INTRODUCTION

ECM29EKM: QUALITY MANAGEMENT and 6 Sigma

SAMUEL K. FIANKO
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 Module Objectives

Aims and summary of the module:

To convey the importance of quality as a strategy for
continuous improvement in business performance

The module progresses by explaining strategies

for:
Competitive quality
Quality in design and manufacture
The customer supply chain concept of total quality

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 Module Learning Objectives
 On completion the student should be able to:

Apply the philosophies, tools, techniques and

systems associated with Total Quality Management
(TQM)
Differentiate between Quality Control, Quality
Assurance and Total Quality Management
programmes and critically review where and when
these techniques are applicable
Interpret customer focus and market forces as the
basis for all business activities including New
Product Development and Continuous
Improvement
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 Module Learning Objectives Continued
Assess the maturity of an organisation’s quality
programme including cultural and leadership
aspects
Plan and implement activities, which will
improve a quality programme and New
Products within an organisation and move the
organisation towards a culture of Total Quality
Management
Underpin work using references to supporting
publications and case studies
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 Teaching and Learning Methods
This module includes a number of teaching

Module lectures, web based material

Module exercises and student

presentations

Case studies and videos

Self learning and research (reading!!!)

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 Teaching and Learning Methods
 Assessment methods for this module are as follows:

Portfolio of tasks set in or after each session as

a record of your understanding and
competence, collected and assessed
several times during the module.

Presentations.

Any work handed in after submission dates

will be subject to extension rules.
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 Reading for the Module
Module reading:
Oakland J, TQM with cases, Third edition
Butterworth-Heinemann

Recommended reading:
Kolarik, 1995, Creating Quality Concepts,
Systems, Strategies & Tools, McGraw-Hill
International
ISO9001:2015, Quality Management Standard,
British Standards Institute (or equivalent)
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 Other Recommended Reading
 Go to http://libwww.coventry.ac.uk:8000/

 Search 658.3 for management books

 Bergman & Klefsjo, 1994, Quality from Customer Needs to

Customer Satisfaction, McGraw-Hill

 Human Behaviour in Organisations. Robertson IT and Cooper CL

 Oakland JS and Followell RF, 1990, Statistical Process Control: a

practical guide, 2nd Edition, Heinemann
 Internet searches on relevant subjects
 http://www.onesixsigma.com/ (the ‘glossary’ is particularly good)
 http://www.gqs-inc.com/

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 Business Evolution and Quality
Management…

WIDESPREAD
MONOPOLY EMERGING COMPETITION
COMPETITION
“DOES IT YIELD
“DOES IT WORK?” COMPETITIVE
“DOES IT SELL?” ADVANTAGE”

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 Why Quality & Six Sigma
Business Before Business Now

 Rapidly expanding markets

 Increased competition in saturated
or shrinking markets
 Consumer oriented towards
quantity not quality
 Consumer values more exacting
quality requirements, costs and on
 Abundant low cost resources time delivery

 Management concerned with  Sharp rise in material and labour

increased sales not decreased cost cost

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 Why Quality & Six Sigma Cont’d

Global Market
-World-wide competition, continuous improvement

Success through People

- Involves everybody
- Begins at the front line

Focus on the Process

- Improves Quality (Q), Cost (C) and Delivery (D)

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 Changing Business Mindset
• Cost Plus Method
-Cost to Make + Profit = Selling Price

• None Cost Method

-Selling Price – Cost to Make = Profit

• The Focus Should be on Reducing Cost

• The Best Way to Reduce Cost is to Remove
the Waste

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 What is six sigma
•Business improvement approach
•Eliminates causes of errors and defects in
manufacturing and service processes
•Focus on customer satisfaction and financial
returns for organizations
•Aims at 3.4 defect in ppm
•Pioneered by Motorola mid 80s
•Popularize by the success of GE

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 Six Sigma ??
“We believed then and we are convinced
today……that there is an infinite capacity to
improve everything – but there was no
methodology or discipline attached to that
belief. There is now. It is Six Sigma quality,
along with a culture of learning, sharing, and
unending excitement”

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 BUSINESS PROCESS MAP
THE ORGANISATION
SUPPLIERS CUSTOMERS

TRANSFORMATION
PROCESSES

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 Process Definition

…… a logical series of activities that takes one or more

kinds of input and creates an output that is of value to the
customer

INPUTS THROUGHPUTS OUTPUTS DELIVERY

RAW TRANSFORMATION PRODUCTS CUSTOMER

MATERIALS OF RAW AND
MATERIALS SERVICE

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 The Variation Management Approach

Machines Methods

Customer Satisfaction

Environment Process/
System
Tools for
Variation Management
And
Men Material Continuous Improvement

Measurements

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 What is a Defect ?

A defect is any variation of a required

characteristic of the product or its part, which
is far enough removed from its nominal value
to prevent the product from fulfilling the
physical and functional requirements of the
customer.

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 Integrating lean/six sigma
Lean and Six Sigma—Areas of Focus

Successful Lean approaches

Successful Six Sigma
focus on:
approaches focus on:
• Customer requirements
• Customer requirements
• Eliminating unnecessary
• Eliminating mistakes Activities
and variation
• Worker empowerment
• Data and analysis • Continuous improvement
culture
• Financial results
• Management mandates 19
 What is Lean?
“To get the right things to the right place at the right time, the first time,
while minimizing waste and being open to change”
—Taiichi Ohno, Toyota Production System

TEN RULES OF LEAN

1. Eliminate waste

2. Minimize inventory

3. Maximize flow

4. Pull production from customer demand

5. Meet customer requirements

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 TEN RULES OF LEAN

 Do it right the first time

 Empower workers

 Design for rapid changeover

 Partner with suppliers

 Create a culture of continuous improvement

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 What is Six Sigma?

“A methodology that provides businesses with the tools to improve the capability
of their business processes by using data and statistical analysis to decrease
process variation and to reduce and prevent defects in order to generate vast
improvement in profits, employee morale, and quality of products and services”

TEN RULES OF SIX SIGMA

1. View performance from the customer’s perspective

2. Understand the process

3. Make decisions based on data and analysis

4. Focus on the most important issues (Pareto principle)

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 TEN RULES OF SIX SIGMA

Use statistical tools

Pay attention to variation

Use standard methodologies

Select projects for financial impact

Establish project governance structure

Enlist senior management support

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THANK YOU

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