International Journal of Research in Advent Technology, Vol.2, No.

2, February 2014
E-ISSN: 2321-9637

An Application of Six Sigma in Service Sector-A Case

Study
Aditya R. Wankhade1, Sunil S. Girde2, Pankaj N. Bandabuche3,
Mechanical Engg.Department ACE, Wardha1, 2 Mechanical Engg.Department, GHRCET, Amravati 3,
Asst.Professor1, 2, 3
[email protected]
Abstract- Industrial, manufacturing and service organizations are interested in improving their products and
processes by decreasing the variation, because the competitive environment leaves little room for error.
Variation is the enemy of quality which is defined and evaluated by the customers. We must deliver products
and services at the ideal targets demanded by the customers.[2]
The traditional evaluation of quality is based on average measures of the process/product and their deviation
from the target value. However, customers judge the quality of process/product not only based on the average,
but also by the variance in each transaction with the process or use of the product. Customers want consistent,
reliable and predictable processes that deliver or exceed the best-in-class level of quality. This is what the Six
Sigma process strives to achieve . Over the last twenty years, Six Sigma has been successfully implemented in
many industries, from large manufacturing to small businesses, from financial services, insurance industry to
healthcare systems.[3] This paper deals with the implementation of six sigma methodology in service sector.

IndexTerms- What is six sigma?1, Implementation2, Level 3, Case study4.

1. WHAT IS SIX SIGMA?
Sigma () is a letter in the Greek alphabet
that has become the statistical symbol and metric of
process variation. The sigma scale of measure is
perfectly correlated to such characteristics as
defects-per-unit, parts-per-million defectives, and
the probability of a failure. Six is the number of
sigma measured in a process, when the variation
around the target is such that only 3.4 outputs out
of one million are defects under the assumption
that the process average may drift over the long
term by as much as 1.5 standard deviations. Six
Sigma is a quality improvement programmed with
a goal to reduce the number of defects to as low as
3.4 parts per million. It relies on the use of normal
distribution to predict defective rates. Six Sigma
qualities is a benchmark of excellence for product
and process quality, popularized by Motorola based
on zero defect concept introduced by Philip B
.Crosby. It provides a quantitative statistical notion
of quality useful in understanding, measuring and
reducing variation.[5]
A product is said to be of Six Sigma
quality if there are no more than 3.4 nonconformities per million opportunities at the part
and process step level. Six Sigma is an overall
strategy to accelerate improvement in its processes,
products and services. It is also a measurement of
total quality to let the company know how effective
it is in eliminating defects and variations from its
processes. It encompasses tools from all
improvement initiatives, including those in
operational, technical and customer excellence. It

just applies to every function in the company, not

just the factory floor. Six Sigma is a statistical
measurement, which helps us established our
course and gauge our pace in the race for total
customer satisfaction. It allows us to draw
comparison with other similar or dissimilar
product, services and processes. It is business
strategy which makes the customer more satisfied.
It can greatly help us to gain competitive edge.[6]
Six Sigma is a disciplined quality improvement
methodology that focuses on moving every process
that touches the customers-every product and
service-towards near perfect quality. It is a measure
of the companys quality. Six Sigma is more than a
quantitative statistical measure of processes. Six
Sigma is more than a quantitative statistical
measure of processes; it embraces every aspect of
work, using a disciplined, fact based approach to
problem solving. It is a new way of thinking about
work and customer value. It is also powerful force
to create one corporate culture; some of it is
bureaucracy busting-pushing down decisionmaking to lowest practical levels, empowering
employees. At the other end i.e. more complicated
challenges-including lean manufacturing initiatives
and variability reduction.[8]
.
2. HOW IS SIX SIGMA IMLEMENTED
A typical process for Six Sigma process
improvement has five phases: Define, Measure,
Analyze, Improve, and Control, denoted by
DMAIC. The DMAIC methodology is central to

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
Six Sigma process improvement projects. The
following phases provide a problem solving

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
process in which specific tools are employed to turn a
practical problem into a statistical problem, generate
a statistical solution and then convert that back into a
practical solution.

Figure: 1 DMAIC Cycle

2.1Define (D):
The purpose of the define phase is to clearly identify
the problem, the requirements of the project and the
objectives of the project. The objectives of the project
should focus on critical issues which are aligned with
the companys business strategy and the customers
requirements. The Define phase includes: define
customer requirements as they relate to this project.
Explicit customer requirements are called Critical
To- Quality (CTQ)characteristics ;develop defect
definitions as precisely as possible; perform a base
line study (a general measure of the level of
performance before the improvement project
commences); create a team character and champion ;
estimate the financial impact of the problem ; and
obtain senior management approval of the
project.[10]

2.2Measure (M):
The purpose of the measure phase is to fully
understand the current performance by identifying
how to best measure current performance and to start
measuring it . The measurements used should be
useful and relevant to identifying and measuring the
source of variation. This phase includes:
Identify
the specific performance
requirements of relevant critical- ToQuality (CTQ) characteristics ;
Map relevant process with identified input
and output so that at each process steps, the
relevant outputs and all the potential inputs
(X) that might impact each output are
connected to each other .
Generate list of potential measurements.

Analyze measurement system capability and

establish process capability base line.
Identify where errors in measurements can
occur.
Start measuring the inputs, processes and
outputs and collecting the data.
Validate that the problem exist based on the
measurements.
Refine the problem or objective (from the
analysis phase).[6]

2.3Analyze (A):
In the analyze phase the measurements
collected in the measure phase are analyzed so that
hypotheses about the root causes of variations in the
measurements can be generated and the hypotheses
subsequently validated. It is at this stage that practical
business problems are turned into statistical problems
and analyzed as statistical problems. This includes:

Generate hypotheses about possible root

causes of variation and potential critical
inputs (Xs)
Identify the vital few root causes and critical
inputs that have the most
Significant
impact and
Validate these hypotheses by performing
multivariate analysis.[8]

2.4 Improve (I):

The improve phase focuses on developing ideas to
remove root causes of variation, testing and
standardizing those solution. This involves
Identify ways to remove causes of variation.
Verify critical inputs.
Discover relationships between variables.
Establish operating tolerances which are the
upper and lower specifications limits (The
engineering or customer requirement) of a
process for judging acceptability of a
particular characteristic, and if strictly
followed will result in defect-free products
or services.
Optimize critical inputs or reconfigure the
relevant process.[12]
2.5Control(C):
The control phase aims to establish standard
measures to maintain performance and to
correct problems as needed, including
problems with the measurement system.
This includes:
Validate measurement systems.

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
Verify process long term
capability.
Implement process control with
control plan to insure that the
same problems dont reoccur by
continuously monitoring the
process that creates the products
or services.[9]
3. THE MAJOR LEVEL OF THE BELTS AND
COLORS:
3.1 Six Sigma Green Belt
Here the six sigma green belts operators are given
training to operate in the support or under the
supervision of a six sigma black belt. Trough this
certification the person is trained to analyze and solve
quality problems..[12]
3.2 Six Sigma Black belt
The candidates who had undergone six sigma black
belt certification is a professional who is capable in
the explanation of six sigma philosophies and the
principles. His knowledge also includes the
supporting systems and the tools. This certification
also deals with the training of the candidates in
developing the demonstration of the team leadership,
understanding team dynamics and assigning team
members roles and responsibilities. [12]
3.3Master Black Belt
The professional who had undergone the master
black belt certification are considered as a six sigma
quality experts and they are responsible for the
strategic implementations within an organization.
The training is given for the improvement of the
responsibilities of a master black belt, which includes
training and mentoring of black belts and the green
belts. t.[12]
3.4Yellow Belt
Six Sigma Yellow Belt certification provides with
the attendees an overall insight to the use age of the
six sigma techniques. The training is also given in the
field of six sigma metrics and the basic improvement
methodologies. The certification helps the trainees to
receive an idea about the introduction to the process
management and the basic tools of six sigma . Strong
understanding of the processes, enabling each
individual to provide meaningful assistance is the
other characteristics of the six sigma yellow belt
certification. The aim of this certification is the
achievement
of
the
organizations
overall
objectives.[12]

3.5Champion (S)
Selected senior executives and managers familiar
with basic and advanced statistical tools , who
allocate resources and remove barriers for Six Sigma
projects ;create the vision of Six Sigma for the
company, develop training plan ,select high impact
projects , select potential people , construct and
improve deployment mechanism , monitor SS project
review , recognize people for their efforts and
contribution.[12]
4.A CASE STUDY
4.1 Define:
4.1.1Background and Reason for selecting the
case:
Sales and service is the key to retain in the market,
increasing the business and profitability. IDEA is one
of the top company in a telecom sector, having large
no. Customer. But it was found that the sales of SIM
and Recharge are decreased Due to which Agency is
not able to achieve the target given by company. If it
is achieve then agency will get commission of 0.5%
per month on recharge.
4.1.2Project Charter:
Department: IDEA Telecom Service
Project Title: To increased the sale of IDEAs SIM
and Recharge by improving service
Goal statement: To achieve the target by increasing
sales.
Business case: This case study will support to
achieve the target with respect to sales and to track
down the root causes for failure.
Customers CTQ: Good Service
Scope: It will increased the sales
Opportunity Statement: 1. Improvement in service
2. Increase sales
Direct Benefits: Customer satisfaction, Source of the
project: Information gathered and Data collected
from Agency. Project Team and Plan.
Table 1 Project plan

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
4.1.3Process Flow Diagarm:
Process flow diagram prepared to understand the
sales of SIM and recharges.
ZONAL
OFFICE

RETAILE
R

DEALER

Fig.2 Process flow diagram

CUSTOMER

Fig.3 Bar-chart of sales of SIM Vs Month

4.1.4 Sipoc Digarm::

SIPOC prepared to know about the process, input,
output and customer which is shown in table2.
Table 2. SIPOC table
Supp
lier
Zonal
office
Deale
r

Input
Sim and
Recharge
Sim and
Recharge

Retail
er

Sim and
Recharge

Proce
ss
Sales

output

customer

Profit

Dealer

Sales

Target
achievement,
Profit,commis
ion
Profit

Retailer/us
ers

Sales

customers

4.2Measure:
In this phase data for monthly sale of SIM and
recharges since last seven month have been collected
.plan for data collection decided by team according to
plan data have collected and Bar chart is used to
represent the data collected.
Table 3.Data Collection Plan
SR.NO

MONTH

SALES
OF SIM

SALES OF
RECHARGE(
IN LAC.)

MAY

390

16

JUNE

310

16.30

JULY

330

15.50

AUG

320

15.70

SEPT

300

15.60

OCT

340

15.80

NOV

310

15.70

Fig.4 Bar-chart of sales Recharges Vs Month

4.2.1Current Performance:
Annual turnover- more than 1.9 cr. Appr.
Profit margin- 1.3% on Recharge
Profit on sim- 50 Rs./sim
Sales of SIM- 300-400 appr.
sales of Recharge- 16 lack./ month Appr.
Target of SIM- 600/month
Target of recharge- 17 lac./month Appr.
If target achieved agency will get commission of
0.5% on sales of recharge.
profit /month may increased upto 8500p.m.
Sigma Level (FOR SIM):
In this sigma level have been calculated and shown in
table 4.
4.2.2sigma level table for SIM:
Table.4 sigma level table for SIM
Sr. No.

Month

Target

Sales
of SIM

DPMO (
in ppm)

Sigma level

1
2
3
4
5
6
7

May
June
July
Aug
Sep
Oct
Nov

600
600
600
600
600
600
600

390
310
330
320
300
340
310

350000
500000
450000
466666
500000
433333
500000

1.9
1.5
1.6
1.6
1.5
1.7
1.5

4.2.3Sigma Level (FOR RECHARGE):

In this sigma level have been calculated in monthly
and shown in table 4.

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
Table.5 sigma level table for Recharges

4.3.3Cause and effect diagram:

Sr.
No.

Month

Target(
in lac.)

Salesof
recharge(L
ac)

DPMO
(in ppm)

Sigma level

May

17

16

4142

4.1

June

17

16.30

2900

4.3

July

17

15.50

6214

Aug

17

15.70

5385

Sep

17

15.60

5800

Oct

17

15.80

4971

4.1

Nov

17

15.70

5385

Fig.6 cause and effect diagram

4.3.4 Failure mode and effect analysis (FMEA):

4.3Analyze:
In this phase various tool like voice of customer,
pareto chart, cause and effect diagram have used to
find out the causes.
4.3.1Voice of Customer:
We have conducted survey to the retailer and
customers to find out what customer require as most
important to take care of and the response was as
under:
Ranking has been done as per customers
priority:
Poor network
high speed internet
Recharge should be available
Complaints should solve quickly at dealer
Fast sim activation within one day
Good schemes on sim and recharge
4.3.2Pareto chart:
Pareto chart On the Basis of Brainstorming of 100
Customer Who has Change Ser. Provider Using MNP
facility. Pareto chart used to find the causes which
have more impact on problem shown in fig.5

Fig.5. pareto chart of Customer Vs Causes

Table.6 FMEA analysis

POTENTIAL
FAILURE
MODE

POTENTIAL
EFFECTS

S
E
V

POTENTIAL CAUSES

DECREASED
SALES AND
SERVICE OF
IDEAS SIM
AND
RECHARGE

DISSATISFIED
CUSTOMER

10

POOR NETWORK
3 G NETWORK NOT
AVAILABLE
UNAVAILABILITY
OF
RECHARGE
UNABLE
TO
SOLVE
CUSTOMER
COMPLAINTS
AUTOMATIC BALANCE
DEDUCTION
LONG
ACTIVATION
PROCESS

BRAND
REPUTATION
AFFECTED

POOR COMMUNICATION
WITH CUSTOMER
DECREASE SALES

GROWTH OF
OTHERS
BRAND

POOR SERVICE FROM

IDEA

4.3.5Result of analysis:
On the basis of cause and effect diagram, FMEA,
Pareto chart and VOC. Root causes are identified and
recommendation are given which is implemented at
experimental level.

4.4Improve:
In the pilot Implementation it was decided by the
agency to implement the recommendation on
Experiment level for 1 month. Dec.12.
Result of pilot implementation:
sale of SIM in Dec. 570
sales of recharge- 16.70 lac.

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637
4.5Control:
It was found in pilot study that the sales of SIM
and recharge both increases, therefore it was
decided by the agency to continued work with
the given recommendation.
4.5.1Result:
After full implementation result are achieved so far
i.e.- sales of sim in jan13- 598 sales of recharge16.99 lac. Sigma level have been compared before
and after DMAIC which shown in table 5.8. In the
table it clearly shows that the sigma level of both
SIM and recharges of last two month have improved.

[3]

[4]

[5]

Table.9 comparison of Sigma level

Sr,
No

Month

Sales
of SIM

Sigm
a
Level
1.9
1.5

Sales of
Recharg
e
16
16.30

Sigm
a
Level
4.1
4.3

1
2

May12
June12

390
310

July12

330

1.6

15.50

Aug12

320

1.6

15.70

Sep12

300

1.5

15.60

6
7

Oct12
Nov12

340
310

1.7
1.5

15.80
15.70

4.1
4

DEC 12

570

3.2

16.70

4.6

JAN 13

598

4.2

16.99

5.5

CONCLUSION
In this we have successfully implemented DMAIC
methodology in service sector and improved sigma
level. This article attempts to summarize the
literature on six sigma application in services. It
shows that there is a limitation in the spread of six
sigma in services.

[6]

[7]

[8]

[9]

FUTURE SCOPE
The sigma level achieved after implementation of
DMAIC six sigma methodology can further
improved & new performance standards can be
realized. Six sigma methodologies expect that the
new learning will be validated & evaluated with
practice. \
REFERENCES

[1]

[2]

Desai, Tushar & Shrivastava, Dr. R. L.

(2012) An effective application of six
sigma design of experiment in process
industry,
Industrial
Engineering
Journal,Vol.2,
Desai, Tushar & Shrivastava, Dr. R. L.
(2010) The Origin, History and Definition
of Six Sigma: A Literature Review,

[10]

[11]

[12]

VNSGU journal of management and

Administration, ed. 2. Vol.2.
Desai, Tushar & Shrivastava, Dr. R. L.
(2008) Six Sigma A New Direction to
quality and Productivity Management ,
World Conference On Engineering And
Computer Science, San Francisco, USA.
Antony, Jiju (2004) Six Sigma In The
UK Service Organizations: Result From
Pilot Survey, Managerial Auditing Journal.
ed.8.Vol.19, Emerald Group Publishing Ltd.
Rhodes Jo, Lok Peter, Abe Diamond
And Nitin. The Six Sigma Approach in
Performance Management To Reduce Injury
Rate At Work, Institute Of Transport And
Logistic.
Zhan Qun , Muhammad Irfan And
Aamir Muhammad.(2012) Six sigma: a
Literature Review, Interdisciplinary Journal
of Contemporary Research in Business,
ed.10, Vol.3,
Desai, Tushar & Shrivastava, Dr. R. L.
(2012) An effective application of six
sigma design of experiment in process
industry,
Industrial
Engineering
Journal,Vol.2,
Desai, Tushar & Shrivastava, Dr. R. L.
(2010) The Origin, History and Definition
of Six Sigma: A Literature Review,
VNSGU journal of management and
Administration, ed. 2. Vol.2.
Desai, Tushar & Shrivastava, Dr. R. L.
(2008) Six Sigma A New Direction to
quality and Productivity Management ,
World Conference On Engineering And
Computer Science, San Francisco, USA.
Antony, Jiju (2004) Six Sigma In The
UK Service Organizations: Result From
Pilot Survey, Managerial Auditing Journal.
ed.8.Vol.19, Emerald Group Publishing Ltd.
Rhodes Jo, Lok Peter, Abe Diamond
And Nitin. The Six Sigma Approach in
Performance Management To Reduce Injury
Rate At Work, Institute Of Transport And
Logistic.
Zhan Qun , Muhammad Irfan And
Aamir Muhammad.(2012) Six sigma: a
Literature Review, Interdisciplinary Journal
of Contemporary Research in Business,
ed.10, Vol.3,

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637

International Journal of Research in Advent Technology, Vol.2, No.2, February 2014

E-ISSN: 2321-9637