MGMT405-Six Sigma

MGMT405-Six Sigma - MGMT 405 Six Sigma Quality Management...

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MGMT 405 Six Sigma Quality Management SIX SIGMA 1. Background 2. Six Sigma Measurements 3. Six sigma black belt training and certification Contents are adapted from F. W. Breyfogle, Implementing Six Sigma , Wiley, 1999, J. R. Evans and W. M. Lindsaym The Management and Control of Quality , 5 e , Southwestern, 2002, and from ASQ Web site http://www.asq.org/cert/types/sixsigma/index.html
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Topic 3: Six Sigma Page 2 The Six Sigma strategy involves the use of statistical tools within a structured methodology for gaining the knowledge needed to achieve better, faster, and less expensive products and services than the competition. Six Sigma is a business initiative pioneered by Motorola in the early 1990s. The late Bill Smith, a reliability engineer is credited with originating the concept during the mid-1980s and selling it to Motorola’s CEO, Robert Galvin. The recognized benchmark for Six-Sigma implementation is General Electric. GE's Six-Sigma problem solving approach employs five phase known as DMAIC (define, measure, analyze, improve, and control). Many other organizations such as Texas Instruments, Allied Signal (which merged with Honeywell), Boeing, Caterpillar, IBM, Xerox, Citibank, Raytheon, and the U.S. Air Force Air Combat Command have developed quality improvement approaches designed around the Six-Sigma concept.
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Topic 3: Six Sigma Page 3 General concepts The repeated, disciplined application of the master strategy on project after project, where the projects are selected based on key business issues, is what drives dollars to the bottom line, resulting in increased profit margins and impressive return on investment from the Six Sigma training. The Six Sigma initiative has typically contributed an average of six figures per project to the bottom line. The Six Sigma project executioners are sometimes called “black belts,” “top guns,” “change agents,” or “trailblazers,” depending on the company deploying the strategy. These people are trained in the Six Sigma philosophy and methodology and are expected to accomplish at least four projects annually, which should deliver at least $500,000 annually to the bottom line. A Six Sigma initiative in a company is designed to change the culture through breakthrough improvement by focusing on out-of-the-box thinking in order to achieve aggressive, stretch goals. Ultimately, Six Sigma, if deployed properly, will infuse intellectual capital into a company and produce unprecedented knowledge gains that translate directly into bottom line results
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Topic 3: Six Sigma Page 4 Implementing Six-Sigma Six-Sigma has developed from simply a way of measuring quality to an overall strategy to accelerate improvements and achieve unprecedented performance levels within an organization by finding and eliminating causes of errors or defects in processes by focusing on characteristics that are critical to customers." The core philosophy of Six-Sigma is based on some key concepts: 1. Emphasizing dpmo as a standard metric that can be applied to all parts of an
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This note was uploaded on 04/04/2012 for the course MGMT 405 taught by Professor Staff during the Spring '08 term at Purdue.

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MGMT405-Six Sigma - MGMT 405 Six Sigma Quality Management...

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