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Six Sigma
Test 1 Readings
21
Management
Undergraduate 4
02/11/2013

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Cards

Term
Three principles of TQM
Definition
1. focusing on customers
2. continuous improvement
3. employee participation and empowerment
Term
Characteristics of 6 sigma
Definition
1. owned by business leader champions (not team-based)
2. projects are cross-functional and more strategic in nature
3. focused on more rigorous and advanced set of statistical methods
4. requires a verifiable return on investment and focus on the bottom line
Term
conformance problem
Definition
unsatisfactory performance by a well-specified system
Term
unstructured problems
Definition
unsatisfactory performance by a poorly specified system (ex: poor sales)
Term
Efficiency problems
Definition
unsatisfactory performance from the standpoint of stakeholders other than customers (ex: cost and productivity problems)
Term
product design problems
Definition
designing new products that better satisfy user needs
Term
process design problems
Definition
designing new processes or substantially revising existing processes
Term
top-down projects
Definition
tied to business strategy and align with customer needs

○ Too broad in scope to be completed in a timely manner
○ Cost may be underestimated
○ Capabilities of team may be overestimated
Term
bottom-up projects
Definition
black belts choose projects that are well-suited to the capabilities of teams
-Projects may not be closely tied to strategic concerns of top management
-Receive little support and recognition from the top
Term
prevention costs
Definition
investments made to keep nonconforming products from occurring and reaching the customer
Term
appraisal costs
Definition
associated with efforts to ensure conformance to requirements
Term
internal failure costs
Definition
incurred as a result of unsatisfactory quality found before delivery
Term
external failure costs
Definition
occur after poor-quality products reach the customer
Term
Top three measures used to quantify 6 sigma
Definition
1. cost reductions
2. productivity
3. revenue generation
Term
Level 1 projects
Definition
projects that directly affect the profit margin
Term
Level 2 projects
Definition
projects result in redeployment of resources inside an organization to increase operating efficiency or productivity
Term
Level 3 projects
Definition
direct affect on operations by avoiding expenditures or increasing the change of obtaining higher future revenues
Term
How long are 6 sigma projects
Definition
3 to 6 months
Term
classifications of CTQ's
Definition
1. dissatisfiers
2. satisfiers
3. exciters/delighters
Term
steps to identify good 6 sigma projects
Definition
1. define the process: its start, end, and what it does
2. describe the process
3. describe the players
4. degine customer expectations
5. determine what historical data are available
6. describe the perceived problems
Term
SPOIC diagram
Definition
flowchart showing: suppliers, inputs, processes, outputs, customers
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