Quality Mgt

6 sigma
1. Id core process & key customer
2. define customer req
3. measure current performance
4.prioritize, analyze and implement improvement system
5. expand and integrate the six sigma system


1. a) what are core process?
-central to the mission of the organization
-may be multi-functional and/or multi-organizational
-where the value added?
b) define your desire customer base
-who are you trying to serve or sell?

2. Define customer requirement
a) Customers are the reason for our existence
b) Capture the voice of the customer (what customer want? feeling? desire)
c) Customer always define their own desired experience

3. Measure current performance
a. Asses each core process against customer requirements
b. Action
- Establish a measurement infrastructure system
- Set priorities for resources (use Pareto Principle)
- Evaluate and chose improvement principle
- design and execute within capability

4. Prioritize, Analyze, and Implement Improvements
a. Identify improvement activities with greatest opportunity for return
b. Address root causes
c. Replace or improve process

5. Expand and Integrate the Six Sigma System
a. change your way of doing businesss
b. no quick fixes, short term solutions, etc.
c. monitor critical processes (SPC)
d. establish process ownership and management
e. Develop response plan and mechanisms
f. involve the entire company
g. continue to listen to the customer


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not all companies are candidates for six sigma (and may never be)!
ex. family owned business, strong cultures and tides

Looking into the future
1. do we have a clear developed and staed strategy for the future
2. outlook for financial strength and growth of the organization
3. is the organization agile and able to adapt to change?

answer "no" to all 3 Question, not good for six sigma
Yes to all 3 is good foundation for six sigma
mixed answer, may need focus on some area

Looking at the Present Questions

1. What are our current performance levels?
-profit, return, growth, yield, k-sigma level, dpmo, PU, etc
2. how well do we meet customer requirement?
- sastisfaction index
3. what our current efficiency level?


Possitive answer, may mean six sigma is not urgen
mix need work


Looking at fitness for change questions
1. what are the state of our system for managing change?
- performance measures, integration, etc.
2. How well do we manage cross-functional proccesses?
- Multi-functional teams, cooperation, barriers
3. What else is going on that might conflict?
- Acquisitions, NPI, new systems, economic factors

Looking at fitness for change - Assessing the answers
1. if system are not in place this maybe a good place to start
2. if cross functional cooperation and integration are absent - watch out!
3. if other major activities are going on put six sigma on the back burner

* Six Sigma is not for everybody!
* Reason why you might decline or hold off
- You are already doing very well (better than 95% of what can be achieved in quality)
- You have too much on your plate already; put six sigma in your long term plan
- you recognize....

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Six Sigma cos/benefits

Benefit--
-probably need to estimate
-Use average, sample, expert opinion
-Find any concrete benefits you can
-recognize and communicate the uncertainty of the benefits data

The Time Element

-Results do not happen overnight
-Expect at least six to nine months before you can see result.

COST--
-Labor (payroll)
- full time six sigma team (black belt)
Management, support staff, part time team member
-Training and consulting
-Improvement implementation
-equipment, major process change, system

Is a cost/Benefit Ratio Right?
-Probably not!!
Exception: specific, small project, cost are much much more than benefits
-Other factors are more important
- survival, competitiveness, customer satisfaction, long term saving
-May require "leap of faith"

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Objective -- 3 Possible Levels
1. Business Transformation
- Major change in the business such as greater flexibility
2. Strategic Improvement
- High-level strategic

Scope - Org Factors
- available resources
- other concurrent activities
- how well are we to accept change

TimeFrame
-Break down effort with time estimate
-Find a meaningful and visible intended result
-Look for a reasonable "quick win"

Entries to the Roadmap
-Based on Objecctive Level
-Biz transformation -> id core process & key customer
- strategic improve - define customer

Pilots
-always start with pilot to test out
-reduce risk
-more easily manage
-easier to measure & adjust