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Overview/Description
Inventories include an organization's raw materials, work in process, supplies used in operations, and finished goods. A major part of organization's capital and costs are involved in maintaining and managing inventories. Consequently, organizations work to achieve an ideal size of inventory to reduce costs and improve the bottom line while ensuring their ability to make products and services available to their customers. Although inventory management is commonly associated with the manufacturing sector, many of its concepts and tools can also be applied to the service...
Overview/Description
Quality means different things to different people, organizations, and industries. However, according to quality guru Joseph Juran, quality means "fitness for use," and another quality guru, Philip Crosby, puts it as "conformance to customer requirements." These two important aspects are common to most definitions of quality. Management of quality is critical to two important goals of operations â producing products and services to customers' satisfaction, and helping the organization achieve its financial goals. Operations managers set out performance objectives to...
Overview/Description
Operations scheduling involves the distribution and use of an organizationâs resources â in other words, its human resources, equipment, and facilities â to produce the goods and services needed to meet forecasted customer demand. Two important activities within the scheduling function are loading and sequencing. Loading means assigning production-related work to appropriate organizational resources. Sequencing establishes the order for performing the work needed to meet production priorities and targets. These scheduling activities enable operations managers to...
Overview/Description
Product and service management is the process of designing, creating, and maintaining a product or service through all stages of its lifecycle. It involves a wide range of operations, marketing, and sales related activities. These activities encompass the entire range of product life cycle â from the conception of a new product or service idea, to its design and launch, and later through its growth, maturity, and decline stages. Operations aspects of product management are very vital to the success of new and existing products and services. Every organization conducts...
Overview/Description
Probability distributions are an essential part of descriptive statistics that Six Sigma teams can use to assist in fitting collected data into various types of distributions. Probability distributions help to ascertain specific probability values in the distribution and lead the Six Sigma teams down the hypothesis testing roadmap to the next stage of the Six Sigma DMAIC process. Of course, all this is meaningless if the data you have gathered and used is not accurate or precise, which is where measurement systems analysis (MSA) comes into play. MSA is a task in the...
Overview/Description
Organizations need to make inferences about a population from sample data, and understanding how to calculate the probability that an event will occur is crucial to making those inferences. In a Six Sigma context, it is often important to calculate the likelihood that a combination of events or that an ordered combination of events will occur. Understanding probabilities can provide Black Belts with the tools to make predictions about events or event combinations. To make accurate inferences about a population from the sample data collected in the Measure stage, Black...
Overview/Description
Albert Einstein is reputed to have said, "The significant problems we face cannot be solved at the same level of thinking we were at when we created them." To solve quality and process-related problems, managers should continuously enhance their knowledge of organizational processes and quality management tools. These tools help managers find root causes of problems, an important step toward removing them. Success in ensuring quality and organizational excellence depends on how effectively managers apply these tools to solve quality and process-related problems. This...
Overview/Description
In any improvement initiative, organizations must determine whether their existing processes meet the targets and specifications demanded by the business, or by the customer. Measuring and analyzing the capability and performance of a process under review enables organizations to numerically represent and interpret its current state, and to report its sigma level. When done correctly, process capability analyses enable Black Belts to precisely assess current performance in light of future goals, and ultimately, to determine the need and targets of process improvement....
Overview/Description
To improve the processes behind an organization's products and services, a Six Sigma Black Belt must measure them. But first, they must identify those processes. Among the many Six Sigma tools, several are designed specifically to isolate relevant process variables, determine their relationships to each other, prioritize their importance relative to customer or business requirements, and assess their efficiency. Using SIPOC and cause-and-effect matrices, Black Belts can determine which process inputs to target first â those with the most significant impact on important...
Overview/Description
A process is a means of creating and delivering products and services needed by customers. According to Takashi Osada, Japanese author and quality pioneer, "if the process is right, the results will take care of themselves." By Six Sigma standards, a "right process" is one that creates and delivers precisely what the customer needs. By this logic, no Six Sigma effort can start without having a high-level picture of an organization's customers and other stakeholders, their needs, and the business processes meant to fulfill those needs. A thorough analysis of the existing...