Quality Management and Six Sigma edited by Abdurrahman Coskun SCIYO Quality Management and Six Sigma Edited by Abdurrahman Coskun Published by Sciyo Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2010 Sciyo All chapters are Open Access articles distributed under the Creative Commons Non Commercial Share Alike Attribution 3.0 license, which permits to copy, distribute, transmit, and adapt the work in any medium, so long as the original work is properly cited. After this work has been published by Sciyo, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work. Any republication, referencing or personal use of the work must explicitly identify the original source. Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy of information contained in the published articles. The publisher assumes no responsibility for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained in the book. Publishing Process Manager Iva Lipovic Technical Editor Zeljko Debeljuh Cover Designer Martina Sirotic Image Copyright Christophe Testi, 2010. Used under license from Shutterstock.com First published September 2010 Printed in India A free online edition of this book is available at www.sciyo.com Additional hard copies can be obtained from publication@sciyo.com Quality Management and Six Sigma, Edited by Abdurrahman Coskun p. cm. ISBN 978-953-307-130-5 SCIYO.COM WHERE KNOWLEDGE IS FREE free online editions of Sciyo Books, Journals and Videos can be found at www.sciyo.com Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Preface VII Six sigma and Total Quality Management 1 Yang, Ching-Chow Six Sigma and Developing Countries 31 Ali Rizwan, PhD A Comprehensive Framework for Six Sigma Critical Success Factors With an Experience in a Developing Country 43 Arash Shahin The importance of the strategic alignment process using Six Sigma projects 53 Bianca Soares de Oliveira Gonçalves and Marcel Andreotti Musetti Integrated model linking Maintenance Excellence, Six Sigma and QFD for process progressive improvement 67 Maher Lazreg Sigma-TRIZ: Algorithm for Systematic Integration of Innovation within Six Sigma Process Improvement Methodologies 89 Stelian Brad Design for Six Sigma (DfSS) in Software 109 Ajit Ashok Shenvi Statistical Process Control for Software: Fill the Gap 135 Maria Teresa Baldassarre, Nicola Boffoli and Danilo Caivano MiniDMAIC: An Approach to Cause and Analysis Resolution in Software Project Development 155 Carla Ilane M. Bezerra, Adriano B. Albuquerque and Luiz Sérgio Plácido Defining Placement Machine Capability By Using Statistical Methods 183 Timo Liukkonen, Ph.D Contents VI Chapter 11 Chapter 12 Chapter 13 Chapter 14 Modelling, simulation, six sigma and their application in optimization of electrical vehicle design 207 Wei Zhan Longitudinal Robust Stability Augmentation for Micro air Vehicle - Design and Validation 225 Dr. M. Meenakshi and Prof. M. Seetharama Bhat Six Sigma as a Quality Management Tool: Evaluation of Performance in Laboratory Medicine 247 Abdurrahman Coskun, Tamer Inal, Ibrahim Unsal and Mustafa Serteser Tesqual: A Microthesaurus for Use in Quality Management in European Higher Education 263 María Mitre The history of quality is the history of human efforts to make things perfect in an imperfect world. The main purpose of the quality procedures is to reduce errors and increase customer satisfaction. Errors and mistakes are part of human nature, but so is the ability to create solutions and nd better alternatives. By using modern quality management tools we can shift the balance from errors towards solutions and better alternatives. Six Sigma methodology represents an evolution in quality management that is being widely implemented in industry and business in the new millennium. In the mid-1980s it was developed by Motorola Inc. to reduce the cost of products and eliminate defects. Using Six Sigma methodology, Motorola Inc. become a quality leader and won the Malcolm Baldrige National Quality Award in 1988. The increasing expectation of customers and the complexity of modern products forced companies to nd new solutions and better alternatives during the 20th century. Within this atmosphere, Six Sigma has provided the best solution in business and industry. Due to its exible nature, the Six Sigma methodology was rapidly adopted by many top companies and, within only two decades, it has also been adopted by many mid-sized and even small companies. In addition to companies in Japan and Western Countries, Six Sigma methodology provides the best solutions to many problems and can be used as an accelerator in developing countries. In the new millennium Six Sigma methodology has been considered as a strategic approach to achieve excellence in business and industry. It is the main way of doing business, rather than a simple quality system. Six Sigma is a philosophy and vision, and it is based on both reality and productivity. The ultimate goal of Six Sigma is error-free business and industry. If you do not measure, you do not know, and if you do not know, you cannot manage. This way Six Sigma shows us how to measure and, consequently, how to manage the company. Sigma levels are a measure of error rates. A company or a medical laboratory, and even a bank, can measure their performance by sigma level. Companies that accept three or four sigma levels create 67000 and 6200 defects per million products, however, companies that accept six sigma levels create only 3.4 defects per million products. In this book several scientists from various regions of the world share their experience and knowledge about quality management and particularly Six Sigma methodology. The chapters in the book cover the basic principles of managing quality and Six Sigma methodology in many different disciplines of industry, business and even medical laboratories. Preface VIII I hope that this book as a free resource will help to employees worldwide at all levels in different areas of business and industry, who need to improve their knowledge and experience in Six Sigma and Quality Management. Editor Dr Abdurrahman Coskun Acibadem University, School of Medicine, Department of Medical Biochemistry, Istanbul, Turkey Six sigma and Total Quality Management 1 Six sigma and Total Quality Management Yang, Ching-Chow X Six sigma and Total Quality Management Yang, Ching-Chow Department of Industrial and Systems Engineering Chung Yuan Christian University Taiwan, R.O.C. 1. The practices and implementation of Six Sigma In the past two decades, Six Sigma methodology has been widely adopted by industries and non-profit organizations throughout the world. In this section, we demonstrate the development of Six Sigma program, and discuss the features and the five steps of the improvements 1.1 The introduction of Six Sigma Six Sigma methodology was first espoused by Motorola in the mid 1980s. (Antony & Banuelas, 2002; Wiklund & Wiklund, 2002). At that time, Motorola was facing Japanese competition in the electronics industry and needed to make drastic improvements in its levels of quality (Harry and Schroeder, 2000; Linderman et al., 2003). A Six Sigma initiative ,which is originally focused on manufacturing process and product quality (Harry & Schroeder, 2000), is also designed to change the culture in an organization through breakthrough improvement in all aspects of the business (Breyfogle III et al., 2001, p.32). The Six Sigma architects at Motorola focused on making improvements in all operations within a process—thus producing results far more rapidly and effectively (Harry & Schroeder, 2000). The successful implementation of the Six Sigma program in Motorola led to huge benefits. Motorola recorded a reduction in defects and manufacturing time, and also began to reap financial rewards. Within four years, the Six Sigma program had saved the company $2.2 billion (Harry & Schroeder, 2000). The crowning achievement was being recognized with the Malcolm Baldrige National Quality Award (Breyfegle III et al., 2001; Wiklund & Wiklund, 2002). IBM, SONY, and Allied Signal successfully followed Motorola in implementing Six Sigma. Allied Signal began its Six Sigma activities in the early 1990s, It successfully attained savings of US$2 billion during a five-year period (Klefsjö et al., 2001). Sooner, the impressive results obtained by Allied Sigma induced General Electric (GE) to undertake a thorough implementation of the Six Sigma program in 1995 (Pande et al., 2000) as a corporate initiative to improve net profits and operating margin (Hendricks and Kelbaugh, 1998). The 1999 annual report of GE showed that the implementation produced more than US$2 billion in benefit (Slater, 2001; Coronado & Antony, 2002, Raisinghani et al., 2005). 1 Quality Management and Six Sigma2 As a result, the impressive benefits of implementing Six Sigma programs in Motorola, Allied Signal, and GE led the Six Sigma methodology being widely adopted by industries throughout the world. American Express, Ford, Honda, and Samsung have all applied the methodology (Klefsjö et al., 2001; Sandholm & Sorqvist, 2002; Yun and Chua, 2002). The Six Sigma has become the most prominent trend in quality management (Sandholm & Sorqvist, 2002; Yang, 2004) not only for manufacturing and service industries, but also for non-profit organizations and government institutes. The GE-6 program and the Motorola Six Sigma program did have some differences. Whereas Six Sigma activities in Motorola had focused on product quality and the manufacturing process, the GE-6 program extended the improvement activities to cover all key processes related to customer satisfaction. 1.2 Some key views on Six Sigma Several prominent researchers have expressed views on Six Sigma. * Hahn et al. (1999) emphasized that Six Sigma improvement is a highly disciplined and statistically based approach for removing defects from products, processes, and transactions, involving everyone in the corporation. * Harry & Schroeder (2000) emphasized that Six Sigma provides maximum value to companies—in the form of increased profits and maximum value to the consumer through high-quality products or service at the lowest possible cost. * Harry & Schroeder (2000) also concluded that Six-Sigma is a business strategy and philosophy built around the concept that companies can gain a competitive edge by reducing defects in their industrial and commercial processes. * Pande et al. (2000) commented that Six Sigma is a comprehensive and flexible system for achieving, sustaining, and maximizing business success. It is driven by close understanding of customers’ needs and disciplined use of facts, data, and statistical analysis. * Pearson (2001) described Six Sigma as a program that combines the most effective statistical and non-statistical methods to make overall business improvements. * Slater (2001) stated that the Six Sigma approach provides a very specific control program with control techniques that ensure continuation of improved processes. * Lucas (2002) described Six Sigma as a statistical business system and a functional methodology for disciplined quality improvement that achieves successful outcomes. * Treichler et al. (2002) concluded that Six Sigma is a highly disciplined process that helps organizations to focus on developing and delivering near-perfect products and services. It is also, in Treichlers’ (2002) view, a change-acceleration process that focuses on pursuing success and the rapid adoption of change. * Yang (2004) asserted that the GE-6 program and the Motorola Six Sigma program did have some differences. Whereas Six Sigma activities in Motorola had focused on product quality and the manufacturing process, the GE-6 program extended the improvement activities to cover all key processes related to customer satisfaction. In addition to the major features noted above, other features of the GE-6 program include (Breyfegle III et al., 2001; Pande et al., 2000; Treichler et al. 2002). * GE-6 projects are integrated with the company’s visions and strategies; * all GE-6 projects are rigorously evaluated for financial impact; * everyone who contributes to the success of the program receives significant rewards, especially in terms of staff promotion; * significant financial incentives (representing 40% of all bonuses received by employees) are tied to GE-6 projects; * a sound statistical approach to improvement is adopted; * projects are completed rapidly (usually within 3–6 months); and * bottom-line results are expected and delivered. 1.3 Implementation of GE Six Sigma The main features of GE-6 are discussed above, in this subsection we introduce the implementation of GE Six-Sigma: * improvement steps; * staff roles; and * investment in training. 1.3.1 Improvement steps There have been many improvement models for process improvement or re-engineering. Most of these have been based on the steps introduced by W. Edwards Deming, which can be characterized as ‘Plan’, ‘Do’, ‘Study’, and ‘Act’ (PDSA)(Deming, 1993). GE-6 has a five-phase improvement cycle that has become increasingly popular in Six Sigma organizations: ‘Define’, ‘Measure’, ‘Analyze’, ‘Improve’, and ‘Control’ (DMAIC). There is another cycle characterized as ‘Define’, ‘Measure’, ‘Analyze’, ‘Design’, and ‘Verify’ (DMADV) (Pande et al., 2000). Like other improvement models, the DMAIC (or DMADV) model is grounded in the original Deming PDCA cycle. Usually, Six Sigma organizations use DMAIC for process improvement and DMADV for process design (and redesign). Table 1.1 describes the specific tasks in each step, and the tools and techniques used in the steps. Step Specific tasks Tools and techniques employed Define Identify improvement issues Organize project team Set-up improvement goal Estimate financial benefit Customer complaint analysis Cost of poor quality (COPQ) Brainstorming Run charts, control charts Benchmarking Measure Map process and identify inputs and outputs Establish measurement system for inputs and outputs Understand the existing capability of process Process map (SIPOC) Cause and effect matrix Gauge R&R Control charts Process capability analysis Failure models and effects analysis (FMEA) [...]... factors for Six Sigma projects Management involvement and commitment Cultural change Communication Organization infrastructure Training Linking Six Sigma to business strategy Linking Six Sigma to customers Linking Six Sigma to human resources Linking Six Sigma to suppliers Understanding tools and techniques within Six Sigma Project management skills Project prioritization and selection... Management involvement and commitment Cultural change Six Sigma Organization infrastructure effectiveness Training Project management skills Project prioritization and selection, reviews and tracking Understanding the Six Sigma methodology, tools, and techniques Linking Six Sigma to business strategy Linking Six Sigma to customers Linking Six Sigma to human resources Linking Six. .. Acceptance and implementation of Six Sigma s effectiveness basic disciplines by employees Linkage with all innovative and infrastructure activities Accurate and fair evaluation of all successful Six Sigma projects with meaningful recognition and rewards for employees Hahn et al., 1999 Six sigma and Total Quality Management Sandholm & Sorqvist, 2002 Requirements for Six Sigma success 7 Management. .. Linking Six Sigma to suppliers Table 2.1 Critical success factors for Six Sigma effectiveness Antony & Banuelas, 2002 8 Quality Management and Six Sigma Critical success factor 1 Top management involvement and commitment 2 Cultural change 3 Organization infrastructure 4 Training in Six Sigma 5 Project management skills 6 Project prioritization and selection 7 Understanding methods, tools and techniques... C., Zaheer, S., and Choo, A S (2003), Six Sigma: a goal-theoretic perspective”, Journal of Operations management, Vol 21 No 2, pp 193-203 Lucas, James M, (2002), “The Essential Six Sigma , Quality Progress, January, pp 27-31 28 Quality Management and Six Sigma McAdam, Rodney & McKeown, Michael, (1999), “Life after ISO 9000: An Analysis of the Impact of ISO 9000 and Total Quality Management on Small... within Six Sigma 8 Linking Six Sigma to business strategy 9 Linking Six Sigma to customers 10 Linking Six Sigma to human resources 11 Linking Six Sigma to suppliers 12 Communication with all employees to achieve congruence 13 Complete evaluation system of project performance 14 Employees’ promotion and incentive compensation tied to the result of Six Sigma projects 15 The usage of innovative techniques and. .. as the “to be improved” factors for the industries in Taiwan: - Top management involvement and commitment - Cultural change - Communication with all employees to achieve congruence - Linking Six Sigma to business strategy - Linking Six Sigma to customers Six sigma and Total Quality Management 9 3 The Integrated Model of TQM and Six Sigma By the end of the 1970s, the competitiveness of Japanese industries... 2000), Motorola and GE have invested heavily in employee training for their Six- Sigma programs Motorola invested $150 million per year in Six- Sigma courses, GE also spent $ 500 million per year in the implementation of Six- Sigma program (Sandholm and Sorqvist, 2002), GE has invested more than a billion dollars in this effort (Hahn et al., 1999) GE has designed Six sigma and Total Quality Management 5... applications”, Industrial Management & Data Systems, Vol 105 No 4, pp.491-505 Ross, J., (1993), Total Quality Management: Text Cases and Readings, St Lucie Press, Delray Beach, FL Sandholm, L and Sorqvist, L (2002), “12 requirements for Six Sigma success”, Six Sigma Forum Magazine, Vol 2 No 1, pp 17-22 Short, P J & Rahim, M A., (1995), “Total Quality Management in Hospitals”, Total Quality Management, Vol 6,... (2001), Management indicators model to evaluate performance of IT organizations”, Management of Engineering and Technology, PICMET ’01, Portland International Conference Blakeslee, J and Jerome, A., (1999), Implementing the Six Sigma Solution: How to achieve quantum leaps in quality and competitiveness, Quality Progress, July, pp 77-85 Boaden, Ruth J., (1997), “What is total quality management and does . sigma and Total Quality Management 1 Six sigma and Total Quality Management Yang, Ching-Chow X Six sigma and Total Quality Management Yang, Ching-Chow Department of Industrial and Systems. Linking Six Sigma to customers Linking Six Sigma to human resources Linking Six Sigma to suppliers Table 2.1 Critical success factors for Six Sigma effectiveness Six sigma and Total Quality. Linking Six Sigma to customers Linking Six Sigma to human resources Linking Six Sigma to suppliers Table 2.1 Critical success factors for Six Sigma effectiveness Quality Management and Six