Lecture 17

Question 1

Six-Sigma Metrics

Answer 1

Defect
Defects per unit
Defects per million opportunities

Question 2

Defect

Answer 2

Any mistake or error that is passed on to a customer

Question 3

Defects per unit (DPU)

Answer 3

Number of defects discovered / number of units produced

Question 4

Defects per million opportunities (dpmo)

Answer 4

DPU * 1,000,000 / opportunities for error

Allows us to define quality broadly.

Question 5

Six sigma represents a quality level of…

Answer 5

At most 3.4 defects per million opportunities

Question 6

Key Six Sigma Metrics in Services

Answer 6

Accuracy
Cycle Time
Cost
Customer satisfaction

Question 7

Six-Sigma Quality

Answer 7

Ensuring that process variation is half the design tolerance (Cp = 2.0) while allowing the mean to shift as much as 1.5 standard deviations, resulting in at most 3.4 dpmo.

Question 8

Six Sigma Project Problems

Answer 8

Conformance Problems
Unstructured performance problems
Efficiency Problems
Product design problems
Process design problems

Question 9

Drivers for Six Sigma Process Involvement

Answer 9

Customer expectations for higher quality.
Competition for scarce resources; potential for cost reduction.
New business models enabled by advances in information technology.

Question 10

Key Factors in Six Sigma Project Selection

Answer 10

Financial return, as measured by costs associated with quality and process performance, and impacts on revenues and market share
Impacts on customers and organizational effectiveness
Probability of success
Impact on employees
Fit to strategy and competitive advantage

Question 11

DMAIC

Answer 11

Define
Measure
Analyze
Improve
Control

Question 12

Purpose of Define

Answer 12

Establish a clear and compelling reason for improving the process or product, based on:
Voice of Customer
Stakeholder requirements
Gap in current process capability

Question 13

Deliverables of Define

Answer 13

Charge that includes the current observable problems, goals for the project and information that will guide the team.
Outline of customer expectation/failure data, performance gap; clear statement of the perceived problem.
Written using SMART language.

Question 14

SMART

Answer 14

Specific
Measurable
Attainable
Results-Oriented
Timely

Question 15

Purpose of Measure

Answer 15

To factually understand the problem;
Collection of data;
Use later in the Analyze step

Question 16

Deliverables of Measure

Answer 16

Flow chart
Data collection completed
Key Metrics established
Performance Matrix

Question 17

Purpose of Analyze

Answer 17

To make sense of all the data gathered.

To identify the ‘root cause’ of a problem.

Question 18

Deliverables of Analyze

Answer 18

List of problems, Fishbone
Root cause analysis
Pareto of root causes

Question 19

Root Cause Analysis: The five Whys

Answer 19

Identifying the root cause of a problem.

Determining the relationship(s) between different root causes of a problem.

Question 20

Purpose of Improve

Answer 20

To generate, pilot and implement viable solutions that address the root causes.

Question 21

Solutions to root causes

Answer 21

Effective in performing corrective action
Financially feasible
Acceptable by other parts of the organization

Question 22

Deliverables of Improve

Answer 22

Alternative solutions and cost benefit analysis.
Testing of ‘high impact’ ‘cost-efficient’ solutions.
A “should be” process map/flow and cost model based on a pilot.

Question 23

Types of Improvements

Answer 23

Simplification of process
Changes in staffing schedules
Improved

Question 24

Purpose of Control

Answer 24

To sustain and control future process performance.

Question 25

Deliverables of Control

Answer 25

A documented measuring/monitoring plan for maintaining standardized process and procedures and reduced costs.
A documented transfer of ownership to the process owner and management team.
Why customers can expect reliability and how the improvement will be sustained over time.

Question 26

Control Hand-offs Document the following:

Answer 26

New Quality Standards
Responsibility and timeline for full implementation
Methods to measure customer satisfaction
Methods to measure process control and capability
Expectations for Progress Reports

Question 27

All Six Sigma projects have three key characteristics

Answer 27

A problem to be solved,
A process in which the problem exists,
And one or more measures that quantify the gap to be closed and can be used to monitor progress.