Chapter 8 Part 2

Seven Tools of Quality Control:

Check Sheets Cause and Effect Diagrams (aka, "Ishikawa" or "fishbone" diagram) Control Charts Histograms Pareto Analysis Scatter Diagrams Stratification (aka, Flow Diagrams)

Cost of Quality can be divided into the:

Cost of Good Quality: Appraisal Costs Prevention Costs Cost of Poor Quality: Internal Failure Costs External Failure Costs SLIDE68-70

Six Sigma has two key methodologies:

DMADV Methodology: DMAIC Methodology:

DMADV Methodology

Define --> Measure --> Analyze --> Design -->Verify: which is a data-driven quality strategy for designing products & processes. This methodology is used when the company wants to create a new product design or process that is more predictable and defect free.

DMAIC Methodology:

Define --> Measure --> Analyze --> Improve -->Control: which is a data-driven quality strategy for improving products & processes. This methodology is used when the company wants to improve an existing business process. DMAIC is the most widely adopted and recognized Six Sigma methodology in use slide 56-57

There are three main foundational aspects of Six Sigma:

Quality is defined by the customer Use of technical tools(Six Sigma provides a statistical approach for solving any problem, i.e. root cause) People involvement(follows a structured methodology, opportunities and incentives for employees)

Classical vs Six Sigma

Slide 52

Sampling is less time-consuming than testing every unit but can result in errors:

Supplier's Risk: The buyer rejects a shipment of good-quality units because the sample quality level did not meet the acceptance standard (type I error) Buyers's Risk: The buyer accepts a shipment of poor-quality units because the sample falsely provides a positive result against the acceptance standard (type II error)

Statistical Tools - Cause and Effect Diagrams

Used to aid in brainstorming and isolating the causes of a problem.

Statistical Tools - Check Sheets

Used to determine frequencies for specific problems

Total Quality Management quality gurus, i.e., experts, all contributed to the basic framework

W. Edwards Deming - is widely considered the father of TQM. Philip Crosby- zero defects, and focus on prevention and not inspection. Joseph Juran-cost of quality. Kaoru Ishikawa-cause and effect diagram

Acceptance Sampling

When a shipment is received from a supplier, a statistically significant representative sample is taken and measured against the quality acceptance standard.

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.

Cost of Quality

an approach that supports a company's efforts to determine the level of resources necessary to prevent poor quality, and to evaluate the quality of the company's products and services. slide 68

Prevention Costs

costs are associated with the design, implementation, and maintenance of the quality management system. They are planned, and experienced before actual products or materials are acquired or produced.

Appraisal Costs

costs are associated with the evaluation of purchased materials, processes, products, and services to ensure that they conform to specifications.

Internal Failure Costs

costs that occur when the product or service does not meet the designed quality standards, and are identified before the product or service is delivered to the customer.

External Failure Costs

costs that occur when the product or service that does not meet the designed quality standards, are not detected until after the product or service is delivered to the customer.

Total Quality Management

is 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. Six Sigma is an integral part of Total Quality Management

The goal of Six Sigma is to attain

less than 3.4 Defects Per Million Opportunities (DPMO)

Six Sigma History

originated by Motorola in 1980. became famous when Jack Welch made it central to his successful business strategy at General Electric in 1995

What is 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.

Six Sigma Training and Certification Levels

slide 58

W. Edwards Deming

slide 62

Philip Crosby

slide 63

Joseph Juran

slide 64

Kaoru Ishikawa

slide 65

Malcolm Baldrige National Quality Award

slide 66

Statistical Tools - Control Charts

slide 74

Statistical Tools - Histograms

slide 75

Statistical Tools - Pareto Analysis

slide 76

Statistical Tools - Scatter Diagrams

slide 77

Statistical Tools - Stratification (i.e., Flow Diagrams)

slide 78

Implementing LEAN and Six Sigma

slide 81

Voice of the Customer (VOC)

term used in business to describe the in-depth process of capturing internal and external customer's stated and unstated expectations, preferences, likes, and dislikes. slide 67