Sigma And The Cost Of Quality

1735 Words Jul 30th, 2014 7 Pages
Introduction
“Six Sigma” and the “Cost of Quality” to a manufacturing company is a systematic approach that increases profits and improves customer satisfaction rates by eliminating the root cause for defects or errors in all processes, by creating new and more effective processes. To the health care company, “The Cost of Quality” may look and feel slightly different, yet in many ways both are the same. Both companies may operate and produce different products, and operate in two different market segments, both are concerned with delivering customer driven quality products or services in the most cost effective manner. Therefore, if we use a comparative analysis and the Six Sigma standard problem solving methodologies and apply it to the
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When analyzing the health care company, the variability is much smaller and is hard to quantify, therefore, when adopting a Six Sigma approach in health care means uncovering ways to influence the data in ways that drive human behavior. (Michael Brassard)
“Six Sigma Project Selection”
With each success come Six Sigma technical strategies, along with cultural strategies for change and sound operational procedures. In manufacturing and in health care using the Define, Measure, Analyze, Improve, Implement, and Control, (DMAIIC) system allows each company to identify who is doing what, well, and allows them to evaluate their competitive position, while focusing on the voice of the customer (VOC), and the return on investments, and improved revenue. Each company wants to achieve zero costs for poor quality, by streamlining processes and costs without compromising quality. It can be challenging to standardize a process using a typical standardized calculation since many forms exist. However, the “Cost of Poor Quality” is something both companies will use in order to improve any current or future process. They need to understand what the cost of poor quality is to their bottom line. Therefore, the sum of internal failures plus external failures, equals the “true “Costs of Poor Quality, (COPQ) for both companies, when using an appraisal process it may look like following:
1) Appraisal’s, help focus on customer driven satisfaction and considers which projects
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