Management Accounting (ACC202)
Group Assignment
Prepared by:
Zahid Arshad (11201253)
Saba Siddiqui (11300885)
Aisha Asif (11201403)
Fahad Arshad (11300497)
Table of Contents
Six Sigma 3
Introduction 3
Historical Development of Six Sigma 3
The Quality Revolution and TQM 3
Origin of Six Sigma 4
Six Sigma Metric 4
The Evolution of Six Sigma 4
Deployment of Six Sigma 4
DMAIC Approach, Project Selection, and Statistical Methods 5
Step 1: Define Opportunities: 6
Step 2: Measure Performance: 6
Step 3: Analyse Opportunities: 6
Step 4: Improve Performance: 6
Step 5: Control Performance: 6
Other Elements of Six Sigma 7
Design for Six Sigma 7
Lean Manufacturing 8
Future of Six Sigma 8
Combining Six Sigma with Other Initiatives 8
Other Trends 8
Conclusion 8
Reference: 9
Six Sigma
Introduction
“Six Sigma is a acquainted, project-oriented and analytically based approach for lessening instability, removing defects, and reducing waste from products, processes, and negotiation. The Six Sigma initiative is a major force in today’s business world for quality and business improvement. Analytical methods and statisticians have a crucial role to play in this process.”
Historical Development of Six Sigma
The Quality Revolution and TQM
“Folaron provided broad view of Six Sigma within the archival substance of the development of industry and the correlated bang on the quality of processes and products.”
“Various management systems have also appeared as structures in which to implement quality improvement. One of these is total quality management (TQM), which is a strategy for implementing and managing quality improvement activities on an organization-wide basis.
TQM achieved only moderate success for a variety of reasons.”
“Oftenly there was no re...
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...n important part of their operations.
“It is expected that healthcare applications will grow in importance. It has been documented that improvements in healthcare have the potential to save thousands of lives and billions of dollars. For continued success of Six Sigma, it is necessary to incorporate a broader array of statistical methods, particularly those that are more appropriate for the increasing amount of data available in applications.”
Conclusion
Six Sigma, which have been used to abundant achievement in refining quality and productivity in applications around the world. The use of arithmetical ways and means is a key factor of this metric-driven approach.
Reference:
332 D. C. MONTGOMERY & W. H. WOODALL
Womack & Jones,1996.
Perry & Bacon (2007
Snee & Hoerl, 2003 , 2005
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There are many people that benefit from Lean Six Sigma which include mainly customers, suppliers, employees, and also stockholders. Lean Six Sigma is a way for businesses to improve, to reduce waste and to become more successful. In the future, more and more organizations will adopt or practice some of the Lean, Six Sigma, or both in order to stay competitive in today’s market. In some cases, blending both Lean and Six Sigma can be costly and difficult; however the end result can create an organization that focuses on quality, accuracy, and speed to meet the goal which is profitability.
Even though Six Sigma significantly influences and effects primarily contingency factors of an organization, these sectors in turn influence the structural factors of a company. While Six Sigma can be applied to many industries and a variety of organizational structures, certain aspects of Six Sigma operate more efficiently when specific structural aspects are applied. Primarily, implementing Six Sigma influences the hierarchy of authority and the centralization of an organization.
With teams trained and all processes in place, the Six Sigma expert moved on to other projects, and the responsibility for reporting to upper management was left to the team leaders. Without the help of a trained process improvement leader, some teams became confused when analyzing their progress. Others committed so much time to the process improvement project that their work suffered. The middle management leaders soon were reporting only their successes, and began to emphasize what they intended to do rather than what was actually happening. Upper management, assuming that the project was goin...
Sitnikov, C. (2012). Six sigma as a strategic tool for companies. Young Economists Journal / Revista Tinerilor Economisti, 94-102.
Organizations are typically defined by their structural dimensions since these are visible and easily calculated qualities. Although these are key to an organization’s success, even more important are the contingency factors since these are the larger settings that influence and determine the structural dimensions (Daft, 2016, p. 17). Moreover, Six Sigma has the greatest influence on these contingency factors since the overall goal of the administrative innovation is to improve efficiency and effectiveness of the organizational technology. Additionally, Six Sigma has evolved into a strategic and cultural method of thinking and performing. Consequentially, utilizing the Six Sigma method influences an organization’s technology, strategy and goals, and the culture of an organization. Additionally, the actual application of the Six Sigma methods can help improve processes to allow an organization to influence their environment.
The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization.
Persoon, T.J., Zaleski, S., & Frerichs, J., (2006) Improving preanalytic processes using the principles of lean production (Toyota Production System). Am J Clin Pathol. 2006 Jan;125(1):16-25.
Currently, Hexion is very familiar and comfortable with Lean Six Sigma, and the mindset is already present within the corporation. They employ
The Six Sigma approach was designed by Motorola in 1986. The primary objective of the concept was to develop a tool for tallying the process defects and, as the result, improving business operations. The foundations of the approach are the customer needs, statistical analysis of data and facts, and timely execution. The method promises numerous benefits such as increasing performance and profitability of an organization, improving product or service quality and employee morale, decreasing costs, the growth of market share, the higher level of satisfying customer needs, etc. (Meredith & Shafer, 2013). The primary advantage
We will look at the healthcare sector RCA is used in everyday business. RCA is used to find out the causing patients symptoms and why they are feeling the way they are. By using Six Sigma models to help eliminate waste, pinpoint causes, reduce defects, organize in a logical order, and help identify effective solutions for the problem, ultimately saving companies money. Because of time and finances constraints, a project manager only deal with the top level management about
Dean & Bowen (1994) indicated that total quality management (TQM) represents a widely accepted management practice that have been embraced by many organizations. Waldman (1994) stated that TQM is viewed as an integrated, systematic, organization-wide strategy to improve the products, services and processes of an organization continuously nowadays. Improve in quality could increase client’s satisfaction. According to Dr. Julan (1993), the reason of client complain is the dissatisfaction of service provided. In this paper, the concept of total quality management in meeting client’s expectation to clients will be discussed.
Even though Total Quality Management (TQM) has been replaced by other quality methodologies in many cases, organizations that have taken the long arduous journey to properly implement TQM benefited from it immensely [1]. While TQM may be perceived by many employees as just another passing fad that will soon fall by the wayside, the environmental conditions that exist within the organization will determine if TQM can be successfully implemented and take root. What is Total Quality Management (TQM)? TQM is a system of continuous improvement of work processes to enhance the organization’s ability to deliver high-quality products or services in a cost-effective manner [2].
Total Quality Management is a management philosophy driven by customer needs and expectations. TQM focuses on quality and builds a management method based on full employee involvement. Its aim is to achieve long-term successful management through long-term customer
Six Sigma has been one of the tools of Total Quality Management and is widely used in manufacturing and services industries across the world. Its standards have been promoted and attained through five key stages known as define, measure, analyse, improve, and control and each of which must be completed in chronological order.
It is a structured problem-solving methodology used in Six Sigma improvement projects. It uses many tools to effectively describe and improve the performance of a process. The main purpose of the Six Sigma DMAIC methodology is to improve the processes in a structured manner. In this approach, each phase builds on the previous steps to resolve the problems with unidentified answers. This methodology is mainly used while improving a current process, which has complex problems and high risks associated with it. The disciplined approach of DMAIC, following each and every step in an order, increases the chances of the project being successful. The decisions along the implementation are made based on concrete data. Even though it is an integral part of Six Sigma, it can also be implemented as a standalone quality improvement