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126 Cards in this Set
- Front
- Back
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3 important concepts of performance excellence
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productivity, cost, quality
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The most significant factor in determining the long-run success or failure of any organization is ________ |
Quality |
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Transcendent (judgmental) quality |
--The goodness of a product; It feels quality |
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Product-based quality
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Quality that is related to the quantity of product attributes
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Value-based quality
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Relationship of product benefits to price
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User-based quality |
fitness for intended use or how well the product performs its intended function Does it work? |
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Manufacturing-based quality
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conformance to standards
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Customer Perspective of quality |
satisfies given needs |
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Quality assurance |
providing consumers with goods and services of appropriate quality |
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Statistical quality control (SQC) |
the application of statistical methods for controlling quality |
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Big Q |
managing for quality in all organizational processes |
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Little Q
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managing for quality in manufacturing
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Total Quality Management (TQM) or Total Quality (TQ)
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developed as a total, company-wide effort--through full involvement of the entire workforce and a focus on continuous improvement - that companies use to achieve customer satisfaction
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Performance Excellence
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characterized by delivery of ever improving value to customers and stakeholder, contributing to organizational sustainability, improvement of overall organizational effectiveness and capabilities, and organizational personal learning
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System of Profound Knowledge |
1. Appreciation for a system; 2. Understanding variation; 3. Theory of knowledge; 4. Psychology |
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System (definition)
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a set of functions or activities within an organization that work together for the aim of the organization
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Juran's Quality Trilogy |
planning, control, and improvement |
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Breakthrough sequence
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Juran's specifications for a detailed program for quality improvement
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Absolutes of Quality Management |
Philip Crosby's approach to quality; -conformance to requirements, -no such thing as a quality problem, -do the job right the first time, -cost of quality measurement, -zero defects as the only performance standard |
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Total Quality (core principles) |
customer focus, teamwork, continuous improvement |
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Quality management system (QMS)
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A mechanism for managing and continuously improving core processes to "achieve maximum customer satisfaction at the lowest overall cost to the organization."
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What is the most important aspect for long-term competitive success
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Creating satisfied and loyal customers
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Customer Satisfaction
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the result of delivering a product or service that meets customer requirements
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Customer engagement
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refers to customers' investment in or commitment to a brand and product offerings
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American Customer Satisfaction Index (ACSI) |
A national measure of customer satisfaction |
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Product Quality Dimensions |
•Performance •features •reliability •conformance •durability •serviceability •aesthetics |
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Service Quality Dimensions |
•Reliability •assurance •tangibles •empathy •responsiveness |
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Voice of the Customer (VOC) |
customer requirements in the customer's own terms |
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Customer Perceived Value (CPV) |
Can provide an alternative to traditional satisfaction measurement, and measures how customers assess benefits |
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Workforce |
everyone who is actively involved in accomplishing the work of an organization |
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Employee satisfaction
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has a strong correlation with customer satisfaction, so organizations must learn how to satisfy the workforce to obtain the advantages of a satisfied customer base
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High Performance Work |
work approaches used to systematically pursue ever-higher levels of overall organizational and human performance |
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Work Design |
how employees are organized in formal and informal units |
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Job Design |
responsibilities and tasks assigned to individuals |
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Managing capability and capacity
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Requires close attention to hiring, learning, and career development
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Process |
a sequence of linked activites that is intended to achieve some result |
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Cycle Time |
the time it takes to accomplish one cycle of a process |
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Reduction in Cycle Time |
Serves 2 purposes. 1. they speed up work processes so that customer response is improved. 2. streamlining and simplifying processes |
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Poke-yoke |
mistake-proofing processes to avoid simple human error |
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Control
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the activity of ensuring conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance
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4 Components of Control System |
1. a standard or goal; 2. a means of measuring accomplishment; 3. comparison of results with the standard to provide feedback; 4. the ability to make corrections as appropriate throughout a manufacturing or service process |
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Continuous improvement |
refers to both incremental changes and breakthrough improvements |
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Process Improvement
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should be viewed as an opportunity, not simply a reaction to problems
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Kaizen
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the Japanese philosophy of quality improvement, may be used in all areas of business to make small, frequent, and gradual improvements over the long term
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Importance of Statistics
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The "bridge" between quality of design and quality of conformance
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Statistics
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a science concerned with "the collection, organization, analysis, interpretation, and presentation of data."
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Experiment
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a process that results in some outcome
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Outcome |
The observed result of an experiment |
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Sample Space
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the collection of all possible outcomes of an experiment
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Probability
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the likelihood that an outcome occurs
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Event
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a collection of one or mor outcomes from a sample space
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Complement
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consists of all outcomes in the sample space not in A
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Mutually Exclusive
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two events that have no outcomes in common
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Conditional Probability
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the probability of occurrence of one event A, given that another event B is known to be true or have already occurred. P(A|B) = P(A and B)/P(B)
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Multiplication Rule of Probability
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P(A and B) = P(A|B)*P(B) = P(B|A)*P(A)
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Independent events
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Two events A and B are independent if P(A|B) = P(A)
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Binomial Distribution
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the probability of obrtaining exactly x "successes" in a sequence of n identical experiments called trials
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Poisson Distribution
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the sample size becomes very large (approaching infinity) and the probability of success or failure to become very small (approaching zero) while the expectred value remains constant
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Normal Distribution
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bell shaped curve
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Standard Normal Distribution
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normal distribution with mean 0 and standard deviation of 1
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Exponential Distribution
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models the time between randomly occuring events such as time to or between failures or mechanical or electrical components
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Descriptive Statistics
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methods of presenting data visually and numerically, and includes charts, frequency distributions and histograms to organize and present data, measures of central tendency
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Statistical Inference
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the process of drawing conclusions about unknown characteristics of a population from which data were taken
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Predictive Statistics
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the purpose of whichis to develop predictions of future values based on historical data
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typical structured product development process |
consisting of •idea generation, •preliminary concept development, •product/process development, •full-scale production, •product introduction, •market evaluation |
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Design for Six Sigma (DFSS)
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consisting of a set of tools and methodologies used in the product development process to ensure that goods and services meet customer needs and achieve performance objectives, and that the processes used to make and deliver them achieve Six Sigma capability. DFSS consists of four principal activities of: Concept development, Design development, Design optimization, and Design verification. These activities are often incorporated into a variation of the DMAIC process, known as DMADV, which stands for Define, Measure, Analyze, Design, and Verify.
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Quality Function Deployment (QFD) process
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a planning process to guide the design, manufacturing, and marketing of goods by integrating the voice of the customer throughout the organization. A set of matrices, often called the House of Quality, is used to relate the voice of the customer to a product's technical requirements, component requirements, process control plans, and manufacturing operations.
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tolerance design and the Taguchi loss function |
Tolerance design involves determining the permissible variation in a dimension. A scientific approach to toterance design uses the Taguchi loss function |
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Know the dimensions of reliability
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the ability of a product to perform as expected over time. Formally, reliability is defined as the probability that a product, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions. In practice, the number of failures
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Know why reliability is often modeled using an exponential probability distribution and use the reliability function, specifying the probability of survival, which is: |
R(T) = e^(-lamda*t) |
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Be able to solve reliability of systems composed of individual components with known reliabilities, configured in series, in parallel, or in some mixed combination
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Series: R = R1 * R2 * R3... Parallel: R = 1 - (1 - R1)*(1 - R2)*(1 - R3)... |
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Understand the characteristics of Design Failure Mode And Effects Analysis (DFMEA)
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--Failure Modes --Effect of the failure on the customer --Severity, likelihood of occurrence, and detection rating --Potential causes of failure --Corrective actions or controls |
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Understand techniques for design verification including formal reliability evaluation.
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These include accelerated life testing, which involves overstressing components to reduce the time to failure and find weaknesses; and burn-in, or component stress testing, which involves exposing integrated circuits to elevated temperatures in order to force latent defects to occur.
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Unit of work
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is the output of a process or an individual process step.
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Nonconformance |
is any defect or error associated with a unit of work |
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A nonconforming unit of work is one that has
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one or more nonconformances.
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throughput yield (TY)
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is the number of units that have no nonconformances.
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Rolled throughput yield (RTY)
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is the proportion of conforming units that results from a series of process steps.
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Defects per million opportunities (dpmo) =
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(Number of defects discovered)/opportunities for error x 1,000,000. In services, the term often used as an analogy to dpmo is errors per million opportunities (epmo);
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accuracy
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the difference between the true value and the observed average of a measurement |
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precision
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the closeness of repeated measurements to each other |
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repeatability or equipment variation
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the variation in multiple measurements of a quality characteristic by an individual using the same instrument |
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reproducibility or operator variation
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Appraiser variation (AV) - the variation when using the same measuring instrument by different individuals to measure the same parts
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calibration and traceability
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the process of verifying the capability and performance of an item measuring and test equipment compared to traceable measurement standards |
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process capability
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the range over which the natural variation of a process occurs as determined by the system of common causes; that is, what the process can achieve under stable conditions.
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Know that process capability and process control are independent concepts.
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Ideally, a process should have both high capability and be in control. If a process is not in control, it should first be brought into control before attempting to evaluate process capability
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Understand that a control chart is simply a run chart to which two horizontal lines, called control limits are added:
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the upper control limit (UCL) and lower control limit (LCL).
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Be able to identify control chart patterns, including when a process is in control
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Understand the concept of breakthrough,
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defined as the accomplishment of any improvement that takes an organization to unprecedented levels of performance
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Know that structured improvement methodologies typically consist of four steps: |
•redefining and analyzing a problem •generating ideas •evaluating and selecting ideas •implementing ideas
Common approaches are: • the Deming cycle • creative problem solving • Six Sigma DMAIC • TRIZ • custom improvement methodologies |
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Be able to describe Six Sigma: |
Six Sigma can be described as a business improvement approach that seeks to eliminate causes of defects in processes by focusing on outputs that are critical to customers and a clear financial return for the organization.
The term six sigma is based on a statistical measure that equates to <=3.4 dpmo. |
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Understand that a six sigma quality level corresponds to: |
a process variation equal to half of the design tolerance while allowing the mean to shift as much as 1.5 standard deviations from the target. A k-sigma quality level satisfies the equation: k x process standard deviation = tolerance range/2 |
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Be able to define the acronym DMAIC:
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the Six Sigma DMAIC process stages of: 1) Define - the process of drilling down to a more specific problem statement is sometimes called project scoping; 2) Measure - collecting good data, observation, and careful listening; 3) Analyze focuses on why defects, errors, or excessive variation occur, and focuses on the root cause; 4) Improve - focuses on idea generation, evaluation, and selection; 5) Control - focuses on how to maintain the improvements.
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Understand a type of high-level process map called a SIPOC diagram. SIPOC stands for
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Suppliers-inputs-Process-Outputs-Customers
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Know the project teams in Six Sigma:
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project teams are a vital part of Six Sigma efforts and are comprised of champions, master black belts, black belts, green belts, other team members, who each provide different levels of knowledge and expertise in solving problems
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Know the factors that should be considered when selecting Six Sigma projects including: |
•financial return •impacts on revenues and market share •impacts on customers and organizational effectiveness •probability of success •impacts on employees •strategic fit |
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Know the typical Six Sigma tools, in the light of two unique features of DMAIC: |
its emphasis on customer requirements the disciplined use of statistical and other types of improvement tools. |
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Understand and know where to apply the "seven QC tools" and related tools for quality problem solving. The seven tools include |
•flowcharts or process maps •run charts •data sheets or check sheets •histograms •cause-and-effect diagrams •Pareto diagrams •scatter diagrams •control charts |
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Describe the concept of lean production which refers to the elimination of waste in all forms, including |
•defects •unnecessary processing steps •unnecessary movement •waiting time •excess inventory •overproduction |
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Know that that tools and approaches used in Six Sigma and lean production are different, yet complementary.
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Lean is focused on efficiency by reducing waste and improving process flow while Six Sigma is focused on effectiveness by reducing errors and defects.
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Understand what the Malcolm Baldrige Award is: recognizes U.S. companies that excel in performance excellence practices and results that achieve the highest levels of customer and stakeholder satisfaction. The seven Baldrige Award criteria define
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key practices in categories of: leadership: strategic planning; customer focus; workforce focus; measurement, analysis and knowledge management; operations focus; and results.
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Know that the award examination is based upon a rigorous set of criteria, called the Criteria for Performance Excellence, designed to encourage companies to enhance their competitiveness through an aligned approach to organizational performance management
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Know the four factors of evaluation in the Baldrige Award process, in which each item in categories 1-6 of the Criteria is evaluated: |
approach, deployment, learning, and integration In addition, Category 7 addresses results, which refers to an organization's outputs and outcomes. |
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Understand the comparison between Baldrige, ISO 9000, and Six Sigma. |
Baldrige focuses on performance excellence for the entire organization in an overall management framework, identifying and tracking important organizational results; ISO focuses on product and service conformity for guaranteeing equity in the marketplace and concentrates on fixing quality system problems and product and service nonconformities; Six Sigma focuses on measuring product quality and driving process improvement and cost savings throughout the organization |
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Define strategy: |
the pattern of decisions that determines and reveals a company's goals, policies, and plans to meet the needs of its stakeholders. |
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Understand the goal of strategy development,
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which is envisioning the future for purposes of decision making and resource allocation.
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Understand the process and content of strategy development, related to quality, which begins with |
determining the organization's mission, vision, and values (guiding principles). A fact-based environmental assessment is needed to support strategy development. This should include the organization's strengths, weaknesses, opportunities, and threats (SWOT), among other factors |
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Understand that strategic challenges, which refer to |
those pressures that exert a decisive influence on an organization's likelihood of future success, are frequently driven by an organization's future competitive position relative to other providers of similar products or services. |
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Understand that the steps of strategy development lead to |
•strategies •strategic objectives •action plans |
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Know that strategy deployment refers to |
•developing detailed action plans •defining resource requirements and performance measures •aligning work unit, supplier, and/or partner plans with overall strategic objectives. It is often done through a process called hoshin kanri, or policy deployment |
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Understand the role of measurement as the act of quantifying the performance dimensions of products, services, processes, and other business activities and the use of measures and indicators
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Understand the balanced scorecard concept that includes the four perspectives of: |
•financial perspective •internal perspective •customer perspective •innovation and learning perspectives |
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Be able to site the purposes of a performance measurement system including
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providing a perspective of the past, present, and future; identifying trends and progress; facilitating understanding of cause-and-effect relationships; providing direction and support for continuous improvement; and allowing performance comparison to benchmarks |
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Know the two fundamental mistakes of organizations:
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(1) not measuring key characteristics critical to company performance or customer behavior, and (2) taking irrelevant or inappropriate measurements
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Understand the need for strategic and process measures to be aligned in order to drive strategic goals through the organization. ERP —
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Enterprise Resource Planning systems provide an infrastructure for managing information across the enterprise
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Define and provide examples of several tools and concepts used to improve the capture and dissemination of knowledge within organizations
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(Knowledge management, which is the process of identifying, capturing, organizing, and using knowledge assets to create and sustain competitive advantage. The concept of internal benchmarking, which is the ability to identify and transfer best practices within the organization. Internal benchmarking requires identifying and collecting internal knowledge and best practices; sharing and understanding those practices; and adapting and applying them to new situations and bringing them up to best practice performance levels A related concept of rapid knowledge transfer (RKT) involves the discovery, learning, creation and reuse of knowledge that eventually becomes intellectual capital—knowledge that can be converted into value and profits).
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Define leadership as
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the ability to positively influence people and systems under one's authority to have a meaningful impact and achieve important results
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Learn that the six key leadership competencies are: |
navigator, communicator, mentor, learner, builder, and motivator. These competencies depend on a collection of personal leadership characteristics: accountability, courage, humility, integrity, creativity, perseverance, and wellbeing |
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Understand the perspective of strategic leadership, defined as
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"a person's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization, and its competitive advantage to the organization in this way."
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Have a basic knowledge of these contemporary and emerging leadership theories:
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situational leadership, transactional leadership theory, transformational leadership theory, substitutes for leadership theory, and emotional intelligence theory
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Define sustainability
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as an organization's ability to address current needs and have the agility and management skills and structure to prepare successfully for the future, including preparedness for emergencies
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Understand that for quality and performance excellence to truly succeed in an organization, it must define and drive the culture of the organization.
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Culture (specifically, corporate culture) is an organization's value system and its collection of guiding principles
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Realize that change is difficult to accomplish, and organizations generally should manage change as a three-stage process.
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The first stage involves questioning the organization's current state and dislodging accepted patterns of behavior.
The second stage is a state of flux, where new approaches are developed to replace suspended old activities. The final stage consists of institutionalizing the new behaviors and attitudes |
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Know that building and sustaining performance excellence requires
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--effective leadership
--a commitment to change and long-term sustainability --the adoption of sound practices and implementation strategies --continual organizational learning |
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Understand that implementing Six Sigma can provide key insights that can apply to implementing any type of quality and performance excellence initiative. Effective implementation of Six Sigma depends on some key principles: Committed leadership from top management. Integration with existing initiatives, business strategy, and performance measurement.
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Process thinking. Disciplined customer and market intelligence gathering. A bottom-line orientation. Leadership in the trenches. Training. Continuous reinforcement and rewards
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Understand that quality is a never-ending journey that must be built on knowledge management, organization learning and adaptation to an ever-changing environment, and continuous improvement.
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Organizations can take many routes to performance excellence, but none of them represents the "one best way."
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