Region of Questionable Performance Lower Specification Limit Nominal Value Region of Questionable Performance Upper Specification Limit 9 What Are the Limits to PRODUCT QUALITY -Reduce scrap -Increase product life -Eliminate incoming testing PROCESS QUALITY -Reduce rework -Eliminate in-process inspection EXTERNAL INTERNAL ❖ Historically companies have focused on quality issues for customer satisfaction ❖ Prior to six sigma there were four key quality gurus that most companies’ quality programs followed Deming Juran Crosby Taguchi Challenge in the millennium Question confronting business leaders and managers: It is not: “How do we succeed?” It’s: “How do we stay successfully?” 11 Control Control Limit Mean Limit Region of Customer Complaints Region of Desired Performance Region of Specified Performance Region of Customer Complaints Cos t 3 Deming’s Contribution to Profitability CUSTOMER SATISFACTION -Compete with value MARKET SHARE QUALITY -Better products & services -Improved processes Plan Do Act Check 2 Deming taught: Deming • Importance of understanding variation in work processes • Role of management in leading for quality • Application of statistics • Plan-Do-Check-Act 13 Six Sigma? ❖ Six Sigma is not a business fad tied to a single method or strategy, but rather a flexible system for improved business leadership and performance. “People do notCrehsaisnt cgheange, people resist being changed.” Beckhard “It is not the strongest that survive, nor the fittest, but those most able to adapt to change.” Charles Darwin 40 Special cause variation Sporadic spike from observed problem Common cause variation Cost of Poor Quality (Percent of operating costs) Production Begins Original zone of process control Outline Quality level What is Six sigma? Why we need Six sigma? Development and Deployment strategy How Six sigma merges into our daily business? 1 Overview-Four Quality Gurus 20 Chronic Waste (an opportunity for improvement) Improvement Control 0 0 Time Lessons Learned New zone of process control 6 Crosby 7 Taguchi 8 TaguLocwehr i’s ContrUpipberution PRODUCTIVITY -Decreased cycle time -Eliminate set-up times PRICEwk.baidu.com -Compete with Price COST -Opportunity for profit PROFIT 4 Juran 5 Planning JuranC’osntroCl ontribution Improvement? Clean Basic Tools Wall Design Wall Sheet Design for Six Sigma (DFSS) Statistical Tools Basic Quality Tools 2 Sigma 3 Sigma 4 Sigma 5 Sigma 6 Sigm1a0 The Origin of Species 12 Challenge ❖ Resistance-the universal reaction to change. ❖ Technical resistance ❖ Political resistance ❖ Organizational resistance ❖ Individual resistance