Developments of Quality Control • Quality Assurance • Failure Testing • Statistical Control • Company Quality Management • Total quality control
Quality Management in Supply Chain • Total Quality Management • an approach that seeks to improve quality and performance which will meet or exceed customer expectations • Measured through Reliability, Maintainability and Safety • Six Sigma • a disciplined, data-driven approach and methodology for eliminating defects in any process -- from manufacturing to transactional and from product to service
Principles of Total Quality Management • Executive Management – Top management should act as the main driver for TQM and create an environment that ensures its success • Training – Employees should receive regular training on the methods and concepts of quality. • Customer Focus – Improvements in quality should improve customer satisfaction • Decision Making – Quality decisions should be made based on measurements
Principles of Total Quality Management • Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformances are identified, measured and responded to consistently. • Continuous Improvement – Companies should continuously work towards improving manufacturing and quality procedures.
Principles of Total Quality Management • Company Culture – The culture of the company should aim at developing employees ability to work together to improve quality. • Employee Involvement – Employees should be encouraged to be pro-active in identifying and addressing quality related problems
Principles of Six Sigma • To eliminate defects • To reduce production and development costs • To reduce cycle times and inventory levels • To increase profit margin and improve customer satisfaction
Six Sigma Deployment • Define—Identify a suitable project based on customer needs and quality characteristics • Measure—Identify the key internal processes that influence the process, and measure the related defects • Analyze—Discover what the defects are and identify solutions • Improve—Prioritize and implement improvement opportunities • Control—Set in place a control plan or system to sustain the improvement
Quality and Safety Infrastructure • Communication standard • HACCP for food quality and safety • EICC for electronic industry • FOIA for appeal industry • Quality control technology • RFID • Nondestructive testing • Nanotechnology in food industry
Case Study :Is Lean Six Sigma A Winning Approach? Lean and six sigma are two important strategies in production but often exclusion of each other in practice Industrial pioneers such as Honeywell and 3M combined both Lean and Six Sigma
Lean and Six Sigma’s Challenges • Lean cannot bring a process under statistical control • Six Sigma cannot dramatically improve process speed or reduce invested capital • To be viewed as rival methodologies • Some companies choose one or the other as their primary improvement method • Some companies use both methods as very separate tool
Lean Six Sigma’s Approaches • Implement Lean and Six Sigma together and reinforce one another • Use lean to streamline processes and eliminate waste, then use Six Sigma to improve the consistency and reliability of these processes
The Outcome • Reduce the variability in value-adding processes • Reduce the cost of complexity in complementary way
Discuss the following questions: • What problems do this case study address? How does Lean Six Sigma help solve these problems? • What issues and challenges do manufacturing present? What can be done to address these issues? • What are the business issues that should be addressed when company implemented Lean Six Sigma?