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NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
PLENARY SESSION-I SIX SIGMA IN
SERVICE SECTOR
delivered by Dr. P. Balasubramanian, Ph.D.
Founder CEO, Theme Work Analytics, Bangalore
Entrepreneur in Residence at Purdue
University, USA
at M.S.Ramaiah Institute of Technology,
Bangalore on March 10, 2008
balasubp_at_gmail.com
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SIX SIGMA IN SERVICE SECTOR

• Services Sector consists of
• Transportation, logistics and warehousing
• Wholesale and Retail Distribution
• Installation, Implementation and Maintenance
• Financial Services such as Banking and Insurance
• Health Care
• Hospitality and Tourism
• Travel
• Consulting Services
• Information Technology Services
• Media Entertainment
• Education Training
• Government Services such as RTO. Registrar of
  Properties
• And more.

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SIX SIGMA IN SERVICE SECTOR

• Distinguishing characteristics of Service Sector
  
• People intensive
• Process intensive
• Skill/Knowledge intensive
• Hence Face the challenge of
• Motivation and retention of staff
• Customer focus to maintain Performance and
  Quality
• Continuous Learning for Performance Improvement
• Knowledge sharing and knowledge management

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SIX SIGMA IN SERVICE SECTOR

• Six Sigma is a philosophy that underlies efforts
  to improve business performance and customer
  satisfaction
• Using facts and data to eliminate waste and
  variation
• Eliminating activities that dont add value

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SIX SIGMA IN SERVICE SECTOR

• Six Sigma is
• a Statistical measure of performance
• an aspirational goal for quality
• an approach and methodology for continuous
  improvement of quality

Performance is also a dimension of quality !
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SIX SIGMA IN SERVICE SECTOR
6 Sigma 3.4 defects per million 5 Sigma 230
defects per million 4 Sigma 6,210 defects per
million 3 Sigma 66,800 defects per million 2
Sigma 308,000 defects per million 1 Sigma
690,000 defects per million
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SIX SIGMA IN SERVICE SECTOR
There is no known or documented Service
Organization that has reached the Six Sigma level
of quality ( 3 defects in million deliveries)
anywhere in the world except the Mumbai
Dabbawallas.
However Six Sigma Concepts and Methodology ,as a
means to improve quality and Performance , are
applicable in almost all organizations.
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SIX SIGMA IN SERVICE SECTOR

• Define the problem
• Measure current process capability
• Analyze root causes of variability
• Improve process capability
• Control to sustain improvements

Implement, Monitor Control
Choose appropriate paths for improvement
Document As is Where is Processes
Path for Performance Improvement
Set benchmarks
Align Performance measures to Goals. Let PMs be
measurable
Six Sigma in action
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SIX SIGMA IN SERVICE SECTOR

• WORK IS WORSHIP

Nutan Mumbai Tiffin Box Suppliers Association
Tiffin baskets weight 75-80 kgs.
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Mumbai Dabbawallas (NMTBSA)
SIX SIGMA IN SERVICE SECTOR

• History Started in 1890
• Charitable trust Registered in 1956
• Avg. Literacy Rate 8th Grade Schooling
• Total area coverage 60 Kms to 70 Kms
• Employee Strength 5000
• Number of Tiffin's 2,00,000 Tiffin Boxes
• i.e 4,00,000 transactions every day.
• Time taken 3 hrs

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The Flow Logic
SIX SIGMA IN SERVICE SECTOR
Zones for destination
Grant Road (12)
1
2
3
Churchgate (1-10)
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5
6
Lower Parel (14)
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Distribution By Carriers at lunchtime To offices
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• Coding System

VLP Vile Parle (suburb in
Mumbai) 9EX12 Code for Dabbawalas at
Destination EX Express Towers
(building name) 12 Floor no. E Code
for Dabbawala at residential
station 3 Code for destination
Station eg. Churchgate
Station (Nariman Point)
Dsouza
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SIX SIGMA IN SERVICE SECTOR
Zero fuel Zero investment Zero modern
technology Zero Disputes 99.9999
performance 100 Customer Satisfaction
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SIX SIGMA IN SERVICE SECTOR
Working of NMTBSA

• Error Rate 1 in 16 million transactions
• Six Sigma performance (99.999999)
• Technological Backup Nil.
• Cost of service - Rs. 300/month ( 6.00/month)
• Standard price for all (Weight, Distance, Space)
• Rs. 36 Cr. Turnover approx.
• 6000125000360000000 i.e Rs. 36 crore p.a.
• No strike record as each one a share holder
• Earnings -5000 to 6000 p.m.
• Diwali bonus one months from customers.

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SIX SIGMA IN SERVICE SECTOR
Retention
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SIX SIGMA IN SERVICE SECTOR Indian Industries

• Aravind Eye Hospital Madurai
• Process Mapping and Reengineering
• Task specialization
• Assembly Line set up
• Young rural women recruited as paramedics
• Rural Eye Camp is the source (1500)

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SIX SIGMA IN SERVICE SECTOR
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Embedding Six Sigma Concepts in e Business
e Business innovators
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Embedding Six Sigma Concepts in e Business
Challenges facing the e Business innovators. They
need Six Sigma approach
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SIX SIGMA IN SERVICE SECTOR
Bus, Train or Air travel

• Time taken to book a ticket
• Timely departure
• Over booking
• Revenue realized per seat km
• Safety

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SIX SIGMA IN SERVICE SECTOR
Banking Services

• Wait time in the system
• Time taken for a transaction
• Channel flexibility
• Timely alerts
• Statement regularity

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SIX SIGMA IN SERVICE SECTOR
Software Services

• Defects per 1000 lines of source code
• Cost of Quality
• Developer, Tester Productivity
• Cost and Time over-run
• Recruitment Effectiveness

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Education, Training Sector

• Measure of Faculty Performance
• Subject wise
• Batch wise (Full time, Part
  time, Distance Learning)
• 2. Variance Reduction vs Mean score
• 3. Attendance impact

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Embedding Six Sigma Concepts in e Business
Can lead to rewriting business paradigms

• Do away with a complete function such as
  Accounts Receivable collections
• Eliminate non value adding intermediaries
• Reduce finished goods inventory dramatically
• Meet the expectation of every customer
• Cross sell effectively
• Improve operational efficiency and effectiveness
  by leaps bounds
• Reach current information swiftly to stakeholders
  for their optimal use
• Be a fair and impartial judge
• Improve transparency
• Reduce/ eliminate leakages

Study materials on the net, Examination
Assessment, Alumni Relationship Management are
some key innovations in the Education Sector
widely being adopted around the world.
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NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
SIX SIGMA IN SERVICE SECTOR
Acknowledgement Aravind Eye Hospital Slides and
Information from Dr. Aravind Srinivasan,
Administrator www.iimb.ernet.in/review/DOCUMENTS
/Aravind.pdf Dr. Usha Kim, MLOP ( Mid Level
Ophthalmic personnel) www.aravind.org/education/co
ursedetails.asp?tmpcatcodeC000000091 Mumbai
Dabbawalla Slides information from
www.geocities.com/hr_era/DabbawallasofMumbai.ppt
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NATIONAL WORKSHOP ON INNOVATIVE QUALITY PRACTICES
SIX SIGMA IN SERVICE SECTOR
Thanks and Best Wishes
Dr.P.Balasubramanian Founder and C.E.O., Theme
Work Analytics, Bangalore, India, 560
041 balasubp_at_gmail.com Ph 91 80 4121 4297
balasubp_at_gmail.com