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Define

1. The Basics of Six Sigma - Overview and Objectives

Define the Overview and Objectives of the Phase Section. By the end of this phase, you will learn what the basics of Six Sigma are. What are the fundamentals of Six Sigma? What are the ways of selecting lean Six Sigma projects? What is a lean and enterprise? Basics of Six Sigma Section Overview and Objectives By the end of this phase, you will learn what the meanings of Six Sigma are, what the general history of Six Sigma is, and what continuous improvement is. What are the deliverables of a Lean Six Sigma project? What is the problem-solving strategy if y equals FX? What are voice of the customer, business and employee? What are the different Six Sigma roles and responsibilities? Basics of Six Sigma meanings of Six Sigma as a business improvement approach that seeks to find and eliminate causes of mistakes or defects in business processes by focusing on outputs that are of critical importance to customers, six Sigma is a highly disciplined process that focuses on developing and delivering near perfect products and services consistently. It is also a management strategy to use statistical tools and project work to achieve breakthrough, profitability and quantum gains in quality. It has been stated that product characteristics with Six Sigma process capabilities CPK greater than one five are of world class performance. The average American company is at a four-sigma level. Motorola, under the direction of Chairman Bob Galvin, used statistical tools to identify and eliminate variation from Bill Smith's yield theory in 1984. Motorola developed Six Sigma as a key business initiative in 1987, many credit the resulting improvements as a key factor in Motorola winning the Malcolm Baldrige Award in 1988, Dr.Michael Harry, who had led the corporate effort, subsequently left Motorola and later founded the Six Sigma Academy to accelerate the efforts of corporations to achieve world class standards. Sigma is a statistical term that refers to the standard deviation of a process about its mean. In a normally distributed process, 99 73% of measurements will fall within plus or minus three Sigma and 99,9966% will fall within plus or minus four five Sigma. In a stable attribute distributed process, 99,73% of values will fall within the probability of 0.5. Motorola noted that many operations, such as complex assemblies, tended to shift one five Sigma over time, so a process with a normal distribution and normal variation of the mean would need to have specification limits of plus or minus Six Sigma in order to produce less than 3.4 defects per million opportunities. This failure rate can be referred to as defects per opportunity or DPO or defects per million opportunities or DPMO. Basics of Six Sigma Meanings of Six Sigma Value of Six Sigma Six Sigma is a highly disciplined process that focuses on developing and delivering near-perfect products and services consistently. It is also a management strategy to use statistical tools and project work to achieve breakthrough, profitability, and quantum gains in quality. It has been stated that product characteristics with Six sigma process capabilities. CPK is greater than one-fifth of that of world-class performance. The average American company is at four sigma level. Six sigma is also described as a business improvement approach that seeks to find and eliminate the causes of mistakes or defects in business processes by focusing on the outputs that are of critical importance to customers. Motorola, under the direction of Chairman Bob Galvin, used statistical tools to identify and eliminate variation from Bill Smith's yield theory. In 1984. Motorola developed Six Sigma as a key business initiative in 1987. Many credit the resulting improvements as a key factor in Motorola winning the Malcolm Baldrige Award in 1988. Dr. Michael Harry, who had led the corporate efforts, subsequently left Motorola and later founded the Six Sigma Academy. To accelerate the efforts of corporations to achieve world class standards. Basics of Six Sigma Meanings of Six Sigma is a statistical term that refers to the standard deviation. Of a process about its mean. In a normally distributed process, 99.73% of measurements will fall within plus or minus three Sigma and 99.9 966 percent will fall. Within plus or -4.5 sigma. In a stable attribute distributed process, 99 73%of values will fall within the probability of 000135 and 099865. Motorola noted that many operations, such as complex assemblies, tended to shift one five-sigma over time. So a process with a normal distribution and normal variation of the mean would need to have specification limits of plus or minus Six Sigma in order to produce less than three four defects per million opportunities. This failure rate can be referred to as defects per opportunity or DPO or defects per million opportunities or DPMO. Basics of Six Sigma Meanings of Six Sigma fora process performing at six sigma level, the process would have only 3.4 defects per million opportunities. Similarly, for a five sigma level process, the DPMO will be 233 for four Sigma 6210 and likewise for one sigma, the DPMO is 697 672. Table 1 lists the sigma level against defects per million opportunities. In the table you would see that at Six Sigma level the DPMO is 3.4 only. For five Sigma, the DPMO is 233, for four sigma it is 6210. Three sigma it is 66 810. For two Sigma it is 308 770, and for one sigma it is 697 672. The principle of Six Sigma is the delivery of near perfect products and services by improving the process and eliminating defects. The end objective is to delight customers. Basics of Six Sigma Meanings of Six Sigma the Six Sigma steps for many organizations are described as DMAIC. Define select the appropriate responses the whys to be improved. Measure data must be gathered to measure the response variable. Analyze Identify the root causes of defects, defectives or significant measurement deviations. Whether in or out of specifications, the XS or independent variables improve reduce variability or eliminate the cause control with the desired improvements in place, monitor the process to sustain the improvements basics of Six Sigma Meanings of Six Sigma Continued Harry in 2000 proposes that the entire Six Sigma breakthrough strategy should consist of the following eight elements Recognize the true state of your business. D define what plans must be in place to realise improvement of each state. Measure the business systems that support the plans. A analyse the gaps in system performance benchmarks improve system elements to achieve performance goals. C control system level characteristics those are critical to value standardise the systems that prove to be best in class. I integrate best in class systems into the Strategic Planning framework. If you make a comparison between DMAIC and RDMAICSI given by Harry, you will observe that under DMAIC, recognised is combined with Define and Standardize or S and integrate I is combined with Control. C basics of Six Sigma meanings of Six Sigma because of the integration of a number of tools such as lean manufacturing, doe or design of experiments and DFS or design for Six Sigma, six Sigma has been referred to as TQM or total quality management on steroids. The business successes that result from a Six Sigma initiative include Cost Reductions reduction of cost is a critical topic taught in MBA and is also critical for running a company successfully. Productivity Improvements Productivity improvement implies maximizing performance of resources to give optimum result. Market Share Growth in this fast growing world, competition is becoming stiffer at every moment. Market share growth can be achieved through going beyond boundaries of our location and globalizing our organization. Customer Relation Improvements if customers are not happy, the organisation is destined to doom. Hence, customer relations are the most critical aspect. Defect Reductions defects are reworked and each reworked transaction is an additional cost. Product and Service Improvements Products or services need to change with time to acclimatize to the recent changes in the world. A classic example is that of iPhones. We have seen several improved versions of iPhones in the last few years. Culture Changes Culture changes need to be accommodated in order to thrive in the current fierce and competitive world. Cycle time reductions from order delivery to receipt of cash. If the time taken to process all of this is high, we are not in a great position in the organization. Hence, cycle time reduction is a critical aspect. Basics of Six Sigma. Meetings of Six Sigma some more. Six Sigma benefits. Motorola credits the Six Sigma initiative for savings of $940,000,000 over three years. Allied Signal, now called Honeywell, reported an estimate done $5 billion in savings in 1997. GE has invested a billion dollars with are turn of 175 billion dollars in 1998 and an accumulated savings of $2.5 billion for 1999. We can see many such examples across the globe where Six Sigma has changed the way organisations are working. Six Sigma is not only a process improvement methodology, but also a tool to have bottom line savings. Basics of Six Sigma meanings of Six Sigma some reasons why Six Sigma works Bottom Line Results bottom line results are reduction in costs, eliminating revenue leakage, etc. Senior management is involved. Six Sigma is both a top down and a bottom up approach where support of senior management is also a must. A disciplined approach is using DMAIC. Six Sigma is the only methodology available, which is a documented step by step methodology for resolving business problems. Short project completion times three to six Months Due to the rigor of the approach of Six Sigma, it takes approximately three to six months to complete the Six Sigma project. Clearly Defined Measures of Success measures of success need to be defined in the measure phase and need to be articulated very well in order to process to later phases of Six Sigma. infrastructure of trained individuals Black Belt and Green Belt Six Sigma also focuses on building the team's skills and competencies by providing an infrastructure to train individuals as Green belts, Black belts, Master Black belts, champions, etc. Customers and processes are the focus. Six Sigma always starts with a customer and focuses on creating robust processes. A sound statistical approach is used. Statistics helps in taking database decisions which are mostly correct. Six Sigma focuses on creating sound statistical approach. Organizations that follow a Six Sigma improvement process for several years find that some operations achieve greater than Six Sigma quality. When operations reach Six Sigma, quality defects become so rare that when they do occur, they receive the full attention necessary to determine and correct the root cause. As a result, key operations frequently end up realising better than Six Sigma quality. Basics of Six Sigma meanings of Six Sigma continued companies that have embraced Six Sigma include Motorola, Allied Signal, General Electric, Black and Decker, DuPont, Dow Chemical, Polaroid, Federal Express, Kodak, Boeing, Sony, Johnson and Johnson, Toshiba, Navistar and Infosys.

2. The Basics of Six Sigma - History of Six Sigma

Basics of Six Sigma history of Six Sigma evolutions of Six Sigma from a period of evolution during the period of evolution, Six Sigma had gone on through several versions from R DMAICSI to DMAIC. Michael Harry and Bill Smith played a critical role in this period to evolve Six Sigma methodology Period of Design When Six Sigma was picked up by other organisations after Motorola won its Malcolm Baldrige National Quality Award, they designed the Six Sigma methodology to suit different industries other than manufacturing. Period of Refinement Six Sigma went through yet another phase of refinement and steps such as design of experiments were taken to advanced levels by individuals such as Taguchi, etc. 96 Period of results Most manufacturing organizations started gaining the results and reflecting them in their quarterly financial state Period of Awareness In this period, the world started to know the power of Six Sigma. It was no longer a methodology known to just a few organizations. T 98 Period of Adaptation Organizations learned Six Sigma techniques and implemented them in their Day Today processes. Eventually, they started gaining benefits to the present period of enlightenment. Six Sigma has now become the basic hygiene requirement of most of the organizations. Individuals with Six Sigma expertise are given preference over other individuals. Basics of Six Sigma History of Continuous Improvements History of continuous improvements includes 1800s management encourage demployee driven improvements and incentive programmes were set in place to reward employees. That brought about positive changes in the organization. In 1894, national cash registers program included reward schemes, employee development opportunities and improving labour management relationships. Early 1900s much attention was given to scientific management continuous improvement programmes introduced in Japan by management experts like Demi, Jiran and Gilbert Japanese developed their own ideas and quality control. Evolution of Six Sigma Introduction of balanced scorecards 2000s evolution of hybrid methodologies such as Lean, Six Sigma, Agile and others. Listed below are some well-known gurus and what they have contributed to the business and technical foundations of Six Sigma. This list is far from inclusive. Philip B.Crosby Senior Management Involvement Four absolutes of quality management Quality cost measurements W.Edwards Deming plan due study act in wide usage top management involvement concentration on system improvement constancy of purpose Armand V.Fynbomb total quality control and management top management involvement Kaoru Ishikawa four m or five more cause and effect diagram company wide quality controlled CWQC next operation as customer Joseph Mjoran. Top management involvement quality trilogy or project improvement quality cost measurement pareto analysis Walter A.Schuhart assignable cause versus chance control charts plando check act as a design approach use of statistics for improvement Genichi Taguchi loss function loss function concepts signal to noise Taguchi i loss function Design Methods concept of Design robustness Bill Smith first introduced the term Six Sigma. Michael Harry, the main architect of Six Sigma forest. Bray Fogel III, author of implementing Six Sigma. Philip B.Crosby was vice president of ITT for 14 years. In 1979, he founded Philip Crosby Associates Incorporated in Winter Park, Florida. Mr.Crosby consulted, spoke and wrote about strategic quality issues throughout his professional life. Philip Crosby started his career as a Junior Technician testing fire control systems for B 47s. He eventually moved on to ITT and became one of the first corporate VPs of quality in the country. He attributed his management training to Harold Janine and to the monthly general management meetings. It was Philip Crosby's deep understanding of the concerns of management that made him akin to top management. The other quality deep thinkers could be viewed as academicians, but Crosby was considered a businessman. This explained the numbers of top management that flocked to his quality college. Crosby believed that quality was a significant part of the company and senior managers must take charge of it. He believed the quality professional must become more knowledgeable and communicative about the business. Crosby stated that corporate management must make the cost of quality a part of the financial system of their company. Philip Crosby was a fellow and past president of ASQ. One of his most popular statements on quality was quality is conformance to requirements. Some of Mr. Crosby’s more popular books include Quality is Free the Art of Making Quality Certain in The Art of Getting Your Own Sweet Way in 1981, Quality Without Tears The Art of Hassle-free Management Crosby, the eternally successful organization, the Art of Corporate Wellness in Leading the Art of Bet, Leading the Art of Becoming an Executive in Completeness Quality for the 21st Century in 1992, Running Things The Art of Making Things Happen in 1992 Quality and Me Lessons from an Evolving Life, Philip Crosby preached four absolutes of quality management. Quality means conformance to requirements. The requirements are what the customer says they are. There is a need to emphasize ado it right the first time attitude. Quality comes from prevention. Opportunities are available to correct problems in the system. The quality performance standard is zero defects. One must insist on zero defects. Otherwise, it is acceptable to send out nonconforming parts and goods. If there is a nonconformance, then action must be taken to eliminate it and prevent it from occurring again. Quality measurement is the price of nonconformance. A measurement of quality is needed to get management's attention, prioritise problems, correct problems and to measure progress. The four absolutes of quality managementare basic requirements for understanding the purpose of a quality system. Philip Crosby also developed a 14 step approach to quality improvement management commitment quality Improvement team measurements cost of quality quality awareness corrective action zero Defects planning Dr. W.Edwards Deming. Dr.Deming obtained a BS. From the University of Wyoming and an M. S. From the University of Colorado. And a PhD. In physics from Yale. Dr.Deming was also considered the founder of the Third wave of the Industrial Revolution. Dr.Deming was an honorary member of ASQ. He was awarded the ASQ Shoe heart Medal in 1955. During his life, Dr.Deming published over 200 papers, articles and books. Notable books include quality, Productivity and competitive position in The Crisis. Deming W.Edwards Deming was the one individual who stood for quality and for what it means. He is a national folk hero in Japan and was perhaps the leading speaker for the quality revolution in the world. He did summer work at the Hawthorn plant. While working on his PH. D. At the Hawthorn plant, he became acquainted with W.Schuhart and studied Shuhart's statistical methods. The World War II effort enabled Deming to teach classes in statistical methods to thousands of American engineers, foreman and workers. The statistical methods were later credited to be a major factor in the war effort, but as he would state it, after the war, all traces of statistical methods were gone in a puff of smoke. There were several visits to Japan between 1946and 1948 for the purpose of census taking. He developed a fondness for the Japanese people during that time. J.Use invited Deming back in 1950for executive courses in statistical methods. He refused royalties on his seminar materials and insisted that the proceeds be used to help the Japanese people Jussie named their ultimate quality prize after him. Deming would return to Japan on many other occasions to teach and consult. He was well known in Japan, but not so in America. Only when NBC published its white paper. If Japan can, why can't we? Did America discover him. An overnight success at age 80, W. Deming died at the age of 93. During his last 13 years, Deming gave American industry a dose of strong medicine inequality. His message to America is listed in his famous 14 points and Seven Deadly Diseases. The 14 Obligations of Top Management create consistency of purpose for improvement of products and services. Adopt a new philosophy we are in a new economic age. Cease dependence upon inspection as a way to achieve quality and the practise of awarding business based on price tag. Constantly improve the process of planning, production and service. This system includes People Institute training on the job institute improve supervision and leadership drive out fear break down barriers between departments. Eliminate slogans and targets asking for increased productivity without providing methods eliminate numerical quotas. Remove barriers that stand between workers and their pride of workmanship. The same for all salaried people. Institute programmes for education and retraining put all emphasis in the company to work to accomplish the transformation. Seven deadly diseases that Management Must Cure lack of constancy of Purpose management must provide a vision and a mission to plan a marketable, product and services to keep the company in business and provide jobs. Emphasis on short term Profits it is observed that the organizations emphasise short term profits. While it is good to have short term profits, the long term interest needs to be kept in mind. Personal Evaluation appraisal don't quote names in the organization. However, work towards leading by example. Quoting names can lead to devastating effects mobility of management or job hopping, job hopping or unstable management leads to unclear directions amongst the employees and creates an atmosphere of insecurity amongst all use of visible figures for management decisions which are taken on hunch with little or no consideration of figures that are unknown or unknowable is a major mistake that management may commit. It needs to be avoided. Excessive medical costs most management teams have are active approach as compared to a proactive approach. The reactive approach may possibly lead to customer dissatisfaction and further revenue losses. Excessive cost of warranty a lot of money is spent on seeking services that may be minimized or avoided, such as the contingency fees of lawyers, among other educational techniques. Deming promoted the parable of the red beads, the PDSA cycle and the concept of 94%management or system causes versus 6% special causes.

3. The Basics of Six Sigma - Value and foundation of Six Sigma

Enterprisewide value and foundations of Six Sigma. Deming's philosophy focused on individuals as fellow members of a system and treated peoples as partners, customers, neighbours and friends. Trends While the Deming philosophy benefits the individuals in a firm, the company itself should be able to reap the benefits from this new philosophy. Among the economic benefits to be gained are reduction of the economic burden expansion of markets survival of organizations that serve customers Deming's Chain Reaction Deming shared the following chain reaction with Japan in the summer of 1950 improve quality that is decreased costs less rework fewer delays productivity improves capture the market share with better quality and price stay in business provide jobs Deming's chain reaction is summarised by Delevingne and Robertson in 1994 as the following series of events the quality and productivity rise costs decrease the time required for development and production is reduced management begins to know their cost they have a system increased division of labour and specialisation occurs the near term future is more predictable the standard of living rises the system has a future and can provide jobs and more jobs. As the above sequence is occurring, the marketplaces responding to the firm the customer obtains reduced prices there is increased cooperation new products and services are provided to the customers. There are higher levels of customer satisfaction. There is a reduction of competition for share of the market. Thus, a chain reaction of good things can occur through the Deming philosophy. Dr. Armand V.Feigenbaum. Dr.Feigenbaum is currently president of general systems company, Pittsfield, Massachusetts. He was associated with General Electric for 26 years in engineering. Dr.Feigenbaum holds a BS from Union College and an Ms and PhD from MIT. Some of Dr.Feigenbaum's many distinctions include honorary member of ASQ.E. Jack Lancaster award, ASQ 1981 Edwards medal, ASQ 1965 fellow American association for the advancement of science life member one, EEEE And ASME two time president of ASQ, founding chairman, international academy for Quality. A few of Dr.Faginbaum's many books include quality Control Principles, Practice, total Quality Control, engineering and Management. Total Quality Control. Third total Quality Control, 40th anniversary edition.Mr.Feigenbaum is generally given credit for establishing the concept of total quality control in the late1940s while he was at General Electric. His TQC statement was first published in 1061, but at that time the concept was so new no one listened. Flagging down states that the American industry must strive to become as strong as it can be in its own marketplace. This has become valuable as global competitiveness has spread into the US. Being strong at home via proper design, production, selling and servicing will provide the potential for supremacy in the marketplace. The TQC philosophy maintains that all areas of the company must be involved in the quality effort. The quality effort has generally only affected the shop floor people but must extend to all sections of the company. Products must not only be made quicker and faster, but also sold faster. Feigenbaum noted that the quality professional has an opportunity to become more than a functional specialist. The opportunity is there to become a true businessman by providing valuable information and direction. Here are some quotes regarding quality by AV Fagenbaum quality does not travel under an exclusive foreign passport. Quality and costs are partners, not adversaries. Quality is not foreign to us. We know how to keep our customers happy. We need not learn about quality metrics from others and we can make the right judgement about quality. Likewise, quality and costs are interrelated. Lower the quality, higher the costs failure driven companies if it breaks, we'll service it versus the quality excellence approach or no defects, no problems. We are essentially moving towards perfect work processes. Failure driven companies would focus on keeping very strong after sales service mechanism. However, quality excellence companies prefer to create perfect products which would never break. Quality is everybody's job, but because itis everybody's job, it can become nobody’s job without the proper leadership and organization. Proper leadership and organizational governance is required for effective maintenance of quality standards. Dr Kaoru ishikawa doctor ishikawa held aBS in Chemistry and a doctorate in Engineering from the University of Tokyo. In 1993, ASQ established the Ishikawa Award to recognise outstanding contributions to the improvement of the human aspects of quality. Some of Dr Ishikawa's. Many awards include the Deming Prize in Nihon K's Eye Press Prize, industrial Standardization Prize grant Award Medal ASQ the first Japanese to receive this award honorary Member ASQ the success of TQC includes these principles. TQC is a company wide process. All functions are involved. Total quality control cannot be performed in one department or one process of the organization. It is a company wide process and requires a reach in all departments of the organization. Quality is what the customer says it is. Customer is the king and decides the quality levels of our products or services. The manufacturing or service organisations have very little say in defining quality levels. Quality and production costs are in partnership. Quality and costs have a direct correlation. If the quality levels are poor, there will be a lot of rework leading to higher production costs. Higher quality will equate to lower costs. This point resonates with the previous statement where lower levels of quality would lead to more rework and higher levels of quality will lead to lower rework and thus lower costs. Both individual and team zeal are required. A man alone cannot run the company. In order to successfully run the organization, individual and team level enthusiasm, zealand efforts are required. Management must provide a continuous and relentless emphasis on quality in the Day Today operations. It is observed that the focus on quality reduces. This results in the possibility of product or service related issues. Hence, management must provide a continuous and relentless emphasis on quality. Quality and innovation can work together in product development. Innovation is inventing breakthrough ideas and quality is providing defect free products and keeping the customer satisfied. Innovation and Quality Work Hand in Hand in a product development scenario, all of management must be involved in quality, not just the specialists. Quality is not just the responsibility of the quality control or quality assurance department of the organization. Each individual is responsible for quality requires the use of new and existing technologies. In this fierce competition, if an organisation does not use technology, it will be out of business soon. It is mandatory to use new and existing technologies effectively. Quality is the most cost-effective route to productivity. Maximum productivity is achieved when we do things first-time right and then there is no rework. Hence, quality is the most cost effective route to productivity. Quality must be implemented with both customers and suppliers. Quality cannot be implemented by the organisation alone. Customers and suppliers are an important part of the quality chain and each needs to implement quality within their own realms of existence. A few of his notable books include he authored the first Japanese book to define the word TQC in Guide to Quality Control. What is total quality control. The Japanese way. Kawaruikawa was involved with the quality movement in its earliest beginnings and remained so until his death. In his father, Ichiro Ishikawa, president of the Federation of Economic Organizations and of JUSC, invited Deming to speak before top Japanese executives in 1950.A review of Ishikawa's training tapes produced in 1981 contained many of the statements of quality that are in vogue today. Subjects such as total quality control, next operation as customer training of workers empowerment, customer satisfaction, elimination of sectionalism, it's not our job and Humanistic management of workers are examples. It is amazing to hear such statements of quality on record from almost three decades ago. A man with many thoughtful concepts, Kawaro Ishikawa was known for his lifelong efforts as the father of Japanese quality control efforts. The fishbone diagram is also called the Ishikawa diagram. In his honor, Ishikawa stated that total quality control had been practiced in Japan since 1958.The time for such a philosophy to take hold in a company can range from two to five years. That time will depend on the commitment of top management to reduce confusion between Japanese style total quality control and Western style total quality control. He called the Japanese method the companywide quality control. CWQC involves the participation of workers from the top to the bottom of an organisation and from the start to the finish of the product lifecycle. CWQC requires a management philosophy that has respect for humanity. There must be acknowledgement that the worker can contribute to the success of the company through suggestions, creativity and worthwhile ideas. One of the first concepts that Western management took back to their own shores was the quality circle. The quality circle concept represents the bottom up approach in Japan in 1988, there were 1million quality circles involving 10 million people. Quality circles were originally study groups that workers formed in their department to study the quality concepts that were published in Quality Control for Foreman. Ishikawa was the editor. Quality circles involve members from within a department. The circle solves problems on a continuous basis. Circle membership changes dependent upon the task or project under consideration. Ishikawa also wrote that he originated the concept Next Operation as Customer in when he was working with a steel mill. Operators concerned about their own defects were considered spies whenever they travelled to the next department to view their original work. Departments were defensive when outsiders made tours. Thus, the concept of next operation as customer was developed to remove those fears. The separation of departments was referred to as sectionalism. A man with many thoughtful concepts, Kaoru ishikawa was known for his lifelong efforts as the father of Japanese quality control efforts. The Fishbone diagram is also called the Ishikawa diagram in his honor. Dr Joseph M. Duran. Dr.Duran is the founder and Chairman Emeritus of the Duran Institute. He holds a BS. From the University of Minnesota, a JD from Loyola University and numerous honorary doctorate's degrees. Dr. Duran's. Numerous awards include the Edwards Medal ASQ Bramba Awards, grant Awards as Q, Honorary Member ASQ Second Order Medal of the Sacred Treasure, plus 30 other medals, fellowships and honorary memberships. The Fishbone diagram that you see on this slide is explained in detail in later sections. Notable among Dr.Gerard's 15 books are Duran on Planning for Quality, Duran on Leadership for Quality, Duran on Quality by Design, Quality Planning and Analysis. Duran's Control Handbook, fifth edition. J. M.Duran started in quality after his graduation from engineering school with an inspection position at Western Electric's Hawthorne plant in Chicago in 1924.Walter Schuhart and W. E.Deming were also at that plant. He left Western Electric to begin a career in research, lecturing, consulting and writing that has lasted over 60 years. An association with the American Management Association has enabled Durant to teach a course managing for quality for 30 years to about 1000 people in over 40 countries. The publication of his book, Quality Control Handbook and his work in Quality Management led to an invitation from J.USC in 1954. Duran's first lectures in Japan were to the 140 largest company CEOs and later to 150 senior managers. The right audience was there at the start. Duran commented that no one was more surprised than he to see CEOs at the seminars. His visit thus marked Japan's use of QCas a management rather than a specialist technique. Dr.Duran has a prime basic belief that quality in America is improving but it must be improved at a revolutionary rate. Quality improvements need to be made by the thousands year after year. Only then will a company become a quality leader. Durant's basics for Success can be described as follows top management must commit the time and resources for success. Specific quality improvement goals must be in the business plan and include the means to measure quality results against goals a review of results against goals are ward for superior quality performance. The responsibility for improvements must be assigned to individuals. People must be trained for quality management and improvement. The workforce must be empowered to participate in the improvement process.

4. The Basics of Six Sigma - History of continuous development

Define phase basics of Six Sigma, general history of Six Sigma and continuous improvements. The Duran Trilogy duran has felt that managing for quality requires the same attention that other functions obtain. Thus, he developed the Duran or Quality Trigger Trilogy, which involves quality planning, quality control and quality improvement. Duran sees these items as the key to success. Top management can follow this sequence just as they would use one for financial budgeting, cost control and profit improvement for any project. Quality planning is used to create the process that will enable one to meet the desired goals. The concept of quality control is used to monitor and adjust the process. Chronic losses are normal in a controlled state, while the sporadic spike will initiate an investigation. Eventually, only quality improvement activities will reduce the chronic losses and move the process to a better and improved state of control. And that's the last word. Dr.Walter a Schuhart. Dr.Schuhart held A-B-S and M. S. From the University of Illinois and a PhD. In physics from the University of California. Dr.Schuhart's awards include the Holly Medal ASME honorary fellowship of the Royal Statistical Society. First honorary member of the American Society for Quality honorary professor of Statistical Quality Control, Rutgers University. The Schuhart Medal is awarded in his honor. Notable articles and books include he published a series of articles in Bell System technical Economic Control of Quality of Manufactured Product statistical Method from the viewpoint of quality control, Dr.Schuhart worked for the Western Electrical Company, a manufacturer of telephone hardware for Bell Telephone. From 1918 until 1924. Bell Telephone's engineers had a need to reduce the frequency of failures and repairs. In 1924, Schuhartframed the problem in terms of an assignable cause and chance cause variation and introduced the control chart as a tool for distinguishing between the two. Bringing a production process into a state of statistical control where the only variation is chance cause, it is necessary to manage a process economically. Schuhart worked to advance quality thinking at Bell Telephone Laboratories from their foundation in1925 until his retirement in 1956. Schuharts charts were adopted by the American Society for Testing and Materials in 1933. The charts were used to improve production during World War II in the form of American War standards one, zone two and Z one three. W.Edwards Deming championed shoe harts methods, working as a consultant to Japanese industries from 1950 to 1990. Walter Schuhartz statistical process control charts have become a quality legacy that continues today. Control charts are widely used to monitor processesand to determine when a process changes. Process changes are only made when points in the control chart are outside acceptable ranges. Dr.Deming stated that Schuhart's genius was in recognising when to act and when to leave a process alone. The Shoe Heart Cycle the historical evolution of the PDCA problem solving cycle is interesting. Kolsar states that Demin presented the following product design cycle, which he attributed to Schuhart to the Japanese in 1951 design the product with appropriate tests, make the product tested both in laboratory and production, put the product on the market, test the product in service through market research, redesign the product in light of consumer reaction and continue the cycle. Perhaps from this concept, the Japanese evolved a general problem solving process called PDCA. Both PDCA and PDSA are reviewed in Primer Section One.X Dr.Janice Taguchi. Dr.Taguchi is currently a consultant for Okan Associates of Tokyo and was the past director of the American Supplier Institute, Incorporated. He is called the Father of quality engineering. One of his profound statements on quality is quality is related to the financial loss to society caused by a product during its life cycle. Dr.Taguchi's numerous distinctions include the Deming Prize, the Rockwell Award, Purple Ribbon Award, indigo Award, Japan ASME Metal dr.Taguchi's notable books include System of Experimental, Introduction to Quality, Engineering Offline Quality Control Quality engineering techniques were developed by Janice Taguchi in the techniques enabled engineers to develop products and processes in a fraction of the time as required by conventional engineering practices. He made his first visit to the US. In the summer of 1980 to assist American industry in the pursuit of quality. In 1983, Ford and Xerox began to promote Taguchi's system, both internally and among suppliers. Taguchi's system was appealing because it was a complete system that started with the product concept and continued into product design and into the manufacturing operations. It is a system to optimise the design of products and processes in a cost effective manner. Taguchi's plan takes a different view of product quality. The evaluation of quality. Use the loss function and signal to noise ratio as ways to evaluate the cost of not meeting the target value. The traditional view is that a product is either in specification or not. Taguchi feels the quality loss increases parabolically as the product strays from a single target value. Improvement of Quality and Cost Factors use statistical methods for system design, parameter design and tolerance design of the product. The methods could include quality function, deployment, signal-to-noise characteristics and design of experiments using orthogonal arrays. Monitoring and maintaining quality reduce the variability of the production line, insist some consistency from the floor. Take measurements of quality characteristics from the floor and use the feedback. Taguchi methods and other design of experiment techniques have been described as tools that tell us how to make something happen, whereas most statistical methods tell us what has happened. Taguchi methods are concepts that many engineers can take out of a book and use. The concept of robust products is now being explored in the design phase to reduce quality losses. Robustness derives from consistency. Robust products and processes demonstrate more insensitivity to those variables that are either ill controlled or uncontrollable. Building parts to target or nominal is the key to success. One should work relentlessly to achieve designs that can be produced consistently and demand consistency from the factory. It has been published that about 50% of the practicing engineers in Japan are competent in Taguchi methods. Dr.Taguchi has presented America with quality engineering techniques that can work to produce better products and reduce costs. It is more technical in nature and made for technical specialists. Top management needs only to provide the training to learn the concepts and allow its use throughout the corporation for it to be effective. The Taguchi approach does not call for an internal revolution. His concepts do improve products and procedures. Bill Smith bill Smith was Vice president and senior quality assurance manager for Land Mobile Products, Sector Motorola when he introduced Six Sigma as a measure of quality in 1986. At that time, he was handling an increasing number of complaints from the field salesforce regarding warranty claims. Motorola's product line was a complex one and operating near three Sigma level. At that level, it was producing too many defects. Mr.Smith determined that quality levels beyond Three sigma were necessary. He suggested a one Six Sigma level allowing for plus or minus one five Sigma shift. Mr.Smith helped Robert W.Galvin, Chairman and CEO of Motorola, recognise the need to control variation and to work toward three four defects per million or for Six Sigma levels of quality. Later, with Michael Harry, Smith developed the initial four step Six Sigma Stages measure, Analyze, Improve and control to reduce the defect levels. In 1988, Motorola won the first Malcolm Baldridge National Quality Award. Mr.Smith's Six Sigma efforts were credited with achieving that award. Upon his death in 1993, Northwestern University and Motorola established a scholarship to honour Bill Smith. Michael Harry. Michael Harry and Richard Schroeder founded Six Sigma Academy in 1994 as a consulting firm specialising in the Six Sigma Methodology. Michael harry has called bill smith the father of Six Sigma and gave himself the title the godfather of Six Sigma. Many industry people have called Michael Harry the main architect of the Six Sigma movement as he has been the most widely known driver in the industry. In 1985, Michael Harry joined Motorola as a quality and reliability engineer, where he initially developed a problem solving programme that included Duran's Quality Journey, SPC Shannon's Tools and planned experimentation. He later teamed with Bill Smith and developed the Magic methodology with the Logic Filters approach. The Logic Filters are a collection of tools to be used at each stage of the problem solving approach. These originated from Harry's research at Arizona State University. In 1989, Robert Galvin gave Harry the head position for the new Six Sigma Research Institute at Motorola University, where the emphasis and focus would be on dollars, business transformation and building a foundation for the Six Sigma process. During the process of building the Six Sigma structure, Michael Harry and a unisys plant manager derived the term black belts for the new breed of statistically trained problem solving experts as they were both martial arts enthusiasts. Forrest Breyfogle is the founder and CEO of Smarter Solutions, Incorporated, based in Austin, Texas. The company was formed in 1992 to provide training and consulting services for the Six Sigma methodology. His integrated system applies the principles of strategic planning, metrics, ISO 9000 theory of constraints, lean and processes in conjunction with Six Sigma. Forest has a BS. In mechanical engineering from the University of Missouri at Rawla and an Ms.In mechanical engineering from the University of Texas. Mr. Breyfogle is a professional engineer, an ASQ Fellow and a recipient of the ASQ's Crosby Medal for implementing Six Sigma Second edition, which made a significant contribution to the understanding of Six Sigma. Basics of Six Sigma Deliverables of Lean Six ficantcontribEmbarking on a Lean Six Sigma initiative begins with a management decision to embrace a change that says there's a better way to run our organization. The readiness assessment includes a review of the following areas assess the outlook and future path of the business. Is the strategy course clear for the company? Can we meet our financial and growth goals? Does our organisation respond effectively to new circumstances? Evaluate the current organisational performance. What are our current overall business results? How effectively do we meet customer requirements? How effectively are we operating? Review the capacity for systems change and improvement. How effective are we in managing system changes? How well are our cross functional processes managed? Are our current efforts in conflict with Six Sigma? The above assessment will go a long way towards deciding if current efforts are sufficient or whether the timing is appropriate to undertake a Six Sigma effort, lean Six Sigma can be applied as a targeted approach. A number of so called Lean Six Sigma companies have improvement techniques and teams in place and only assign black belt assistance as needed. A decision on Six Sigma might be negative if the following conditions exist the company already has an effective improvement effort in place. Current changes are already overwhelming the company's resources. Potential gains aren't sufficient to finance the necessary investments.

5. The Basics of Six Sigma - The problem Solving Strategy

Basics of Six Sigma. The problem solving strategy. Y equals FX. Y is a function of X. To get results, should we focus on the Y or the X? Y is equal to the effect and X is equal to causes. If Y is headache, then X's are stress, lack of sleep, eye strain and infection. Y is a dependent variable, output or symptom to be monitored. X are independent variables, inputs and causes to be controlled. The problem solving strategy should always focus on the causes, not the effect. Leadership Responsibilities There are numerous ways to structure a Six Sigma implementation strategy. Successful applications, however, share a common core of management support, training, recognition and reinforcement management. Effective Six Sigma programs do not happen accidentally. Careful planning and implementation are required to ensure that the proper resources are available and applied to the right problems. Key resources may include people trained in problem solving tools, measurement equipment, analysis tools and capital resources. Assigning human resources may be the most difficult element since highly skilled problem solvers are a valuable resource and may need to be pulled from other areas where their skills are also needed. It has been said that there are two times when it is difficult to implement an improvement program when times are bad and when times are good. When times are bad, profitability is low, resources are tight and strategic activities take a backseat to survival. When times are good, profitability is high. Resources are focused on the current source of cash flow. Improvement may be the last on the list of things to do. It has also been said that there are two times when an improvement programme is critical when times are bad and when times are good. When times are bad and profitability is low, a company cannot afford to continue losing money because of poor quality and performance. When times are good and profitability is high, the cost of poor quality and performance is also likely to be high. Customers are not likely to repeat business with a company that delivers products or services of poor quality when a better option is available. This last condition is more likely to happen in a high margin market. Unfortunately, many companies cruise along like the Titanic, thinking they are unthinkable because they are the market leaders. Skilled managers must be willing to make significant commitments in order to implement and support a successful Six Sigma initiative. Early successes must be exploited to propel the company forward. This includes overcoming the hurdles that appear at the four five sigma, five Sigma and five Five Sigma transition points. At each of these transition points, the low hanging fruit, which was previously unavailable, has been picked and a more advanced analysis is needed. In order to achieve the next level, the hurdles get progressively higher. If an organization does not continue to persevere, then it is likely to take a step backwards. The role of training in the successful implementation of Six Sigma is fundamental needed skills for breakthrough improvements cannot be developed without proper training. All companies that implemented successful Six Sigma programmes have found the training investments payback significant benefits. Motorola, for instance, has discovered a ten to one payback for Six Sigma training investments. Extensive training is necessary for several levels of individuals, and basic training is required for the entire organization. The diagram below outlines a high level training plan with special training for executives and master black belts. The relative volume of each diagram level represents the relative number of people receiving training. As per the diagram, senior management receives sponsorship training, followed by Master Black Belts. Receiving Master Black belt training. The management team receives executive training. Black belts receive Black Belt training, the supervisors receive overview training, process SMEs and leads receive Green Belt Training and all others. That is, everyone receives Six Sigma orientation training. In some organizations, black belts are full time positions that report directly to management sponsors, who in turn assign specific projects to them. These assignments may or may not include a process improvement team. Green belts are typically within the normal organisational structure and are assigned to process improvement teams as needed. Black belts have specific mentoring responsibilities, including the development of individuals assigned to them in other organizations. Black belts continue in their normal assignments and participate in process improvement teams as needed. In this structure, black belts and green belts act as internal consultants and are pulled into teams when their specific skills are needed. Black belts are typically responsible for mentoring one to three green belts or black belt candidates. Many organisations have a structure that fits somewhere in between the two previous models. Master Black belts are responsible for coaching and training black belts in order to make the best use of their skills. Master black belts also train and coach management in order to help them support the Black belt program. Reward and Reinforcement Reward and reinforcement maybe one of the hardest parts of successfully institutionalizing a Six Sigma program. Black belts and green belts must have positive career paths in order to encourage the best candidates to commit to the extensive training and development required. Especially now that black belt skills are in demand, it is important to recognise the accomplishments of black belts by tangible and intangible means. It is also important that Green and Black belts experience the rewards of achieving significant savings for the company. At the same time, other team members must be recognised for their contribution to performance improvements. To only reward black belts for improvements that a team achieves creates resentment and isolates the black belts from the team. Organizational roadblocks. An in depth description of organization structures is not provided here. The purpose of this discussion is to focus on some potential problems and or roadblocks related to existing structures and cultures. Flat Organizations In flat organizations, decision making is forced to lower organisational levels. Therefore, the decisions can be erratic and inconsistent. This statement is certainly dependent upon who makes the decision at any given point in time. If there are fewer decision levels, therefore, the loss of key people can have a negative impact on these organizations. Resources may be so sparse that the culture can become extremely dependent upon the values of single individuals such as the owner or CEO. Tall or vertical Organizations in a vertical organization, the lower levels have their decisions reviewed by the individuals above them. This also means that communications are not as rapid. Additionally, it can take much more time and effort to have people respond to certain directives. As jobs are added to handle the details of decision making, more layers of management are created. Sometimes these levels become impediments. Decisions are made slowly. Vertical feedback is frequently filtered. Upper management is often out of the loop on localised quality or customer issues. Some of these problems can fester into major issues. The vertical organisation culture has become too bureaucratic. Management attention can be directed at who gets the corner office or whose desk is bigger. Instead of servicing the customer or becoming more efficient. Functional Organizations the people in functional organizations can become very specialised in their field of expertise well-rounded, individuals may be difficult to find. Coordination of projects or problems can be more difficult than in a flat organization. There is a danger that suborganizational values and shared assumptions may become two inbred product Organizations in a product organization, there can be a duplication of selected services. Individuals may lack overall corporate focus since they are concerned with a smaller piece of the pie. Although segments of the company are better directed at meeting competitor challenges, they can also compete against each other for company resources and consumer markets. Geographic Organizations this arrangement presents similar problems as encountered with functional organizations. Additionally, many undesirable nationalistic or regional cultural features may organizations. Organizations in matrix organizations, a specialist can report to two or more people, violating the one boss rule. It is often difficult for the specialist to decide which superior to respond to first. It is somewhat important not to upset the manager who evaluates performance and awards merit raises. The biggest problem with organisational culture in a matrix organization can be competing values and occupational subcultures. Team based Organizations the entire employee selection process is much more stringent for a team based structure. Additionally, management time is directed at employee training and support. An organisation that is experiencing severe short term threats should not undertake this rather lengthy organizational rollout. There are also threats to all levels of management, particularly middle management. The loss of some of these individuals would mean tremendous loss in job knowledge and expertise. A multitude of teams can spawn multitude of occupational subcultures. There can also be a loss of clarity in business goals based on the numerous communications channels. Cross functional Collaboration in traditional functionally designed organizations, segments of vital activities are captive within and across many departments. For any customer order, each department has the responsibility to process its part of the order as efficiently and as effectively as possible. Various department heads are responsible for the activities within their department which allows for good management controls and procedures. But no one owns the overall process and the results. Functional departments develop strong functional mindsets and will approach problems differently than other functional units. It is difficult when departments speak different languages or have conflicting goals. The functional specialists will tend to focus on departmental matters and the immediate superior goals not the customer or the industry. This describes the creation of a silo mindset. An example of such a conflict occurs when manufacturing is trying to meet the end of the month shipments but quality is holding the shipments because of nonconforming product. Gold breath in 1995 describes cross functional efforts as a lateral coordination effort. Departments or functions at the same level or lateral should be grouped together to produce the required output. The units are all interdependent of each other if the firm is to succeed. The following are tips for improving subsystem integration rules and procedures everyone understands what to do hierarchical referral coordination problems go to a common superior. Planning objectives and targets are known by everyone. Direct contact among managers face to face contact among managers liaison roles cross trading of personnel to work in each other's units, task forces and teams people from different units on task forces matrix organisation create a matrix structure for specific projects. A multitude of Six Sigma writers and trainers have stressed the importance cross functional collaboration in the achievement of Six Sigma objectives. This concept is also worthwhile for many other aspects of organizational improvement and rapid customer response.

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