Quality, Six Sigma
and
New Product Development
Dila KUPELI 200961052
Emre CIRAK 200961033
Hande HUVEYLI 200961045
Seckin DILEK 200961037
Zehra BICER 200961024
The Meaning of Quality
Quality is fitness for use
Quality is meeting customer expectations
Quality is exceeding the customer expectations
Quality is superiority to competitors
Etc.
Quality Improvement
Quality improvement (QI);
uses quantitative and qualitative methods
to improve the effectiveness, efficiency,
and safety of service delivery processes
and systems, as well as the performance
of human resources in delivering products
and services.
Models
FADE
PDSA
DMAIC (six sigma)
Continuous Quality Improvement(CQI)
Total Quality Management(TQM)
Quality Dimensions
(manufacturing)
Quality Dimensions
(service)
Empathy
Responsiveness
Reliability
Tangibles
Assurance
KANSEİ QUALITY CONTROL IN PRODUCT
DEVELOPMENT
What is the Kansei Engineering?
• Kansei Engineering ( emotional / affective engineering) aims the
development or improvement of products and services by translating
customer's psychological feelings and needs into product's design
domain
• Kansei Engineering aims to produce new products based on feelings
and demands of the costumer.
Kansei Quality
• Kansei quality is the intentional meaning of the object, it is evaluated
intuitively with the tacit knowledge based on the human’s past
experiences. This Kansei quality was related in human’s potential
demand.
• If we improve Kansei quality in design, we have to understand a
users’ tacit knowledge (they don’t even notice.) based on their daily
experiences.
Computer Aided Kansei Engineering
• 2.type
• It is called computer aided Kansei Engineering.
• Emotions of the consumer are converted to desing details by using
expert systems
Databases in Computer Aided
Kansei Engineering
a)
b)
c)
d)
Kansei Database
İmage Database
Information Database
Design and Color Database
• Customer orientation which one of the most important elements in Total
Quality Management,increases the importance of Kansei Engineering
and guidance to engineers about what’s going on in jobs.
• It is possible that to realise continious improvement which has a
importance role in TQM , is only depends on technology (kansei Eng)
which determines the customer needs and having flexibility to produce
these needs.
SIX SIGMA ON NEW
PRODUCT
DEVELOPMENT
• What is Six Sigma?
• Six Sigma Performance
• Six Sigma Capability
• DPMO(Defect Per Million Opprtunities)
• Six Sigma Belt
• Six Sigma Methodology (DMAIC-DFSS)
• The Big Picture
SIX SIGMA
• Improve the quality of process outputs
• Identifying and removing the causes of defects
• Minimizing variability in manufacturing and business processes
Each Six Sigma project carried out within an organization
follows a defined sequence of steps and has quantified value targets
SIX SIGMA PERFORMANCE
The number of Sigmas between the center of a process performance
measure distribution and the nearest specification limit :
SIGMA CAPABILITY
Sigma Capability
&
Yield
DEFECTS PER MILLION OPPORTUNITIES
(DPMO)
«3.4 DPMO»
SIX SIGMA BELTS
1.
2.
3.
4.
Green Belt
Black Belt
Master Black Belt
Champion
• Yellow Belt
• Brown Belt
SIX SIGMA METHODOLOGY
• Six Sigma projects follow two project methodologies inspired by Demings ’Plan-DoCheck-Act’
1. «DMAIC » is used for …..
2. «DMADV «(DFSS as known) is used for ….
DMAIC
DESIGN FOR SIX SIGMA (DFSS)
WHY DFSS?
“Desing in” quality when costs are low is important and showing
customers six sigma right from the start.
THE OPPORTUNITY OF DFSS
• Early problem identification; solution when costs low
• Faster market entry: earlier revenue stream, longer patent coverage
• Lower total development cost
• Robust product at market entry: delighted customers
• Resources available for next game-changer
THE BIG PICTURE
DFSS METHODS
SIX SIGMA BALANCED
SCORECARD
• Balanced scorecard methodology is an analysis technique designed to
translate an organization's mission statement and overall business
strategy into specific, quantifiable goals and to monitor the
organization's performance in terms of achieving these goals.
• The Blanced Scorecard process allows an organization to align and focus
on all it resources on its strategy
• Developed by Robert Kaplan and David Norton in 1992, the balanced
scorecard methodology is a comprehensive approach that analyzes an
organization's overall performance in four ways.
1.
2.
3.
4.
Financial prespective
Customer perspective
Internal business process perspective
Learning and growth perspective.
Financial perspective
• How do we look to stockholder?
Survive
Succeed
Prosper
Customer Perspective
• How do our customers see us?
New prooducts
Responsiveness
Quality
Internal Business Perspective
• At what must we excel currently?
 Manufacturing/service excellence
 New product/service introduction
Innovation and Learning Perspective
• Can we continue to improve and create value?
 Technological leadership
 Time to market
 Employee training and satisfaction
Example of BSC
# Case «Mobil NAM&R»
• Mobil NAM&R ‘s problem (early 90’s)
• - Unfocused strategy
•
Full range of products & services to all consumers
•
Low prices of discount station
•
 Poor financial performance
• Mobil NAM&R ‘s research
• - 60% of the consumer be willing to pay price premium
•
(price-sensitive consumers : 20%)
•
•  "differentiated value proposition"
# Case «Mobil NAM&R»
(BSC srategy map)
# Case «Mobil NAM&R»
Strategic theme
Financial
Customer
(Customer
Intimacy
Proposition)
Internal
Process
Learning &
Growth
(BSC)
Strategic Objectives
Measurement (KPI)
Increase Return on
Capital employed
Revenue Growth
Understand customer
needs & Differentiate
Productivity
Max the asset use
Business integrate
 Return on Capital Employed

Actual Return on Capital (ROE)
 New revenue from Nongasoline
 Premium brand for customer


Nongasoline revenue
Profit margin
 Become industry leader in supply
chain category
 Maximize the use of asset

Cost per Gallon

Actual cash flow
Delight the customer
 Speedy purchase
Friendly, helpful worker
Recognize customer royalty


Share of targeted customer segment
Mystery shopping rating
Win-Win Dealer relations
 Offer more consumer products
Help dealers develop biz skill


Dealer profitability
Dealer satisfaction
Build Franchise
 Innovative product and service


New product acceptance rate
New product ROI
Customer value
 Best-in-class franchise teams


Share of target market
Dealer quality rating
Operational excellence








Refinery yield gap, Unplanned downtime
Inventory level
Stock out rate ..
Activity-based cost
Good neighbor
 Improve environment health &
 Safety

Reduced number of environmental incidents & safety
incident
Motivated and prepared
worker
• Core competency and view
• Access to strategic information
• Align business and personal goal




Ratio of strategic skills to job coverage
On-time deployment of system
Employee feedback
Personal BSC
Refinery Performance
Inventory management
Deliver product on-time
Become the industry cost leader
Data
 6% ↑ W/I 3y
 $1B/year
# Case «Mobil NAM&R»
(achievements)
• Mobil NAM&R ‘s achievements (`2000)
Financial perspective
Return on Capital employed: 6%  16%
Sales Growth: more than 2% annually
Cash Expense: 20% decrease
Operating cash flow increase: $1billion per year
• Customer perspective
Mystery-shopper score, Dealer quality: increased each year
Number of consumers using “Speedpass”: one million per year
• Internal process perspective
Environmental & Safety accidents: 60~80% down
Lost oil-refinery yields due to systems downtime: 70% drop
• Learning and growth perspective
Employee awareness & commitment to the strategy: quadrupled
RISK ASSESMENT
Risk Assessment is simply a careful examination of
what, in your work, could cause harm to people, so that
you can weigh up whether you have taken enough
precautions or should do more to prevent harm. Workers
and others have a right to be protected from harm
caused by a failure to take reasonable control
measures.
Firstly issue risks of conditions within the
workplace is indicated.
• The hazards of workplace is identified.
• Safeguard measures are identified against risks and hazards.
• The severity of damages and injury are determined.
• Probability of occurrence these dangerous situations is written.
• Risk weigt is equal to the impact of event (consuquence)
multiplied by a qualitative description of probability (likelihood).
• RISK ASSESMENT is evaluated.
• Thus, additional measures to be taken is determined
Risk assessment in software evolution
Risk Analysis Tools
Health and Safety Risk Assessment Management Software >
Accident Investigation and Management Software
>
Document Issuing and Control Management Software
>
Employee Absenteeism and Sickness Management Software >
First Aid Risk Assessment Management Software
>
Hazardous Substances Risk Management Software
>
Workplace Risk Assessment Management Software
>
Fire Premises Risk Assessment Software
>
Work Equipment Risk Assessment Management Software >
General Risk Assessment Management Software
>
Software
TIRA
AIM
DICS
SMART
FARM
HAZS
WRAM
FIRE
WERAM
GRAM