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Chapter 10 Chapter 10 Presentation Transcript

  • Chapter 10 Principles of Six Sigma MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing Although we view quality improvement tools and techniques from the perspective of Six Sigma, it is important to understand that they are simply a collection of methods that have been used successfully in all types of quality management and improvement initiatives, from generic TQM efforts, to ISO 9000, and in Baldrige processes.
  • Six-Sigma Metrics
    • Defect – any mistake or error that is passed on to a customer
    • Defects per unit (DPU) = number of defects discovered  number of units produced
    • Defects per million opportunities (dpmo) = DPU  1,000,000  opportunities for error
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing Six-Sigma Quality
    • Ensuring that process variation is half the design tolerance (Cp = 2.0) while allowing the mean to shift as much as 1.5 standard deviations, resulting in at most 3.4 dpmo.
  • Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing Although originally developed for manufacturing in the context of tolerance-based specifications, the Six Sigma concept has been operationalized to apply to any process and has come to signify a generic quality level of at most 3.4 defects per million opportunities.
  • k-Sigma Quality Levels MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Problem Solving
    • Problem: any deviation between what “should be” and what “is” that is important enough to need correcting
      • Structured
      • Semistructured
      • Ill-structured
    • Problem Solving: the activity associated with changing the state of what “is” to what “should be”
  • Quality Problem Types
    • Conformance problems
    • Unstructured performance problems
    • Efficiency problems
    • Product design problems
    • Process design problems
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Key Factors in Six Sigma Project Selection
    • Financial return, as measured by costs associated with quality and process performance, and impacts on revenues and market share
    • Impacts on customers and organizational effectiveness
    • Probability of success
    • Impact on employees
    • Fit to strategy and competitive advantage
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Problem Solving Process
    • Redefining and analyzing the problem
    • Generating ideas
    • Evaluating and selecting ideas
    • Implementing ideas
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing A structured problem-solving process provides all employees with a common language and a set of tools to communicate with each other, particularly as members of cross-functional teams.
  • DMAIC Methodology
    • Define
    • Measure
    • Analyze
    • Improve
    • Control
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing DMAIC
  • Common Six Sigma Tools MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Define
    • Describe the problem in operational terms
    • Drill down to a specific problem statement (project scoping)
    • Identify customers and CTQs, performance metrics, and cost/revenue implications
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Measure
    • Key data collection questions
      • What questions are we trying to answer?
      • What type of data will we need to answer the question?
      • Where can we find the data?
      • Who can provide the data?
      • How can we collect the data with minimum effort and with minimum chance of error?
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Analyze
    • Focus on why defects, errors, or excessive variation occur
    • Seek the root cause
    • 5-Why technique
    • Experimentation and verification
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Improve
    • Idea generation
    • Brainstorming
    • Evaluation and selection
    • Implementation planning
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Control
    • Maintain improvements
    • Standard operating procedures
    • Training
    • Checklist or reviews
    • Statistical process control charts
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Tools for Six-Sigma and Quality Improvement
    • Elementary statistics
    • Advanced statistics
    • Product design and reliability
    • Measurement
    • Process control
    • Process improvement
    • Implementation and teamwork
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Design for Six Sigma
    • Focus on optimizing product and process performance
    • Features
      • A high-level architectural view of the design
      • Use of CTQs with well-defined technical requirements
      • Application of statistical modeling and simulation approaches
      • Predicting defects, avoiding defects, and performance prediction using analysis methods
      • Examining the full range of product performance using variation analysis of subsystems and components
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Key Idea MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing All Six Sigma projects have three key characteristics: a problem to be solved, a process in which the problem exists, and one or more measures that quantify the gap to be closed and can be used to monitor progress.
  • Key Six Sigma Metrics in Services
    • Accuracy
    • Cycle time
    • Cost
    • Customer satisfaction
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Lean Production and Six Sigma
    • The 5S’s: seiri (sort), seiton (set in order), seiso (shine), seiketsu (standardize), and shitsuke (sustain).
    • Visual controls
    • Efficient layout and standardized work
    • Pull production
    • Single minute exchange of dies (SMED)
    • Total productive maintenance
    • Source inspection
    • Continuous improvement
    MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
  • Traditional Economic Model of Quality of Conformance MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing Total cost Cost due to nonconformance Cost of quality assurance “ optimal level” of quality 100%
  • Modern Economic Model of Quality of Conformance MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing Total cost Cost due to nonconformance Cost of quality assurance 100%