Chap009 - Chapter 09 - Six-Sigma Quality CHAPTER 9...

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Chapter 09 - Six-Sigma Quality CHAPTER 9 SIX-SIGMA QUALITY Review and Discussion Questions 1. Is the goal of Six Sigma quality realistic for services such as Blockbuster Video Stores? A goal of Six Sigma can also be used for services. The one area where Six Sigma maybe difficult is that many aspects of service quality are based upon customer perception--for example--the courtesy of the clerk. In spite of all efforts, someone may perceive that the clerk was not courteous. But in spite of this problem, every effort should be made to attain Six Sigma in both manufacturing and service settings. 2. “If line employees are required to work on quality improvement activities, their productivity will suffer.” Discuss. The Japanese have demonstrated that high quality and the high productivity needed to offer low prices are not mutually exclusive. Products made correctly the first time do not have to be reworked or scrapped, which translates into lower costs for materials and workers. If one includes the time required for rework, time expended for the production of each product would be lower if quality control becomes a line responsibility. 3. “You don’t inspect quality into a product; you have to build it in.” Discuss the implications of this statement. The typical U.S. factory invests 20 to 25 percent of its operating budget in finding and fixing mistakes. One fourth of all workers fix things that are not done right. These are appraisal and internal failure cost. On the other hand, if quality standards are enforced as the item is being built, appraisal, internal and external failure costs will decrease while prevention costs will increase. The rule of thumb is that for every dollar spent in prevention, ten dollars are saved in failure and appraisal costs. 4.
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This note was uploaded on 07/17/2011 for the course MBA 587 taught by Professor None during the Spring '11 term at Missouri (Mizzou).

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Chap009 - Chapter 09 - Six-Sigma Quality CHAPTER 9...

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