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 Navesink Logistics Review: June 2004 - Volume 1, Issue 5

 Six Sigma: An Introduction

by Karen Hawks


At its basics, six sigma is a statistics based Quality Control (QC) method. “Quality Control” is not limited to "products" but also applies to processes and services. What makes Six sigma quality measures different from other measures are:

. Fact based
. Data driven
. Statistically analyzed


The History

W. Edward Deming – Father of quality management. Author of the famous publication “Out of the Crisis.”

Prof. S.M. Wu first adapted time series statistical analysis into manufacturing quality control in the late 70’s early 80’s. This is one of the first attempts to use statistics in manufacturing quality control.

Quality control using six sigma statistics was first pioneered at Motorola. This is the direct origin to the six sigma quality control concept. Original six sigma quality control was based on SPC and in manufacturing of Motorola’s cellular phones.

Six sigma concepts were expanded beyond manufacturing to process and services industry in the 90’s. Companies such as GE, AlliedSignal are well known for adapting the six sigma process and successfully integrating them into improving the overall quality of their organization


The Methodology

In manufacturing process control using SPC, the initial quality control criteria must be identified, monitoring method developed, data monitored and analysed and corrective action(s) initiated for future improvements.
Methodology to implement the above statement is widely adapted to other non-manufacturing processes for process improvement purpose, or in late 90’s terminology, for six sigma innovation.

One of the popular process improvement methodologies is known as (Recognize), Define, Measure, Analyse, Improve & Control or in short, DMAIC.

DMAIC is the most commonly used basic Six Sigma process improvement methodology.


Recognize

. Stay alert and monitor critical processes
. Identify areas of improvement
. Evaluate the need for six sigma implementation


Define

. Define the problem
. Define the customers and the requirements
. Define the current capability of the team
. Define the key processes that will have the greatest impact on customer


Measure

. Identify the statistical measures to monitor the key process
. Set up the data collection plan
. Measure the process


Analyze

. Collect and summarize the data measured
. Determine the analysis tools and methods to be used
. Run the analysis and determine the root causes, effects, etc.


Improve

. Focus on developing process/methods to improve the root cause
. Beta test the method on sample process and validate the improvement


Control

. Develop implementation plan for improvement
. Document the process and implement the plan
. Monitor the process and feedback the results back to the process for continuous improvement

To implement six sigma innovations, typically a group of six sigma team takes on the major responsibilities. The team consists of six sigma champion, six sigma black belts, green belts and six sigma team members.

The term was adopted from the fact that six sigma requires similar disciplinary approach and actions, required in martial arts.

The Analysis



FMEA:
Failure Mode and Effects Analysis. FMEA evaluates all of the ways a process or product can fail. Typically, an FMEA team evaluates a process or a product and brain storms possible causes for failure and evaluate the effects down stream.


Root Cause Analysis.
This is a way to validate the root causation of problem(s) using different analysis methods. Typical methods used are scatter diagram, full factorial, fractional factorial experiments, ANOVA (Analysis of variation), etc.


Taguchi Method:.
This is a type of DOE (Design of Experiments) method that was adopted by Taguchi. In a nut shell, Taguchi method examine different variables at different conditions in matrix form and determines the most optimal condition/combination of the two that will have the greatest influence on the objective of the process.

Analysis is the key. However, don’t get caught up in the statistical details. Look at the overall scale of the statistical effect on the process/design. Educate the management staff or learn the basics of six sigma tools. Too little statistics knowledge by the management staff will make the six sigma process less efficient.
Follow the methodology, not apply the methodology. Do not force the methodology to explain the problem. Let methodology bring out the problem(s) within the process/design.
Six sigma responsibilities are for everyone not just black belts.

Manage the value not the cost. Six sigma is a statistical process and long term. Managing cost will create short term strategy that will limit the full potential of six sigma.

For more information on six sigma, the value of implementing and overall knowledge, review some of the following websites:

www.6-sigma.com (website for six sigma academy)

www.adamssixsigma.com/Sample_Projects/six_sigma_projects.htm(some six sigma examples)

www.isssp.net(International Society of Six Sigma Professionals)

www.isixsigma.com/sixsigma/sixsigma.html (another site that explains what is six sigma)

www.qualitydigest.com/dec97/html/motsix.html(explains about Motorola Six Sigma, Cp and Cpk)

www.qa-inc.com/knowledgecente/articles/PYZDEKSixSigRev.htm(more about what is six sigma)

 
 Transportation & Freight Audits

Robert J. Truck, President/CEO Logistical Outsourcing Group
Part 2 of a 3 Part Series


Hello Again! For those of you who do in fact, have your freight bills “post-audited’ great move. For those of you who don’t what in the world are you waiting for?

Some firms prefer to have their freight bills “pre-audited”. The obvious drawback to this approach is that the average cost of a pre-audit and freight payment is $.85 to $1.25 per bill ($ .25 to $.44 for electronically transmitted freight bills). Conversely, the benefits are significant. A summary of the benefits is the following:

· Errors are found in advance, therefore, your company does not spend any more money than it should.

· There isn’t any waiting for “carrier refunds” to be received.

· The 6 to 24 month time limitations do not apply to a pre-audit.

· You determine the correct classification of the freight and who knows your product better than you?

· The reports generated will provide you with accurate current information rather than information that is six (6) months dated.

For a variety of reasons, many mistakes made by carriers especially less than truckload carriers, are computer generated and repetitive. This could be a significant amount of money lost at a 50%-50% split with your post auditor. It would definitely be to your advantage to expose these errors in advance.

Click the following link to contact Navesink Logistics about post audit services and start saving money immediately.
http://www.NavesinkLogistics.com/NLI/N/ContactUs.asp

 


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