Implementing Six Sigma and Lean

Ron Basu

• Publisher: Routledge
• Year: 2009
• ISBN:
  9781136346484
• Edition: 1
• Topic: Betriebswirtschaft
• Subtopic: Business allgemein

This is a comprehensive, user-friendly and hands-on book that is a single source of reference of tools and techniques for all quality practitioners.Implementing Six Sigma and Lean covers the basics of how to manage for consistently high quality and gives good coverage of both simple tools and advanced techniques which can be used in all businesses. This book provides guidance on how to use these tools for different situations such as new start-up companies, stalled projects and the constant achievement of high quality in well-established quality regimes.Case studies are included that encourage the reader to respond in a practical situations and provide a good learning resource for courses. There are summaries of key elements and questions with exercises at the end of each chapter.

Part 1

The Foundations of Quality

Introduction to Chapters 1–3

Part 1 of the book deals with some of the fundamentals of quality. The perception of quality varies significantly depending on the type of industry, economy and culture. However it is undeniable that in today’s global economy quality forms an integral part of the business, and the differences in its perception from the points of view of both the suppliers and customers are gradually converging. The following topics are examined in this section:

Chapter 1: Quality and operational excellence

Chapter 2: History of the quality movement

Chapter 3: The scope of tools and techniques

Chapter 1 addresses the dimensions of quality and emphasises that primarily the sustainability of quality can lead to operational excellence. Tools and techniques are essential aides in the road map to excellence.

Quality ‘gurus’, in particular Deming, Juran, Crosby, Feigenbaum, Taguchi and Ishikawa have had a significant influence in the development of the quality movement throughout the world and their learning and ideas are summarised in Chapter 2.

Chapter 3 examines the driving forces and opposing forces contributing to the success or failures of a quality programme in general and the application of tools and techniques in particular.

1

Quality and Operational Excellence

We are what we repeatedly do. Excellence, then, is not an act but a habit

— Aristotle

Introduction

The methodology of implementing a quality management and improvement programme can be varied. The programme is likely to have a different name or label, such as TQM (Total Quality Management), Six Sigma, Lean Sigma, BPR (Business Process Re-engineering) or Operational Excellence. Regardless of the methodology or name of the continuous improvement programmes, each organisation and programme team will certainly need to use a selection or tools and techniques in their implementation process. Most of these tools and techniques are simple to understand and can be used by a large population of the company. However, there are also some techniques which are more complex. These advanced techniques are used by specialists for specific problem solving applications. It is vital that the tools and techniques are selected for the appropriate team and applied correctly to the appropriate process. Therefore the fundamental requirements for achieving repeatable and reliable results by these tools and techniques is a clear understanding, both of the tools and techniques themselves and the process by which they could be applied.

The objective of this chapter is to introduce to the reader the following areas:

• What are the tools and techniques
• The concept of quality and operational excellence.

Tools and Techniques

In general, tools and techniques can be broadly defined as the practical methods and skills applied to specific activities to enable improvement. A specific tool has a defined role and a technique may comprise the application of several such tools.

Dale and McQuater (1998) have suggested the following definition of tools and techniques.

Tools and Techniques

A single tool may be described as a device which has a clear role and defined application. It is often narrow in its focus and can be and is usually used on its own. Examples of tools are:

• Cause and Effect Diagram
• Pareto Analysis
• Relationship Diagram
• Control Chart
• Histogram
• Flow Chart

A technique, on the other hand, has a wider application than a tool. There is also a need for a greater intellectual thought process and more skill, knowledge, understanding and training in order to use them effectively. A technique may even be viewed as a collection of tools. For example, Statistical Process Control employs a variety of the tools, such as graphs, charts, histograms and capability studies, as well as other statistical methods, all of which are necessary for the effective deployment of a technique. The use of a technique may cause the necessity for a tool to be identified.

Examples of techniques are:

• Statistical Process Control
• Benchmarking
• Quality Function Deployment
• Failure Mode and Effects Analysis
• Design of Experiments
• Self-assessment

Source: Dale and McQuater (1998).

What is Quality?

If you were to ask quality experts to define ‘quality’, it is likely that you would receive many different answers, although you would elicit a set of common or comparable themes, such as ‘Fitness for purpose’, ‘Right first time’, ‘What the Quality and operational excellence customer wants’, ‘Conformance to standards’, ‘Value for money’, ‘Right thing at the right time’ and so on. A basic reason for differing perceptions of quality is arguably that each person has their own set of individual preferences.

A simple story from the Indian fables may illustrate the above point. Three blind men went to visit an elephant and each felt the creature to form an impression of it. On their way back, they discussed the experience. The first man said, ‘The elephant is just like a swinging fan’. The second blind man replied, ‘No, I disagree. I think that it is more like a pillar’. Then the third person protested, ‘You’re both wrong. I would describe it as being more like a huge, thick whip.’ He added, ‘I am absolutely sure, it’s a long and very flexible object’. It is clear from their very different impressions and viewpoints that the three blind men were influenced by their varying attitudes and the way in which they touched the elephant in order to arrive at such contrary perceptions about the same animal. However, it was only by sharing their ideas that they realised that they had visualised one concept in a variety of ways.

There are many different definitions and dimensions of quality to be found in books and academic literature. We will present three of these definitions selected from published literature and propose a three-dimensional definition of quality to reflect the appropriate application of tools and techniques.

One of the most respected definitions of quality is given by the eight quality dimensions (see Table 1.1) developed by David Gravin of the Harvard Business School (1984).

Table 1.1 Gravin’s product quality dimensions

Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

Performance refers to the efficiency (e.g. return on investment) with which the product achieves its intended purpose.

Features are attributes that supplement the product’s basic performance, e.g. tinted glass windows in a car.

Reliability refers to the capability of the product to perform consistently over its life cycle.

Conformance refers to meeting the specifications of the product, usually defined by numeric values.

Durability is the degree to which a product withstands stress without failure.

Serviceability is used to denote the ease of repair.

Aesthetics are sensory characteristics such as a look, sound, taste and smell.

Perceived quality is based upon customer opinion.

The above dimensions of quality are not mutually exclusive, although they relate primarily to the quality of the product. Neither they are exhaustive. Service quality is perhaps even more difficult to define than product quality. A set of service quality dimensions (see Table 1.2) that is widely cited has been compiled by Parasuraman et al. (1984).

Table 1.2 Parasuraman et al.’s service quality dimensions

Tangibles Service reliability Responsiveness Assurance Empathy Availability Timeliness Professionalism Completeness Pleasantness

Tangibles are the physical appearance of the service facility and people.

Service reliability deals with the ability of the service provider to perform dependably.

Responsiveness is the willingness of the service provider to be prompt in delivering the service.

Assurance relates to the ability of the service provider to inspire trust and confidence.

Empathy refers to the ability of the service provider to demonstrate care and individual attention to the customer.

Availability is the ability to provide service at the right time and place.

Professionalism encompasses the impartial and ethical characteristics of the service provider.

Timeliness refers to the delivery of service within the agreed lead time.

Completeness addresses the delivery of the order in full.

Pleasantness simply means the good manners and politeness of the service provider.

Noriaki Kano (1996) demonstrates in the well-known Kano Model of customer satisfaction (see also Appendix A7) that there are three attributes to quality (viz. basic needs, performance needs and excitement needs) and that to be competitive products and services must flawlessly execute all three attributes of quality.

Our third authoritative definition of quality is taken from Ray Wild’s Operations Management (2002, p. 644) (see Table 1.3).

Table 1.3 Wild’s definition of quality

The quality of a product or service is the degree to which it satisfies customer requirements.

It is influenced by:

Design quality: The degree to which the specification of the product or service satisfies customers’ requirements.

Process quality: The degree to which the product or service, which is made available to the customer, conforms to specification.

The list of quality dimensions by Gravin (1984) and Parasuraman et al. (1985) are widely cited and respected. However, one problem with multiple dimensions is that of communication and if allowed time, the reader could probably identify additional dimensions. It is not easy to devise a strategic plan on quality based on specific dimensions which could be interpreted differently by different departments. Wild’s definition of design/process quality however provides a broad framework to develop a company specific quality strategy.

Nonetheless, one important dimension of quality is not clearly visible in the above models: the quality of the organisation. This is a fundamental cornerstone of the quality of a holistic process and an essential requirement of an approved quality assessment scheme such as EFQM (European Foundation of Quality Management).

Our three-dimensional model of quality is shown in diagrammatic form in Figure 1.1.

Figure 1.1 Three dimensions of quality (© Ron Basu).

When an organisation develops and defines its quality strategy, it is important to share a common definition of quality and each department within a company can work towards a common objective. The product quality should contain defined attributes of both numeric specifications and perceived dimensions. The process quality, whether it relates to manufacturing or service operations, should also contain some defined criteria of acceptable service level so that the conformity of the output can be validated against these criteria. Perhaps the most important determinant of how we perceive sustainable quality is the functional and holistic role we fulfil within the organisation. It is only when an organisation begins to change its approach to a holistic culture emphasising a single set of numbers based on transparent measurement with senior management commitment that the ‘organisation quality’ germinates. We have compiled (see Table 1.4) a set of key organisation quality dimensions.

Table 1.4 Basu’s organisation quality dimensions

Top management commitment Sales and operations planning Single set of numbers Using tools and techniques Performance management Knowledge management Teamwork culture Self-assessment

Top management commitment means that organisational quality cannot exist without the total commitment of the top executive team.

Sales and operations planning is a monthly senior management review process to align strategic objectives with operation tasks.

Single set of numbers provides the common business data for all functions in the company.

Using tools and techniques relates to the fact that without the effective application of tools and techniques, the speed of improvement wil...