Six Sigma- continual iterative improvement.

Collecting data on a process and using that data to analyze and interpret what is happening in that process so that the process can be improved to satisfy the customer. 3 sigma = 99.7300% 4 sigma = 99.9937% 5 sigma = 99.9999% 6 sigma= 3.4 defects per million tools- control charts, failure mode, effect analysis, and process mapping in selecting the metrics there are lagging and leading measures- lagging measures are those that measure at the end of the event while leading measure are measure that held achieve objectives and are measured upstream of the event organizational key drivers- customer knowledge, product, service, operational, market knowledge, competitive, supplier, workforce, cost, financial, governance and compliance performance. The measures or indicator that one selects must represent the factors that lead to improved customer, operational, financial and ethical performance. Attaining the customer knowledge is the VOC- the process for capturing customer related information. This is proactive and continuously innovative to capture stated, unstated and anticipated customer requirements, needs and desires. balanced scorecard- method for ensuring that the project meets both customer and business needs. Provides a clear prescription as to what companies should measure in order to balance financial results. the balance scorecard includes both financial and nonfinancial info as well as lagging and leading measures. Typically based on brainstorming Why pursue 6 sigma? financial- Financial savings customer- Focuses on the expectations of the customers. customer- Targets the vital few process factors that are causing defects. employee- Inspires & empowers employees. employee- Instills an attitude of viewing process from the customers perspective. employee-Promotes development. employee-Concentrates on systematic process improvement. quality- reduces defects quality- saves the poor quality\ Internal Failure costs resulting from defects found before shipment to the customer

External Failure costs resulting from defects found after shipment to the customer Appraisal (Quality Control) costs of determining the degree of conformance to quality requirements Prevention (Quality Assurance) costs of minimizing failure and appraisal costs Internal Failure Cost Examples: scrap, rework, re-inspection, re-test, downgrading, downtime, reduced productivity, failure analysis. External Failure Cost Examples: warranty, complain adjustment, returned material, allowances, replacement, compensation, damage to reputation. Appraisal Cost Examples: inspection, testing, process control, quality audits. Prevention Cost Examples: quality planning, policies and procedures, new design reviews, in-process inspection and testing, supplier evaluations, education and training, preventative maintenance.