ST PAUL’S UNIVERSITY
LIMURU CAMPUS
UNIT NAME: TOTAL QUALITY
MANAGEMENT
UNIT CODE: BSP380
STUDENT NO: BCOMMLMR108218
TASK: ASSINGMENT 1
QUESTION; Explain why a company should embrace SIX SIGMA model to sustain
quality standard of their company services.
Six Sigma seeks to improve the quality of process outputs by identifying and eliminating the
causes of defects (errors) and minimizing variability in processes.
It is a business management strategy which aims at improving the quality of process by
minimizing and eventually removing errors and variations. It uses a set of quality management
methods and creates a special infrastructure of people within the organization who are experts in
these methods.
A key focus of Six Sigma is the use of statistical tools and analysis to identify and correct the
root causes of variation. As a master plan for problem solving and process improvement, Six
Sigma uses the DMAIC Methodology; Define, Measure, analyze, improve and control
STEP 1- DEFINE
The step is defining the problem. The define phase is about developing a focused problem
statement that describes in measurable terms what the project will deliver. Feedback are taken
from customers as to what they feel about product and the services. Feedback are carefully
monitored to understand problem areas and their root causes.
STEP 2- MEASURE
Measure and find out the key points of the current process. Once the problem is identified
employees collect relevant data which would give an insight into current
process. measure phase is about documenting the current process and assessing baseline
performance. Some of the important tools in this phase include trend charts, basic pareto
charts, process flowchart, Gage R&R, and process capability measurement (sigma level).
Depending on the project scope, the team might hold off on the process flowchart and Gage
R&R activities until primary focus areas are identified further into the project. In some cases, a
macro flowchart is useful in providing all team members with an initial, high-level view of the
process.
STEP 3- ANALYZE PHASE.
The information collected in the second phase is verified here. The root cause of defect are
carefully studied and investigation taken so as to find out how they are affecting the entire
process. The analyze phase in DMAIC isolates the top causes behind the metric that the team is
tackling. In most cases there will be no more than three causes that must be controlled in order
to achieve success – if too many causes are identified, then the team has either not isolated the
primary causes or the project goal is too ambitious to achieve success with a single
project. There are always exceptions, but speed and results are key ingredients to building Six
Sigma momentum inside an organization, and projects should be sized to assure team success
and project closure inside reasonable time limits.
The Analyze phase applies a number of tools for collecting team input and conducting objective
experiments to identify top causes.
STEP 4- IMPROVE PHASE
Improving the current process based on the research and analysis done in the previous stage.
Efforts are made to create new project which would ensure superior quality. The improve phase
focuses on fully acknowledging the top causes identified in the analyze phase, with the intent of
either controlling or eliminating those cause
STEP5- CONTROL PHASE
Controlling the process so that they do not lead to defects. Control phase is about sustaining the
changes made in the Improve phase. The best controls are those that require no monitoring
(irreversible product or process design changes).
But oftentimes there are process settings, procedures, etc., requiring that employees follow
specific requirements in daily operations.
DMADV method on the other hand focuses on creating new strategies and policies.
D- Design strategies and processes which ensure hundred percent customer satisfaction.
M- Measure and identify parameters that are important for quality.
A-Analyze and develop high level alternatives to ensure superior quality.
D-Design the details and the process.
V- Verify various processes and finally implement the same.
The benefit of embracing the six SIGMAS
1. Increase Productivity
Utilizing people effectively at all times is a difficult task for any business, especially for
manufacturers who typically have a large workforce to manage that operates across
different locations, regions, languages and cultures. Six Sigma can empower you to
precisely measure time spent on direct and indirect activities and identify the root causes
of low productivity.
2. Reduce Costs
Defective processes cost money. Understanding operations with a view to improve one of
the most efficient ways to reduce costs in any business. At the core of the Six Sigma
methodology is its process improvement framework which consists of the following five
steps: Define, Measure, Analyze, Implement and Control (DMAIC). Statistically, this
process has been shown to reduce problems to less than 3.4 defects per million
opportunities.
3. Improve Market Share
Companies that have been implementing Six Sigma correctly for some time have
reported profit margin growth of around 20% each year for every Sigma process shift.
Sigma process shifts allow the operator to calculate how near (or far) a process is from
Six Sigma. Sustained improvements in profit margins over years empower companies to
continue to create products and services with added features and functions, allowing them
a consistently greater share of the market.
4. Increase Competitive Edge
While every customer encounter is different, Sigma recognizes that having too many
variables within customer-facing procedures can be as detrimental as it is in back-end
processes – perhaps more so Six Sigma will identify common components that can be
standardized in order to dramatically enhance performance and provide the information
needed to strengthen and improve consistency across customer relations. Data gathered
can also be used to empower marketing strategies and put a company ahead of the
competition.
5. Reduce Waste
Waste within a business and manufacturing environment can relate to many things apart
from time, costs and materials. Six Sigma can help identify the unnecessary movement of
information, people and products and reveal untapped employee creativity, ideas and
skills. These activities can be eliminated, as can overproduction, by showing where to cut
the manufacturing of products and output of services beyond the requirements of
immediate use. In this way, Six Sigma can be an ideal complement to a Lean
manufacturing program.
6. Increase Employee Satisfaction
Dealing with employee queries relating to the finer points of pay entitlements, terms of
contracts and company regulations can eat into production time, frustrating employees
and bog down HR and supervisory staff. Six Sigma can take the guesswork out of what
qualifies as overtime, premium time and vacation allowance. Errors resulting in under
and over-payments, and the time and effort it takes to correct them, can be eliminated.
Enabling employees to access their own accurate and updated payroll data during their
free time not only saves time but can be a real boost to staff morale too.
Conclusion
Six Sigma can be a powerful and strategic methodology to consistently measure results, which
can then become a new baseline for improved performance, ultimately getting you closer and
closer to operational excellence. Those organizations that can embrace this philosophy across
their enterprise can effectively transform their manufacturing operations into a world class,
unstoppable leader.
REFERENCES
Stamatis DH. Essentials for the improvement of healthcare using lean & six sigma. Boca
Raton: Taylor & Francis Group, LLC; 2011
Lighter DE. Basics of health care performance improvement: A lean six sigma approach.
Burlington: Jones & Bartlett Learning; 2013
http://www.dmaictools.com