six sigma

Topics: Process management, ISO 9000, Quality assurance Pages: 111 (3935 words) Published: May 11, 2014
Six Sigma
Concepts in Quality Management:
Sessions 1 and 2

Lecture Objectives








Overview of Quality Management
Total Quality Management defined
Quality Specifications and Costs
TQM Tools; External Benchmarking
ISO 9000
Service Quality Measurement
Six Sigma Quality

Defining Quality
Perfection
Providing a good, usable product
Eliminating waste
Consistency
Fast delivery
Fitness for use
Doing it right the first time
Delighting or pleasing customers
Total customer service and
satisfaction

What is Six Sigma?
• Six Sigma is a business improvement approach
• Seeks to find and eliminate causes of defects and
errors in manufacturing and service processes
• Focuses on outputs that are critical to customers
and a clear financial return for the organization
• Aims at producing no more than 3.4 ppm defects
• Pioneered by Motorola in the mid-1980s
• Popularized by the success of General Electric

Evolution of Quality Management
Six Sigma
Quality
Mgmt
Systems
Taguchi
DOE

SPC
Inspection
1930 1950

1975 1985

1990 1995

2000

Quality Management and the
Evolution of Six Sigma
• Skilled craftsmanship during Middle Ages
• Industrial Revolution: rise of inspection and separate
quality departments
• Early 20th Century: Statistical methods at Bell System
• Quality control during World War II
• Post-war Japan: evolution of quality management

Quality Management and the
Evolution of Six Sigma
• Quality awareness in U.S. manufacturing industry
during 1980s: from “Little Q” – QC – to “Big Q” – Total Quality Management
• Malcom Baldrige National Quality Award (1987)
• Disappointments and criticism

Quality Management and the
Evolution of Six Sigma
• Emergence of quality management in service
industries, government, health care, and education
• Birth of Six Sigma
• Current and future challenge: keep progress in
quality management alive

Quality Management has
matured…
Quality Planning
Quality Assurance
Quality Control

TQM vs. Six Sigma
• TQM
• Based on worker
empowerment and
teams
• Department or workplace
focus
• Simple improvement
tools
• Little financial
accountability

• Six Sigma
• Owned by business
leader champions
• Cross functional projects
• Rigorous and advanced
statistical tools
• Requires verifiable return
on investment

A Typical TQM tool
• Illustrates relationships between causes and quality problems • Subdivides causes into their underlying components
• An effective tool to generate ideas systematically about causes for problems and to present them in a structured form

Training
User did not check
box to save password

System Hardware

User did not
reset password

User keeps
forgetting password
Not enough
memory
Not enough hard disk
storage

Software

Problem: Users
cannot get into
system
Processor
too slow

User’s Hardware

Six Sigma Methodology
• DMAIC






Define
Measure
Analyze
Improve
Control

• Incorporates a wide variety of statistical and
process improvement tools
• Generally the goal is to reach 3.4 ppm defect level

Six Sigma Improvement Model
Suppliers

Inputs

Manufacturing
and service
processes

Six Sigma
Methodology

Improved
Business
Performance

Productivity

Customers

DMAIC

Quality

Outputs

Cost

Profitability

Six Sigma works for Everyone
• Customers – higher satisfaction at lower cost
• Plant managers –reduce waste, improve product
consistency, solve equipment problems, create
capacity
• Human resource managers – reduce cycle time for
hiring processes
• Sales managers – improve forecast reliability, pricing strategies, pricing variation
• Anyone – better understand customer needs and
tailor service offerings to meet them

Quality Gurus
 Edward Deming
 Plan – Do – Check – Act
 Fourteen Points for Transformation Management

 J. M. Juran
 Managerial Practices, Training, Cost...
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