SIX-SIGMA-GROUP-5.powerpoint presentation

SIX SIGMA is a disciplined process focused on
delivering near-perfect products and services by
reducing defects. It aims for no more than 3.4
defects per million opportunities.
Key concepts include Critical to Quality, Process
Capability, Variation, Defect, Stable Operations,
and Design for Six Sigma.

BRIEF HISTORY OF SIX SIGMA
Six Sigma was created by Bill Smith in the 1980s,
as the 80s were ending. He was working at Motorola at
the time and needed a quality management tool to
increase business performance. He set about developing
the method and spent all of his energy on what would be
the future of quality management. Smith was supported
by Bob Galvin (the CEO at Motorola), which made his job
easier.

TOTAL QUALITY MANAGEMENT may be
defined as “managing the entire organization
so that it excels on all dimensions of
products and services that are important to
customer.” It has two fundamental
operational goals, namely:
• Careful design of the product of service.
2. Ensuring that the organization’s system
can consistently produce the design.

DIMENSION
Performance
Features
Reliability/durability
Serviceability
Aesthetics
Perceived quality
MEANING
Primary product or service characteristics
Added touches, bells and whistles, secondary characteristics
Consistency of performance over time, probability of failing,
useful life.
Ease of repair
Sensory characteristics (sound, feel, look, and so on)
Past performance and reputation
Design quality refers to the inherent value of the
product in the marketplace and is thus a strategic
decision for the firm.
exhibit 8.2 The Dimensions of Design Quality
DEVELOPING QUALITY SPECIFICATIONS

Conformance quality refers to the degree
to which the product or service design
specifications are met.
Quality at the source is a fundamental
principle in quality management that
emphasizes the importance of ensuring quality
at every stage of a process, rather than relying
solely on inspections or corrective measures
at the end of the process.
DEVELOPING QUALITY SPECIFICATIONS

Cost of quality (COQ) is defined as a methodology
that allows an organization to determine the
extent to which its resources are used for
activities that prevent poor quality, that appraise
the quality of the organization’s products or
services, and that result from internal and
external failures.
Three basic assumptions justify an analysis of the costs of
quality: (1) failures are caused, (2) prevention is cheaper,
and (3) performance can be measured.

Six Sigma is a set of methodologies and tools
used to improve business processes by reducing
defects and errors, minimizing variation, and
increasing quality and efficiency. The goal of Six
Sigma is to achieve a level of quality that is nearly
perfect, with only 3.4 defects per million
opportunities. This is achieved by using a structured
approach called DMAIC (Define, Measure, Analyze,
Improve, Control ) to identify and eliminate causes of
variation and improve processes.

While Six Sigma's methods include many of the
statistical tools that were employed in other quality
movements, here they are employed in a systematic
project-oriented fashion through the define, measure,
analyze, improve, and control (DMAIC) cycle. The
DMAIC cycle is a more detailed version of the Deming
PDCA cycle, which consists of four steps-plan, do,
check, and act-that underly continuous improvement.

DEFINE
Define the issue, opportunity
for improvement and
requirements of the customers.

MEASURE
Measure the process
to determine its current
performance.

ANALYZE
Analyze the process to
determine the root causes
of the defects, as well as
variation.

IMPROVE
Improve by creating changes
in the business process and
ensuring the root causes are
addressed.

CONTROL
Control the new process
and future performance.

The Shingo system developed in parallel
and many ways in conflict with the statistically
based approach to quality control.

This inspection can be one of three types:
• Successive check inspection is performed by the
next person in the process or by an objective
evaluator such as a group leader.
• Self-check is done by the individual worker and
is appropriate by itself on all but items that
require sensory judgment (such as existence or
severity of scratches, or correct matching of
shades of paint). These require successive
checks.

• Source inspection is also performed by the
individual worker, except instead of
checking for defects, the worker checks for
the errors that will cause defects. This
prevents the defects from ever occurring
and, hence requiring rework.
This inspection can be one of three types:

exhibit 8.9
improvement.
Sources of Defects
There are various types of defects. In order of importance these
are
1. Omitted processing
2. Processing errors
3. Errors setting up
workpieces
4. Missing parts
5. Wrong parts
6. Processing wrong workpiece
7. Misoperation
8. Adjustment error
9. Equipment not set up properly
10. Tools and jigs improperly prepared

What is a poka - yoke?
• A poka-yoke is amechanismthat is put in place to
prevent human error. The purpose of a poka-
yoke is to inhibit, correct or highlight an error as it
occurs. Poka-yoke roughly means "avoid
unexpected surprises" or "avoid blunders" in
Japanese. In English, a poka-yoke is sometimes
referredtoas"mistake-proof"or"foolproof."

Poka-yoke includes such things as checklists or
special tooling that (1) prevents the worker from
making an error that leads to a defect before
starting a process or (2) gives rapid feedback of
abnormalities in the process to the worker in time
tocorrect them.
There are a wide variety of poka-yokes, ranging from kitting parts from a bin
(to ensure that the right number of parts are used in assembly) to
sophisticateddetectionand electronicsignalingdevices.

exhibit 8.10
improvement.
Poka-Yoke Example (Placinglabelsonpartscomingdownaconveyor)
Before Improvement
The operation depended on the worker's vigilance.
After Improvement
Device to ensure attachment of labels
Labeler
Label
Photoelectric tube
Cost: ¥15,000 ($145)
The tape fed out by the labeler turns
sharply so that the labels detach and
project out from the tape. This is
detected by a photoelectric tube and,
if the label is not removed and applied
to the product within the tact time of
20 seconds, a buzzer sounds and the
conveyor stops.
Effect: Label application failures were
eliminated.

ISO 9000 is a series of international quality
standards that have been developed by the
International Organization for Standardization.
More than 100 countries now recognize the 9000
series. The idea behind the standards is defects
can be prevented through the planning and
application of best practices at every stage of
business – from design through manufacturing and
then installation and servicing.

These standards focus on identifying criteria
by which any organization, regardless of
whether it is manufacturing or service oriented,
can ensure that product leaving its facility
meets the requirements of its customers. These
standards ask a company to first document and
implement its systems for quality management,
and then to verify, by means of an audit
conducted by an independent accredited third
party. The compliance of those systems to the
requirements of the standards.

ISO 9000 certified is essential from a purely competitive
standpoint. ISO certification is a seal of approval from a
third party body that a company runs to one of the
international standards developed and published by the
International Organization for Standardization (ISO).
3. Third party: A "qualified" national or international standards or certifying ager
serves as auditor.

• External goes outside the organization to examie
what industry competitors and excellent performers
outside of industry are doing Benchmarking typically
involves the following steps:

• Identify processes needing improvement -
Identify a firm that is the world leader in
performing the process. For many processes,
this may be a company that is not in the same
industry.
• Analyze data - This entails looking at gaps
between what your company is doing and what
bencmarking company is doing.

Servqual is a model that is generally used to
measure service quality.
Weighted SERVQUAL
The SERVQUAL procedure also permits the assignment
of importance weightings to each of the five dimensions.
This is done by allocating 100 points across the
dimensions and then multiplying the dimension gap score
by the points assigned to it. All five weighted dimension
scores are then added to derive an overall weighted
service quality score. Bank customers, for example,
usually weigh reliability heavily and tangibles lightly.

Servqual is a model that is generally used to
measure service quality.
e- SERVICE QUALITY
A new version of SERVQUAL, e-SERVICE QUALITY, e-
SERVICE QUALITY has been developed to evaluate
service on the Internet. e-SQ is defined as the extent to
which a Web site facilitates efficient and effective
shopping, purchasing, and delivery.

CABUNOC, DANICA PEARL A.
CONSTANTINO, RACHEL
DE OCAMPO, ANGELINE
GROUP 5 - QUALITY MANAGEMENT:
FOCUS ON SIX SIGMA
Reporters

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