1. SIX-SIGMA QUALITY Chapter 9

2. 1. Understand total quality management. 2. Describe how quality is measured and be aware of the different dimensions of quality. 3. Explain the define, measure, analyze, improve, and control (DMAIC) quality improvement process. OBJECTIVES 9A-2

3. Key Six Sigma Concepts  Critical to quality: attributes most important to the customer  Defect: failing to deliver what customer wants  Process capability: what your process can deliver  Variation: what customer sees and feels  Stable operations: ensuring consistent, predictable processes to improve what the customer sees and feels  Design for six-sigma: designing to meet customer needs and process capability LO 1

4. Total Quality Management (TQM)  Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer 9-4

5. Malcolm Baldridge National Quality Award  Established in 1987 by Department of Commerce  Goal is to help companies review and structure their quality programs  Has requirement that suppliers demonstrate they are measuring and documenting their quality practices LO 1

6. Quality Specifications  Design quality: Inherent value of the product in the marketplace  Dimensions include: Performance, Features, Reliability/Durability, Serviceability, Aesthetics, and Perceived Quality.  Conformance quality: Degree to which the product or service design specifications are met 9-6

7. The Dimensions of Design Quality  Performance: primary product or service characteristics  Features: added touches, bells and whistles, secondary characteristics  Reliability/durability: consistency of performance over time  Serviceability: ease of repair  Aesthetics: sensory characteristics  Perceived quality: past performance and reputation LO 2

8. Costs of Quality External Failure Costs Appraisal Costs Prevention Costs Internal Failure Costs Costs of Quality 9-8

9. Six-Sigma Quality  Six-sigma is a philosophy and methods used to eliminate defects  Seeks to reduce variation in the processes  One metric is defects per million opportunities (DPMO) LO 2

10. Six-Sigma Methodology  Uses many of the same statistical tools as other quality movements  Used in a systematic project-oriented fashion through define, measure, analyze, improve, and control (DMAIC) cycle More detailed version of Deming PDCA cycle  Continuous improvement: seeks continual improvement in all aspects of operations  Also uses scientific method LO 2

11. 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  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  DMAIC consists of five steps…. 9-11

12. Analytical Tools for Six Sigma and Continuous Improvement: Flow Chart No, Continue… Material Received from Supplier Inspect Material for Defects Defects found? Return to Supplier for Credit Yes Can be used to find quality problems 9-12

13. Analytical Tools for Six Sigma and Continuous Improvement: Run Chart Can be used to identify when equipment or processes are not behaving according to specifications 0.44 0.46 0.48 0.5 0.52 0.54 0.56 0.58 123456789101112 Time (Hours) Diameter 9-13

14. 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 Can be used to find when 80% of the problems may be attributed to 20% of the causes Assy. Instruct. Frequency DesignPurch.Training 80% 9-14

15. Analytical Tools for Six Sigma and Continuous Improvement: Check sheet Billing Errors Wrong Account Wrong Amount A/R Errors Wrong Account Wrong Amount Monday Can be used to keep track of defects or used to make sure people collect data in a correct manner 9-15

16. Analytical Tools for Six Sigma and Continuous Improvement: Histogram Number of Lots Data Ranges Defects in lot 01234 Can be used to identify the frequency of quality defect occurrence and display quality performance 9-16

17. Analytical Tools for Six Sigma and Continuous Improvement: Cause & Effect Diagram Effect ManMachine MaterialMethod Environment Possible causes: The results or effect Can be used to systematically track backwards to find a possible cause of a quality problem (or effect) 9-17

18. Analytical Tools for Six Sigma and Continuous Improvement: Control Charts Can be used to monitor ongoing production process quality and quality conformance to stated standards of quality 970 980 990 1000 1010 1020 0123456789101112131415 LCL UCL 9-18

19. Poke-Yoke  Cutting leather where ‘A’ placed with no defects or marks; ‘B’ with some; and ‘C’ with more than B allowed.

20. Visual Management

21. Other Six Sigma Tools  Failure Mode and Effect Analysis (DMEA) is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage in the process  Design of Experiments (DOE) a statistical test to determine cause-and-effect relationships between process variables and output 9-21

22. Six Sigma Roles and Responsibilities 1. Executive leaders must champion the process of improvement 2. Corporation-wide training in Six Sigma concepts and tools 3. Setting stretch objectives for improvement 4. Continuous reinforcement and rewards 9-22

23. External Benchmarking Steps 1. Identify those processes needing improvement 2. Identify a firm that is the world leader in performing the process 3. Contact the managers of that company and make a personal visit to interview managers and workers 4. Analyze data 9-23

24. ANY QUESTIONS?