Deepika Singh Six Sigma 1101

8/8/2019 Deepika Singh Six Sigma 1101

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ACKNOWLEDGEMENT

An endeavor over a long period can be successful only with theadvice and guidance of our well-wishers. I take this opportunity toexpress my deep gratitude and appreciation to God and all thosewho encouraged me to successfully complete the project work.

I take this opportunity to sincerely thank Mr. Satyendra Singh(Faculty), IISE Lucknow who introduced me to the fascinating

subject of impact of Six Sigma and sharing his encyclopedicknowledge on the subject, which is going to be instrumental inshaping my career in the area of Six Sigma.I would like to express my heart-felt gratitude to Mr. ArvindKumar, Regional Manager (Eastern UP) who guided me and toldme the whole process of the company. He briefed me about everyrelevant and important detail. He patiently answered my queriesand helped me in getting my required information.

I would like to thank all my friends for their help and affectionateencouragement. I want to thank my Parents for their support duringthis study; it would have been impossible to pursue this studywithout their care and support.

DEEPIKA SINGH

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CONTENT SHEET

Chapter No Topics

1 Preface

2 Acknowledgement

3 Executive Summary

4 Company Overview

6 Objective of the Project

7 Introduction to six sigma

8 PROCESS FLOW CHART (BeforeSix Sigma Implementation)

9 Six Sigma in Bajaj capital

10 PROCESS FLOW CHART (After Six Sigma Implementation)

11SWOT Analysis

12Conclusion

13 Bibliography

EXECUTIVE SUMMARY

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BACKGROUND:

In a growing economy like ours, the need tointroduce productivity techniques, measures and methods requires barely any emphasis. The finite nature of material and other resources requires a reappraisal of contemporary methods of management and manufacture with stress laid on revising andimplementing optimal systems. There are many managementsciences which steer to productivity improvement programmes indifferent spheres of economic activities. In India and all over theworld, Business process reengineering, perhaps, is pioneeringmanagement science which found its application in industry for resources utilization. Winning in todays business climaterequires more than just providing high-quality, low-cost products to customers, when and how thecustomers want them .

Today the economy is changing its pace shiftingeconomic needs . Every organization tries to maintain their

position with changing their business process or introduced a new process or developing the existing process that they provide moresatisfaction to the customers for that Six Sigma is required. Here inthis project researcher tried to find out the processes of chosen any

product of Bajaj Capital.Objectives

To identify the current process. To identify the root cause(s) in the existing process. To use six sigma steps in the process(es)

Research methodology:

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The proposed research is exploratory & research based. Theresearcher try to achieve the objectives through self study,interviews of concern people, internet etc. all the aspect of the

research is thoroughly covered with appropriate technical support.

Major Findings:If the organization goes through Six Sigma in

their service provide pattern and documentation of their product(mainly in insurance), it helps both consumer as well as theorganization.

COMPANY OVERVIEW

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The Bajaj Capital Group is one of Indias premier InvestmentAdvisory and Financial Planning companies. We are also SEBI-approved Category I Merchant Bankers .

We offer personalized Investment Advisory and Financial Planningservices to individual investors , corporate houses, institutionalinvestors , Non-Resident Indians (NRIs) and High Net worthClients, among others .

As one of Indias largest distributors of financial products, we offer a wide range of investment products such as mutual funds, life andgeneral insurance, bonds, post office schemes, etc. offered byreputed public and private and government organizations.

Bajaj Capital is one of Indias leading Financial Servicescompanies offering Free Advice on Investments, Insurance, TaxSaving, Retirement Planning, Financial Planning, Childrens

Future Planning and other services. We also have a wide range of products and services for Corporates, High Networth Individuals,and NRIs all under one roof.

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THE HISTORY OF BAJAJ CAPITAL

Bajaj Capital has contributed to the growth of theIndian Capital Market at every step.

In 1965, we were the first to innovate theCompanies Fixed Deposit. Today, we are playing an active role inthe growth of the Indian Mutual Fund industry.

We are also working closely with private insurance companies todeepen India's insurance market.

Here is a brief gist of our journey throug the years.

1964Bajaj Capital sets up its first Investment Centre in New Delhi to

guide individual investors on where, when and how to invest.

India's first Mutual Fund, Unit Trust of India (UTI) is incorporatedin the same year.

1965Bajaj Capital is incorporated as a Company. In the same year, the

company introduces an innovative financial instrument theCompany Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known asAssociated Hotels of India Ltd.) becomes the first company to raiseresources through Company Fixed Deposits.

1966

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Bajaj Capital expands its product range to include all UTI schemesand Government saving schemes in addition to Company FixedDeposits.

1969Bajaj Capital manages its first Equity issue (through an associatecompany) of Grauer & Wells India Ltd.; right from drafting the

prospectus to marketing the issue.

1975Bajaj Capital starts offering 'need-based' investment advice toinvestors, which would later be known as 'Financial Planning' inthe investment world.

1981SAIL becomes the first government company to accept deposits,followed by IOC, BHEL, BPCL, HPCL and others; thus openingthe floodgates for growth of retail investment market in India.

Bajaj Capital plays an active role in all the schemes as 'PrincipalBrokers'

1986Public Sector Undertakings (PSUs) begin making public issues of

bonds MTNL, NHPC, IRFC offer a series of Bond Issues. Bajaj

Capital is among the top ranks of resource mobilisers.

1987SBI leads the launch of Public Sector Mutual Funds in India. BajajCapital plays a significant role in fund mobilisation for all these

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players.

1991

SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobiliser with collections of over US $20 million.

1993The first private sector Mutual Fund Kothari Pioneer islaunched, followed by Birla and Alliance in the following years.Bajaj Capital plays an active role and is ranked among the topmobilisers for all these schemes.

1995IDBI and ICICI begin issuing their series of Bonds for retailinvestors. Bajaj Capital is the co-manager in all these offerings andconsistently ranks among the top five mobilisers on an all-India

basis.

1997Private sector players lead the revival of Mutual Funds in Indiathrough Open-ended Debt schemes. Bajaj Capital consolidates its

position as India's largest retail distributor of Mutual Funds.

1999Bajaj Capital begins marketing Life and General Insurance

products of LIC and GIC (through associate firms) in anticipationof opening up of the Insurance Sector. Bajaj Capital achieves themilestone of becoming the top 'Pension Scheme' seller in India andlaunches marketing of GIC's Health Insurance schemes.

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2000Bajaj Capital implements its vision of being a 'One-stop FinancialSupermarket.' The Company offers all kinds of financial products,

including the entire range of investment and insurance productsthrough its Investment Centres. Bajaj Capital offers 'full-servicemerchant banking' including structuring, management andmarketing of Capital issues. Bajaj Capital reinvents 'FinancialPlanning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners.

2002The company focuses on creating investor awareness for FinancialPlanning and need-based investing. To achieve this goal, thecompany introduced the International College of FinancialPlanning. The graduates of this institute become CertifiedFinancial Planners (CFPs), a coveted professional qualification.

2004

Bajaj Capital obtains the All India Insurance Broking Licence.Simultaneously, a series of wealth creation seminars are launchedall over the country, making Bajaj Capital a household name.

2005Bajaj Capital launches 360 Financial Planning, a software-based

programme aimed at encouraging scientific and holistic investing.

2007Bajaj Capital launches Stock Broking and Depository(Demat)Services.

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2008Bajaj Capital launches Just Trade, an online Platform for investingin Equities, Mutual Funds, IPO's

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Company Profile

Bajaj Capital is one of Indias leading Financial Servicescompanies offering Free Advice on Investments, Insurance, TaxSaving, Retirement Planning, Financial Planning, ChildrensFuture Planning and other services. We also have a wide range of

products and services for Corporates, High Networth Individuals,and NRIs all under one roof.

At Bajaj Capital, we believe in dreaming big. Dreams inspire us toexcel. They ignite hope and kindle in us the passion to stretch our limits. We also believe that nothing can or should stop us fromrealising our dreams and financial constraints should be the lastthing to stop anyone.

Four decades of excellence For over four decades, we have beenhelping people realise their aspirations by helping them make their wealth grow, and plan their financial lives. Today, we are a one of the largest financial planning and investment advisorycompanies in India, with a strong presence all over the country.We take pride in serving our customers both individual and

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institutional and are known for our strong professionalismandwork ethics. Wide range of services We offer a comprehensive range of services including financial

planning and investment advice, and the entire gamut of financialinstruments and investment products of almost all major companies, both public and private. In addition, we also

provide investment assistance by helping you complete all theformalities, and help you keep regular track of your investments.

These services and products are delivered through our network of 134 Bajaj Capital Investment Centres located all over the country.

We are also a SEBI-approved Category I Merchant Banker. Weraise resources for over 1,000 top institutions and corporate housesevery year, and offer specialised services to Non-Resident Indian(NRIs) and High Networth Clients.

What you can expect from us

Sound, research-based adviceUnbiased, independent and need-based advicePrompt, courteous serviceHonest, ethical dealingsAccessibility

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Objective of the Project

The objective of the project is to understand the Six

Sigma technique and how it is used in the process of organization.The main objective is to understand the current business processand then use Six Sigma tools to improve the existing process,which add value to the customer and increase the profit of anorganization and reduce the time of the whole process.

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INTRODUCTION TO SIX SIGMA

Six Sigma is a business management strategy, originally developed by Motorola that today enjoys wide-spread application in manysectors of industry.

Six Sigma seeks to identify and remove the causes of defects anderrors in manufacturing and business processes .It uses a set of quality management methods, including statistical methods , andcreates a special infrastructure of people within the organization("Black Belts" etc.) who are experts in these methods.Each Six

Sigma project carried out within an organization follows a definedsequence of steps and has quantified financial targets (costreduction or profit increase).

What is "Six Sigma"?

Six Sigma is a well-structured, data-driven methodology for

eliminating defects, waste, or quality control problems of all kindsin manufacturing, service delivery, management, and other

business activities. Six Sigma methodologies is based on thecombination of well-established statistical quality controltechniques, simple and advanced data analysis methods, and thesystematic training of all personnel at every level in theorganization involved in the activity or process targeted by Six

Sigma.

Why is it important?

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http://en.wikipedia.org/wiki/Business_managementhttp://en.wikipedia.org/wiki/Motorolahttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Quality_managementhttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Motorolahttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Business_processhttp://en.wikipedia.org/wiki/Quality_managementhttp://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Business_management


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World-class companies typically operate at about four sigma or 99% perfection. To get to the six-sigma level means cutting down

on huge costs and thereby the wasted dollars. For example, if youare four sigma - you would be producing products at the rate of 6200 defectives for every million you produce vs. 3.4 defectives if you are at the six sigma level. Moreover, six sigma improvement

projects typically return in excess of $150k to $250k per projectwith a Black Belt returning as much as $1 million to the bottomline each year.

The popularity of Six Sigma is growing. Companies such asMotorola (1987), Texas Instruments (1988), IBM (1990), AseaBrown Boveri (1993), Allied Signal/Kodak (1994), GE (1995),Whirlpool, PACCAR, Invensys, & Polaroid (1996/98), and manyother companies worldwide have successfully implemented SixSigma. Recently Ford, DuPont, Dow Chemical, Microsoft andAmerican Express have started working on instituting Six Sigma

processes.

How does it work?

The power of Six Sigma lies in its "empirical," data-drivenapproach (and its focus on using quantitative measures of how the

system is performing) to achieve the goal of the processimprovement and variation reduction. That is done through theapplication of so-called "Six Sigma improvement projects" which,in turn, follow the "Six Sigma DMAIC" sequence of steps (Define,Measure, Analyze, Improve, and Control). Specifically:

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Define. The Define phase is concerned with the definition of

project goals and boundaries, and the identification of issues

that need to be addressed to achieve the higher (better) sigmalevel.

Measure. The goal of the Measure phase of the Six Sigmastrategy is to gather information about the current situation,to obtain baseline data on current process performance, andto identify problem areas.

Analyze. The goal of the Analyze phase of the Six Sigma

quality effort is to identify the root cause(s) of quality problems, and to confirm those causes using the appropriatedata analysis tools.

Improve. The goal of the Improve phase is to implement

solutions that address the problems (root causes) identifiedduring the previous ( Analyze ) phase.

Control. The goal of the Control phase is to evaluate and

monitor the results of the previous phase ( Improve ).

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Six Sigma aims at reducing variations in a businessand manufacturing process via dedicated improvements in thevarious processes. This requires a sustained commitment from all

members of the organization.

This principle has been perfectly brought about by the DMAICmethodology, which aims at bringing about process improvement

by eliminating defects. It is generally defined as a set of practiceswhich are aimed at bringing about improvement in efficiency andeliminating defects.

Among the many methodologies and strategies that Six Sigmaallows is the DMAIC Model. It stands for Define-Measure-Analyze-Improve and Control. This model plays an important rolein making the Six Sigma initiative a success for businesses. Black Belts follow this model to base their process improvement projects.

The model was developed by Edwards Deming, aimed at reducingdefects through improvement in processes.

The Six Sigma Methodology:

The projects having large impact of customer satisfaction and

significant impact on bottom-line are selected. Top management of the organization has very important role during selection of

projects and leaders. The projects are clearly defined in terms of expected key deliverables. These are typically in terms of DPMOlevels or sigma quality levels, RTY, Quality Cost etc. In the overall

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approach, the actual problem is converted in to a statistical problem. This is done by mapping the process, defining key process input variables (KPIVs or xs) and key process output

variables (KPOVs or y s). The power of statistical tools is used todetermine a statistical solution.This is then converted in to a practical solution.

PROCESS FLOW CHART (Before Six SigmaImplementation)

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Company, as a financial planner offer a host of products from autoinsurance to retirementsolutions of differentcompanies

CUSTOMER APPROACH


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_________________________________________________________IISE, LUCKNOW

There is no separateadvisor for differentcompanys product

Customer mayget confused

If customer issatisfied

Yes

DOCUMENTATION

Go for other company

Take the policy


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Six Sigma in Bajaj Capital

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The process of six sigma in BAJAJ CAPITAL can be appliedthrough DMAIC methodology. The various steps involved in the

process of implementation are:

Define:

In the define stage, the company should make efforts to identifythe problem. The problem is the time take by the administrationdepartment for completing the work. Due to this problem thecustomers have lost their faith in the company. For theimplementation, a special team should be made.

This is the first step that refers to defining the goalsof the project. Process improvement goals may be aimed atincreasing market share, the output of a particular department,

bringing about improved employee satisfaction as well as customer satisfaction and so on. The goal has to align the customer demandsand the strategic goals of the organization. Data mining methodscan be used to find prospective ideas for project implementation. Inother words, businesses are designing a road map for achieving thetargets and goals of the organization.

PROBLEM STATEMENT

Confuse about the chosen of product and problem in

documentation.

PROJECT OBJECTIVE

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Use separate advisor for different companies productaccording to need of customer.

Use online enroll.

Measure:

This phase refers to the analysis of the existing system withvarious measurement techniques for the defects and levels of

perfection that exist. In this step, accurate metrics have to be usedto define a baseline for further improvements.

This helps Six Sigma team leaders understand if progress has been achieved when process improvements are implemented.

Analyze:-

This phase is extremely important in order to determineany disparity that may exist in the goals set and the current

performance levels achieved. Various statistical tools are availableto undertake such an analysis.

The understanding of the relationship between cause andeffect is necessary to bring about any improvements, if needed.

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Improve:

The next step is to study the impact of the critical input variables inthe existing process. As we all know that after implementing sixsigma exercises, all the process will go smooth and the better resultcome in our hand. Through the software and some of thetechnology, we are trying to implement six sigma in the BajajCapital.

Improvements in existing systems are necessary to bring theorganization towards achievement of the organization goals.Creative development of processes and tools brings about a newlease on life for the organization's processes and takes them nearer to organizational objectives.

Various project management and planning tools can be used toimplement these new techniques and processes. Appropriate usageof statistical tools is important to measure the data, which isnecessary to understand improvements done and any shortcomingsthat may exist.

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SOME OF THE TECHNOLOGY:

File Management System

The entire Documentation process is done by online Enroll.

Control:

The last phase of DMAIC is the Control phase. It helps ensure thatvariations in the processes are rectified before they have a negative

effect. Controls can be used to ensure sustained improvements innew processes and operating procedures.

The new project components should become a part and parcel of existing processes. Once all the factors are performing tosatisfaction, transfer of ownership should be done to processowners and process teams.

The DMAIC model is extremely beneficial in bringing about thechange which the Six Sigma project aims at and has the ability toshow good business results .In order to control the process of implementation in the company,

proper systems should be set up to measure the performance of theorganization. It may be a team or a software to monitor all these

performances.

Six Sigma Provides Results Increasingly, financial services businesses are seeing the power of Six Sigma as a performanceimprovement methodology that leads to:

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Improved service to top priority customers

Realization of customer initiatives Improved employee satisfaction Reduced complaints and associated costs

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PROCESS FLOW CHART (After Six Sigma Implementation)

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CUSTOMER APPROACH

There are separateadvisor for differentcompanys product

Customer mayntget confused

Take the policy

Company, as a financial planner offer a host of products from autoinsurance to retirementsolutions of differentcompanies

Customer may notGo for other option


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_________________________________________________________IISE, LUCKNOW

Yes

DOCUMENTATION

Go for other company

Online Enroll, lesstime taking


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BENEFITS

The process of six sigma implementation will help the

organization to reap some benefits like:

Identifies Key Business Processes

Unlike other quality management practices such as Total QualityManagement (TQM) whose effectiveness is difficult to measure,Six Sigma based improvement programs make use of statistical

tools, which can measure the effect of changes being made in avery short time. 6 Sigma focuses on process orientation, enablingorganizations to identify key business processes that are necessaryfor improving customer satisfaction. This helps managers inunderstanding the exact requirements of their customers and inaltering business processes to suit customer needs and expectation.

Follows A Disciplined Approach

Six Sigma has helped insurance companies in improving quality aswell as reducing costs of services offered. It has enabled insurancecompanies to follow a disciplined approach, which has helped in

preventing errors, minimizing hand-offs, and eliminating rework and workarounds. It has also helped in increasing the speed of

business processes used in the insurance industry.

Helps In Making Informed Decisions

6 Sigma has enabled managers in taking informed decisions basedon statistical data. With the use of Six Sigma tools and techniques,managers no longer have to rely on their perceptions or gut

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feelings for rendering the level of services promised to policyholders, clients, and prospects.

Helps In Building Customer Loyalty This is especially true for the insurance industry where the

relationship between the insurer and the insured is stilllargely governed by sustained personal contact. Byimplementing 6 Sigma programs, insurance companies have

been able to offer quality services at affordable rates to their customers.

Internal Factors - Strengths & Weaknesses

SWOT Analysis

Let's analyze the position of Bajaj capital in the current market set-up, evaluating its strengths, weaknesses, threats and opportunitiesavailable:

SWOT ANALYSIS OF BAJAJ CAPITAL

Strengths:

1. Highly experienced management.2. Product design and development capabilities.3. Extensive R & D focus.4. Widespread distribution network.5. High performance products across all categories.6. Great financial support network 7. High economies of scale.8. High economies of scope.

Weaknesses:

1. Hasn't employed the excess cash for long.

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2. Not a global player in spite of huge volumes.3. Not a globally recognizable brand

Threats:

1. The competition catches-up any new innovation in no time.2. Margins getting squeezed from both the directions (Price as

well as Cost)

Opportunities:1. Every team member is given a chance to excel, and the

efforts of every performer is recognised.2. There is a supportive, healthy work culture where everyone is

treated equally. Bajaj Capital has also made a successfuleffort to cut down stress levels.

3. Qualities like leadership, communication skills, negotiating

skills and an impressive personality should bedeveloped.

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CONCLUSION

The organization is very successful in the rightfulimplementation of the Six Sigma approach. The usability of SixSigma in the services sector is easily evident from the increasing

number of finance and insurance companies that are opting for 6Sigma. Consumers are increasingly becoming aware of the qualityof services being offered to them, making it essential for theservices industry to implement quality improvement techniqueslike Six Sigma for conforming to customer expectations.

Through 6 Sigma emphasizes on understanding the needs of thecustomers before making any changes to business processes. Thishelps insurance companies in building customer loyalty amongtheir policyholders, which is necessary for the long-term success of any business organization. Insurance companies can also hope toincrease their market share, as satisfied customers are most likelyto recommend a company that offers quality services whileadvising a friend, relative or business associate .Bajaj Capital has

been successful in providing immediate support and service to itscustomers through properly understanding their need and fulfillingthose needs though customized products.

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.

.

Select BibliographyBooks:

Marketing Management by Philip H Kotler Six Sigma by Thomas Kangon Six Sigma Primer (IISE)

Magazines:

K. L. K. Rao and Ramesh Tagat: Six Sigma- adevelopmental approach

Website:

www.marketingterms.com www.google.com www.ask.com www.bajajcapital.com

Documents

Deepika Singh Six Sigma 1101