Chapter 10 Flashcards
Six Sigma, Brand Management & Rebranding
What is six sigma?
Six Sigma is an effective problem solving methodology (statistically quality objective and quality management) to improve business and organizational performance.
By continuously lowering costs, growing revenue, improving customer satisfaction, increasing production capacity and capability, and minimizing defects and errors.
It sets ambitious business objectives and measures performance in a way that forces accountability.
Its goal is to minimize mistakes and maximize value. And to fully and profitably meet the customer’s needs and expectation. All products services and processes are analy zed from customer’s POV and optimized according to their wishes
Why are statistical methods important in Six Sigma
-documentation and measurability of processes are important, subjective perceptions of quality are replaced by measurable statements
In what ways does Six Sigma help in businesses
-during reduction of vertical range of motion- value creation partners deliver high quality .
-during increasingly similar products- high differentiation
-during improvement projects-cost reduction and increase in profit
What tools are used in Six Sigma?
-flowcharts: diagram representing workflow through series of steps; explains how task is performed
-control charts: x and y axis graphical representation that reveals whether a sample has specifications that fall within set limits (if sample above/below upper and lower limit=sample rejected/remedied; if sample falls between upper and lower limit=sample accepted)
-scatterplots: x and y axis graphical representation that reveals strength of how two variables are correlated (data points close pattern or straight line= high correlation; data points scattered, no pattern=low correlation)
-FMEA (failure mode and effects analysis): identify and validate potential failure and proactively craft remedies.
-cause-effect diagrams: focus on 3 elements: cause, problem statement, effects; categorized: machine, materials, money, methods
What other statistical methods does Six Sigma employ?
ANOVA- analysis of variance
MANOVA- multiple analysis of variance
MDA-multiple discriminant analysis
What are the 5 phases in Six Sigma?
DMAIC
define, measure, analyze, improve, control
What are the questions to be asked in the “define” phase? and what are the two view that need to be considered?
-What are the requirements of the customers?
-What do we want to achieve with the improvement project?
-What is the current process?
-What is the problem?
VOC (voice of customer is analyzed)- identifying requirements and measuring satisfaction levels.
“outside-inside-view” ensure process is viewed as whole not from a corporate view.
How to obtain VOC?
through:
-brainstorming sessions
-benchmarking sessions
-interviews
-focus group discussions
-customer complaints & suggestions
-social media posts
-surveys
What are questions to be asked when obtaining VOC?
-Does the personal view or bias of the person recording distort results?
-What is the relationship with respondent?
-What are the time constraints?
-What is budget available?
-What do results need to be to continue project?
-Do customer’s expectations match the company’s intentions and activities?
What are the main activities in the “analyze” phase?
establishment of process variation sources (flowcharts)
identification & validation of root cause (cause-effect diagram, control chart, scatterplot)
What are the questions asked in the “analyze” phase?
Where, when and why do errors occur?
What is main cause of problem?
What are the relationships between influencing factors and the process outcome?
What financial benefits can the company generate from improvement project?
What are the main activities in the “improve” phase?
Identifying creative solutions to improve process
implementing solutions that withstand initial testing and demonstrate positive cost-benefit balance
What are the questions asked in the “improve” phase?
What solutions can be considered to improve process?
Are the solutions workable?
Which among the many identified solutions is the best, what value does it bring?
During action plan creation phase:
What resources are required?
Who will be involved in every phase?
What is the time frame?
How much will it cost?
What are the main activities in the “control” phase?
-recognizing that solutions are normally forgotten
-bringing back old processes for review
(check-regulate-monitor)
What are the questions asked in the “control” phase?
How well was solution implemented?
Can deterioration of performance of new process be prevented?
Can project’s closure be completed immediately?
How can sustainability of the improved processes be ensured?
