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Chapter 1

Chapter 1. Foundations of Six Sigma: Principles of Quality Management. What is Six Sigma?.

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Chapter 1

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  1. Chapter 1 Foundations of Six Sigma: Principles of Quality Management

  2. What is Six Sigma? Six Sigma can be described as a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and a clear financial return for the organization. Six Sigma was pioneered by Motorola in the mid-1980s and popularized by the success of General Electric.

  3. Six Sigma Methodology • DMAIC • Define • Measure • Analyze • Improve • Control • Incorporates a wide variety of statistical and process improvement tools

  4. Key Concepts of Six Sigma (1 of 2) • Think in terms of key business processes, customer requirements, and overall strategic objectives. • Focus on corporate sponsors responsible for championing projects, support team activities, help to overcome resistance to change, and obtaining resources. • Emphasize such quantifiable measures as defects per million opportunities (dpmo)that can be applied to all parts of an organization

  5. Key Concepts of Six Sigma (2 of 2) • Ensure that appropriate metrics are identified early and focus on business results, thereby providing incentives and accountability. • Provide extensive training followed by project team deployment • Create highly qualified process improvement experts (“green belts,” “black belts,” and “master black belts”) who can apply improvement tools and lead teams. • Set stretch objectives for improvement.

  6. Six Sigma Works for Everyone • Plant managers – reduce waste, improve product consistency, solve equipment problems, create capacity • Human resource managers – reduce cycle time for hiring processes • Sales managers – improve forecast reliability, pricing strategies, pricing variation • Anyone – better understand customer needs and tailor service offerings to meet them

  7. Quality Management and the Evolution of Six Sigma (1 of 3) • Skilled craftsmanship during Middle Ages • Industrial Revolution: rise of inspection and separate quality departments • Early 20th Century: statistical methods at Bell System • Quality control during World War II • Post-war Japan: evolution of quality management

  8. Quality Management and the Evolution of Six Sigma (2 of 3) • Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management • Malcolm Baldrige National Quality Award (1987) • Disappointments and criticism

  9. Quality Management and the Evolution of Six Sigma (3 of 3) • Emergence of quality management in service industries, government, health care, and education • Birth of Six Sigma • Current and future challenge: keep progress in quality management alive

  10. Six Sigma Owned by business leader champions Cross functional projects Rigorous and advanced statistical tools Requires verifiable return on investment TQM Based on worker empowerment and teams Department or workplace focus Simple improvement tools Little financial accountability Six Sigma vs. TQM

  11. Formal Definitions of Quality • Design perspective: quantities of product attributes • Customer perspective: fitness for intended use • Operations perspective: conformance to specifications

  12. Customer-Driven Quality • Meeting and exceeding customer expectations • Customers • Consumers • External customers • Internal customers

  13. Principles of Total Quality • Focus on customers • Participation and teamwork • Process focus supported by continuous improvement

  14. Customer Focus • Customer is principal judge of quality • Organizations must first understand customers’ needs and expectations in order to meet and exceed them • Organizations must build relationships with customers

  15. Customer Focus in Six Sigma To meet or exceed customer expectations, organizations must fully understand all product and service attributes that contribute to customer value and lead to satisfaction and loyalty – called critical to quality (CTQ) characteristics. CTQs represent the important drivers of Six Sigma improvement efforts.

  16. Participation and Teamwork • Employees know their jobs best and therefore, how to improve them • Management must develop the systems and procedures that foster participation and teamwork • Empowerment better serves customers, and creates trust and motivation • Teamwork and cross-functional cooperation encourage employee involvement and lead to more effective problem solving

  17. Process Focus and Continuous Improvement • A process is a sequence of activities that is intended to achieve some result

  18. Continuous Improvement • Enhancing value through new products and services • Reducing errors, defects, waste, and costs • Increasing productivity and effectiveness • Improving responsiveness and cycle time performance

  19. Synergies Among Response Time, Quality, and Productivity Major improvements in response time may require significant simplification of work processes and often drive simultaneous improvements in quality and productivity.

  20. Six Sigma and Business Results Considerable evidence exists that Six Sigma initiatives positively impact bottom-line results from companies such as GE, Allied Signal, 3M, Xerox, Raytheon, Citibank, and many others.

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