All entries for December 2014
December 04, 2014
How Six Sigma could help an organisation to reduce their cost
How quality could help an organisation to have more profit?
According to figure 1, it is the chart between sigma level of a company and the cost of quality that the company has to pay to fix the problem. From the graph, it is clear that the company, which is not focused on the quality and has a performance in level 2 of sigma, might have to pay 50% of their profit to fix the external and internal failure of their product, while the company that could perform well in their production line by reaching fifth to sixth level of sigma that company might have to pay less than 5% of their sale to fix the quality issue. Inconclusion, Six Sigma could help an organisation to reduce their quality cost and to satisfy the customer.
Figure 1Sources Six Sigma Handbook (Thomas Pyzdek &Paul A. Keller)
What are six sigma methodologies?
What is the methodology that applies in Six Sigma? DMAIC is one of the most substantial methodology in Six Sigma. DMAIC is the methodology that has a step to follow in each stage of a project. D- DefineM- MeasureA- AnalzaeI- ImproveC- ControlIn the define stage, a team has to choose the project that needs to improve and the criteria that have to be used might depend on an organization, moreover, in this stage, the team leader has to write the charter and project planning to the sponsor in order to present the objective of this project.The second stage is measure. In this stage, a team has to collect an information of an interesting project.For the analyse stage, a team leader will analyse that what is the problem of the process by using the information from the second stage.After analysing the root causes of the problem, in this stage, a team leader has to find the method to improve the current performance to make sure that the team could solve this problem.The last stage of DMAIC is control stage. After analysing and improving a process, the last task of a team is to make sure that this problem will not occur again by using many tools; such as, control chart or making a sampling plan.