Chapter 8: Operations Management Part 2 - Six Sigma and TQM

Seven Tools of Quality Control:

1. Check Sheets 2. Cause and Effect Diagrams 3. Control Charts 4. Histograms 5. Pareto Analysis 6. Scatter Diagrams 7. Stratification

W. Edwards Deming's 14 points in quality improvement

1. Create constancy of purpose to improve product and service 2. Adopt the new philosophy 3. Cease dependence on inspection to improve quality 4. End the practice of awarding business on the basis of price 5. Constantly improve the production and service system 5. Institute training on the job 7. Institute leadership 8. Drive out fear 9. Break down barriers between departments 10. Eliminate slogans and exhortations 11. Eliminate quotas 12. Remove barriers to pride of workmanship 13. Institute program of self-improvement 14. Put everyone to work to accomplish the transformation

3 main foundational aspects of Six Sigma

1. Quality is defined by the customer 2. Use of technical tools 3. People involvement

2 key methodologies to Six Sigma

DMADV (Define Measure Analyze Design Verify) = for designing products and processes. DMAIC (Define Measure Analyze Improve Control) = for improving products and processes.

Lean vs Six Sigma

Lean focuses on waste reduction, whereas Six Sigma emphasizes variation reduction and the elimination of defects. Lean achieves its goals by using less technical tools such as Lean Layouts, Continuous Improvement, and Respect for People, whereas Six Sigma uses technical tools such as Root Cause Analysis, Statistical Process Control, and DMAIC.

Key principles of TQM are:

Management Commitment, Employee Empowerment, Fact Based Decision Making, Continuous Improvement, Customer Focus

Six Sigma

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. The goal of Six Sigma is to attain less than 3.4 Defects Per Million Opportunities (DPMO) Six Sigma is a structured and data-driven approach to drive a near-perfect quality goal, i.e., "Zero Defects" Six Sigma focuses on reducing defects and variations

Total Quality Management (TQM)

a management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations, focused on meeting customer needs and organizational objectives.

The 5 Why's and the 5 How's Technique

a questioning technique designed to drill down into the details of a problem or a solution to find the root cause and the best corrective measure. The 5 why's are used getting to the root cause of a problem. The 5 how's are used to develop the details of a root solution to a problem.

LEAN

an operating philosophy of waste reduction and value enhancement and was originally created as the Toyota Production System (TPS) by key Toyota executives. LEAN focuses on eliminating wastes and improving efficiency

Control Charts include:

natural variations, assignable variations, variable data, attribute data

Control Charts allow firms to:

visually monitor process performance, compare the performance to desired levels or standards, take corrective action as necessary