Question

Book: Operations and Supply Chain Management Jacobs & Chase 14e

19. Describe the Six Sigma Philosophy, DPMO, and DMAIC and explain the main difference between it and Lean Philosophy. (300 words approximately)

Answer 1

Six Sigma Philosophy
Six Sigma is a management philosophy that supports the idea that reducing the no of defects can lead to reducing overall costs and gaining customer loyalty. Providing high-quality products at a reasonable cost is the way to gain a competitive advantage and this philosophy understands that defects also cost money. By listening to customers, one can understand what the customers want and what are their expectations and thus helps to eliminate the main reason for dissatisfaction.

Defects per Million Opportunities (DPMO)
Defects per Million Opportunities is a measure to process performance by calculating the no of defects per million opportunities. To make it convenient DPMO is stated in Opportunities per million.DPMO differs from reporting defective parts per million (PPM) in that it comprehends the possibility that a unit under checking may be found to have more than one defects of the same type or may have more than one type of defect.

DMAIC
Define, measure, analyze, improve, and control (DMAIC) may be a data-driven quality strategy accustomed to improve processes. The DMAIC improvement cycle is a core tool for the six sigma process but its application is not limited to that it can also be used as a framework for other applications like lean.

1. Define the problem
2. Measure
3. Analyze
4. Improve
5. Control

Difference between Lean Six Sigma Philosophy and Lean Philosophy
Although, Lean philosophy and six sigma have the same end goal they both try to eliminate waste in their own way and make the system as efficient as possible. Lean philosophy looks at ways to increase flow while Six Sigma focuses on achieving consistent results. Lean users believe that waste comes from needless steps in the production process that do not provide any actually added value to the finished product, while Six Sigma proponents believe that waste is happening because of variation within the process. Six Sigma has a flare to enhance the value of poor quality and Lean works on improving Operating costs.