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OTM 16
Quality Part 1
| Question | Answer |
|---|---|
| what is quality **NOTES** | fitness for use Reputation Dependability Durability Features Included Value/price Safety Service ability Aesthitics |
| 2 parts of quality **NOTES** | 1. quality of design 2. value is important |
| quality of conformance **NOTES** | 1.product matches intended design - lack of defects 2. applies to service based companies like cars also |
| 5 key concepts for improving organizational quality | 1.quality defined by the customer 2. prevention orientation 3.focus on continuous improvement 4.emphasis on supplier-customer links 5.quality at the source-every employee is responsible for quality |
| sigma means | standard deviation |
| what is Six Sigma? | 1.a statistical term 2.a business strategy 3. a problem-solving methodology |
| See slide 5 for graph of Six Sigma | **NOTES for slide 5** - .475 is the target value - Lower and upper target values on the outsides- if the quality lied within this chart we would have 2 sigma quality 3 sigma second line |
| Six sigma is | a measure of process capability: when the tolerance limits are 6 standard deviations from the process mean, there will be just 3.4 defects per million opportunities |
| Six Sigma as a Business Strategy - 4 key elements | 1.Identify core processes that drive an organization’s strategic business objectives 2.Two ways to improve a process: mean improvement and variation reduction 3.Management by fact and data 4. Use of a structured problem-solving approach |
| 2 kinds of variation | 1. common cause 2. special cause |
| common cause **NOTES** | when the process is operating normally there is that amount of variation |
| special cause **NOTES** | when there is a disruption in the process and it is not operating normally |
| Six Sigma - Key Element 1 - Identify core processes that drive an organization’s strategic business objectives | Example -A financial services organization- 5 key processes 1.Lead generation 2.Customer acquisition 3.Order fulfillment 4.Customer maintenance 5.Employee development |
| customer acquisition **NOTES** | what rate do you retain potential customers |
| customer maintenance **NOTES** | check with the customer and make sure that they are happy |
| Six Sigma - Key Element 2 - Two ways to improve a process | 1.mean improvement 2. variation reduction |
| Example of improving an order fulfillment process | 1.use the two key dimensions for customer satisfaction - speed of delivery and consistency of delivery 2.process improvement 3.aim to improve both effectiveness |
| speed of delivery | mean of the process |
| consistency of delivery | variation of the process |
| process improvement occurs if: | 1.mean time is reduced or 2. variation is reduced |
| Six Sigma - Key Element 3 - management by fact and data components | 1.intuition can often be wrong 2. support key decisions with relevant data wherever possible |
| example of management by fact and data components - In a lead generation process too few leads are leading to orders from customers | 1.Manager's intuition-financial reps are giving up too easily 2.Fact-after more study, data shows the median income of leads is not sufficient to reach the desired levels of products sales |
| Six Sigma - Key Element 4 - structured problem-solving approach | DMAIC - D-define problem M-measure performance A-analyze the data and begin to formulate an attack plan I- improve C-control D-define |
| Six-Sigma as a problem-solving methodology See Slide 11 for formula | variables for formula; 1. Y is a process outcome or result 2. X variables are inputs (causes) |
| for problem-solving process | identify the process variables that are critical to key process outcomes 1. control variable - set to a certain value, maintain within a specified range 2. noise variables - uncontrollable |
| 7 basic quality tools for problem solving | 1.opportunity flow diagram 2.check sheet 3.Pareto diagram 4.histogram 5.cause-and-effect diagram 6.run chart 7.scatter diagram |
| opportunity flow diagram (see slide 13) | shows the detailed sequence of steps performed in a process 1.useful for identifying possible failure points and areas for improvements Example: Training a new machine operator |
| checksheet (See slide 14) | useful in collecting data Example: tracking airline complaints |
| Pareto diagram (see slide 15) | 1.separate the "vital few" problem sources from the "trivial many" 2. "causes" sorted from most frequent to least frequent |
| histogram (see slide 16) | 1.graphical representation of the variation in a data set 2.shows the number of observations within specified groups |
| cause and effect diagram (see slide 17) | 1.used to identify & organize the causes of problems 2.also referred to as a fishbone or Ishikawa diagram |
| Run Chart (see slide 18) | plot levels of a single characteristic or dimension over time |
| Scatter Diagram (see slide 19) | plot the relationship between two variables |
| Controlling Quality Costs Quality Cost Framework (Joseph Juran): | 1.costs of conformance 2.costs of non- conformance |
| costs of conformance | 1.appraisal costs 2.prevention costs |
| costs of non-conformance | 1.internal failure costs 2. external failure costs |
| controlling quality costs-old view (See slide 21) | |
| new view for controlling quality costs | Continuous Improvement/ Zero Defects (new view): 1.focus on costs of non-conformance 2.in long-term, costs will always be driven down by improving quality |
Created by:
rainesv