An attitude Zero Defects Continuous Improvement A measurement Price of

An attitude zero defects continuous improvement a

This preview shows page 11 - 18 out of 23 pages.

An attitude: - Zero Defects - Continuous Improvement A measurement: - Price of Conformance, plus - Price of Nonconformance (defects) Phil Crosby
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From Motivation through fear and loyalty To Motivation through shared vision Attitude: “It’s their problem” Ownership of every problem affecting the customer Attitude: “the way we’ve always done it” Continuous improvement Decisions based on assumptions/ judgment calls Decisions based on data and facts Everything begins and ends with management Everything begins and ends with customers Crisis management and recovery Doing it right the first time Choosing participative OR scientific management Choosing scientific AND participative management TQ: Transforming an Organization
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What is Six Sigma? Invented by Motorola in the mid-80’s A goal of near perfection in meeting customer requirements i.e. 3.4 defects per million opportunities A sweeping culture change effort to position a company for greater customer satisfaction, profitability and competitiveness
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Is 99% Quality Good Enough? 22,000 checks will be deducted from the wrong bank accounts in the next 60 minutes. 20,000 incorrect drug prescriptions will be written in the next 12 months. 12 babies will be given to the wrong parents each day.
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Managing Up the Sigma Scale Sigma % Good % Bad DPMO 1 30.9% 69.1% 691,462 2 69.1% 30.9% 308,538 3 93.3% 6.7% 66,807 4 99.38% 0.62% 6,210 5 99.977% 0.023% 233 6 99.9997% 0.00034% 3.4
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Examples of the Sigma Scale In a world at 3 sigma. . . There are 964 U.S. flight cancellations per day. The police make 7 false arrests every 4 minutes. 5,390 newborns are dropped each year. In one hour, 47,283 international long distance calls are accidentally disconnected. In a world at 6 sigma. . . 1 U.S. flight is cancelled every 3 weeks. There are fewer than 4 false arrests per month. 1 newborn is dropped every 4 years. It would take more than 2 years to see the same number of dropped international calls.
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But is Six Sigma Realistic? · 10 1 100 1K 10K 100K 7 6 5 4 3 2 (66810 ppm) · IRS – Tax Advice (phone-in) Best in Class (3.4 ppm) Domestic Airline Flight Fatality Rate (0.43 ppm) · (233 ppm) Average Company Purchased Material Lot Reject Rate Air Line Baggage Handling Wire Transfers Journal Vouchers Order Write-up Payroll Processing Doctor Prescription Writing Restaurant Bills · · · · · · · Defects Per Million Opportunities (DPMO) SIGMA
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  • Fall '17
  • jane smith

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