© 2007 Pearson Education 14- 1 Managing Quality Integrating the Supply Chain S. Thomas Foster...

14- 1© 2007 Pearson Education

Managing QualityIntegrating the Supply Chain

S. Thomas Foster

Chapter 14Six-Sigma Management and Tools


Strategic Quality PlanningSix-Sigma Management and ToolsChapter 14

What is Six-Sigma?Organizing Six-SigmaDMAIC overviewDMAIC phasesThe Taguchi methodDesign for Six-SigmaUsing Six-Sigma from a contingency perspective


Strategic Quality PlanningSix-Sigma Management and ToolsWhat is Six-Sigma

Sigma () is a greek letter used to designate a standard deviation (SD) in statisticsSix refers to the number of SD’s from the specialized limit to the mean.Six-Sigma: about 0.5% of products will not meet specification



* ppm = Parts Per Million

Sigma Level Long-term ppm* defects

1 691,462

2 308,538

3 66,807

4 6,210

5 233

6 3.4



Six-Sigma is … designed to handle the most difficult quality problems.

% Quality Problems

Techniques

90% Basic tools of Quality

< 10% Six-Sigma

< 1% Outside specialists


Strategic Quality PlanningSix-Sigma Management and ToolsOrganizing Six-Sigma

The key playersChampion. Work with black belts to identify possible projectsMaster Black Belts. Work with and train new black beltsBlack Belts. Committed full time to completing cost-reduction projectsGreen Belts. Trained in basic quality tools


Strategic Quality PlanningSix-Sigma Management and ToolsOrganizing Six-Sigma

In a company with 100 employees there might be: One black beltSixty green beltsSome companies have yellow belts, employees familiar with improvement processes


Strategic Quality PlanningSix-Sigma Management and ToolsDMAIC Overview

Stands for: DefineMeasureAnalyzeImproveControl


Strategic Quality PlanningSix-Sigma Management and ToolsDMAIC Phases

Define Four Phases:

1. Develop the business case2. Project evaluation3. Pareto analysis4. Project definition



Define Developing the Business

Case:1. Identify a group of possible

projects2. Writing the business case3. Stratifying the business

case into problem statement and objective statement



Define RUMBA is used to check the

efficacy of the business case 1. Realistic2. Understandable3. Measurable4. Believable5. Actionable



Measure Two major steps:

1. Select process outcomes2. Verifying measurements




1. Select process outcomes Tools Used:

Process may XY matrix FMEA Gauge R&R Capability Assessment.




2. Verifying measurements Tools Used:

Use gauges, calipers and other tools.

Management System Analysis (MSA) is used to determine if measurements are consistent




2. Verifying measurements Gauge R&R

Most commonly used MSA Determine the accuracy and

precision of your measurements



Analyze Three major steps:

1. Define your performance objectives (X’s)

2. Identify independent variables

3. Analyze sources of variability




1. Define your performance objectives (X’s) Identify the independent

variables where data will be gathered

Process maps, XY matrices brainstorming and FMEA’s are the tools used




1. Analyze sources of variability Use visual and statistical

tools to better understand the relationships between dependent and independent variables



Improve Off-line experimentation

ANOVA Taguchi



Control Manage the improved processes

using control charts


Strategic Quality PlanningSix-Sigma Management and Tools The Taguchi method

Design of Experiment (DOE) Robust design - designed

so that they are inherently defect free Concept Design Parameter Design Tolerance Design



The Taguchi Method provides:

1. A basis for determining the functional relationship between controllable factors




2. A basis for determining the functional relationship between controllable factors




3. A procedure for examining the relationship between random noise … and product or service variability



Design of Experiment (DOE) Robust design - designed

so that they are inherently defect free Concept Design - examining

competing technologies



The Taguchi Process1. Problem identification2. Brainstorming session3. Experimental design4. Experimentation5. Analysis6. Confirming experiment


Strategic Quality PlanningSix-Sigma Management and Tools Design for Six-Sigma (DFSS)

Used in designing new products with high performance Instead of DMAIC

1.DMADV2.IDOV



Used in designing new products with high performance DMADV

1.Design2.Measure3.Analyze4.Design5.Verify



Used in designing new products with high performance IDOV

1.Identify2.Design3.Optimize4.Verity


Strategic Quality PlanningSix-Sigma Management and Tools failure Six-Sigma from a Contingency Perspective

Reasons for Six-Sigma failure:1. Lack of leadership by

champions2. Misunderstood roles and

responsibility3. Lack of appropriate

culture for improvement


Strategic Quality PlanningSix-Sigma Management and Tools failure Six-Sigma from a Contingency Perspective

Reasons for Six-Sigma failure:4. Resistance to change and

the Six-Sigma structure5. Faulty strategies for

deployment6. Lack of data


Strategic Quality PlanningSix-Sigma Management and ToolsSummary

The process for Six-Sigma is define, measure, analyze, improve and control

Keys to Six-Sigma success are skilled management, leadership and long-term commitment

© 2007 Pearson Education 14- 1 Managing Quality Integrating the Supply Chain S. Thomas Foster...

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