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Chapter 11
Six Sigma
and ProcessImprovement
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Key Idea
Although we view quality improvement
tools and techniques from the
perspective of Six Sigma, it is important
to understand that they are simply a
collection of methods that have been
used successfully in all types of quality
management and improvementinitiatives, from generic TQM efforts, to
ISO 9000, and in Baldrige processes.
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Six-Sigma Metrics
Defect any mistake or error that ispassed on to a customer
Defects per unit (DPU) = number ofdefects discovered number of unitsproduced
Defects per million opportunities
(dpmo) = DPU 1,000,000 opportunities for error
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Six-Sigma Quality
Ensuring that process variation is half thedesign tolerance (Cp = 2.0) while allowing
the mean to shift as much as 1.5 standard
deviations, resulting in at most 3.4 dpmo.
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Key Idea
Although originally developed for
manufacturing in the context of tolerance-
based specifications, the Six Sigmaconcept has been operationalized to apply
to any process and has come to signify a
generic quality level of at most 3.4 defects
per million opportunities.
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k-Sigma Quality Levels
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Problem Solving
Problem: any deviation between what
should be and what is that is important
enough to need correcting Structured
Semistructured
Ill-structured
Problem Solving: the activity associatedwith changing the state of what is to what
should be
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Quality Problem Types
1. Conformance problems
2. Unstructured performance problems
3. Efficiency problems
4. Product design problems
5. Process design problems
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Key Factors in Six Sigma
Project Selection Financial return, as measured by costs
associated with quality and process
performance, and impacts on revenues andmarket share
Impacts on customers and organizational
effectiveness
Probability of success
Impact on employees
Fit to strategy and competitive advantage
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Problem Solving Process
1. Redefining and analyzing the
problem
2. Generating ideas
3. Evaluating and selecting ideas
4. Implementing ideas
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Key Idea
A structured problem-solving process
provides all employees with a common
language and a set of tools tocommunicate with each other,
particularly as members of cross-
functional teams.
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DMAIC Methodology
1. Define
2. Measure3. Analyze
4. Improve
5. Control
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Common Six Sigma Tools
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Define
Describe the problem in operational
terms
Drill down to a specific problemstatement (project scoping)
Identify customers and CTQs,
performance metrics, and cost/revenueimplications
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Measure
Key data collection questions
What questions are we trying to answer?
What type of data will we need to answerthe question?
Where can we find the data?
Who can provide the data?How can we collect the data with minimum
effort and with minimum chance of error?
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Analyze
Focus on why defects, errors, or
excessive variation occur
Seek the root cause
5-Why technique
Experimentation and verification
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Improve
Idea generation
Brainstorming
Evaluation and selection
Implementation planning
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Control
Maintain improvements
Standard operating procedures
Training
Checklist or reviews
Statistical process control charts
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Tools for Six-Sigma and
Quality Improvement Elementary statistics
Advanced statistics
Product design and reliability
Measurement
Process control
Process improvement Implementation and teamwork
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Design for Six Sigma
Focus on optimizing product and processperformance
FeaturesA high-level architectural view of the design
Use of CTQs with well-defined technicalrequirements
Application of statistical modeling and simulationapproaches
Predicting defects, avoiding defects, andperformance prediction using analysis methods
Examining the full range of product performanceusing variation analysis of subsystems andcomponents
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Key Idea
All Six Sigma projects have three key
characteristics: a problem to be solved,
a process in which the problem exists,and one or more measures that quantify
the gap to be closed and can be used to
monitor progress.
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Key Six Sigma Metrics in
Services
Accuracy
Cycle time
Cost
Customer satisfaction
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Lean Production and Six
Sigma
The 5Ss: seiri(sort), seiton (set in order),seiso (shine), seiketsu (standardize), andshitsuke (sustain).
Visual controls Efficient layout and standardized work
Pull production
Single minute exchange of dies (SMED)
Total productive maintenance
Source inspection
Continuous improvement
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Traditional Economic Model of
Quality of Conformance
Total cost
Cost due to
nonconformanceCost of
quality
assurance
optimal level of quality100%
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Modern Economic Model of
Quality of Conformance
Total cost
Cost due to
nonconformanceCost of
qualityassurance
100%