Business Administration - Retail Management OPM400 Chapter 8: OPM-chapter-8-Notes

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Ig(cid:373)a"s (cid:272)o(cid:396)e is a(cid:374) idea that (cid:272)a(cid:374) tu(cid:396)(cid:374) a (cid:272)o(cid:373)pa(cid:374)y i(cid:374)side out. Six sigma is a highly disciplined process that helps us focus on developing and delivering near perfect products and services. Sigma measures how far a given process deviates from perfection. Central idea is to measure how many defects in order to classify them and eliminate them all zero defects. To achieve six sigma quality, process must produce no more than 3. 4 defects out of per million opportunities. Critical to quality most critical to customers. Defect failing to do what customers want. Process capability how you deliver/ what your process can deliver. Variation what the customer sees and feels. Stable operation consistency, predictable process to improve what the customer sees and feels. Design for six sigma designing to meet customers needs and process capability. First has to decide what to measure. O(cid:396)ga(cid:374)izatio(cid:374)"s st(cid:396)ategi(cid:272) p(cid:396)io(cid:396)ities (cid:272)a(cid:374) p(cid:396)o(cid:448)ide that guida(cid:374)(cid:272)e (cid:271)y (cid:396)e(cid:448)eali(cid:374)g (cid:449)hat they want to focus on.

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