Question

Six sigma concepts, methodologies and tools

Describe the concept of Six Sigma for supply chain management.

Describe two benefits of creating and using a QFD(Quality Function Development) matrix.

Describe each part of the QFD matrix and how a QFD matrix is created.

Describe the steps for benchmarking.

Give brief descriptions of these Six Sigma tools and where they can be used;

Affinity diagram

Kano model

Pareto analysis

Brainstorming

Fishbone analysis

Process flow charts

Failure mode analysi

Design of experiment

In the DMAIC(Define, Measure, Analyse, Improve, Control) cycle, the final step can at times be overlooked. What does the final stage “control” hope to accomplish?

How does lean thinking generate process improvement and what are the advantages of integrating lean with six sigma?

Why is it a good idea to create value stream process maps?

Marking scheme for assignment as follows:
1. Relevance of work to questions or problems ( e.g. addresses questions/focus or does the response answer the question?)
2. Quality of contents  
• Has the topic been addressed critically and with depth?
• Are the key issues addressed?
3. Quality of structure and presentation
• Structured layout
• Definition of key terms
• Outline of argument..
4. Reference list
- In text references (Harvard style of referencing preferred)
- Use of quotation (author, date, page)...

Answer 1

Six Sigma is a methodology or approach involving a set of tools which are data driven, providing continuous for improvement of a product, process or service through implementation of adequate monitoring and control measures for elimination of wastage. It is the means of optimising output at a given level of activity buy strict controls on the input to eliminate wastage and ensure maximum utilisation of every available resource. For supply chain management, Lean Six Sigma becomes relevant for monitoring and control of inventory, whether it is through control of production transportation or other processing which may be required to make the product marketable. There is absolute reduction in waste by elimination of every process that does not necessarily add value to the product. It seems that identifying the areas of maximum wastage and implementing maximum monitoring and controls in that area. It includes accurate demand forecasting through creation of cross functional teams handling demand supply to assure that feedback, on which all the production decisions are based is exact. Thereby, promoting the just in time inventory by ensuring the forecasting is extremely accurate and in stock inventory is minimised to reduce warehousing cost, as well as, capital investment. Transportation is optimised by identifying the method which would be most efficient with least input required for shifting of materials between various point such as factory to warehouse to distributor. For example, in many cases it may be possible to transport the finished product directly from the factory to the distributor bypassing the warehouse. It also helps identify the systems or processes which promotes inefficiency due to a conservative approach, inefficient resources or ineffective management. Six Sigma promotes perfect planning and execution through continuous monitoring control and management of every process. It themes act production of errors to zero, through implementation of the 5S method which denotes sort out, set in order, Shine, standardise and sustain. Another major advantages it greatly reduces the response time of the supply chain to ensure agility and constant Awareness of change in customers' needs, allowing for supply chain that fulfills customer needs by identifying what customers consider critical to quality.

Creating and using a quality function development matrix, similar to critical to quality approach of the Six Sigma. It is a customer driven approach whereby it is important to identify and understand what is of value to the customer, rather than what the company thinks the customer needs. This can be achieved through adequate market research aimed at analysing products of competitors and rating the company product against them. 1 major advantage is that it leads to reduction in the development time as customer needs and requirements are clearly focused at the initial stage and implemented within the product. Therefore, any need for changes in design late in the project lifecycle are reduced, as well as helping to identify product features which do not impart value to the product, and their elimination. This also vastly reduces development costs, as constant changes to the project are eliminated or minimised through extensive research in planning stages. Minimum wastage and reduced development and support costs is the result.

The QFD matrices are segregated on the basis of the various processes involved in production of a product right from initiation to final stage. Every Matrix however has as its basis the central and core value of the quality function deployment that is to identify critical customer requirements and match the product to these by creating a link between the two. The central matrix of the house of quality, which provides a methodological approach to the planning for the requirement and is atool for graphic and integrated thinking, which necessarily correlates the design engineering process with communication of the customer requirement, as well as, implementation of customer needs within the product and a communication system which ensures feedback of any deviation to management, along with associated risk and needs of the customer in that area. The needs of the customer of the segregated by prioritising the critical areas and associating with providing value to the product which makes it competitive true development of a relationship Matrix between needs of the customer and value of the product. It ensures flow of communication received from the customers feedback to the design and Technical Engineers so that end product matches customer needs. The needs of the customer awarded berating which helps to eliminate features which do not add value as also technical difficulty is considered to eliminate or modify certain features.

Benchmarking within a business environment notes analysis of external landscape as well as internal structure leading to an appraisal which provides the areas where changes need to be implemented and strategizing required. Given the Global Business Environment this has become a necessity as every organisation to ensure sustenance and growth needs to constantly innovate, as well as renovate to transform itself, in order to stay ahead of competition by anticipating customer requirement. Benchmarking consists of 10 essential steps for it to be implemented effectively. To define accurately the processes which are to be benchmarked, this is most critical to success of the entire process as it is based on this identification. The organisations, which are the best and most successful in the sector and can be easily imitated with minimal risk, to be benchmarked. To gather all relevant data from the target sources. To analyse the data for gaps or loopholes and locate the deficiencies. To determine future trends by comparitive analysis of performance with competitors. To reveal the given result of the benchmarking process to the management and convincing them on implementing the required changes. To achieve consensus on revised goals identified to bridge the gap between the organisation and the best in the sector. To establish procedures by defining an action plan. Implementation of the required action plan, and monitoring of results and deviations for effective control by implementing procedures and to monitor results, finally to recalibrate the benchmarks on a continuous basis to ensure the organisation remains at its competitive best.