procedures and incentives created by management their combined effect can be

Procedures and incentives created by management their

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procedures, and incentives created by management — their combined effect can be different from the effect of each element considered independently; 2. Knowledge of Variation : Every process generates data that behave randomly — decision makers need to appreciate that variation exists and create decision-making rules accordingly so that “management by numbers” and other violation of quality principles do not occur; 3. Theory of Knowledge : Probability laws can form the basis of interpreting data — they need to be embedded in all decision-making criteria and management needs to have a fundamental understanding of their underlying assumptions in order to properly apply the laws; and 4. Psychology : Humans (e.g., employees, managers, contractors, etc.) will behave in very predictable ways depending on how decisions are made in the presence of uncertainty — management needs to ensure that incentives created by the application of statistical methodologies do not promote unproductive or destructive behaviors that create fear within the organization. Although upper management would possess the ultimate responsibility for implementing Deming’s vision, the quality department would play a key role. They would be responsible for developing a set of standard procedures for implementing specific quality methods. Standard work practices can help ensure that methods are applied properly. For example, many manufacturers today impose requirement on for its suppliers but do this while accounting for random variation of the index (using a statistical confidence interval, as described earlier in this course).
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12/8/2018 Module 6 10/24 References Burke, R.J., R.D. Davis, and Kaminsky, F.C. (1991). “Responding to Statistical Terrorism in Quality Control.” American Society for Quality Proceedings of the 47 th Annual Rochester Quality Conference , 67-77. Deming, W.E. (1993). The New Economics for Industry, Government, Education , 2 nd Edition. MIT Center for Advanced Engineering Study, Cambridge, Massachusetts. Foster, S. Thomas. (2017). Managing Quality: Integrating the Supply Chain , 6/E, Pearson. Maleyeff, J., Kaminsky, F.C., and Farris, J.P. (2003). “Minimum Cost 100% Inspection Systems with Inspection Error.” Quality Engineering , 15(4), 557-563. Webster, S.E., Buldrini, C., and Maleyeff, J. (1998). “Improving Quality Through Operator Certification Systems.” IIE Solutions , 30(4), 18-22. Windham, J. (1995). “Implementing Deming's Fourth Point.” Quality Progress , 28(12), 43-48. Appendix Body of Knowledge for Lean Six Sigma Black Belt American Society for Quality (ASQ) I. Organizational Planning and Deployment A. Organization-wide Considerations i. Fundamentals of Six Sigma and lean methodologies ii. Six Sigma, lean, and continuous improvement methodologies iii. Relationships among business systems and processes iv. Strategic planning and deployment for initiatives B. Leadership i. Roles and responsibilities ii. Organizational roadblocks and change management II. Organizational Process Management and Measures
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