Benefits Of Six Sigma Thinking

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Register to read the introduction… There are two primary distinctions between these categories.First,manu-facturing organizations produce physical,tangible goods that can be stored ininventory before they are needed.By contrast,service organizations produce intangi-ble products that cannot be produced ahead oftime.Second,in manufacturing orga-nizations most customers have no direct contact with the operation.Customercontact is made through distributors and retailers.For example,a customer buying acar at a car dealership never comes into contact with the automobile factory.How-ever,in service organizations the customers are typically present during the creationofthe service.Hospitals,colleges,theaters,and barber shops are examples ofserviceorganizations in which the customer is present during the creation ofthe …show more content…
• Internal failure costs: Cost for failures incurred within the system. • External failure costs: Costs for defects that pass through the system to the customer.
Six Sigma refers to a philosophy used by major manufacturers used to eliminate defects in their products and processes. One of the benefits of six sigma thinking is that it allows managers to readily describe the performance of a process in terms of its variability and to compare multiple processes with a common metric. This metric is defects per million opportunities (DPMO).
DPMO = [Number of defects / (Number of opportunities X Number of Units)] X 1,000,000
The six sigma process includes Define, Measure, Analyze, Improve, and Control activities. The analytical tools and methods used for six sigma and continuous improvement programs include flowcharts, run charts, pareto charts, checksheets, cause-and-effect diagrams, opportunity flow diagrams, control charts, failure mode and effect analysis, and design of experiments (DOE).
ISO 9000 and ISO 14000 are international standards for quality management and assurance. These standards help companies demonstrate and document that they are maintaining an efficient quality

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