SIX SIGMA

WHAT IS SIX SIGMA ?

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
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 TQM
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.

QUALITY
SPECIFICATIONS
AND QUALITY COSTS
QUALITY SPECIFICATIONS AND QUALITY COSTS
DEVELOPING QUALITY SPECIFICATIONS

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

DIMENSION MEANIN
G
Performance Primary product or service characteristics
Features Added touches, bells and whistles, secondary characteristics
Reliability/durability Consistency of performance over time, probability of failing, useful life.
Ease of repair
Serviceability Sensory characteristics (sound, feel, look, and so on)
Aesthetics Past performance and reputation
Perceived quality
QUALITY SPECIFICATIONS AND QUALITY COSTS
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.
QUALITY SPECIFICATIONS AND QUALITY COSTS
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.
QUALITY SPECIFICATIONS AND QUALITY COSTS
Cost of quality (COQ)

The costs of quality are generally classified into four types:

1. Appraisal costs.
2. Prevention costs.
3. Internal failure costs.
4. External failure costs.
SIX SIGMA QUALITY
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.
SIX SIGMA
METHODOLOGY
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.
 DMAIC
METHODOLOGY
 DEFINE
Define the issue, opportunity for
improvement and requirements of
the customers.
 MEASUR
E
Measure the process
to determine its current
performance.
 ANALYZ
E
Analyze the process to
determine the root causes of
the defects, as well as
variation.
 IMPROV
E
Improve by creating changes in
the business process and
ensuring the root causes are
addressed.
CONTRO
L
Control the new process
and future performance.
THE SHINGO SYSTEM:
FAIL SAFE DESIGN
THE SHINGO SYSTEM: FAIL SAFE DESIGN
The Shingo system developed in parallel and many
ways in conflict with the statistically based approach
to quality control.
Two aspects of the Shingo system in particular have received
great attention.
1. How to accomplish drastic cuts in equipment setup times by single-
minute exchange of die (SMED) procedures?
2. The focus of this section is the use of source inspection and the poka-
yoke system to achieve zero defects.
THE SHINGO SYSTEM: FAIL SAFE DESIGN
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.
THE SHINGO SYSTEM: FAIL SAFE DESIGN
This inspection can be one of three types:
• 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.
 improvement.

THE SHINGO SYSTEM: FAIL SAFE DESIGN

exhibit 8.9
Sources of Defects
There are various types of defects. In order of importance these are

1. Omitted processing 6. Processing wrong workpiece

2. Processing errors 7. Misoperation
3. Errors setting up workpieces 8. Adjustment error
4. Missing parts 9. Equipment not set up properly
5. Wrong parts 10. Tools and jigs improperly prepared
THE SHINGO SYSTEM: FAIL SAFE DESIGN
What is a poka - yoke?
• A poka-yoke is a mechanism that 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 referred to as "mistake-proof" or "foolproof."
THE SHINGO SYSTEM: FAIL SAFE DESIGN
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
to correct 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 sophisticated
detection and electronic signaling devices.
 improvement.

THE SHINGO SYSTEM: FAIL SAFE DESIGN

exhibit 8.10 Poka-Yoke Example (Placing labels on parts coming down a conveyor)
Before Improvement Cost: ¥15,000 ($145)
The operation depended on the worker's vigilance.
After Improvement Labeler
Device to ensure attachment of labels
The tape fed out by the labeler turns sharply
so that the labels detach and project out from
Label
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.
B la n k ta p e
Effect: Label application failures were
Photoelectric tube
eliminated.
ISO 9000
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.
ISO 9000
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 CERTIFICATION
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).

There are three forms of certification:

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 ager serves as auditor.
EXTERNAL
BENCHMARKING FOR
QUALITY
IMPROVEMENT
EXTERNAL
BENCHMARKING FOR
QUALITY
IMPROVEMENT
• 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.
SERVICE QUALITY
MEASUREMENT:
SERVQUAL
SERVICE QUALITY MEASUREMENT:
SERVQUAL
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.
SERVICE QUALITY MEASUREMENT:
SERVQUAL
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.
GROUP 5 - QUALITY MANAGEMENT:
FOCUS ON SIX SIGMA

Thank You for

Listening!
CABUNOC, DANICA PEARL A.
CONSTANTINO, RACHEL
DE OCAMPO, ANGELINE
Reporters