1. Modul ke: Fakultas Program Studi QUALITY EXCELLENCE MODELS Six Sigma, Deming Prize, Malcolm Baldrige, EFQM Zulfa Fitri Ikatrinasari, Dr. 14 Ekonomi dan Bisnis Manajemen

2. Six Sigma for Process and Quality Improvement 2

3. Two primary sets of costs are involved in quality: Two primary sets of costs are involved in quality: – control costs – failure costs Costs broken into four categories: Costs broken into four categories: – Prevention costs – Appraisal costs – Internal costs of defects – External costs of defects Quality Management and Six Sigma in Perspective

4. In 1950 the Japanese government invited W. Edwards Deming (then a professor at New York University) to give a series of lectures on quality control to help Japanese engineers reindustrialize the country. Japanese Approaches to Quality

5. Major source of poor quality is variation Quality improvement the responsibility of top management All employees should be trained in use of problem solving tools and especially statistical techniques W. Edwards Deming

6. 1.Create constancy of purpose 2.Adopt the new philosophy 3.Cease dependence on mass inspection 4.End practice of awarding business on basis of price tags 5.Improve constantly and forever 6.Institute modern methods of training Deming’s 14 Points

7. 7.Institute modern method of supervision 8.Drive out fear 9.Breakdown organizational barriers 10.Eliminate arbitrary numerical goals 11.Eliminate work standards and quotas 12.Remove barriers that reduce pride of workmanship Deming’s 14 Points continued

8. 13. 13.Institute a vigorous program of education and training 14. Push the 13 points everyday Deming’s 14 Points continued

9. The Six Sigma concept was developed by Bill Smith, a senior engineer at Motorola, in 1986 as a way to standardize the way defects were tallied. Sigma is the Greek symbol used in statistics to refer to standard deviation which is a measure of variation. Adding “six” to “sigma” combines a measure of process performance (sigma) with the goal of nearly perfect quality (six). A Brief History of Six Sigma

10. In the popular book The Six Sigma Way, Six Sigma is defined as: – a comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes. (p. xi) A Brief History of Six Sigma continued

11. Six Sigma projects generally follow a well defined process consisting of five phases. Six Sigma projects generally follow a well defined process consisting of five phases. – define – measure – analyze – improve – control – pronounced dey-MAY-ihk The DMAIC Improvement Process

14. The define phase of a DMAIC project focuses on clearly specifying the problem or opportunity, what the goals are for the process improvement project, and what the scope of the project is. Identifying who the customer is and their requirements is also critical given that the overarching goal for all Six Sigma projects is improving the organization’s ability to meet the needs of its customers. The Define Phase

15. Conformance to specifications Performance Quick response Quick-change expertise Features Reliability Durability Serviceability Aesthetics Perceived quality Humanity Value Defining and Measuring Quality

16. The measure phase begins with the identification of the key process performance metrics. Once the key process performance metrics have been specified, related process and customer data is collected. Two commonly used process performance measures, namely, Defects per Million Opportunities (DPMO) and Process Sigma. The Measure Phase

17. Earlier it was noted that a literal interpretation of Six Sigma is 3.4 defects per million opportunities (DPMO). This may have caused some confusion for more statistically inclined readers, which we shall now attempt to reconcile. Defects Per Million Opportunities

19. How sigma itself can be used to measure the performance of a process. – One way to measure the performance of a process is to calculate the number of standard deviations the customer requirements are from the process mean or target value. Process Sigma

20. DPMO for Alternative Process Sigma Levels

21. Motorola’s Assumption the Process Mean Can Shift by as Much as 1.5 Standard Deviations

22. Comparison of 3 Sigma Process and 6 Sigma Process

23. In this phase our objective is to utilize the data that has been collected to develop and test theories related to the root causes of existing gaps between the process’ current performance and its desired performance. See next slide Table 4.3 Common tools and methodologies in the Six Sigma toolset. The Analyze Phase

24. Process Capability Analysis

25. Process Capability Analysis continued

26. OFAT and 1FAT - one factor at a time. – Shortcomings Not typically possible to test one factor at a time and hold all the other factors constant. Not possible to account for interactions or joint variation between variables (Figure 4.16). The Improve Phase: Design of Experiments (DOE)

27. Design of Experiments (DOE)

28. Chapter 4: Six Sigma for Process and Quality Improvement 28 DOE: continued

29. Chapter 4: Six Sigma for Process and Quality Improvement 29 DOE: continued

30. Some of the major considerations associated with DOE include: – Determining which factors to include in the experiment. – Specifying the levels for each factor. – Determining how much data to collect. – Determining the type of experimental design. DOE continued

31. Chapter 4: Six Sigma for Process and Quality Improvement The Malcolm Baldrige National Quality Award

32. Terima Kasih Zulfa Fitri Ikatrinasari, Dr.