Six Sigma Implementation

Six Sigma Implementation Abstract Quality as defined by the expectations of the consumer is whether the product or service met the specifications or descriptions as promised. If a battery pack states that it should last for 8 hours, the consumer is expecting nothing less than 8 hours. Anything less can be viewed by the consumer as poor quality. Companies understand the importance of consumer satisfaction and surround their processes around ensuring that this satisfaction is obtained. This is being done as

companies look for various tools and methodologies to assist with reviewing and improving their operations.

Six Sigma Implementation Six Sigma Implementation There are various Quality Management Processes available. These processes are put into place to ensure a certain level of quality is maintained in products and services by an

organization. They also help to provide consistency in quality across different organizations with each company adhering to standards. The process also holds each individual and department accountable to their respective duties. The optimal process to be used by a company depends on the industry and the quality goals and initiatives they are seeking to achieve. As with all other changes and organizational procedures within an organization, once a Quality Management Process is in place, it is important that staff is aware of the change, the procedures, and importance of compliance and implications for failure to do so. Quality management involves quality assurance, quality planning, and quality control (Black, 2010). Quality assurance outlines the standards for quality. Quality planning is selecting the standards for a particular product or service and making adjustments as needed based upon the outcome of the product or service. Quality control is monitoring to ensure that the standards are being adhered to. Quality Management Processes available are Total Quality Management, ISO, and Six Sigma. Total Quality Management focuses on all areas of the organization. This method utilizes data and communication to integrate quality principles into the processes of the organization (Business Excellence, 2012). ISO 9000 is an international set of standards applicable to different manufacturing industries. ISO standards are for those manufacturing industries that design and develop products. It focuses on what is required for quality to the customer that falls within regulatory requirements in order to enhance customer satisfaction and achieve continual improvement (ISO, 2011). Six Sigma focuses on improving processes to reduce defects. The defect is defined as anything that occurs outside of the specifications of the customer. Six Sigma

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qualifies a process as being free from defects when it has 99.9997% defect free or not exceeding 3.4 defects per million opportunities (Harris, n.d.). While each of these processes can provide benefit, Memory Chip will move forward with implementing Six Sigma. With Six Sigma offering a detailed process for the manufacturing industry in tools and methods to review processes and steps for improvement, this is the best strategy for the organization. Total Quality Managements focus base is supported by customer service and does not expand into detailed process improvement. While customer service is important, Memory Chips center of focus is on manufacturing and business processes. ISO would ensure continual improvement; however, Six Sigma will provide more support surrounding the companys manufacturing procedures in obtaining vendors, shipping, and production. It will also cover areas outside of manufacturing into daily business processes. In implementing Six Sigma to the company the following areas will be covered: 1. A meeting with the executive team will take place to ensure the understanding and importance of Six Sigma. Each member will outline what their expectations are of the process within the organization. Information will also be shared on everyones involvement to implement the process within 18 months. The team will need to identify key staff that will serve as leaders in the implementation process. This minimally will include the Director and Manager of Engineering, Director and Manager of Logistics, Director and Manager of Manufacturing. 2. The executive team will attend leadership training on Six Sigma. The key staff will attend Six Sigma training in obtaining various level belts. 3. A project manager will be assigned to lead the implementation in arranging timelines, communication, and distributing tasks.

Six Sigma Implementation 4. Staff will attend periodic trainings in introducing and teaching them of Six Sigma methodologies, standards, and tools that will be used to measure performance. 5. In reviewing relocating manufacturing operations, the team should consider this impact of Six Sigma on future infrastructures. Tools and techniques of Six Sigma are supported by DMAIC methodology. This method is used in reviewing existing processes of a company. Its review process includes defining, measure, analyzing, improving, and controlling. Broken out it involves (I Six Sigma, 2012): Define the project goals and customer requirements, both internal and external; Measure the process to determine current performance; Analyze to determine the root cause(s) of the defects; Improve the process by eliminating defect root causes; Control future process performance.

From this methodology, the following tools and techniques will be used (Discover 6 Sigma, 2012): Descriptive statistics in determining validity and level of concern of customer complaints. The company will take information from customer complaints in categorizing by production date, product type, and complaint type. This data will then be statistically analyzed in finding the highest complaint, lowest complaint, mean, and mode. This data will be graphed in a pie or bar chart or histogram based upon who the report is for. Pareto checklist will help to determine the reason for the problems being experienced in manufacturing. In following the Pareto principle, the chart will assist in determining where the 20% of the causes to the 80% or problems are occurring. The individual

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analyzing the process will use the checklist and during each step of the process check off whether it produced a defect. In measuring or benchmarking the companys defect rate and its closeness to the 3.4 or lower goal, control charts will be used. Sample data will be collected on defects and charted to allow for a visual view. From the list of defects, calculations will be used in determining the defect rate. All of these measures of obtaining the buy in of the executive team, training, and determining methods of use of Six Sigma will get the company jumpstarted towards it quest at implementation. It will be important to bring the entire staff into the loop very early prior to their finding out through the grapevine and the information becomes skewed. Correspondence will be shared with the staff, particularly the factory workers, via a memo from the President of the company in showing its importance.

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Memory Chip Corporation

Memo
To:

All Memory Chip Factory Workers All Memory Chip Employees 5/6/2012 New Quality Processes

From: Joe Russell, CEO CC: Date: Re:

As we move into the second quarter of the year, Memory Chip is well on its way of meeting its yearly financial goal of $125 million. This is in large part to everyones hard work and dedication. There is excitement over our continued growth and product expansion. This expansion is allowing us to service more electronic divisions. With this continued growth, we want to ensure that we maintain our same high level of quality products and timely service in keeping our existing loyal customers and gaining new ones. To assist us in this, we are implementing a new quality management process. Beginning in October 2013, we will implement this new initiative with a quality management process called Six Sigma. Many of you have heard this term but may not have full details on its value. Six Sigma will help us to review our current processes while also defining new ones in identifying areas of waste in time, materials, and resources. Identifying these errors and inefficiencies in our production handling will produce cost savings and ultimately increase revenue and profits. In meeting the goal of Six Sigma, a process must not produce more than 3.4 defects per million opportunities. The defect is considered anything outside of customer specifications. I have full confidence in our team that we will meet this goal! I hope that each of you can understand the importance and value that implementing Six Sigma can bring and the part that you play to ensure its success. We hold the second highest revenue within our industry and are well on our way to becoming number one. Through increased quality of our products, low defect rate, and continuously meeting the deadline and expectations of our customers, we will continue to expand and grow our business. This is not just a benefit for the

Six Sigma Implementation organization, but also for every staff member. As part of the kickoff initiative, as we meet our target goals it will equate to bonuses and rewards for our staff.

Everyone will have meetings scheduled with their managers in going over the full details of the implementation. Training sessions on Six Sigma and our new processes will begin next week. If anyone has questions or concerns, you are encouraged to speak with you manager or please share them with me. I look forward to seeing the success from each of you! Sincerely,

Joe Russell CEO Memory Chip

Six Sigma Implementation References Black, T. (2010). 10 Quality Management Tools. Retrieved on April 16, 2012 from http://www.inc.com/guides/2010/09/10-quality-management-tools.html Business Excellence. (2012). What is Total Quality Management. Retrieved on April 16, 2012 from http://www.bexcellence.org/Total-quality-management.html Discover 6 Sigma. (2012). Methods, Tools, and Techniques. Retrieved on April 16, 2012 from Harris, W. (n.d.). How Six Sigma Works. Retrieved on April 16, 2012 from http://money.howstuffworks.com/six-sigma2.htm iSixSigma. (2012). Design for Six Sigma versus DMAIC. Retrieved on April 16, 2012 from

http://www.isixsigma.com/new-to-six-sigma/design-for-six-sigma-dfss/design-six-sigma-dfssversus-dmaic/ ISO. (2011). ISO 9000 Family. Retrieved on April 16, 2012 from http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/quality_manage ment.htm