6 Sigma & JIT

Question 1

What is 6 sigma?

Answer 1

A business strategy and philosophy built around the concept that companies can gain a competitive edge and stay ahead of their competitors by reducing defects in their business processes

Question 2

Principles

Answer 2

1. Genuine focus on customer
2. Data and fact-driven management or metrics for decision making
3. Process focus, management and improvement
4. Proactive management
5. Boundless collaboration
6. Drive for perfection, tolerate failure

Question 3

What is DMAIC?

Answer 3

Define Customer, Measure, Analyse, Implement, Control

Question 4

What does a higher sigma level cause?

Answer 4

Higher sigma level = Better products with fewer defects per unit of product (Defect Per Million Opportunities)

Question 5

Roadmap

Answer 5

1. Create and agree on strategic business objectives
2. Identify key customers, core, enabling processes, and owners of the process
3. Define customer requirements
4. Measure current performance
5. Prioritize, analyze and implement improvements
6. Expand and integrate 6 sigma system

Question 6

Pre-requisites for successful implementation

Answer 6

1. Leaders who take quality personally
2. Everybody is involved
3. Value that companies place on understanding and satisfying customer needs
4. Combine the right projects with right people and tools

Question 7

Supplier

Answer 7

1. Produce materials only as required to meet customer demand
2. Disruption and cost arising from defective components can be minimized if supplier delivers in small lots and is in close proximity to customer
3. Minimize shipping charges, parking of materials and costs of visiting supplier
4. Can ship in reusable containers designed for use on production line
5. Daily or more frequent material deliveries
6. Production line problems are resolved readily as it is convenient for an engineer to visit on short notice

Question 8

Pros for supplier

Answer 8

1. Local suppliers can visit customers early to discuss and evaluate design proposals
2. Defects can be detected early should quality problems arise
3. Minimum inventory in supply chain
4. Customer can achieve consistent growth without supplier hopping

Question 9

Cons for supplier

Answer 9

If supplier produces in lot batches but makes frequent delivery, they end up holding inventory for customer