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Chapter 4

Six Sigma For Process & Quality Improvement

Chapter 4: Six Sigma for Process and Quality Improvement

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Quality Management and Six Sigma in Perspective

Two primary sets of costs are involved in quality:
 

control costs failure costs Prevention costs Appraisal costs Internal costs of defects External costs of defects
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Costs broken into four categories:
 


Japanese Approaches to Quality

In 1950 the Japanese government invited W. Edwards Deming (then a professor at New York University) to give a series of lectures on quality control to help Japanese engineers reindustrialize the country.

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W. Edwards Deming    Major source of poor quality is variation Quality improvement the responsibility of top management All employees should be trained in use of problem solving tools and especially statistical techniques Chapter 4: Six Sigma for Process and Quality Improvement 4 .

3. Improve constantly and forever 6. 2. 4. Create constancy of purpose Adopt the new philosophy Cease dependence on mass inspection End practice of awarding business on basis of price tags 5. Institute modern methods of training Chapter 4: Six Sigma for Process and Quality Improvement 5 .Deming’s 14 Points 1.

Institute modern method of supervision 8. Eliminate work standards and quotas 12. Drive out fear 9.Deming’s 14 Points continued 7. Breakdown organizational barriers 10. Eliminate arbitrary numerical goals 11. Remove barriers that reduce pride of workmanship Chapter 4: Six Sigma for Process and Quality Improvement 6 .

Institute a vigorous program of education and training 14.Deming’s 14 Points continued 13. Push the 13 points everyday Chapter 4: Six Sigma for Process and Quality Improvement 7 .

responsibility shifted from quality control department to workers Chapter 4: Six Sigma for Process and Quality Improvement 8 .Total Quality Management (TQM)   Better to produce item right the first time than to try to inspect quality in Quality at the source .

Japanese Union of Scientist and Engineers began consulting with Deming Deming Prize introduced in Japan in 1951 Chapter 4: Six Sigma for Process and Quality Improvement 9 .History of TQM     Dr. Shewart began using statistical control at the Bell Institute in 1930s Military standards developed in 1950s After World War II.

000 quality circles by 1966 100.History of TQM continued        Quality assurance concept proposed in 1952 Juran makes first trip to Japan in 1954 Quality becomes Japan’s national slogan in 1956 First quality circles created in 1957 10. quality circle 1974 Chapter 4: Six Sigma for Process and Quality Improvement 10 .000 quality circles by 1977 First U.S.

Five Steps in TQM      Determine what customers want Develop products and services Develop production system Monitor the system Include customers and suppliers Chapter 4: Six Sigma for Process and Quality Improvement 11 .

Joseph Juran    Quality Control Handbook (1951) Employees speak in different languages Quality Trilogy    Quality Planning Quality Control Quality Improvement  Need to place more emphasis on planning and improvement Chapter 4: Six Sigma for Process and Quality Improvement 12 .

Joseph Juran continued  Organizations progress through four phases     Minimize prevention and appraisal costs Appraisal costs increased Process control introduced increasing appraisal costs but lowering internal and external failure costs Prevention costs increased in effort to lower total quality costs Chapter 4: Six Sigma for Process and Quality Improvement 13 .

Adding “six” to “sigma” combines a measure of process performance (sigma) with the goal of nearly perfect quality (six). Sigma is the Greek symbol used in statistics to refer to standard deviation which is a measure of variation. a senior engineer at Motorola. Chapter 4: Six Sigma for Process and Quality Improvement 14 . in 1986 as a way to standardize the way defects were tallied.A Brief History of Six Sigma    The Six Sigma concept was developed by Bill Smith.

A Brief History of Six Sigma continued  In the popular book The Six Sigma Way. and statistical analysis. Six Sigma is uniquely driven by close understanding of customer needs. data. disciplined use of facts. improving. Six Sigma is defined as:  a comprehensive and flexible system for achieving. xi) Chapter 4: Six Sigma for Process and Quality Improvement 15 . sustaining and maximizing business success. and reinventing business processes. and diligent attention to managing. (p.

define  measure  analyze  improve  control pronounced dey-MAY-ihk  Chapter 4: Six Sigma for Process and Quality Improvement 16 .The DMAIC Improvement Process  Six Sigma projects generally follow a well defined process consisting of five phases.

The DMAIC Improvement Process Chapter 4: Six Sigma for Process and Quality Improvement 17 .

Chapter 4: Six Sigma for Process and Quality Improvement 18 .

The Define Phase  The define phase of a DMAIC project focuses on clearly specifying the problem or opportunity. Chapter 4: Six Sigma for Process and Quality Improvement 19 . and what the scope of the project is. what the goals are for the process improvement project. Identifying who the customer is and their requirements is also critical given that the overarching goal for all Six Sigma projects is improving the organization’s ability to meet the needs of its customers.

Defining and Measuring Quality             Conformance to specifications Performance Quick response Quick-change expertise Features Reliability Durability Serviceability Aesthetics Perceived quality Humanity Value Chapter 4: Six Sigma for Process and Quality Improvement 20 .

Chapter 4: Six Sigma for Process and Quality Improvement 21 . Comparing an organization's products and services with those of other organizations.Benchmarking  Benchmarking involves comparing an organization's processes with the best practices to be found. including:   Comparing an organization's processes with the best organization's processes. Benchmarking is used for a variety of purposes.

Projecting trends in order to be able to respond proactively to future challenges and opportunities.Benchmarking continued   Identifying the best practices to implement. Chapter 4: Six Sigma for Process and Quality Improvement 22 .

Chapter 4: Six Sigma for Process and Quality Improvement 23 . and having the organizational capabilities to develop and deliver such new products and services. Tools for helping translate customer desires directly into product service attributes.Quality Function Deployment (QFD)   Two key drivers of an organization’s longterm competitive success are the extent to which its new products or services meet customers’ needs.

Four Houses of Quality     Customer requirements Technical requirements Component requirements Process deployment requirements Chapter 4: Six Sigma for Process and Quality Improvement 24 .

House of Quality Details Chapter 4: Six Sigma for Process and Quality Improvement 25 .

The Measure Phase    The measure phase begins with the identification of the key process performance metrics. Once the key process performance metrics have been specified. related process and customer data is collected. Defects per Million Opportunities (DPMO) and Process Sigma. Two commonly used process performance measures. Chapter 4: Six Sigma for Process and Quality Improvement 26 . namely.

This may have caused some confusion for more statistically inclined readers. which we shall now attempt to reconcile.Defects Per Million Opportunities  Earlier it was noted that a literal interpretation of Six Sigma is 3. Chapter 4: Six Sigma for Process and Quality Improvement 27 .4 defects per million opportunities (DPMO).

Defects Per Million Opportunities Chapter 4: Six Sigma for Process and Quality Improvement 28 .

Chapter 4: Six Sigma for Process and Quality Improvement 29 .  One way to measure the performance of a process is to calculate the number of standard deviations the customer requirements are from the process mean or target value.Process Sigma  How sigma itself can be used to measure the performance of a process.

DPMO for Alternative Process Sigma Levels Chapter 4: Six Sigma for Process and Quality Improvement 30 .

5 Standard Deviations Chapter 4: Six Sigma for Process and Quality Improvement 31 .Motorola’s Assumption the Process Mean Can Shift by as Much as 1.

Comparison of 3 Sigma Process and 6 Sigma Process Chapter 4: Six Sigma for Process and Quality Improvement 32 .

See next slide Table 4.3 Common tools and methodologies in the Six Sigma toolset. Chapter 4: Six Sigma for Process and Quality Improvement 33 .The Analyze Phase   In this phase our objective is to utilize the data that has been collected to develop and test theories related to the root causes of existing gaps between the process’ current performance and its desired performance.

Brainstorming  The brainstorming approach:     Do not criticize ideas during the brainstorming session. Combine. extend. unconventional. Chapter 4: Six Sigma for Process and Quality Improvement 34 . ridiculous. Generate as many ideas as possible. Express all ideas no matter how radical. or impractical they may seem. and/or improve on one another’s ideas. bizarre.

Use analogical reasoning. Make the workplace a playground. Chapter 4: Six Sigma for Process and Quality Improvement 35 .Brainstorming: Actions to Enhance Team Creativity           Create diversified teams. Set high standards. Use electronic brainstorming. Use the Nominal Group Technique. Record team ideas. Use trained facilitators to run the brainstorming session. Change the composition of the team. Use brain writing.

Cause and Effect Diagrams Chapter 4: Six Sigma for Process and Quality Improvement 36 .

Process Capability Analysis

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Process Capability Analysis continued

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The Improve Phase: Design of Experiments (DOE)

OFAT and 1FAT - one factor at a time.

Shortcomings

Not typically possible to test one factor at a time and hold all the other factors constant. Not possible to account for interactions or joint variation between variables (Figure 4.16).

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Design of Experiments (DOE) Chapter 4: Six Sigma for Process and Quality Improvement 40 .

DOE: continued Chapter 4: Six Sigma for Process and Quality Improvement 41 .

DOE: continued Chapter 4: Six Sigma for Process and Quality Improvement 42 .

Chapter 4: Six Sigma for Process and Quality Improvement 43 . Determining how much data to collect. Specifying the levels for each factor.DOE continued  Some of the major considerations associated with DOE include:     Determining which factors to include in the experiment. Determining the type of experimental design.

Taguchi Methods   Design for Manufacturability (DFM) Procedure for statistical testing to determine best combination of product and transformation system design that will make output relatively independent of normal fluctuations in the production system Chapter 4: Six Sigma for Process and Quality Improvement 44 .

Statistical Quality Control Chapter 4: Six Sigma for Process and Quality Improvement 45 .

Assignable variation occurs because some element of the system or some operating condition is out of control.Chance Versus Assignable Variation    Chance variation is variability built into the system. Quality control seeks to identify when assignable variation is present so that corrective action can be taken. Chapter 4: Six Sigma for Process and Quality Improvement 46 .

temperature.Control Based on Attributes and Variables   Inspection for Variables: measuring a variable that can be scaled such as weight. Inspection of Attributes: determining the existence of a characteristic such as acceptable-defective. and diameter. timely-late. and right-wrong. Chapter 4: Six Sigma for Process and Quality Improvement 47 . length.

Control Charts Chapter 4: Six Sigma for Process and Quality Improvement 48 .

Chapter 4: Six Sigma for Process and Quality Improvement 49 .assignable variation.Control Charts  Developed in 1920s to distinguish between chance variation in a system and variation caused by the system’s being out of control .

Chapter 4: Six Sigma for Process and Quality Improvement 50 . Sample data plotted on control charts to determine if the process is still under control.Control Charts continued     Repetitive operation will not produce exactly the same outputs. Pattern of variability often described by normal distribution. Random samples that fully represent the population being checked are taken.

Control Chart with Limits Set at Three Standard Deviations Chapter 4: Six Sigma for Process and Quality Improvement 51 .

Control Charts for Variables Chapter 4: Six Sigma for Process and Quality Improvement 52 .

Two Control Charts   Sample Means Chart Range Chart Chapter 4: Six Sigma for Process and Quality Improvement 53 .

5. 5. 9 Scenario 2 4. 8. 7 2. 6 6.Sample Data of Weights of Tacos (Ounces) Sample 1 2 3 Scenario 1 4. 8 Chapter 4: Six Sigma for Process and Quality Improvement 54 . 6 3. 8 7. 5. 5. 7.

Sample ranges have not changed from sample to sample. Chapter 4: Six Sigma for Process and Quality Improvement 55 .Analysis of Scenario 1 Sample 1 2 3 Mean 5 7 8 Range 2 2 2 Sample means show problem having increased from 5 ounces to 8 ounces.

Analysis of Scenario 2 Sample 1 2 3 Mean 5 5 5 Range 2 4 6 Sample ranges show problem having increased from 2 ounces to 6 ounces. Sample means have not changed from sample to sample. Chapter 4: Six Sigma for Process and Quality Improvement 56 .

Patterns of Change in Process Distributions Chapter 4: Six Sigma for Process and Quality Improvement 57 .

Control Limits Sample Means Chart: UCL X  X  A 2 R LCL X  X  A 2 R Range Chart: UCL R  D 4 R LCL R  D 3 R Chapter 4: Six Sigma for Process and Quality Improvement 58 .

Calculating the Grand Mean and the Average Range X  X N R  R N Chapter 4: Six Sigma for Process and Quality Improvement 59 .

Mean Age of Ice Cream Chapter 4: Six Sigma for Process and Quality Improvement 60 .

Range in Ice Cream Age Chapter 4: Six Sigma for Process and Quality Improvement 61 .

Control Charts for Attributes Chapter 4: Six Sigma for Process and Quality Improvement 62 .

Fraction-Defective (p) Charts total number of defects p total number of units sampled p  p (1  p ) n UCL p  p  z p LCL p  p  z p Chapter 4: Six Sigma for Process and Quality Improvement 63 .

Number-of-Defects (c) Charts number of incidents observed c number of units sampled c  c UCL c  c  z c LCL c  c  z c Chapter 4: Six Sigma for Process and Quality Improvement 64 .

Black Belts. Process owners.Six Sigma in Practice  Six Sigma Roles:     Master Black Belts. Green Belts. Chapter 4: Six Sigma for Process and Quality Improvement 65 .  Supporting Roles:   Champions/Sponsors. Yellow Belts.

hotel chains. Chapter 4: Six Sigma for Process and Quality Improvement 66 . Power and Associates uses surveys to rate domestic airlines.D. and rental car companies.Quality in Services     Measuring is difficult Training in standard procedures often used to improve quality One way to measure quality of services is to use customer satisfaction surveys J.

Rating the Performance of Domestic Airlines     On-time performance (25%) Airport check-in (11%) Courtesy of flight attendants (11%) Seating comfort (11%) Chapter 4: Six Sigma for Process and Quality Improvement 67 .

Service Defections  Organizations should monitor customer defections    feedback from defecting customers can be used to identify problem areas can determine what is needed to win them back changes in defection rate can be used as early warning signal Chapter 4: Six Sigma for Process and Quality Improvement 68 .

Quality Awards/Certifications Chapter 4: Six Sigma for Process and Quality Improvement 69 .

The Malcolm Baldrige National Quality Award Chapter 4: Six Sigma for Process and Quality Improvement 70 .

and servicing products. selling. manufacturing. Selecting an ISO 9000 certified supplier provides some assurance that supplier follows accepted business practices in areas covered by the standard Chapter 4: Six Sigma for Process and Quality Improvement 71 .ISO 9000   Guidelines for designing.

and Delivery Internal Quality Audits Training Servicing Statistical Techniques 72 Chapter 4: Six Sigma for Process and Quality Improvement . Storage. and Test Equipment Inspection and Test Status Control of Nonconforming Product Corrective and Preventive Action Handling. Preservation. Packaging.Elements of ISO 9000           Management Responsibility Quality System Contract Review Design Control Document and Data Control Purchasing Control of Customer Supplied Product Product Identification and Traceability Process Control Inspection and Testing          Control of Inspection. Measuring.

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and life-cycle assessment.ISO 14000   Series of standards covering environmental management systems. operational control. Intent is to help organizations improve their environmental performance through documentation control. Chapter 4: Six Sigma for Process and Quality Improvement 74 . environmental labeling. statistical techniques. environmental auditing. training. and corrective and preventive actions. evaluation of environmental performance. control of records.

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