The Future of Quality: What's Next After Six Sigma

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The Future of Quality What's Next After Six
Sigma?

• Jessica Jenness
• Isa Nahmens
• March 23, 2006

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Agenda

• Motivation
• Evolution of Quality, survival of the fittest
• SPC
• Reengineering
• TQM
• Six Sigma
• Whats Next after Six Sigma
• Educational Findings
• Future of the Quality Profession

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Motivation

• January 2006 issue of Quality Progress. After Six
  Sigma- What's next? By Søren Bisgaard and Jeroen
  De Mast.
• To hope quality management will go away is
  wishful thinking.
• The next step for quality professionals should be
  to broaden the scope to systematic innovation.
• We predict a scientific approach to problem
  solving will remain the foundation of our
  profession (Bisgaard De Mast 2006)

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Evolution of Quality Profession

• Evolution relies on two fundamental mechanisms
• Variation (or change)
• The selection of the most favorable variant by
  the principle of survival of the fittest.
• Current Six Sigma approach- incorporates a wide
  variety of ideas that originated from previous
  incarnations of quality management.
• Some quality principles remain fit!!
• (principal of survival of the fittest)

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Evolution of Quality
Business Process Reengineering
Quality
Statistical Quality Control
Six Sigma
Total Quality Management
Lean Six Sigma
Productivity
Toyota Production System
Lean Six Sigma Supply Chain
Ford Production System
Lean
JIT
Supply Chain
MRP, MRP II
ERP CRM
Information Technology
Source Furterer 2004 (ASQ CQSDI)
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Evolution of Quality
Business Process Reengineering
Quality
Statistical Quality Control
Six Sigma
Total Quality Management
Lean Six Sigma
Productivity
Toyota Production System
Lean Six Sigma Supply Chain
Ford Production System
Lean
JIT
Supply Chain
MRP, MRP II
ERP CRM
Information Technology
Source Furterer 2004 (ASQ CQSDI)
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Statistical Process Control

• A methodology for monitoring a process to
  identify special causes of variation and signal
  the need to take corrective action when
  appropriate.
• Seven tools
• Control Charts.
• Histogram.
• Pareto Diagram.
• Cause-Effect Diagram.
• Check Sheets.
• Process Flow Diagram.
• Scatter Diagram.
• Focus quality control

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SPC Six Sigma

• Most Fitted Elements
• SPC tools- provided the foundation for
  understanding and reducing variability through
  application of statistical theories.
• Least Fitted Elements
• Focus on quality control only.
• Quality Control departments- main function was
  inspection and control to specifications.

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Evolution of Quality
Business Process Reengineering
Quality
Statistical Quality Control
Six Sigma
Total Quality Management
Lean Six Sigma
Productivity
Toyota Production System
Lean Six Sigma Supply Chain
Ford Production System
Lean
JIT
Supply Chain
MRP, MRP II
ERP CRM
Information Technology
Source Furterer 2004 (ASQ CQSDI)
10
Business Process Reengineering

• The radical redesign of business processes for
  dramatic improvement.
• Mid- to Late-80s global competition.
• Existing tools were no longer improving cost,
  poor quality bad service.
• Good news and Bad news
• Far exceeded expectations
• Unrecognizable

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Business Process Reengineering Six Sigma

• Most Fitted Elements
• Key word process Focus on complete end-to-end
  set of activities that together create value for
  a customer.
• Least Fitted Elements
• Key word radical Scratch and start over

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Evolution of Quality
Business Process Reengineering
Quality
Statistical Quality Control
Six Sigma
Total Quality Management
Lean Six Sigma
Productivity
Toyota Production System
Lean Six Sigma Supply Chain
Ford Production System
Lean
JIT
Supply Chain
MRP, MRP II
ERP CRM
Information Technology
Source Furterer 2004 (ASQ CQSDI)
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Total Quality Management

• ...is the application of quantitative methods
  and human resources to improve all the processes
  within an organization and exceed customer needs
  now and in the future.

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Total Quality Management
Source Besterfield 2000
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TQM Six Sigma

• Most Fitted Elements
• Focus on quality improvement.
• Firm management of projects and the attention to
  change management theory and approaches.
• Least Fitted Elements
• Measurement of success in terms of activities.

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Evolution of Quality
Business Process Reengineering
Quality
Statistical Quality Control
Six Sigma
Total Quality Management
Lean Six Sigma
Productivity
Toyota Production System
Lean Six Sigma Supply Chain
Ford Production System
Lean
JIT
Supply Chain
MRP, MRP II
ERP CRM
Information Technology
Source Furterer 2004 (ASQ CQSDI)
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Six Sigma

• Is both a quality management philosophy and a
  methodology that focuses on
• Reducing variation
• Measuring defects
• Improving quality of processes, products, and
  services
• Instilling a philosophy of continuous improvement
• Incorporates a wide variety of ideas that
  originated from previous incarnations of quality
  management.
• Phases

Define
Measure
Analyze
Improve
Control
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Design for Six Sigma
DFSS is used to design or re-design a product or
service.

• DMADV
• Define the project goals and customer (internal
  and external) requirements.
• Measure and determine customer needs and
  specifications benchmark competitors and
  industry.
• Analyze the process options to meet the customer
  needs.
• Design (detailed) the process to meet the
  customer needs.
• Verify the design performance and ability to meet
  customer needs.

• DMAIC
• Define the project goals and customer (internal
  and external) requirements.
• Measure the process to determine current
  performance.
• Analyze and determine the root cause(s) of the
  defects.
• Improve the process by eliminating defect root
  causes.
• Control future process performance.

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The world keeps changing.

• Quality management will therefore always need to
  be improved and adapted to the changing
  circumstances.

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Americas Imperative

• U.S. Council on Competitiveness, Dec.
  2004Innovate America Thriving in a World of
  Challenge and Change
• Challenge to long-term global economic leadership
• Resolved Innovation will be the single most
  important factor in determining Americas success
  through the 21st century
• Americas Task For the past 25 years, we have
  optimized our organizations for efficiency and
  quality. Over the next quarter century, we must
  optimize our entire society for innovation.

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Good News, Bad News

• Bad News The Council believes, the
  manufacturing strategies introduced over the past
  two decades of lean, Six Sigma-esque continuous
  productivity and quality improvement are no
  longer a source of meaningful competitive
  advantage.
• What?!
• Good News We know better than that.
• Unfortunately, the image of our work is our
  problem.
• Broadening our focus and using more appropriate
  terms that better reflect what we do will put
  quality professionals in a better position to be
  part of the solution.

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Six Sigma vs. Systematic Innovation

• Six Sigma focuses on more than just quality
• Six Sigma applications have evolved to focus on
  increasing productivity, reducing cycle time,
  etc.
• Economists call applications innovations
• Not directly related to defect reduction
• Think broader, what we are really doing is
  improving an organizations competitive position,
  better satisfying our customers and reducing
  costs? INNOVATION!
• Quality improvement is about process and product
  innovation.
• It is about improving anything product designs,
  process designs, radical changes, incremental
  changes or even new ways of managing.

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Innovation

• Innovation as an economic concept includes
  development of new
• Products and services
• Methods of production or provision
• Methods of transportation or service delivery
• Business models
• Markets
• Forms of organization
• Stereotypically innovation is considered a
  product of genius, a flash of light
• Innovation can be systematically planned and
  organized

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Systematic Innovation

• The scientific approach to problem solving has
  been with us since Shewharts days
• Foundation for the quality profession
• Six Sigma body of knowledge can, with minor
  adjustments to scope and terminology, be applied
  to systematize the innovation process
• Guides upper management to realize the strategic
  importance of our work, leading to better
  recognition

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Economic Focus

• Ultimate quality award is improved bottom line
  profitability (Bisgaard Freiesleben 2004)
• More than defects and operations management
• Transition from TQM to Six Sigma
• Evaluate cost of poor quality
• Project savings

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Preparing for theFuture of Quality
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Engineer 2020

• National Academy of Engineering began a study in
  2001 to prepare for the future of engineering
• What will or should engineering be like in the
  year 2020?
• How can engineers best be educated to be
  leaders, able to balance the gains afforded by
  new technologies with the vulnerabilities created
  by their byproducts without compromising the
  well-being of society and humanity?
• How they performed the study
• Scenario-based planning was used that eliminated
  the need to gain consensus on a single view of
  the future.
• The study provided multiple opportunities that
  can help devise strategies that can adapt to
  changing conditions.

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Engineer 2020

• Results reveals some implications to Engineering
  Education
• Broadly educated engineers who view themselves as
  global citizens.
• Leaders in business and public service.
• Ethically grounded.
• Five or six year professional degree.
• Case histories incorporated into the curriculum.

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Attributes of Future Engineers

• System Perspective
• Strong Analytical Skills
• Practical Ingenuity
• Creativity to Synthesize
• Mutual respect
• Social context / global citizen
• Customer focus
• Case-based learning

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Attributes of Future Engineers

• Communication
• Team work, multi-disciplinary teams
• Leadership
• Ethical
• Professional
• Agility, Resilience, Flexibility, Receptive to
  change
• Lifelong learning

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Departmental Reform Grant

• UCF is currently working on a departmental reform
  grant from NSF
• Three-round Delphi study to identify
• desired characteristics of an IE having completed
  undergraduate education
• emerging topic areas that should be incorporated
  into the reengineered curriculum

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Desired Characteristics

• Decision making ability
• Project management
• Human dimension of
• management
• Global perspectives
• General engineering
• Diversity sensitivity
• Leadership awareness

• Adaptable problem solving
• Quantitative/analytical abilities
• Creative and critical thinking
• Interpersonal skills/presence
• Teamwork skills
• Holistic problem solving
• Technical writing ability
• Computer skills
• Process evaluation/analyses

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Emerging Topics

• Ethical Behavior
• Lean Enterprise
• Performance Management/Measurement
• Six Sigma / Design for Six Sigma
• Team Building and Facilitation
• Statistical Methods for Service and
  Transaction-based entities
• Leadership
• Service Enterprise/Systems
• Knowledge Management
• Object-Oriented Simulation
• Enterprise Resource Management
• Human-Integrated Systems/Usability

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Preparing for the Future
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Preparing for the Future
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Future of the Quality Profession
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Systematic InnovatorsCode name Black Belt

• Organizations should decentralize quality
  departments
• Instead, quality initiatives will be delegated to
  innovation agents, namely black belts and green
  belts throughout the organization
• Innovation should be seen as an integral part of
  everyones task rather than the responsibility of
  a separate department and a few specialists

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Core Competencies

• Organizational structure designed to cultivate an
  experimental and risk taking attitude
• It is no longer sufficient to be an expert
  manager, marketing professional, or engineer.
• Competitors in low-cost countries increasingly
  also have experts who are more inexpensive
• In addition to being an expert, professionals
  must be well-trained and experienced in Six Sigma
  type systematic innovation skills
• Emphasis on scientific approach to problem solving

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Opportunity

• Scientific approach to problem solving
• This is our thing!
• Embrace the idea of being systematic innovators
• We will be the leading professionals of the
  future knowledge economy

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Questions or Comments?