Universidad De Dagupan

Arellano St., Dagupan City

School of Professional Studies
Master in Business Administration

Presentation as a Fulfillment to the

Master in Business Administration Degree

Presented To:
Prof. Agripino C. Calacsan Jr.

Presented By:
May Aurora J. Llagas
QUALITY
CONTROL
AND
SIX SIGMA
 Quality Control
 Quality control (QC) is a process that ensures a product or service meets
its intended requirements and specifications. It is a reactive process that
focuses on identifying and correcting defects before they reach the
customer.
 It is a system through which a business seeks to ensure that product
quality is maintained or improved. It requires the company to create an
environment where management and employees strive for perfection. This
is done by training personnel, creating benchmarks for product quality,
and testing products to check for statistically significant variations.
 A significant aspect of quality control is the establishment of well-defined
controls. These controls help standardize both production and reactions to
quality issues. Limiting room for error by specifying which production
activities are to be completed by which personnel reduces the chance that
employees will be involved in tasks for which they do not have adequate
training.
 Why is Quality Control important?

Quality control is important because it can:

 Encourage quality consciousness: Quality control
encourages employees to keep quality in mind
throughout the manufacturing process, which can help
the company achieve the desired level of quality each
time.
 Lower production costs: The process used for quality
control checks the production of items that don't meet
quality standards, correcting any problems and bringing
down the cost of production.
 Increase customer satisfaction: Quality control ensures
that customers receive products free from error or defect,
which typically increases customer satisfaction overall.
 Enhance goodwill: Producing high-quality products that
meet all of an organization's quality control requirements
generally indicates that the products consistently satisfy the
customer's needs, raising the established reputation of the
business.
 Raise employee morale: When employees recognize that
they're producing high-quality products that deliver value to
consumers, it can improve overall company morale.
 Improve production methods: Quality control processes
help streamline and improve production processes, which
means improved methods and designs and often higher
productivity.
 Boost sales: Consistent quality control can help the
company develop a reputation for quality, which may attract
new customers and increase sales.
 Ensure effective use of resources: Quality control ensures
that a company is effectively utilizing resources by
minimizing product and material waste and increasing
efficiencies.
 Methods for Quality Control
 Inspection
Inspection involves randomly selecting products and
testing them according to a given attribute or attributes to
track on a quality control chart. This graphic depicts whether
sampled products or processes meet the company's quality
standards and, if not, how much they vary from the
company's requirements. The charts can analyze specific
attributes or measure variances in several product attributes.
By analyzing the pattern in the chart, companies can
determine if the defects are randomly occurring or
systematic. Charts that measure variances in multiple product
attributes are called multivariate charts, whereas those that
measure only a specific attribute are called univariate charts.
While many companies typically use X-bar
charts as quality control charts, they may also
use other types of charts like:

 Cause and effect diagrams

 Control charts
 Flow charts
 Run charts
 Scatter diagrams
Methods for Quality Control
 Taguchi method of quality control

The Taguchi method emphasizes how

research and development, product development
and product design can reduce the likelihood of
defects and errors in products. Japanese engineer
and statistician Genichi Taguchi developed the
method based on the belief that design is more
important than manufacturing processes when
attempting to eliminate variances. As such, the
method focuses on improving the initial design to
prevent variances from happening in production.
Methods for Quality Control
 Statistical sampling

Statistical sampling involves

measuring a portion of all products,
and the sample size may vary. Testers
evaluate the sample based on the
quality management plan. They make
inferences about the remainder of the
products based on that subset and
adjust processes as necessary.
 What is Six Sigma?

 Six Sigma is a business methodology for quality improvement that

measures how many defects there are in a current process and seeks
to systematically eliminate them.
 In 1984, a Motorola engineer named Bill Smith developed the Six
Sigma management system to reduce the variations in Motorola's
electronic manufacturing processes that were causing product
defects.
 Since then, the strategies, tools and cultural norms that support the
management system have been adopted by upper management and
project teams in a wide variety of industries to increase operational
e xcellence.
 Additionally, the meaning of the word "defect" has broadened to
include any deficiency in business processes that prevents a company
from meeting its customer's needs.
 How does Six Sigma work?

 In statistical analysis, the Greek letter sigma is used to denote a standard

deviation from the mean. In the 1920s, statistical process control pioneer
Walter Shewhart proposed that in lean manufacturing, three sigma from the
mean is the tipping point that indicates there are too many defects and
process improvement is required.
 This was the accepted norm for many years until Bill Smith proposed
gathering and analyzing data at a more granular level and making six sigma
the point at which a process has to be corrected.
 Because it is almost impossible to achieve zero defects -- a concept known
as infinity sigma -- six sigma allows for 3.4 defects per million
opportunities for a defect to occur. In contrast, three sigma allows for
66,807 defects per million opportunities.
 Once the necessary data has been gathered, a company that is implementing
Six Sigma methodologies uses statistics to create a baseline sigma. The
baseline illustrates how close -- or how far -- the company is from achieving
six sigma and serves as a measuring stick for assessing future
improvement.
 What is the importance of Six Sigma?
 Six Sigma proponents claim its business strategy benefits include
up to 50% process cost reduction, cycle-time improvement, less
waste of materials, a better understanding of customer
requirements, increased customer satisfaction and value stream,
and more reliable products and services.
 Motorola holds the federal trademark for Six Sigma, and it is
generally acknowledged that Six Sigma can be costly to
implement and can take several years before a company begins to
see bottom-line results.
 In 1995, General Electric CEO Jack Welch's very public
endorsement of Six Sigma helped businesses outside of
manufacturing understand how Six Sigma methodologies can be
used to improve customer satisfaction in any industry.
What are the key principles of Six Sigma?

The key sigma principles are the following:

Customer focus
Use data
Improve continuously
Involve people
Be thorough
 Six Sigma Methodologies
The above principles can be applied with one of two improvement
methodologies:
 Six Sigma DMAIC and Six Sigma DMADV. Each term's name is
derived from the major steps in its process, but each has its own use.

1. DMAIC (define, measure, analyze, improve,

control) is used to correct a process that already
exists.
2. DMADV (define, measure, analyze, design,
validate) is used to create a new process.
 DMAIC

Here is a step-by-step breakdown of

Six Sigma DMAIC:
 Define: Identify the project goals and all customer
deliverables.
 Measure: Understand current performance.
 Analyze: Determine root causes of any defects.
 Improve: Establish ways to eliminate defects and correct
the process.
 Control: Manage future process performance.
DMAIC
 DMADV
Here is a step-by-step breakdown of Six Sigma DMADV.
The first three steps of this methodology are identical to DMAIC.
Because the two acronyms are so similar, some companies use the
acronym DFSS (design for Six Sigma) in place of DMADV.

 Define: Identify the project scope and all customer deliverables.

 Measure: Understand current performance.
 Analyze: Determine root causes of any defects.
 Design: Create a process that meets customer needs and
expectations.
 Verify: Ensure process designed meets customer needs and
performs adequately.
DMADV
 When contemplating Six Sigma DMAIC versus
DMADV, it is important to understand the
circumstances in which each should be used.
 The DMAIC methodology should be used when an
existing product or service is not meeting customer
needs or performing to its highest standards.
 The DMADV methodology should be used when an
organization is developing a new product or service,
or when using DMAIC for a current project or
process fails.
 How to implement Six Sigma
To implement Six Sigma within an organization, the first step is to
properly make the case for statistical tools like Six Sigma, and its potential
benefits to get stakeholder buy-in.
Additionally, it's important to set the expectation that being entirely defect-
free is not realistic. However, there are some best practices that can help to
ensure the making of as much improvement as possible.
Once management understands the potential behind Six Sigma, the
following eight steps can help to implement a sigma project and ensure a
clean rollout.
Step 1: Motivate stakeholders by highlighting quality losses.
Step 2: Implement project management and obtain the necessary resources.
Step 3: Educate team members on the Six Sigma management method.
Step 4: Create a Quality control chart and identify priorities.
Step 5: Assign ownership for all team members involved.
Step 6: Ensure measurement of the right metrics and indicators.
Step 7: Perform a root cause analysis to understand the defect.
Step 8: Govern the program to ensure proper implementation and continuous
improvement.
What is the difference between Six Sigma vs.
Lean Six Sigma?

The purposes of Six Sigma and Lean Six

Sigma are different.
The Six Sigma method is focused on limiting
fluctuation within business processes and quality
management of process output by implementing
problem-solving statistical methods.
Conversely, the primary focus of
Lean Six Sigma is to eliminate waste and improve
existing processes.
Six Sigma certification and resources

All Six Sigma processes are executed by the following:

Six Sigma White Belts

Six Sigma Yellow Belts
Six Sigma Green Belts
Six Sigma Black Belts
Sigma programs are overseen by a Six
Sigma Master Black Belt, per the terms
created by Motorola.
 The International Association for Six Sigma
Certification (IASSC) is one organization that
provides a certification program.

At IASSC, yellow, green and black belt exams

are designed to measure a person's knowledge of
topics contained within IASSC's Universally
Accepted Lean Six Sigma Body of Knowledge.
 ASSESSMENT:

Both Quality Control and Six Sigma

Methodology are critical in ensuring that a
product or service meets its intended
requirements and specifications. Quality control
focuses on detecting and correcting defects,
while Six Sigma methodology is a data-driven
approach used to improve processes and reduce
defects. Organizations can use both approaches
to improve their quality and reduce costs
associated with defects.
“ God isn’t asking you to figure it
out. He’s asking you to trust that
He already has.”

THANK YOU SIR AND

GODBLESS.