4 Six Sigma terms you should know
- November 12, 2017
- Posted by: Polaris Human Development
- Category: quality, Soft Skills
Six Sigma is considered one of the most important techniques in the organizations in the last years. It is a set of techniques and tools that help to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.
And based on its importance you should be familiar with its terms and definitions because it exists in most of the organizations nowadays, so below you will know some of the more frequently used Six Sigma terms.
The 5 why’s typically refers to the practice of asking, five times, why the failure has occurred in order to get to the root cause/causes of the problem. There can be more than one cause to a problem as well. In an organizational context, generally root cause analysis is carried out by a team of persons related to the problem. No special technique is required.
An example is in order:
You are on your way home from work and your car stops:
Why did your car stop? Because it ran out of gas.
Why did it run out of gas? Because I didn’t buy any gas on my way to work.
Why didn’t you buy any gas this morning? Because I didn’t have any money.
Why didn’t you have any money? Because I lost it all last night in a poker game.
8 D Process
The 8D Process is a problem solving method for product and process improvement. It is structured into 8 steps (the D’s) and emphasizes team. This is often required in automotive industries. The 8 basic steps are: Define the problem and prepare for process improvement, establish a team, describe the problem, develop interim containment, define & verify root cause, choose permanent corrective action, implement corrective action, prevent recurrence, recognize and reward the contributors.
Of course, different companies have their different twists on what they call the steps, etc…but that is the basics.
8 D is short for Eight Disciplines which oOriginated from the Ford TOPS (Team Oriented Problem Solving) program. (First published approximately 1987)
D#1 – Establish the Team
D#2 – Describe the problem.
D#3 – Develop an Interim Containment Action
D#4 – Define / Verify Root Cause
D#5 – Choose / Verify Permanent Corrective Action
D#6 – Implement / Validate Permanent Corrective Action
D#7 – Prevent Recurrence
D#8 – Recognize the Team
Cost of Poor Quality – COPQ
COPQ consists of those costs which are generated as a result of producing defective material.
This cost includes the cost involved in fulfilling the gap between the desired and actual product/service quality. It also includes the cost of lost opportunity due to the loss of resources used in rectifying the defect. This cost includes all the labor cost, rework cost, disposition costs, and material costs that have been added to the unit up to the point of rejection. COPQ does not include detection and prevention cost.
Methods for delivering projects with evolving requirements, through collaborative approaches by self-organizing, multi-functional teams.
Originally implemented for software development with a focus on delivering iterative releases of functional software. Now used for any form of value delivery where changing requirements are common and must be accommodated.