Chapter%206%20Quality

Chapter%206%20Quality - Chapter 6: Six-Sigma Quality Total...

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Unformatted text preview: Chapter 6: Six-Sigma Quality Total Quality Management (TQM) Defined • Total quality management : managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. Components of Quality • Design quality : Inherent value of the product in the marketplace – Dimensions include: Performance, Features, Reliability, Durability, Serviceability, Response, Aesthetics, and Reputation. • Conformance quality : Degree to which the product or service design specifications are met – Quality at the source: person who does the work takes responsibility for making sure the output meets specifications Costs of Quality External Failure Costs Appraisal Costs Prevention Costs Internal Failure Costs Costs of Quality Continuous Improvement (CI) • Management's view of performance standards of the organization – performance level of the firm as something to be "continuously challenged and incrementally upgraded." • The way management views the contribution and role of its workforce – believe employee involvement and team efforts are the key to improvement CI Methodology: PDCA Cycle (Deming Wheel) 1. Plan a change aimed at improvement. 1. Plan 2. Execute the change. 2. Do 3. Study the results; did it work? 3. Check 4. Institutionalize the change or abandon. REPEAT 4. Act Six Sigma Quality • A philosophy and set of methods companies use to eliminate defects in their products and processes • Seeks to reduce variation in the processes that lead to product defects • The name, “six sigma” refers to the variation that exists within plus or minus six standard deviations of the process outputs Six Sigma Quality Six sigma philosophy: minimum of 6 σ from process center to nearest spec 1 2 3 1 2 3 12 σ 6 σ LS US Six Sigma Impact • Implies 2 parts/billion “bad” with no process shift 1 2 3 1 2 3 6 σ LS US • With 1.5 σ shift in either direction from center (process will move), 3.4 parts/million “bad”. 6 σ Six Sigma Quality (Continued) • Six Sigma allows managers to readily describe process performance using a common metric: Defects Per Million Opportunities (DPMO) 1,000,000 x units of No. x unit per error for ies opportunit of Number defects of Number = DPMO Six Sigma Quality (Continued) Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation if 2 opportunities for error exist for each letter? So, for every one million letters delivered this city’s postal managers can expect to have 500 letters incorrectly sent to the wrong address....
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This note was uploaded on 03/26/2008 for the course OSCM 320 taught by Professor Blackhurst during the Spring '08 term at Iowa State.

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Chapter%206%20Quality - Chapter 6: Six-Sigma Quality Total...

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