Quality Part 1
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| what is quality **NOTES** | fitness for use
Reputation
Dependability
Durability
Features Included
Value/price
Safety
Service ability
Aesthitics
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| 2 parts of quality **NOTES** | 1. quality of design 2. value is important
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| quality of conformance **NOTES** | 1.product matches intended design - lack of defects 2. applies to service based companies like cars also
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| 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
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| sigma means | standard deviation
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| what is Six Sigma? | 1.a statistical term 2.a business strategy 3. a problem-solving methodology
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| 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
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| 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
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| 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
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| 2 kinds of variation | 1. common cause 2. special cause
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| common cause **NOTES** | when the process is operating normally there is that amount of variation
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| special cause **NOTES** | when there is a disruption in the process and it is not operating normally
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| 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
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| customer acquisition **NOTES** | what rate do you retain potential customers
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| customer maintenance **NOTES** | check with the customer and make sure that they are happy
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| Six Sigma - Key Element 2 - Two ways to improve a process | 1.mean improvement 2. variation reduction
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| 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
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| speed of delivery | mean of the process
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| consistency of delivery | variation of the process
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| process improvement occurs if: | 1.mean time is reduced or 2. variation is reduced
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| 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
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| 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
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| 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
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| 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)
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| 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
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| 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
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| 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
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| checksheet (See slide 14) | useful in collecting data Example: tracking airline complaints
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| 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
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| histogram (see slide 16) | 1.graphical representation of the variation in a data set 2.shows the number of observations within specified groups
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| 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
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| Run Chart (see slide 18) | plot levels of a single characteristic or dimension over time
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| Scatter Diagram (see slide 19) | plot the relationship between two variables
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| Controlling Quality Costs Quality Cost Framework (Joseph Juran): | 1.costs of conformance 2.costs of non- conformance
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| costs of conformance | 1.appraisal costs 2.prevention costs
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| costs of non-conformance | 1.internal failure costs 2. external failure costs
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| controlling quality costs-old view (See slide 21) |
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| 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
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