The document discusses Six Sigma, a quality management strategy focused on reducing defects, as well as its history and key aspects. It explains that Six Sigma aims for near perfection by reducing defects to 3.4 per million opportunities. The document outlines the DMAIC process used in Six Sigma, which stands for Define, Measure, Analyze, Improve, and Control. This is an iterative, data-driven problem-solving approach to process improvement and variation reduction.
Total quality management (TQM) has become increasingly important for Indian industries to compete globally. Some key companies that have implemented successful TQM programs include Mahindra & Mahindra, Tata Steel, and others in various industries. These companies saw benefits such as improved processes, higher productivity, and reduced costs from implementing TQM over several phases with a focus on continuous improvement. The Deming Prize is a prestigious award for TQM, and several major Indian companies such as Mahindra, Tata Steel, and others have won this award, demonstrating excellence in quality management.
Kanban is a scheduling system used in lean manufacturing to control work in process inventory and optimize production. It tells producers what to make, when to make it, and how much to make based on customer demand. There are different types of kanbans including raw material, work in process, and finished goods kanbans. Kanbans work by signaling when more inventory is needed to replenish bins and keep just the right amount of materials and products flowing through the production process. The goal is smooth and efficient production without waste.
Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of waste
Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing defects
Product layout in Food Industry and Line BalancingAbhishek Thakur
The product or line layout is the basic type of layout commonly used by the food industry. Line balancing is done to analyze the net output of our production line and processing time at various steps.
This document provides an introduction to set-up reduction and quick changeover concepts. It discusses lean manufacturing principles for eliminating waste and non-value-added activities. The goals of set-up reduction are to reduce cycle times, increase capacity, and eliminate bottlenecks. The document reviews concepts like takt time, value-added vs. non-value added processes, and the seven wastes. It also describes the seven steps of SMED (Single Minute Exchange of Die) methodology for improving changeover times, including separating internal and external set-up tasks. As an example, it outlines issues with the long set-up times on a 1000-ton punch press and potential solutions like standardized tooling carts and shadow boards
Gemba kaizen focuses on continuous incremental improvement through small changes. It involves identifying issues or opportunities for improvement at the source of operations ("gemba"), determining the root cause, developing and testing countermeasures, and standardizing successful changes. The goal is to continuously improve processes by reducing waste and non-value-added activities to better meet customer needs in terms of quality, cost and delivery.
Total quality management (TQM) has become increasingly important for Indian industries to compete globally. Some key companies that have implemented successful TQM programs include Mahindra & Mahindra, Tata Steel, and others in various industries. These companies saw benefits such as improved processes, higher productivity, and reduced costs from implementing TQM over several phases with a focus on continuous improvement. The Deming Prize is a prestigious award for TQM, and several major Indian companies such as Mahindra, Tata Steel, and others have won this award, demonstrating excellence in quality management.
Kanban is a scheduling system used in lean manufacturing to control work in process inventory and optimize production. It tells producers what to make, when to make it, and how much to make based on customer demand. There are different types of kanbans including raw material, work in process, and finished goods kanbans. Kanbans work by signaling when more inventory is needed to replenish bins and keep just the right amount of materials and products flowing through the production process. The goal is smooth and efficient production without waste.
Lean Six Sigma is a process improvement methodology that relies on a collaborative team effort to improve performance by systematically removing waste, combining Lean and Six Sigma to eliminate the eight kinds of waste
Lean Six Sigma projects comprise aspects of Lean's waste elimination and the Six Sigma focus on reducing defects
Product layout in Food Industry and Line BalancingAbhishek Thakur
The product or line layout is the basic type of layout commonly used by the food industry. Line balancing is done to analyze the net output of our production line and processing time at various steps.
This document provides an introduction to set-up reduction and quick changeover concepts. It discusses lean manufacturing principles for eliminating waste and non-value-added activities. The goals of set-up reduction are to reduce cycle times, increase capacity, and eliminate bottlenecks. The document reviews concepts like takt time, value-added vs. non-value added processes, and the seven wastes. It also describes the seven steps of SMED (Single Minute Exchange of Die) methodology for improving changeover times, including separating internal and external set-up tasks. As an example, it outlines issues with the long set-up times on a 1000-ton punch press and potential solutions like standardized tooling carts and shadow boards
Gemba kaizen focuses on continuous incremental improvement through small changes. It involves identifying issues or opportunities for improvement at the source of operations ("gemba"), determining the root cause, developing and testing countermeasures, and standardizing successful changes. The goal is to continuously improve processes by reducing waste and non-value-added activities to better meet customer needs in terms of quality, cost and delivery.
This document outlines an assignment to analyze the dimensions of quality for a selected product or service. Students are asked to choose a product or service they are familiar with, study the eight dimensions of quality as they apply to that item, and submit a presentation sharing their analysis. The dimensions of quality include performance, features, conformance, reliability, experience, aesthetics, durability, and service. The assignment does not involve marks or credits, but is intended to help students better understand and apply quality concepts. Submissions are due by February 2nd and will be shared and discussed among course participants.
Manufacturing planning & control (mpc) systemYash Dave
The document discusses manufacturing planning and control systems (MPC) and master production scheduling (MPS). Some key points:
- MPC systems help formulate plans to meet business objectives and identify resource gaps. They facilitate feedback across suppliers and scheduling.
- An MPS is a time-phased statement of how resources will be used to meet production commitments over the planning horizon. It tends to have a short time horizon and show details like bills of materials.
- MRP was developed to address limitations of traditional inventory models like economic order quantities. It incorporates bill of material information and dependent demand to improve inventory accuracy and reduce stockouts.
The document provides an overview of lean principles and tools. It defines lean as eliminating waste to add value for customers. Key points include: the 5 principles of lean - specify value, identify the value stream, create flow, pull from customers, seek perfection; the 7 forms of waste - overproduction, waiting, transportation, inappropriate processing, inventory, motion, defects; and lean tools like 5S, poka yoke, just-in-time. It also outlines steps to achieve lean systems like designing a simple manufacturing system, recognizing room for improvement, and continuous improvement.
This document provides an overview of just-in-time (JIT) manufacturing. It discusses the history and objectives of JIT, the eight types of waste in manufacturing, and the three parts of JIT - purchasing, manufacturing, and quality management. Key aspects of JIT covered include production management, supplier management, inventory management, and human resource management. The document also compares traditional manufacturing systems to JIT systems and discusses how management accounting must adapt to support JIT goals.
This document provides an overview of quality assurance and related concepts in the food industry. It defines quality assurance and discusses its relationship to total quality management. Key aspects covered include good manufacturing practices (GMP), good laboratory practices (GLP), good agricultural practices (GAP), and sanitary and hygienic practices. GMP, GLP, GAP and hygienic practices all establish guidelines and procedures to ensure food safety and quality throughout the production and processing chain. Total quality management (TQM) is also discussed as a philosophy aimed at continuous improvement of quality to meet customer expectations.
The document discusses the procure to pay process in SAP, including determining requirements, creating a purchase requisition, selecting vendors, processing purchase orders, goods receipt, and invoice verification. Key steps include identifying material needs, finding suitable vendors based on past orders and agreements, formally requesting supplies via purchase order, updating the stock and accounting upon goods receipt, and checking vendor invoices for accuracy. The overall procure to pay process manages an organization's purchasing of materials and services from vendors.
Kaizen strategy is the single most important concept in Japanese management - the key to successful Japanese companies such as Toyota. Kaizen, which simply means continuous improvement, is the foundation for all Lean improvements. Kaizen events are opportunities to make focused changes in the workplace.
The Kaizen Poster depicts the key Kaizen concepts, principles, methods and tools for workplace continuous improvement.
The Poster comes in two themes: color and monochrome. Formatted in PDF and in editable PPTX, the poster can be easily printed on an A3-sized paper from an office copier machine and displayed on employee workstations, or distributed together with your workshop handouts.
The Kaizen Poster complements your Kaizen and Lean training presentation materials. It serves as a takeaway and summary of your process improvement presentation.
The Kaizen Poster includes:
1. Key Concepts of Kaizen
2. The Meaning of Kaizen
3. Ten Basic Principles of Kaizen
4. Kaizen Philosophy
5. Kaizen & Job Functions
6. Three Criteria of Kaizen
7. Three Main Types of Kaizen Activities
8. Kaizen Event Process
9. 5W & 1H of Kaizen
The document discusses a quality circle team that is working on reducing employee absenteeism in the C shift at a power generation plant. The team has identified work-related problems, selected one problem to focus on, and defined the problem of high employee absenteeism during the C shift. They analyzed the impact of the problem, identified potential causes, and found the root causes to be lack of transportation and health issues. The team developed a plan to address these root causes through solutions like providing transportation and conducting health checkups, with the goal of reducing absenteeism from 17% to 5% during the C shift.
This document discusses various quality awards in India that recognize excellence in total quality management. It outlines awards such as the Rajiv Gandhi National Quality Award, the Golden Peacock National Quality Award, and the IMC Ramkrishna Bajaj National Quality Award. These awards aim to encourage organizations to improve quality and productivity, recognize achievements in quality management, and provide guidance to evaluate and enhance quality practices. Quality award models serve as benchmarks and best practices to help companies measure their quality performance and create plans to advance their quality initiatives.
The document summarizes a presentation given by Group 5 on the topic of Kaizen. It defines Kaizen as the Japanese philosophy of continuous improvement and outlines its key elements and methodology. It provides examples of how Toyota implemented Kaizen techniques to improve processes, reduce waste, and increase productivity, quality, and customer satisfaction. The main benefits realized from Kaizen include reduced waste, improved space utilization, quality, capital usage, and production capacity.
This document discusses the importance of daily work management. It states that without proper daily management, things will deteriorate over time. It outlines three levels of workers - level 1 focuses on retention and maintenance, level 2 on continuous improvement, and level 3 on breakthroughs. The document then discusses concepts like total quality management, 5S, standardization, exactness, simplification, and visual management that are important aspects of daily work management. It emphasizes the need for 100% employee involvement and elimination of variances to achieve continual improvement.
MRP (Material Requirements Planning) is a computerized inventory control and production planning system that determines what materials and components are needed for production and when, based on orders and forecasts. It schedules the production of all items using an MRP matrix to track inventory levels and help manage other aspects of business like purchasing, production, and shipping. The system inputs include a product structure file, master production schedule, and inventory master file. The outputs are manufacturing orders, purchasing orders, and various reports.
This document discusses daily work management (DWM) and how it can be used to improve continuous improvement efforts like kaizen. It explains that DWM involves establishing managing points and checking points to monitor daily work. This provides visibility into operations and allows for timely course corrections. The document provides examples of managing and checking point tables and emphasizes that DWM should be integrated into daily work rather than seen as a separate activity. Regular reviews of metrics and goal-setting are presented as important aspects of effective DWM.
This document outlines a presentation on Total Productive Maintenance (TPM). It begins with an introduction of the presenter and then covers topics such as the definition of maintenance, types of maintenance, what TPM is, the history and objectives of TPM, similarities and differences between TPM and Total Quality Management (TQM), the eight pillars of TPM, why TPM is popular, benefits and losses of implementing TPM, and concludes with how TPM can help increase quality and productivity.
This document discusses standard work and its importance in organizations. Standard work is defined as the best, safest, and most efficient way to complete a specific task. It provides structure and consistency. Standard work benefits organizations by reducing variation, eliminating waste, ensuring safety and compliance, and allowing for continuous improvement. The document outlines how to create standard work and the different types. It notes that standard work, while difficult to develop, allows organizations to sustain gains and serves as a baseline for further improvement.
Six sigma is a statistical approach to process improvement that aims to reduce defects. It was developed by Motorola in the 1970s to improve quality. The six sigma method includes phases such as Define, Measure, Analyze, Improve, and Control to identify and remove defects in processes. It uses statistical tools and follows a DMAIC or DMADV model. While six sigma aims to improve processes and reduce defects, some critics argue it is more focused on appraisal than prevention and does not always yield quality improvements.
The document discusses the principles and techniques of Just-In-Time (JIT) manufacturing, including its origins in post-WWII Japan as a way to improve quality and efficiency. Key aspects of JIT include continuous improvement, quality as the highest priority, minimizing waste, and everyone sharing responsibility for quality. Techniques like kanban cards and andon signals are used to communicate demand and problems. The goal of JIT is production based on demand through a pull system with no excess inventory.
The document provides an overview of value stream mapping (VSM) process. It discusses defining the current state and future state maps which involve mapping the material and information flows, identifying value-added and non-value added activities, calculating metrics like cycle time and takt time, and developing an implementation plan to eliminate waste and create flow. The future state aims to optimize processes, improve flow, implement pull systems, and achieve continuous improvement through periodic reviews.
The document provides an introduction and overview of the QC Story methodology, which is a 9-step problem solving technique used to examine facts and data around quality, productivity, cost, logistic, safety and other problems. It involves selecting a theme, justifying the choice, understanding the current situation, setting targets, analyzing causes, implementing corrective measures, confirming effects, standardizing solutions, and planning future actions. Each step is then described in more detail, outlining the key elements and process to be followed at that stage of the QC Story.
The document discusses potential areas for schools to save costs, including power management, virtualization, free email, printing, and Microsoft licensing. It notes that information and communication technology spending, printing/copying costs, energy use, and licensing fees can represent significant expenses for schools and opportunities to reduce spending. The document specifically addresses Microsoft licensing options for schools under their new Enrollment for Education Solutions program, which offers perpetual or subscription licenses based on staff counts rather than computer numbers.
The presentation discusses about how procurement function can help companies to get cost savings, the difference between cost savings and cost avoidance, types of cost savings, and examples of ways to achieve cost savings and cost avoidance
This document outlines an assignment to analyze the dimensions of quality for a selected product or service. Students are asked to choose a product or service they are familiar with, study the eight dimensions of quality as they apply to that item, and submit a presentation sharing their analysis. The dimensions of quality include performance, features, conformance, reliability, experience, aesthetics, durability, and service. The assignment does not involve marks or credits, but is intended to help students better understand and apply quality concepts. Submissions are due by February 2nd and will be shared and discussed among course participants.
Manufacturing planning & control (mpc) systemYash Dave
The document discusses manufacturing planning and control systems (MPC) and master production scheduling (MPS). Some key points:
- MPC systems help formulate plans to meet business objectives and identify resource gaps. They facilitate feedback across suppliers and scheduling.
- An MPS is a time-phased statement of how resources will be used to meet production commitments over the planning horizon. It tends to have a short time horizon and show details like bills of materials.
- MRP was developed to address limitations of traditional inventory models like economic order quantities. It incorporates bill of material information and dependent demand to improve inventory accuracy and reduce stockouts.
The document provides an overview of lean principles and tools. It defines lean as eliminating waste to add value for customers. Key points include: the 5 principles of lean - specify value, identify the value stream, create flow, pull from customers, seek perfection; the 7 forms of waste - overproduction, waiting, transportation, inappropriate processing, inventory, motion, defects; and lean tools like 5S, poka yoke, just-in-time. It also outlines steps to achieve lean systems like designing a simple manufacturing system, recognizing room for improvement, and continuous improvement.
This document provides an overview of just-in-time (JIT) manufacturing. It discusses the history and objectives of JIT, the eight types of waste in manufacturing, and the three parts of JIT - purchasing, manufacturing, and quality management. Key aspects of JIT covered include production management, supplier management, inventory management, and human resource management. The document also compares traditional manufacturing systems to JIT systems and discusses how management accounting must adapt to support JIT goals.
This document provides an overview of quality assurance and related concepts in the food industry. It defines quality assurance and discusses its relationship to total quality management. Key aspects covered include good manufacturing practices (GMP), good laboratory practices (GLP), good agricultural practices (GAP), and sanitary and hygienic practices. GMP, GLP, GAP and hygienic practices all establish guidelines and procedures to ensure food safety and quality throughout the production and processing chain. Total quality management (TQM) is also discussed as a philosophy aimed at continuous improvement of quality to meet customer expectations.
The document discusses the procure to pay process in SAP, including determining requirements, creating a purchase requisition, selecting vendors, processing purchase orders, goods receipt, and invoice verification. Key steps include identifying material needs, finding suitable vendors based on past orders and agreements, formally requesting supplies via purchase order, updating the stock and accounting upon goods receipt, and checking vendor invoices for accuracy. The overall procure to pay process manages an organization's purchasing of materials and services from vendors.
Kaizen strategy is the single most important concept in Japanese management - the key to successful Japanese companies such as Toyota. Kaizen, which simply means continuous improvement, is the foundation for all Lean improvements. Kaizen events are opportunities to make focused changes in the workplace.
The Kaizen Poster depicts the key Kaizen concepts, principles, methods and tools for workplace continuous improvement.
The Poster comes in two themes: color and monochrome. Formatted in PDF and in editable PPTX, the poster can be easily printed on an A3-sized paper from an office copier machine and displayed on employee workstations, or distributed together with your workshop handouts.
The Kaizen Poster complements your Kaizen and Lean training presentation materials. It serves as a takeaway and summary of your process improvement presentation.
The Kaizen Poster includes:
1. Key Concepts of Kaizen
2. The Meaning of Kaizen
3. Ten Basic Principles of Kaizen
4. Kaizen Philosophy
5. Kaizen & Job Functions
6. Three Criteria of Kaizen
7. Three Main Types of Kaizen Activities
8. Kaizen Event Process
9. 5W & 1H of Kaizen
The document discusses a quality circle team that is working on reducing employee absenteeism in the C shift at a power generation plant. The team has identified work-related problems, selected one problem to focus on, and defined the problem of high employee absenteeism during the C shift. They analyzed the impact of the problem, identified potential causes, and found the root causes to be lack of transportation and health issues. The team developed a plan to address these root causes through solutions like providing transportation and conducting health checkups, with the goal of reducing absenteeism from 17% to 5% during the C shift.
This document discusses various quality awards in India that recognize excellence in total quality management. It outlines awards such as the Rajiv Gandhi National Quality Award, the Golden Peacock National Quality Award, and the IMC Ramkrishna Bajaj National Quality Award. These awards aim to encourage organizations to improve quality and productivity, recognize achievements in quality management, and provide guidance to evaluate and enhance quality practices. Quality award models serve as benchmarks and best practices to help companies measure their quality performance and create plans to advance their quality initiatives.
The document summarizes a presentation given by Group 5 on the topic of Kaizen. It defines Kaizen as the Japanese philosophy of continuous improvement and outlines its key elements and methodology. It provides examples of how Toyota implemented Kaizen techniques to improve processes, reduce waste, and increase productivity, quality, and customer satisfaction. The main benefits realized from Kaizen include reduced waste, improved space utilization, quality, capital usage, and production capacity.
This document discusses the importance of daily work management. It states that without proper daily management, things will deteriorate over time. It outlines three levels of workers - level 1 focuses on retention and maintenance, level 2 on continuous improvement, and level 3 on breakthroughs. The document then discusses concepts like total quality management, 5S, standardization, exactness, simplification, and visual management that are important aspects of daily work management. It emphasizes the need for 100% employee involvement and elimination of variances to achieve continual improvement.
MRP (Material Requirements Planning) is a computerized inventory control and production planning system that determines what materials and components are needed for production and when, based on orders and forecasts. It schedules the production of all items using an MRP matrix to track inventory levels and help manage other aspects of business like purchasing, production, and shipping. The system inputs include a product structure file, master production schedule, and inventory master file. The outputs are manufacturing orders, purchasing orders, and various reports.
This document discusses daily work management (DWM) and how it can be used to improve continuous improvement efforts like kaizen. It explains that DWM involves establishing managing points and checking points to monitor daily work. This provides visibility into operations and allows for timely course corrections. The document provides examples of managing and checking point tables and emphasizes that DWM should be integrated into daily work rather than seen as a separate activity. Regular reviews of metrics and goal-setting are presented as important aspects of effective DWM.
This document outlines a presentation on Total Productive Maintenance (TPM). It begins with an introduction of the presenter and then covers topics such as the definition of maintenance, types of maintenance, what TPM is, the history and objectives of TPM, similarities and differences between TPM and Total Quality Management (TQM), the eight pillars of TPM, why TPM is popular, benefits and losses of implementing TPM, and concludes with how TPM can help increase quality and productivity.
This document discusses standard work and its importance in organizations. Standard work is defined as the best, safest, and most efficient way to complete a specific task. It provides structure and consistency. Standard work benefits organizations by reducing variation, eliminating waste, ensuring safety and compliance, and allowing for continuous improvement. The document outlines how to create standard work and the different types. It notes that standard work, while difficult to develop, allows organizations to sustain gains and serves as a baseline for further improvement.
Six sigma is a statistical approach to process improvement that aims to reduce defects. It was developed by Motorola in the 1970s to improve quality. The six sigma method includes phases such as Define, Measure, Analyze, Improve, and Control to identify and remove defects in processes. It uses statistical tools and follows a DMAIC or DMADV model. While six sigma aims to improve processes and reduce defects, some critics argue it is more focused on appraisal than prevention and does not always yield quality improvements.
The document discusses the principles and techniques of Just-In-Time (JIT) manufacturing, including its origins in post-WWII Japan as a way to improve quality and efficiency. Key aspects of JIT include continuous improvement, quality as the highest priority, minimizing waste, and everyone sharing responsibility for quality. Techniques like kanban cards and andon signals are used to communicate demand and problems. The goal of JIT is production based on demand through a pull system with no excess inventory.
The document provides an overview of value stream mapping (VSM) process. It discusses defining the current state and future state maps which involve mapping the material and information flows, identifying value-added and non-value added activities, calculating metrics like cycle time and takt time, and developing an implementation plan to eliminate waste and create flow. The future state aims to optimize processes, improve flow, implement pull systems, and achieve continuous improvement through periodic reviews.
The document provides an introduction and overview of the QC Story methodology, which is a 9-step problem solving technique used to examine facts and data around quality, productivity, cost, logistic, safety and other problems. It involves selecting a theme, justifying the choice, understanding the current situation, setting targets, analyzing causes, implementing corrective measures, confirming effects, standardizing solutions, and planning future actions. Each step is then described in more detail, outlining the key elements and process to be followed at that stage of the QC Story.
The document discusses potential areas for schools to save costs, including power management, virtualization, free email, printing, and Microsoft licensing. It notes that information and communication technology spending, printing/copying costs, energy use, and licensing fees can represent significant expenses for schools and opportunities to reduce spending. The document specifically addresses Microsoft licensing options for schools under their new Enrollment for Education Solutions program, which offers perpetual or subscription licenses based on staff counts rather than computer numbers.
The presentation discusses about how procurement function can help companies to get cost savings, the difference between cost savings and cost avoidance, types of cost savings, and examples of ways to achieve cost savings and cost avoidance
The document proposes installing an energy saving heating system using 4 units of EP-CDH-015 heaters and 4 units of 10,000L hot water tanks to supply the daily hot water needs of 230 hotel rooms. This system would save 55.64% on monthly energy costs compared to the existing diesel boiler system, with a return on investment period of 37 months. The proposed system can generate 2005.81 kW of heat daily needed to supply 57,500L of hot water at a lower operating cost than the current system.
The document discusses how organizations can identify and reduce hidden print costs through managed print services (MPS). MPS aims to cut costs by consolidating equipment, centralizing procurement, monitoring usage, and establishing standard print rules. An MPS provider can help analyze an organization's print environment, recommend cost-saving solutions, implement changes, and ensure ongoing improvements are made. The document provides examples of organizations that significantly reduced their print costs through MPS programs and in-house print operations.
The document outlines steps to uncover hidden savings through procurement processes. It discusses how priorities often compete with spend discipline and teams fail to align on opportunities. A 7-step process is provided to align stakeholders, prioritize requirements, analyze results, and negotiate contracts to start the savings journey. Creating expense owners, using analytic tools, and reflecting savings targets in budgets can help achieve and sustain savings over time. The savings journey leads to capturing sustainable savings through disciplined spending.
The document is an Improvement Activity Report (IAR) from May 2006 detailing efforts to reduce carriage costs at Worldmark East Kilbride. It defines the project objectives and timelines, measures carriage costs, analyzes potential causes of high costs, lists improvements implemented from May to December 2006, and shows carriage costs decreased as a result, achieving the project goal.
BINSmart Cost Manager is a patent-pending technology modified for small retailers to enjoy real savings on credit card processing. This presentation also highlights numerous product benefits and special offers of 25-100% off on equipment pricing.
The document proposes three approaches for MTC to reduce costs in its supply chain. First, it recommends moving sterilization in-house or partnering with the sterilization provider to reduce lead times and transportation costs. Second, it suggests eliminating distributors and relying mainly on 3PLs to improve stock visibility and forecasting accuracy. Third, reducing the number of warehouses could lower transportation, overhead, operational, and inventory carrying costs. Implementing changes to these three areas of sterilization, distribution, and warehousing is projected to achieve meaningful cost savings for MTC.
This document provides a summary of S. Jayakumar's profile for a hotel cost management position. It includes his contact information, date of birth, nationality, locations desired, and availability. It discusses the reasons for looking for new opportunities, challenges faced in his previous job such as cash frauds and incomplete audits. It highlights his career achievements in areas like operations management, sales and marketing, food and beverage management. It identifies his mentors and lists his short-term goals of managing hotel costs and enhancing company growth, and long-term goal of continuing his 28+ year career in hotel management.
This document discusses factors that influence human thermal comfort in buildings, including temperature, humidity, air speed and quality. It describes that an internal temperature of 19-23°C, humidity of 40-60% RH, and air speed of 0.1-0.25 m/s are typically comfortable for humans. It also examines psychrometric charts and concepts such as operative temperature, predicted mean vote and percentage dissatisfied to evaluate thermal comfort conditions. Proper ventilation is also needed to dilute contaminants and maintain adequate oxygen levels for occupant health.
Sellers vs Buyers - “Tactics and Strategies from the Front Lines”Gerard B. Hawkins
SELLERS vs BUYERS
“Tactics and Strategies from the Front Lines”
A definitive guide to techniques for conditioning the “Seller” and techniques for conditioning the “Buyer”
Aims and Objectives
Generation of Supplier Positioning Model
Categorization of Suppliers
Tactics and Strategy applied to relative positions
Buyers Overall Aims
Material Strategy Model
Analysis Considerations
Spend Matrix
Procurement Profile Strategies
Supply Positioning: Portfolio Analysis
Supply Positioning: Analysis
Supplier / Buyer Conditioning
Supplier Conditioning Aims
Techniques
Customers' Expectations and the Supply Chains
The Buyer’s Influence cycle
Conditioning the Seller
Procurement Marketing
Inventory Cost and Order Quantities- Purchasing FundamentalsBill Kohnen
Inventory carrying cost, Acquisition costs and Economic Order quantities are basic purchasing and supply chain concepts. Knowing the concepts can help to identify strategic and tactical steps to lower total costs which can directly improve overall ROI
IPDC has been facilitating a considerably numbers of public trainings and in-house training programs in Performance Management and Appraisal Skills for the last 15 years
Seminar ini membahas beberapa topik terkait manajemen pembelian seperti strategic sourcing, keterampilan negosiasi, manajemen kontrak, dan kompetensi pembelian."
What are the risks and opportunities created by global sustainability issues. How can you turn these into a strategic advantage for your organisation.
Presentation for the meetings and events sector
1) The document presents a case study exploring the theoretical assumptions underpinning Kraljic's purchasing portfolio model.
2) The case study examines a national procurement service's framework agreement for the supply of natural gas.
3) Preliminary findings suggest the actual conditions present a more strategic product classification than expected, with high relative value but also high supply risk. The observed buyer-supplier relationship also indicates greater buyer dependence than assumed.
The annals of commercial history are full of anecdotes about the B2B buyer-seller relationship. Variously described as a contest, a war, a win/win partnership, a value-adding collaboration, a strategic venture, there are very few sales people who don’t have an epic tale to tell about an encounter with a purchasing manager. And, on the other side of the fence, most procurement professionals have plenty to say about sales people!
We wanted to find out how the sales function interacts with procurement in 2012, and for this reason, we decided to re-run a survey we carried out in 2007 which revealed some stark messages about Sales’ preparedness for dealing with this rapidly evolving function. We also added some new questions to the original survey to make for a richer picture.
In essence, the research showed sales people being reactive, transactional, overly focused on face-to-face behavioural negotiation tactics, and unaware of the strategic, analytical and longer term methods being employed by, arguably, a superiorly-educated procurement profession.
Our conclusions are that sales and account management must:-
•Do their homework; undertake Analysis Before Action
•Recognise procurement is after your job as The New Trusted Advisor
•Understand the Levers of Power and Value at play in their key relationships
•Ditch any avoidance behaviour and accept that it’s now Time to Engage with Procurement
We debate the survey results from both the Sales and Procurement points of view, and suggest that no longer this issue can be ignored by suppliers where procurement is in the game.
www.fourpillars.co
The document discusses various cost reduction strategies that can be implemented across different areas of a factory's operations. Some key strategies mentioned include bulk procurement to negotiate better prices, optimizing logistics and transportation through route mapping and annual contracts, reducing warehouse and inventory costs through efficient storage and FIFO practices, improving production through reducing rework, optimizing changeovers and machine efficiency, and finding packaging savings. The document provides further details on strategies for each area.
Six Sigma is a data-driven methodology for process improvement that aims to reduce defects. It was developed by Motorola in the 1980s and involves defining, measuring, analyzing, improving, and controlling processes to minimize errors. The goal of Six Sigma is to operate processes with as close to zero defects as possible by focusing on reducing variation. It uses statistical tools to measure a process's capability and identify sources of defects. Implementing Six Sigma can help companies achieve significant cost savings, quality improvements, and increased customer satisfaction.
Warranty Outsourcing For Strategic GainsImranMasood
1) Warranty management involves many challenges across claims management, field support, and supplier recovery with issues like fraudulent claims, slow cycle times, and suboptimal utilization of resources.
2) Outsourcing warranty management can provide benefits like a 1/3 reduction in costs through process interventions across the entire warranty value chain.
3) When selecting a partner, companies should look for one that can provide a customized solution using best-in-class tools and processes, focus on the right metrics around both contractual SLAs and business outcomes, provide cross-industry benchmarks and analytics capabilities to drive improvements.
This document discusses various quality philosophies and standards including: Six Sigma, Lean Management, and the Malcolm Baldrige National Quality Award. It provides a brief history of quality evolution from the 1930s to present day. Key aspects covered include the definitions and differences between Six Sigma, Lean, and Baldrige. It also examines the seven types of waste in Lean and discusses choosing the right quality approach based on a company's needs.
Wall Jackson Operational Excellence Equation ReviewedShell
The 7-6-5 plan provides a structured approach to achieving operational excellence through three initial development stages:
1) Process affinitization and macro process flow mapping to understand current processes.
2) Value stream mapping and current state analysis to identify non-value added activities and barriers.
3) High level process flow mapping and barrier-aid-countermeasure analysis to develop potential improvements.
This document summarizes case studies for three companies that underwent supply chain management transformations with PBOPlus solutions. The first was a $600M plastic manufacturing company operating globally. PBOPlus designed new end-to-end SCM processes that improved delivery times, costs and consistency. The second was a $200M explosive manufacturing company in India. PBOPlus implemented new SCM processes that increased sales by 7-12% and reduced errors. The third was a leading footwear company growing at 35% annually. PBOPlus redesigned the SCM organization and implemented new processes that improved on-time delivery and reduced lost sales.
ECR Europe Forum '05. Use the ECR scorecard to benchmark and improve your per...ECR Community
Use the ECR scorecard to benchmark and improve your performance:
The ECR scorecard from the Global Commerce Initiative (GCI) enables you to benchmark your supply- and demand-side collaboration against the performance of other companies. This session explains the use of the scorecard and includes a short explanation of basic ECR techniques.
Customer Journey Mapping Presentation V3 Open CirculationMartin Wright
Customer journey mapping is a tool that measures how prospects and customers interact with a company across different touchpoints from acquisition to attrition. It involves staff interviews, data analysis, and customer research to illustrate the customer experience. Insights from mapping can identify inefficiencies and opportunities to improve communications, training, processes, and design. A typical map shows customer movement and drop-offs between channels alongside key metrics.
The document provides an overview and introduction to Six Sigma. It discusses what Six Sigma is, its origins at Motorola, how it spread to other companies like GE, and the typical project methodology of DMAIC. It also outlines the common roles in a Six Sigma organization such as Green Belt, Black Belt, and Master Black Belt. The overall document serves to familiarize readers with the basic concepts and approach of Six Sigma.
Vassilis Tsakiris presentation at PMI-GREECE1/6/2010, AIT12PM Consulting
This document discusses various frameworks for shortening the strategic lead time from idea to market, including those from PDMA, PMI, Lean, Six Sigma, TOC, and Toyota's product development system. It provides overviews of the key aspects of each approach, such as PDMA's 3 phases of product development and 6 knowledge areas, PMI's processes and knowledge areas for project, program and portfolio management, and Lean's principles of eliminating waste and creating value. The overall message is that combining insights from these different approaches can help optimize the product development process.
Unilog enables global as well as emerging enterprises with end-to-end master data quality solutions. We handle all kinds of data types and our gamut of data services ranges from data cleansing and audits to data enrichment and catalogue creation. Our unique blend of domain expertise, proven methodologies, proprietary DQM tools and sound experience form the backbone of our high quality services. We are focused on garnering critical insights that help our customers make the best decisions.
This document provides an overview of Just-in-Time (JIT) systems. It discusses that JIT aims to reduce waste and lead time in the supply chain by producing only what is needed when it is needed. The key principles of JIT include creating flow production, establishing takt time, and building pull through the use of kanban systems. It also discusses various JIT tools and tactics like single minute exchange of dies, visual control systems, and supplier partnerships. The objectives of JIT are outlined as producing only what is required, with no waste, at the lowest possible cost and lead time.
This document provides an overview of 6σ (Six Sigma). It defines competitive quality as product, process, or service uniformity around a target value and notes this requires continuous improvement. Six Sigma aims to reduce variability through statistical tools to prevent defects rather than detect them through inspection. The goal is defect-free products and processes. Case studies show companies implementing Six Sigma have achieved significant cost savings, quality improvements, and productivity gains.
The document discusses applying lean principles to quality management reviews to make them more efficient and effective. It proposes a process-based model for quality management reviews and identifies opportunities to eliminate waste, such as streamlining documentation and approval processes. It also emphasizes the importance of presenting both positive and negative quality system performance data to facilitate continuous improvement and compliance with regulations. The goal is to conduct quality management reviews that are both lean, by reducing waste, and compliant, by fully evaluating the quality system's effectiveness.
DCRA Inc. Supply Chain S&OP Solutions SummaryJon Kirkegaard
DCRA Inc. has helped shape the demand and supply balancing operations in dozens of leading global companies. Our Trade Marked Total Order Fulfillment methodology has led to tripple digit internal rates of returns in weeks and months.
Additionally we have developed patented supply chain solutions including S&OP, order commitment and others that rapidly integrated to any existing supply chain solutions that allow for accelerating change and improving financial returns while reducing IT complexity that causes so many projects to fail. Contact us at www.selectclassics.com
Six Sigma is a strategy for achieving world-class performance through process improvement by reducing variability. It aims for 3.4 defects per million opportunities. Many companies have achieved significant annual savings through Six Sigma by reducing costs, errors, rework and improving quality, productivity and profits. Case studies show companies achieving billions in savings through deploying Six Sigma across their organizations.
The document discusses quality management programs and systems such as Statistical Process Control (SPC), Total Quality Management (TQM), and Six Sigma. It provides details on the Six Sigma methodology, including the DMAIC process and benefits of Six Sigma in reducing defects and costs. The document also presents examples of Six Sigma implementations at Motorola and an Indian company, and discusses some costs and limitations of the Six Sigma approach.
This document provides an overview of Six Sigma DMAIC methodology and tools. It defines DMAIC as Define, Measure, Analyze, Improve, and Control - a process for continuous improvement that is systematic, scientific, and fact-based. An index lists tools for each DMAIC phase, including project charters, process mapping, stakeholder analysis, measurement systems analysis, statistical analysis, solution selection matrices, control plans, and more. The purpose is to guide teams through the DMAIC workflow and problem solving process.
Tulevaisuuden ostaja rakentaa kumppanuutta ja vaatii kilpailukykyä 18.9.2008
Puhujat: Harri Jokinen, Juha-Pekka Anttila, Ismo Anttila, Sami Humala, Kaj Lindh, Mauri Heikintalo, Thomas E. Vollmann, Jari Osmala, Juha Vierros
Tilaisuuden videot: http://www.youtube.com/watch?v=B3HJe6nHJAQ , http://www.youtube.com/watch?v=LsjTlzLwgTI , http://www.youtube.com/watch?v=oZ_5jbXLZvM , http://www.youtube.com/watch?v=B4ourWI2q8w
The document discusses SME lending in India. It notes that SMEs contribute significantly to the Indian economy, providing over 40% of exports and employing over 60 million people. However, SME lending as a percentage of GDP in India is lower than other major countries. The document then provides details on the classification of SMEs, key stakeholders in SME lending like banks and government bodies, the loan approval workflow, and value parameters from the perspective of both lenders and borrowers.
This document provides a summary of the ice cream industry in India. It notes that the industry is growing steadily at over 15% annually and is valued at over INR 5500 Crore, with the organized sector worth INR 2500 Cr. The western and northern regions account for the largest consumption. Key players include Amul, HUL's Kwality Walls, Mother Dairy, and Baskin Robbins. Players are targeting growth through franchise models, strategic partnerships, product diversification, and increasing per capita consumption. The industry is expected to continue growing at a CAGR of 12% through 2016.
Case study IV hospital - Profitability AnalysisRohit Pinto
The 100-bed hospital had been losing money for two years due to a lack of financial analysis, high overheads, and inefficient processes. A review identified unprofitable services, excessive staffing, and process issues. Recommendations included rightsizing staff, increasing prices for undervalued services, bundling operating charges, and automating cash handling. Within a year, the changes generated over 70 lakh in additional profits annually and improved patient volumes, trust and decision making.
This case study evaluated the feasibility of a pharmaceutical company launching products in the Indian market. Mangal Advisory Services conducted reviews of the company's operations, marketing, the industry, and financials. It was found that manufacturing locally in India could reduce costs by 30-40% and allow the company to better deal with currency risks. However, the company's high pricing and reliance only on ethical marketing posed challenges. For the project to be viable, the summary recommends manufacturing in India and considering less stringent advertising approaches to reduce costs.
This document discusses time management and provides tips for managing time more effectively. It begins by emphasizing the importance of time management and outlines some common time-wasting behaviors. It then discusses setting goals and priorities, creating to-do lists, identifying obstacles to effective time management like lack of planning and inability to say no. Specific tips provided include scheduling time effectively, learning to delegate tasks, reducing interruptions, avoiding procrastination, and leveraging technology like laptops and email to work more efficiently. The overall message is that managing your time well is key to being successful.
Backlash provides customer feedback management services to help businesses understand customer perceptions and avoid negative reactions to their policies through tools like customized feedback systems, outsourced feedback collection and analysis, mystery shopper programs, and general market research. It was started as a sister company to Mangal Advisory Services to fill a gap in available end-to-end solutions for collecting and analyzing customer data to improve business decisions. The company is run by Managing Partner Rohit Pinto and Partner Ashutosh Kharangate who bring experience in strategic planning and financial modeling respectively.
This case study discusses a profitability analysis and process evaluation conducted for a 100-bed hospital in Goa. The analysis identified issues like a lack of accounting controls, declining margins, and inefficient processes. Recommendations included renegotiating contracts to increase revenues, raising prices for some services, and implementing accounting and inventory controls. The changes were estimated to increase profits by Rs. 43 lakh annually and realize cost savings of Rs. 37 lakh annually. An automated accounting system and management reports were also introduced to improve decision making. The analysis helped attract a new strategic investor for the hospital.
The consultant conducted a profitability analysis of a 5-star hotel in North Goa that was not meeting the owner's expectations. They analyzed financial statements, evaluated processes, and created revenue verticals. Observations included unjustified costs, low occupancy, and process issues. Suggested changes were to create separate marketing and stores/purchasing functions, implement stores and consumption tracking, increase pricing, improve marketing, and adopt more efficient processes and technologies. The analysis estimated revenue could increase 30% or INR 150 lakh annually and costs could be reduced INR 121 lakh annually through the recommendations.
78% of adults use the internet to research products and services before purchasing. India has over 100 million internet users currently, projected to grow to 672 million by 2020. Most internet users do not look past the first page of search engine results, so optimizing websites for search engines is important. Over half of Facebook users and over 60% of Twitter users are more likely to purchase brands they follow on social media. Email marketing can help each employee generate Rs. 450,000 in monthly sales by attracting potential customers through inbound leads.
This document discusses how internet users research products and services online. It notes that 78% of adults use the internet to research purchases, and over 100 million domain names have been registered. Research shows that 94% of users don't view search results beyond the first page. The document also discusses how social media followers on Facebook and Twitter are more likely to purchase brands they follow. It suggests that email/inbound marketing can help each employee generate sales of 4.5 lakhs per month, and provides contact information for search engine optimization, social media marketing, and email marketing services.
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Revolutionizing Surface Protection Xlcoatings Nano Based SolutionsExcel coatings
Excelcoating Transforming surface protection with their cutting-edge, eco-friendly nano-based coatings. This presentation delves into their innovative product lineup, including Excel CoolCoat for roof cooling, Excel NanoSeal for cement surfaces, Excel StayCool for UV-filtering glass, Excel StayClean for solar panels, Excel CoolTile for heat-reflective tiles, and Excel InsulX for film insulation.
Enabling Digital Sustainability by Jutta EcksteinJutta Eckstein
This is a New Zealand wide meetup event with meetup groups from Auckland, Wellington and Christchurch attending and open to anyone with an interest in digital sustainability or agile. All welcome. Joke, this is how it started. Jutta is now also available in Germany, i.e. hosted by Berlin/Brandenburg
According to the World Economic Forum, digital technologies can help reduce global carbon emissions by up to 15%. However, digitalization also comes with some challenges. Thus, if we want to make a positive impact by increasing sustainability, we need to address challenges like the digital divide, energy consumption of IT, or the rise of electronic waste. In this talk, I want to explore how Agile can help to leverage Digital Sustainability.
L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
Le développement de l'ICPP repose sur le temps total passé par les porte-conteneurs dans les ports, de la manière expliquée dans les sections suivantes du rapport, et comme dans les itérations précédentes de l'ICPP. Cette quatrième itération utilise des données pour l'année civile complète 2023. Elle poursuit le changement introduit l'année dernière en n'incluant que les ports qui ont eu un minimum de 24 escales valides au cours de la période de 12 mois de l'étude. Le nombre de ports inclus dans l'ICPP 2023 est de 405.
Comme dans les éditions précédentes de l'ICPP, la production du classement fait appel à deux approches méthodologiques différentes : une approche administrative, ou technique, une méthodologie pragmatique reflétant les connaissances et le jugement des experts ; et une approche statistique, utilisant l'analyse factorielle (AF), ou plus précisément la factorisation matricielle. L'utilisation de ces deux approches vise à garantir que le classement des performances des ports à conteneurs reflète le plus fidèlement possible les performances réelles des ports, tout en étant statistiquement robuste.
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Tired of chasing down expiring contracts and drowning in paperwork? Mastering contract management can significantly enhance your business efficiency and productivity. This guide unveils expert secrets to streamline your contract management process. Learn how to save time, minimize risk, and achieve effortless contract management.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
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Enhancing Adoption of AI in Agri-food: IntroductionCor Verdouw
Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
“Enhancing Adoption of AI in Agri-food: a Path Forward”, 18 June 2024
3. Quality – What is it?
• Quality is perceptual, conditional and
subjective. Different people see it differently
• Quality is the first and one of the most
important things regarding different objects
and other stuff.
• Quality is how good a product is.
4. What does the dictionary say?
• The standard of something as measured against
other things of a similar kind
• Degree of excellence
• Key attributes in a person/object
5. My Definition
The degree of adherence of the key
attributes of a product/ service to a chosen
Standard.
6. So how can we measure it?
You cannot manage what you cannot measure
- Anon
Define key Set a measurable Set the limits of
attributes for each what is acceptable Measure each of
characteristic of and what is not the products
(What are the key produced against
characteristics of the product (Will my customer the measurable
my product/ (What standard accept the that’s been set
service) do I follow?) product?)
7. Quality Management – Assuring the
Control of Quality
Product Oriented
Quality Control (Don’t let the defective
products out)
Quality Management
Process oriented
Quality Assurance (Don’t let the products
be defective)
10. What is Six Sigma?
• A goal of near perfection in meeting customer requirements
• A sweeping culture change effort to position a company for greater customer
satisfaction, profitability and competitiveness
• A comprehensive and flexible system for achieving, sustaining and maximizing
business success; uniquely driven by close understanding of customer needs,
disciplined use of facts, data, and statistical analysis, and diligent attention to
managing, improving and reinventing business processes
(Source:The Six Sigma Way by Pande, Neuman and Cavanagh)
It’s a business strategy!!
11. History of Six Sigma
1986
1980
Motorola launches a Six Sigma is born
new 4 point strategy thanks to Bill Smith
• Global Competitiveness
• Participative Management 1984
• Quality Improvements
• Motorola Training and Motorola
Education Center
Manufacturing Institute
was launched, but they
still lacked a common
1979 Metric for sharing and
Our quality stinks!! – Art comparing initiatives
Sundry, Communications
Manager, Motorola
12. Technically Speaking
• If one has six standard deviations between the
process mean and the nearest specification limit,
practically no items will fail to meet specifications
14. Is 99% Quality Good Enough?
• 22,000 checks will be deducted from the
wrong bank accounts in the next 60
minutes.
• 20,000 incorrect drug prescriptions will be
written in the next 12 months.
• 12 babies will be given to the wrong
parents each day.
15. But is Six Sigma Realistic?
·
·
Defects Per Million Opportunities (DPMO)
100K
····
Restaurant Bills
Doctor Prescription Writing
10K
41 Payroll Processing
··
Average Order Write-up
·
Journal Vouchers
Company Wire Transfers
1K
31 Air Line Baggage Handling
·
Purchased Material
Lot Reject Rate
100
21 (233 ppm)
10
11
Best in Class Domestic Airline
1 Flight Fatality Rate
1
(3.4 ppm)
2 3 3 4 4 5 5 6 6 7
(0.43 ppm) 7
SIGMA
16. Six Sigma Improvement Methods
DMAIC vs. DMADV
Define
Measure
Analyze
Continuous Improvement Reengineering
Improve Design
Control Validate
17. Six Sigma DMAIC Process
Control Define: Define who your customers
are, and what their requirements are
for your products and services – Their
Improve expectations. Define your team goals,
project boundaries, what you will focus
on and what you won’t. Define the
Define process you are striving to improve by
mapping the process.
Analyze
Measure
18. Six Sigma DMAIC Process
Measure: Eliminate guesswork and
assumptions about what customers need
Control and expect and how well processes are
working. Collect data from many sources
to determine speed in responding to
Improve customer requests, defect types and how
frequently they occur, client feedback on
how processes fit their needs, how clients
Define rate us over time, etc. The data collection
may suggest Charter revision.
Analyze
Measure
19. Six Sigma DMAIC Process
Analyze: Grounded in the context of the
Control customer and competitive environment,
analyze is used to organize data and look
for process problems and opportunities.
Improve This step helps to identify gaps between
current and goal performance, prioritize
opportunities to improve, identify sources
Define of variation and root causes of problems
in the process.
Analyze
Measure
20. Six Sigma DMAIC Process
Control
Improve: Generate both obvious and
Improve creative solutions to fix and prevent
problems. Finding creative solutions by
correcting root causes requires
Define innovation, technology and discipline.
Analyze
Measure
21. Six Sigma DMAIC Process
Control: Ensure that the process
Control improvements, once implemented, will
“hold the gains” rather than revert to
the same problems again. Various
Improve control tools such as statistical process
control can be used. Other tools such
as procedure documentation helps
Define
institutionalize the improvement.
Analyze
Measure
22. Six Sigma DMADV Process
Design: Develop detailed design
Validate for new process. Determine and
evaluate enabling elements.
Create control and testing plan for
Design new design. Use tools such as
simulation, benchmarking, DOE,
Quality Function Deployment
Define
(QFD), FMECA analysis, and
cost/benefit analysis.
Analyze
Measure
23. Six Sigma DMADV Process
Validate
Validate: Test detailed design
with a pilot implementation. If
Design successful, develop and execute a
full-scale implementation. Tools
in this step include: planning
Define tools, flowcharts/other process
management techniques, and
Analyze work documentation.
Measure
24. Okay, so we used 6 Sigma, and lets
say, our Quality improved
But what about our costs?!!
26. Cost of Defects?!
Cost Area Examples
Factory Accounts •Materials Scrapped
•Labour burden on product scrapped
•Labour, Material and burden to repair product
•Extra operations added because of presence of
defectives
• Burden arising from excess production capacity
necessitated by defectives
•Excess inspection costs Investigation of causes of defects
Sales Costs •Discount on seconds
•Customer complaints
•Charges to quality guarantee account
•Costs due to delays
Intangible Costs •Delays and stoppages caused by defectives
•Customer good will
•Loss in morale due to friction between departments
27. The Traditional View
Cost of Production
120
100
80
60
Cost of Production
40
20
0
100% Defective 100% Good
29. Cost of Quality
140
120
100
80
Cost of Production
60 Cost of Defects
Total Cost of Quality
40
20
0
100% Defective 100% Good
30. Does it really work?
• “Operating margins of 3M went from 17% in
2001 to 23% in 2005 all due to the six sigma drive
by McNerney”
• “GE produces annual benefits of over $2.5 billion
across the organization from Six Sigma.”
• “Motorola reduced manufacturing costs by $1.4
billion from 1987-1994.”
• “Six Sigma reportedly saved Motorola $15 billion
over the last 11 years.”
31. A word of Caution
• Generally 6 Sigma takes between 1 to 3 years
of investment before it shows results
4
3.5
3
2.5
2
Cumulative Investment
1.5 Cumulative Savings
1
0.5
0
1996 1997 1998 1999
Source: GE Annual Reports
32. A word of caution
• There are as many failures as there are
successes
– Untrained/ improperly trained “Master Black
Belts”
– Urgency to show results leads to improper
implementation
– Training is not sustained hence new employees
are not aware
Editor's Notes
Write down on a piece of paper the names of two brands of the same product. One should be a brand which you percieve as having high quality, the other a brand of low quality.