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International Institute For Special Education


PREFACE To get success in today’s scenario, there are number of things, which should be properly analyzed, and then one should produce such an object, which carries a unique meaning with itself. In such a case we have to follow proper steps so that we can understand the gap and try to fill the gap. Theoretical knowledge is one thing, and the practical application of the knowledge is another thing. Theories and ideas are successful only when they are practically implemented. Owing to this importance vested to practicality, I have undertaken this project. Through this I will try to reveal and analyze the importance of Six Sigma and its implementation at the corporate level. I will try to show how Six Sigma approaches are used successfully by an Insurance giant which has faced various competitions, named ‘Bajaj Capital’. In the execution of this project various problems that were encountered includes finding out the right prospects and surfing the internet more and more for knowledge of its competitor. .



ACKNOWLEDGEMENT An endeavor over a long period can be successful only with the advice and guidance of our well-wishers. I take this opportunity to express my deep gratitude and appreciation to God and all those who encouraged me to successfully complete the project work. I take this opportunity to sincerely thank Mr. XYZ (Faculty), who introduced me to the fascinating subject of impact of Six Sigma and sharing his encyclopedic knowledge on the subject, which is going to be instrumental in shaping my career in the area of Six Sigma. I would like to express my heart-felt gratitude to Mr. XYZ, Regional Manager who guided me and told me the whole process of the company. He briefed me about every relevant and important detail. He patiently answered my queries and helped me in getting my required information. I would like to thank all my friends for their help and affectionate encouragement. I want to thank my Parents for their support during this study; it would have been impossible to pursue this study without their care and support.










Executive Summary


Company Overview


Objective of the Project


Introduction to six sigma


PROCESS FLOW CHART (Before Six Sigma Implementation)


Six Sigma in Bajaj capital


PROCESS FLOW CHART (After Six Sigma Implementation)

11 SWOT Analysis 12 13

Conclusion Bibliography



BACKGROUND: In a growing economy like ours, the need to introduce 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 and implementing optimal systems. There are many management sciences which steer to productivity improvement programmes in different spheres of economic activities. In India and all over the world, Business process reengineering, perhaps, is pioneering management science which found its application in industry for resources utilization. Winning in today’s business climate requires more than just providing high-quality, low-cost products to customers, when and how the customers want them. Today the economy is changing its pace shifting economic 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 more satisfaction to the customers for that Six Sigma is required. Here in this 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:


The proposed research is exploratory & research based. The researcher 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 the organization.

COMPANY OVERVIEW _________________________________________________________

The Bajaj Capital Group is one of India’s premier Investment Advisory and Financial Planning companies. We are also SEBIapproved Category I Merchant Bankers. We offer personalized Investment Advisory and Financial Planning services to individual investors, corporate houses, institutional investors, Non-Resident Indians (NRIs) and High Net worth Clients, among others. As one of India’s largest distributors of financial products, we offer a wide range of investment products such as mutual funds, life and general insurance, bonds, post office schemes, etc. offered by reputed public and private and government organizations. Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s 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.



Bajaj Capital has contributed to the growth of the Indian Capital Market at every step. In 1965, we were the first to innovate the Companies Fixed Deposit. Today, we are playing an active role in the growth of the Indian Mutual Fund industry. We are also working closely with private insurance companies to deepen India's insurance market. Here is a brief gist of our journey throug the years. 1964 Bajaj 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 incorporated in the same year. 1965 Bajaj Capital is incorporated as a Company. In the same year, the company introduces an innovative financial instrument – the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then known as Associated Hotels of India Ltd.) becomes the first company to raise resources through Company Fixed Deposits. _________________________________________________________

1966 Bajaj Capital expands its product range to include all UTI schemes and Government saving schemes in addition to Company Fixed Deposits. 1969 Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells India Ltd.; right from drafting the prospectus to marketing the issue. 1975 Bajaj Capital starts offering 'need-based' investment advice to investors, which would later be known as 'Financial Planning' in the investment world. 1981 SAIL becomes the first government company to accept deposits, followed by IOC, BHEL, BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in India. Bajaj Capital plays an active role in all the schemes as 'Principal Brokers' 1986 Public 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. 1987 _________________________________________________________

SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital plays a significant role in fund mobilisation for all these players. 1991 SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobiliser with collections of over US $20 million. 1993 The first private sector Mutual Fund – Kothari Pioneer – is launched, followed by Birla and Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top mobilisers for all these schemes. 1995 IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the co-manager in all these offerings and consistently ranks among the top five mobilisers on an all-India basis. 1997 Private sector players lead the revival of Mutual Funds in India through Open-ended Debt schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual Funds. 1999 Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the milestone of becoming the top 'Pension Scheme' seller in India and _________________________________________________________

launches marketing of GIC's Health Insurance schemes. 2000 Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The Company offers all kinds of financial products, including the entire range of investment and insurance products through its Investment Centres. Bajaj Capital offers 'full-service merchant banking' including structuring, management and marketing of Capital issues. Bajaj Capital reinvents 'Financial Planning' in its international sense and upgrades its entire team of Investment Experts into Financial Planners. 2002 The company focuses on creating investor awareness for Financial Planning and need-based investing. To achieve this goal, the company introduced the International College of Financial Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted professional qualification. 2004 Bajaj Capital obtains the All India Insurance Broking Licence. Simultaneously, a series of wealth creation seminars are launched all over the country, making Bajaj Capital a household name. 2005 Bajaj Capital launches 360째 Financial Planning, a software-based programme aimed at encouraging scientific and holistic investing. 2007 Bajaj Capital launches Stock Broking and Depository(Demat) Services. _________________________________________________________

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


Company Profile Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s 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.

At Bajaj Capital, we believe in dreaming big. Dreams inspire us to excel. They ignite hope and kindle in us the passion to stretch our limits. We also believe that nothing can or should stop us from realising our dreams… and financial constraints should be the last thing to stop anyone. Four decades of excellence For over four decades, we have been helping 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 advisory companies in India, with a strong presence all over the country.


We take pride in serving our customers – both individual and institutional – and are known for our strong professionalismand work ethics. Wide range of services We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major companies, both public and private. In addition, we also provide investment assistance by helping you complete all the formalities, 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 aSEBI-approved Category I Merchant Banker. We raise resources for over 1,000 top institutions and corporate houses every year, and offer specialised services to Non-Resident Indian (NRIs) and High Networth Clients. What you can expect from us     

Sound, research-based advice Unbiased, independent and need-based advice Prompt, courteous service Honest, ethical dealings Accessibility


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 process and then use Six Sigma tools to improve the existing process, which add value to the customer and increase the profit of an organization and reduce the time of the whole process.


INTRODUCTION TO SIX SIGMA Six Sigma is a business management strategy, originally developed by Motorola that today enjoys wide-spread application in many sectors of industry. Six Sigma seeks to identify and remove the causes of defects and errors in manufacturing and business processes.It uses a set of quality management methods, including statistical methods, and creates 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 defined sequence of steps and has quantified financial targets (cost reduction 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 kinds in manufacturing, service delivery, management, and other business activities. Six Sigma methodologies is based on the combination of well-established statistical quality control techniques, simple and advanced data analysis methods, and the systematic training of all personnel at every level in the organization involved in the activity or process targeted by Six Sigma.

Why is it important? _________________________________________________________

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 you are 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 project with a Black Belt returning as much as $1 million to the bottom line each year. The popularity of Six Sigma is growing. Companies such as Motorola (1987), Texas Instruments (1988), IBM (1990), Asea Brown Boveri (1993), Allied Signal/Kodak (1994), GE (1995), Whirlpool, PACCAR, Invensys, & Polaroid (1996/98), and many other companies worldwide have successfully implemented Six Sigma. Recently Ford, DuPont, Dow Chemical, Microsoft and American Express have started working on instituting Six Sigma processes.

How does it work? The power of Six Sigma lies in its "empirical," data-driven approach (and its focus on using quantitative measures of how the system is performing) to achieve the goal of the process improvement and variation reduction. That is done through the application 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: _________________________________________________________

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) sigma level.

Measure. The goal of the Measure phase of the Six Sigma strategy is to gather information about the current situation, to obtain baseline data on current process performance, and to 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 appropriate data analysis tools.

Improve. The goal of the Improve phase is to implement solutions that address the problems (root causes) identified during the previous (Analyze) phase.

Control. The goal of the Control phase is to evaluate and monitor the results of the previous phase (Improve).


Six Sigma aims at reducing variations in a business and manufacturing process via dedicated improvements in the various processes. This requires a sustained commitment from all members of the organization. This principle has been perfectly brought about by the DMAIC methodology, which aims at bringing about process improvement by eliminating defects. It is generally defined as a set of practices which are aimed at bringing about improvement in efficiency and eliminating defects. Among the many methodologies and strategies that Six Sigma allows is the DMAIC Model. It stands for Define-MeasureAnalyze-Improve and Control. This model plays an important role in 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 reducing defects 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 DPMO _________________________________________________________

levels or sigma quality levels, RTY, Quality Cost etc. In the overall 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 ‘x’s) and key process output variables (KPOVs or ‘y ’s). The power of statistical tools is used to determine a statistical solution. This is then converted in to a practical solution.

PROCESS FLOW CHART (Before Six Sigma Implementation) Company, as a financial planner offer a host of products from auto insurance to retirement solutions of different companies



There is no separate advisor for different company’s product

Customer may get confused

If customer is satisfied Yes


Go for other company

Take the policy



Six Sigma in Bajaj Capital


The process of six sigma in BAJAJ CAPITAL can be applied through DMAIC methodology. The various steps involved in the process of implementation are: Define: In the define stage, the company should make efforts to identify the problem. The problem is the time take by the administration department for completing the work. Due to this problem the customers have lost their faith in the company. For the implementation, a special team should be made. This is the first step that refers to defining the goals of the project. Process improvement goals may be aimed at increasing 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 demands and the strategic goals of the organization. Data mining methods can be used to find prospective ideas for project implementation. In other words, businesses are designing a road map for achieving the targets and goals of the organization. PROBLEM STATEMENT ď ś Confuse about the chosen of product and problem in documentation. PROJECT OBJECTIVE


ď ś Use separate advisor for different companies product according to need of customer. ď ś Use online enroll.

Measure: This phase refers to the analysis of the existing system with various measurement techniques for the defects and levels of perfection that exist. In this step, accurate metrics have to be used to 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 determine any disparity that may exist in the goals set and the current performance levels achieved. Various statistical tools are available to undertake such an analysis. The understanding of the relationship between cause and effect is necessary to bring about any improvements, if needed. _________________________________________________________

Improve: The next step is to study the impact of the critical input variables in the existing process. As we all know that after implementing six sigma exercises, all the process will go smooth and the better result come in our hand. Through the software and some of the technology, we are trying to implement six sigma in the Bajaj Capital. Improvements in existing systems are necessary to bring the organization towards achievement of the organization goals. Creative development of processes and tools brings about a new lease on life for the organization's processes and takes them nearer to organizational objectives. Various project management and planning tools can be used to implement these new techniques and processes. Appropriate usage of statistical tools is important to measure the data, which is necessary to understand improvements done and any shortcomings that may exist.



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 that variations in the processes are rectified before they have a negative effect. Controls can be used to ensure sustained improvements in new processes and operating procedures. The new project components should become a part and parcel of existing processes. Once all the factors are performing to satisfaction, transfer of ownership should be done to process owners and process teams. The DMAIC model is extremely beneficial in bringing about the change which the Six Sigma project aims at and has the ability to show 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 the organization. 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 performance improvement methodology that leads to: _________________________________________________________

• Improved service to top priority customers • Realization of customer initiatives • Improved employee satisfaction • Reduced complaints and associated costs


PROCESS FLOW CHART (After Six Sigma Implementation) Company, as a financial planner offer a host of products from auto insurance to retirement solutions of different companies


There are separate advisor for different company’s product

Customer mayn’t get confused

Customer may not Go for other option

No Take the policy


Yes Go for other company DOCUMENTATION

Online Enroll, less time taking


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 Quality Management (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 a very short time. 6 Sigma focuses on process orientation, enabling organizations to identify key business processes that are necessary for improving customer satisfaction. This helps managers in understanding the exact requirements of their customers and in altering business processes to suit customer needs and expectation. • Follows A Disciplined Approach Six Sigma has helped insurance companies in improving quality as well as reducing costs of services offered. It has enabled insurance companies 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 based on statistical data. With the use of Six Sigma tools and techniques, managers no longer have to rely on their perceptions or gut


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 still largely governed by sustained personal contact. By implementing 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 setup, evaluating its strengths, weaknesses, threats and opportunities available: SWOT ANALYSIS OF BAJAJ CAPITAL Strengths: 1. 2. 3. 4. 5. 6. 7. 8.

Highly experienced management. Product design and development capabilities. Extensive R & D focus. Widespread distribution network. High performance products across all categories. Great financial support network High economies of scale. High economies of scope.

Weaknesses: 1. Hasn't employed the excess cash for long. _________________________________________________________

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 successful effort to cut down stress levels. 3. Qualities like leadership, communication skills, negotiating skills and an impressive personality should bedeveloped.


CONCLUSION The organization is very successful in the rightful implementation of the Six Sigma approach. The usability of Six Sigma in the services sector is easily evident from the increasing number of finance and insurance companies that are opting for 6 Sigma. Consumers are increasingly becoming aware of the quality of services being offered to them, making it essential for the services industry to implement quality improvement techniques like Six Sigma for conforming to customer expectations. Through 6 Sigma emphasizes on understanding the needs of the customers before making any changes to business processes. This helps insurance companies in building customer loyalty among their policyholders, which is necessary for the long-term success of any business organization. Insurance companies can also hope to increase their market share, as satisfied customers are most likely to recommend a company that offers quality services while advising a friend, relative or business associate .Bajaj Capital has been successful in providing immediate support and service to its customers through properly understanding their need and fulfilling those needs though customized products.


. . Select Bibliography Books: • 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- a developmental approach

Website: • • • •



SIX SIGMA IN International Institute For Special Education _________________________________________________________ XYZ ___________________...