Chapter 4: Six Sigma For Process and Quality Improvement 1

Chapter 4
Six Sigma for Process and

Quality Improvement
Chapter 4: Six Sigma for Process and Quality 1

Improvement
Quality Management and Six
Sigma in Perspective
 Two primary sets of costs are involved
in quality:
 control costs
 failure costs
 Costs broken into four categories:
 Prevention costs
 Appraisal costs
 Internal costs of defects
 External costs of defects
Improvement
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.

Improvement
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

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

Improvement
Deming’s 14 Points continued
7. Institute modern method of

supervision
8. Drive out fear
9. Breakdown organizational barriers
10. Eliminate arbitrary numerical goals
11. Eliminate work standards and quotas
12. Remove barriers that reduce pride of
workmanship
Improvement
Deming’s 14 Points continued
13. Institute a vigorous program of

education and training
14. Push the 13 points everyday

Improvement
Total Quality Management (TQM)
 Better to produce item right the first

time than to try to inspect quality in
 Quality at the source - responsibility
shifted from quality control department
to workers

Improvement
History of TQM
 Dr. Shewart began using statistical
control at the Bell Institute in 1930s
 Military standards developed in 1950s
 After World War II, Japanese Union of
Scientist and Engineers began
consulting with Deming
 Deming Prize introduced in Japan in
1951
Improvement
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
 10,000 quality circles by 1966
 100,000 quality circles by 1977
 First U.S. quality circle 1974

Improvement
Five Steps in TQM
 Determine what customers want

 Develop products and services
 Develop production system
 Monitor the system
 Include customers and suppliers

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

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

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

Improvement
Chapter 4: Six Sigma for Process 18
and Quality Improvement
The Define Phase
 The define phase of a DMAIC project focuses
on clearly specifying the problem or
opportunity, what the goals are for the
process improvement project, and what the
scope of the project is. 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.
Improvement
Defining and Measuring Quality
 Conformance to specifications
 Performance
 Quick response
 Quick-change expertise
 Features
 Reliability
 Durability
 Serviceability
 Aesthetics
 Perceived quality
 Humanity
 Value
Improvement
Benchmarking
 Benchmarking involves comparing an
organization's processes with the best
practices to be found. Benchmarking is
used for a variety of purposes, including:
 Comparing an organization's processes
with the best organization's processes.
 Comparing an organization's products and
services with those of other organizations.

Improvement
Benchmarking continued
 Identifying the best practices to

implement.
 Projecting trends in order to be able to
respond proactively to future
challenges and opportunities.

Improvement
Quality Function Deployment (QFD)
 Two key drivers of an organization’s long-

term competitive success are the extent to
which its new products or services meet
customers’ needs, 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.

Improvement
Four Houses of Quality
 Customer requirements
 Technical requirements
 Component requirements
 Process deployment requirements

Improvement
House of Quality Details

Improvement
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.
 Two commonly used process performance
measures, namely, Defects per Million
Opportunities (DPMO) and Process Sigma.
Improvement
Defects Per Million Opportunities
 Earlier it was noted that a literal

interpretation of Six Sigma is 3.4
defects per million opportunities
(DPMO). This may have caused some
confusion for more statistically inclined
readers, which we shall now attempt to
reconcile.

Improvement
Defects Per Million Opportunities

Improvement
Process Sigma
 How sigma itself can be used to

measure the performance of a
process.
 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.

Improvement
DPMO for Alternative Process Sigma Levels

Improvement
Motorola’s Assumption the Process Mean Can
Shift by as Much as 1.5 Standard Deviations

Improvement
Comparison of 3 Sigma Process and 6 Sigma Process

Improvement
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.
 See next slide Table 4.3 Common
tools and methodologies in the Six
Sigma toolset.
Improvement
Brainstorming
 The brainstorming approach:
 Do not criticize ideas during the
brainstorming session.
 Express all ideas no matter how radical,
bizarre, unconventional, ridiculous, or
impractical they may seem.
 Generate as many ideas as possible.
 Combine, extend, and/or improve on one
another’s ideas.
Improvement
Brainstorming: Actions to Enhance
Team Creativity
 Create diversified teams.

 Use analogical reasoning.
 Use brain writing.
 Use the Nominal Group Technique.
 Record team ideas.
 Use trained facilitators to run the brainstorming
session.
 Set high standards.
 Change the composition of the team.
 Use electronic brainstorming.
 Make the workplace a playground.
Improvement
Cause and Effect Diagrams

Improvement
Process Capability Analysis

Improvement
Process Capability Analysis
continued

Improvement
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).

Improvement
Design of Experiments (DOE)

Improvement
DOE: continued

Improvement
DOE: continued

Improvement
DOE continued
 Some of the major considerations

associated with DOE include:
 Determining which factors to include in
the experiment.
 Specifying the levels for each factor.
 Determining how much data to collect.
 Determining the type of experimental
design.
Improvement
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

Improvement
Statistical Quality Control

Improvement
Chance Versus Assignable Variation
 Chance variation is variability built into

the system.
 Assignable variation occurs because
some element of the system or some
operating condition is out of control.
 Quality control seeks to identify when
assignable variation is present so that
corrective action can be taken.
Improvement
Control Based on Attributes and
Variables
 Inspection for Variables: measuring a

variable that can be scaled such as
weight, length, temperature, and
diameter.
 Inspection of Attributes: determining
the existence of a characteristic such as
acceptable-defective, timely-late, and
right-wrong.
Improvement
Control Charts

Improvement
Control Charts
 Developed in 1920s to distinguish

between chance variation in a system
and variation caused by the system’s
being out of control - assignable
variation.

Improvement
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.
 Sample data plotted on control charts to
determine if the process is still under
control.
Improvement
Control Chart with Limits Set at Three Standard
Deviations

Improvement
Control Charts for Variables

Improvement
Two Control Charts
 Sample Means Chart

 Range Chart

Improvement
Sample Data of Weights of Tacos
(Ounces)
Sample Scenario 1 Scenario 2
1 4, 5, 6 4, 5, 6
2 6, 7, 8 3, 5, 7
3 7, 8, 9 2, 5, 8

Improvement
Analysis of Scenario 1
Sample Mean Range
1 5 2
2 7 2
3 8 2
Sample means show problem having increased from 5
ounces to 8 ounces. Sample ranges have not changed
from sample to sample.
Improvement
Analysis of Scenario 2
Sample Mean Range
1 5 2
2 5 4
3 5 6
Sample ranges show problem having increased from 2
ounces to 6 ounces. Sample means have not changed
from sample to sample.
Improvement
Patterns of Change in Process Distributions

Improvement
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

Improvement
Calculating the Grand Mean and the
Average Range
X
 X
N
R
 R
N

Improvement
Mean Age of Ice Cream

Improvement
Range in Ice Cream Age

Improvement
Control Charts for Attributes

Improvement
Fraction-Defective (p) Charts
total number of defects
p
total number of units sampled
p (1  p )
p 
n
UCL p  p  z p
LCL p  p  z p
Improvement
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

Improvement
Six Sigma in Practice
 Six Sigma Roles:
 Master Black Belts.
 Black Belts.
 Green Belts.
 Yellow Belts.
 Supporting Roles:
 Champions/Sponsors.
 Process owners.
Improvement
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.D. Power and Associates uses
surveys to rate domestic airlines, hotel
chains, and rental car companies.

Improvement
Rating the Performance of Domestic
Airlines
 On-time performance (25%)

 Airport check-in (11%)
 Courtesy of flight attendants (11%)
 Seating comfort (11%)

Improvement
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
Improvement
Quality Awards/Certifications

Improvement
The Malcolm Baldrige National Quality
Award

Improvement
ISO 9000
 Guidelines for designing,

manufacturing, selling, and servicing
products.
 Selecting an ISO 9000 certified
supplier provides some assurance that
supplier follows accepted business
practices in areas covered by the
standard
Improvement
Elements of ISO 9000
 Management Responsibility  Control of Inspection,
 Quality System Measuring, and Test
 Contract Review Equipment
 Design Control  Inspection and Test Status
 Document and Data Control  Control of Nonconforming
 Purchasing Product
 Control of Customer Supplied
Product  Corrective and Preventive
 Product Identification and Traceability Action
 Process Control  Handling, Storage,
 Inspection and Testing Packaging, Preservation, and
Delivery
 Internal Quality Audits
 Training
 Servicing
 Statistical Techniques

Improvement
ISO 14000
 Series of standards covering environmental
management systems, environmental
auditing, evaluation of environmental
performance, environmental labeling, and
life-cycle assessment.
 Intent is to help organizations improve their
environmental performance through
documentation control, operational control,
control of records, training, statistical
techniques, and corrective and preventive
actions.
Improvement
Copyright
Copyright 2006 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that named in
Section 117 of the United States Copyright Act without the
express written consent of the copyright owner is unlawful.
Requests for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. Adopters of
the textbook are granted permission to make back-up copies
for their own use only, to make copies for distribution to
students of the course the textbook is used in, and to modify
this material to best suit their instructional needs. Under no
circumstances can copies be made for resale. The Publisher
assumes no responsibility for errors, omissions, or damages,
caused by the use of these programs or from the use of the
information contained herein.

Improvement

Chapter 4: Six Sigma For Process and Quality Improvement 1

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Chapter 4: Six Sigma For Process and Quality Improvement 1

Загружено:

Авторское право:

Доступные форматы

Chapter 4

Six Sigma for Process and

Chapter 4: Six Sigma for Process and Quality 1

 In 1950 the Japanese government

Chapter 4: Six Sigma for Process and Quality 3

 Major source of poor quality is

Chapter 4: Six Sigma for Process and Quality 4

Chapter 4: Six Sigma for Process and Quality 5

7. Institute modern method of

13. Institute a vigorous program of

Chapter 4: Six Sigma for Process and Quality 7

 Better to produce item right the first

Chapter 4: Six Sigma for Process and Quality 8

Chapter 4: Six Sigma for Process and Quality 10

 Determine what customers want

Chapter 4: Six Sigma for Process and Quality 11

Chapter 4: Six Sigma for Process and Quality 14

Chapter 4: Six Sigma for Process and Quality 15

Chapter 4: Six Sigma for Process and Quality 17

Chapter 4: Six Sigma for Process and Quality 21

 Identifying the best practices to

Chapter 4: Six Sigma for Process and Quality 22

 Two key drivers of an organization’s long-

Chapter 4: Six Sigma for Process and Quality 23

Chapter 4: Six Sigma for Process and Quality 24

Chapter 4: Six Sigma for Process and Quality 25

 Earlier it was noted that a literal

Chapter 4: Six Sigma for Process and Quality 27

Chapter 4: Six Sigma for Process and Quality 28

 How sigma itself can be used to

Chapter 4: Six Sigma for Process and Quality 29

Chapter 4: Six Sigma for Process and Quality 30

Chapter 4: Six Sigma for Process and Quality 31

Chapter 4: Six Sigma for Process and Quality 32

 In this phase our objective is to utilize

 Create diversified teams.

Chapter 4: Six Sigma for Process and Quality 36

Chapter 4: Six Sigma for Process and Quality 37

Chapter 4: Six Sigma for Process and Quality 38

 OFAT and 1FAT - one factor at a time.

Chapter 4: Six Sigma for Process and Quality 39

Chapter 4: Six Sigma for Process and Quality 40

Chapter 4: Six Sigma for Process and Quality 41

Chapter 4: Six Sigma for Process and Quality 42

 Some of the major considerations

 Design for Manufacturability (DFM)

Chapter 4: Six Sigma for Process and Quality 44

Chapter 4: Six Sigma for Process and Quality 45

 Chance variation is variability built into

 Inspection for Variables: measuring a

Chapter 4: Six Sigma for Process and Quality 48

 Developed in 1920s to distinguish

Chapter 4: Six Sigma for Process and Quality 49

Chapter 4: Six Sigma for Process and Quality 51

Chapter 4: Six Sigma for Process and Quality 52

 Sample Means Chart

Chapter 4: Six Sigma for Process and Quality 53

Sample Scenario 1 Scenario 2

Chapter 4: Six Sigma for Process and Quality 54

Sample Mean Range

Chapter 4: Six Sigma for Process and Quality 57

Chapter 4: Six Sigma for Process and Quality 58

Chapter 4: Six Sigma for Process and Quality 59