 Days)
1. Identify Focus Areas for Improvements and
Teams (2-4 Hours) (Through Discussion with BU/
Account Senior leaders)
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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen
• Intensive focus on P-T-A approach

• Walk the Talk

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Walk the Talk

• Business Challenge
• Senior management need to demonstrate commitment
  to Six Sigma through execution of Black Belt
  projects.
• Constraining factor-Time

• Case-Study of a MNC Company- Walk the Talk
• CEO decided to launch Six Sigma with GM, VP and
  Directors
• Six Sigma training was given in capsule of two
  hours
• Each Senior executed two Black Belt projects
  resulting in savings of 50 million USD

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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen
• Intensive focus on P-T-A approach
• Walk the Talk

• Catch them Young

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Catch them Young

• Business Challenge
• Fresh talents should be utilized in improvement
  drive.
• Constraining factor-Experience and competency in
  improvement techniques

• Case-Study of an Indian Company- Catch them
  Young
• Management decided to train all new Joinees
  engineering and Management graduates for Green
  Belt (GB) during their induction
• They executed one GB project within a year
• Saving of 1.0 million USD, inculcating
  improvement traits

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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen
• Intensive focus on P-T-A approach
• Walk the Talk
• Catch them Young

• Integration and alignment with changing Business
  Needs

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Integration and alignment with changing Business
Needs

• Business Challenge
• Align Six Sigma projects with pertinent Business
  needs
• Need to select Six Sigma projects impacting key
  financial parameters

• Case-Study of an Indian Company
• Six Sigma projects were identified from BSC
  performance parameters having stretched targets
• Six Sigma projects were identified from Balance
  Sheet in the areas like interest cost, working
  capital, account receivables

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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen
• Intensive focus on P-T-A approach
• Walk the Talk
• Catch them Young
• Integration and alignment with changing Business
  Needs

• Shifting focus from DMAIC to DFSS projects

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Shifting focus to DFSS projects
Business Challenge Diminishing Y-O-Y gains from
Six Sigma drive
Apply DFSS to innovate process/ products for
enhancing revenue growth and higher financial
gains
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Future Outlook for Breakthrough Results

• Rapid Integration with other approaches- Lean,
  Triz, Kaizen
• Intensive focus on P-T-A approach
• Walk the Talk
• Catch them Young
• Integration and alignment with changing Business
  Needs
• Shifting focus from DMAIC to DFSS projects

• Shifting focus from tools and techniques to
  Business Results

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Shifting focus from tools and techniques to
Business Results

• Business Challenge
• Limited practice and need of Advanced statistics
  in day to day operations
• Over emphasis on complex statistical tools act as
  roadblock for practicing professionals

• Use of the simplest tool that works should be
  highly valued and not the most complex
• Maximize use of Statistical softwares
• Simplify Statistical concepts and interpretation
• For example, simplified VSM can optimize efforts
  and gives similar results

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Simplified Value Stream Mapping in Service Sector

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Result of an Effective VSM
Overall Savings 4.06 Million INR
Setup Cycle Time Reduction
COQ Reduction
Effort Reduction/ 10 projects
Project Productivity increase
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Way Forward for Breakthrough Results

• Integrate and Customize deployment with Lean,
  Kaizen, Triz etc
• Align with changing Business Needs through BSC
  and Balance Sheet
• Deploy DFSS for innovation and revenue growth

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Questions
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Thank You
manish.mehta_at_patni.com