Professional Documents
Culture Documents
Six-Sigma Quality
Outline:
Total Quality Management (TQM) Defined
Quality Specifications and Costs
Six Sigma Quality and Tools
External Benchmarking
ISO 9000
Service Quality Measurement
1
TQM Defined
2
Philosophical Leaders of the Quality
Movement
Philip Crosby
W. Edwards Deming
Joseph M. Juran
3
Quality Specifications
Design quality - Inherent value of the product in the
marketplace
Conformance quality - Degree to which the product or
service design specifications are met
Products can have high design quality but low
conformance quality, and vice versa
Quality at the source
Related to conformance quality
Means the person who does the work takes responsibility for
making sure output meets specifications
Both design quality and conformance quality should
provide products that meet customer objectives
This is often termed fitness for use
Entails identifying the dimensions of product (or service)
that the customer wants i.e., the voice of the customer
Developing a quality control program
4
Dimensions of Quality
Performance
Primary product or service characteristic
Features
Added touches, bells and whistles, secondary characteristics
Reliability
Consistency of performance over time, probability of failing
Durability
Useful life
Serviceability
Ease of repair
Response
Characteristics of the human-to-human interface (speed,
courtesy, competence)
Aesthetics
Sensory characteristics (sound, feel, look, and so on)
Perceived quality (reputation)
Past performance and other intangibles (perceived quality)
5
Dimensions of Quality Examples
6
Costs of Quality (COQ)
7
Costs of Quality
8
Six-Sigma Quality
Six-sigma is a philosophy
which reflects the goal of
eliminating defects in the
products.
Seeks to reduce variation in the
processes that lead to product
defects
The name, six sigma refers to
the variation that exists within
plus or minus six standard
deviations of the process outputs
Statistically speaking a process
in six-sigma control limits will
only produce 2 defects per
billion units.
9
Six Sigma Quality: DMAIC Cycle
Define, Measure, Analyze, Improve, and Control DMAIC
Developed by General Electric as a means of focusing
effort on quality using a methodological approach
Firms striving to achieve six-sigma generally adopt
DMAIC cycle.
DMAIC are the typical steps employed in continuous
improvement (a.k.a. Kaizen) concept which seeks to
continually improve all aspects of production (parts,
machines, labor, processes, etc)
Overall focus of the methodology is to understand and
achieve what the customer wants
A 6-sigma program seeks to reduce the variation in the
processes that lead to these defects
1
Six Sigma Quality: DMAIC Cycle
Cases/examples from classmates
1
Example to illustrate the process
Step 1: Define
What is the critical-to-quality characteristic?
The CTQ (critical-to-quality) characteristic in
this case is the weight of the cereal in the box.
1
Step 2 - Measure
1
Process
Lower Tolerance Mean = 15.875 Upper Tolerance
= 15.2 Std. Dev. = .529 = 16.8
What percentage of boxes are defective (i.e. less than 15.2 oz)?
1
Step 3 - Analyze - How can we improve the
capability of our cereal box filling process?
Decrease Variation
Line vibration impacts scale
Random delays in nozzle open/close
Center the Process
Increase Specifications
1
Step 4 Improve How good is good
enough?
Motorolas Six Sigma
Calibrate the equipment more frequently,
upgrade process
6-sigma minimum from process center to
nearest spec
12
6
12
3 2 1 0 1 2 3
3 2 1 0 1 2 3
1
Step 5 Control
1
Analytical Tools for Six Sigma and
Continuous Improvement: Flowchart
1
Analytical Tools for Six Sigma and Continuous
Improvement: Runchart
Can
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usedtotoidentify
identifywhen
when
equipment
equipmentor orprocesses
processesare
arenot
not
behaving
behavingaccording
accordingtoto
Diameter
0.58 specifications
specifications
0.56
0.54
0.52
0.5
0.48
0.46
0.44
1 2 3 4 5 6 7 8 9 10 11 12
MEASURE Time (Hours)
1
Analytical Tools for Six Sigma and
Continuous Improvement:
Checksheet
Can be used to keep track of defects or used to
make sure people collect data in a correct manner
(MEASURE)
MEASURE
Billing Errors
Monday
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
2
Analytical Tools for Six Sigma and Continuous
Improvement: Pareto Analysis
Can be used to find when 80% of the problems
may be attributed to 20% of the causes
(MEASURE)
MEASURE
80%
Frequency
2
Analytical Tools for Six Sigma and
Continuous Improvement: Histogram
Can be used to identify the
frequency of quality defect
occurrence and display quality
performance (MEASURE)
Number of Lots
0 1 2 3 4 Defects
Data Ranges in lot
2
Analytical Tools for Six Sigma and
Continuous Improvement: Cause & Effect
Diagram
2
Analytical Tools for Six Sigma and Continuous
Improvement: Opportunity Flow Diagram
IMPROVE
2
Analytical Tools for Six Sigma and
Continuous Improvement: Control Charts
2
Other Six Sigma Tools
Failure Mode and Effect Analysis (FMEA) is a structured
approach to identify, estimate, prioritize, and evaluate
risk of possible failures at each stage in the process
2
The Shingo System: Fail-Safe Design
Shingos argument:
SQC methods do not prevent defects
Defects arise when people make errors
Defects can be prevented by providing
workers with feedback on errors
Poka-Yoke includes:
1. Checklists
2. Special tooling that
prevents workers from making errors
Gives rapid feedback of abnormalities to worker in
time to correct them
2
The Shingo System:
Example
Exhibit 8.10
Poka-Yoke Example
(Placing labels on parts
coming down a conveyor)
2
ISO 9000
Series of standards agreed upon by the International
Organization for Standardization (ISO)
Adopted in 1987
More than 100 countries
A prerequisite for global competition?
ISO 9000 directs you to "document what you do and
then do as you documented."
1. First party: A firm audits itself against ISO 9000 standards
2. Second party: A customer audits its supplier
3. Third party: A "qualified" national or international standards or
certifying agency serves as auditor
Is it important for small or medium sized businesses to
have ISO 9000 certification?
2
External Benchmarking Steps