INTRODUCTION

Ihsanullah (4320)

Raess Khan (3305)

Zainullah (4321)

Samiullah (4319)

What is

Improving quality will reduce expenses while increasing

productivity and market share.

5

Agenda Why does it always seem we have plenty of

time to fix our problems, but never

enough time to prevent the problems by doing it right the first time?

What is FMEA ?

7

Failure Mode and Effects Analysis (FMEA) is an integral part

of product and process design activity. The FMEA process is

applicable in Design of Products, Processes and Services.

Failure Modes and Effects Analysis (FMEA) is commonly used

in a variety of industries for Risk Management, where simple

quantification of risk is insufficient.

FMEA (Failure Mode and Effects Analysis) software helps

organizations improve product quality by identifying the

sources and effects of risks and introducing control measures to

eliminate them. By implementing an FMEA tool early in the

product development process, organizations can systematically

identify risks at the functional, design, component, or process

level and implement risk controls to effectively address them.

This “type” of thinking has been around for

hundreds of years. It was first formalized in the aerospace

industry during the Apollo program in the 1963 .

1965 The military of the US started to apply the FMEA technique.

1977 Ford Motor started to use FMEA.

Severity: If a failure were to occur, what effect would that

failure have on the Product quality and on the patient (if any)?

Probability of occurrence: How likely is it for a particular

failure to occur?

Detectability: What mechanisms are in place (if any) to detect

a failure if it were to occur?

It is an inseparable part of risk management and it supports the continuous improvement. The main aim of the is detecting effects and causes of failure modes that can affect the reliability, the quality and not least the safety of products, whether it is product, process, system or service analysis. FMEA analysis involves teamwork, management support, and deep knowledge of systems, products, processes, time and cost.

Therefore, to be successful, this technique should be fully implemented quality management system both within the process of both product development and processes. This will enable companies to rationalize their activities and thus reduce costs and increase efficiency.

Six Sigma at many organizations simply means a

measure of quality that strives for near perfection. Six

Sigma is a disciplined, data-driven approach and

methodology for eliminating defects (driving toward

six standard deviations between the mean and the

nearest specification limit) in any process – from

manufacturing to transactional and from product to

service.

A new way of doing business

Wise application of statistical tools within a structured

methodology

Repeated application of strategy to individual projects

Projects selected that will have a substantial impact on

the ‘bottom line’

KnowledgeManagement

In some aspects of quality improvement, TQM and Six Sigma share the same philosophy of how to assist organizations to accomplish Total Quality. They both emphasize the importance of top

Six Sigma In some aspects of quality improvement, TQM and Six

Sigma share the same philosophy of how to assist organizations to accomplish Total Quality. They both emphasize the importance of top-management support and leadership.

Both approaches make it clear that continuous quality improvement is critical to long-term business success. However, why has the popularity of TQM waned while Six Sigma's popularity continues to grow in the past decade?

Six Sigma Methods Production

DesignService

Purchase

HRM

Administration

QualityDepart.

Management

R&D

IT

Where can Six Sigma be applied?

Companies who have successfully adopted ‘Six Sigma’ strategies include:

GE “Service company” - examples

Approving a credit card application

Lending money

Answering a service call for an appliance

Underwriting an insurance policy

Developing software for a new product

• In 1995 GE mandated each employee to work towards

achieving 6 sigma

• The average process at GE was 3 sigma in 1995

• In 1997 the average reached 3.5 sigma

• GE’s goal was to reach 6 sigma by 2001

• Investments in 6 sigma training and projects reached 45MUS$

in 1998, profits increased by 1.2BUS$

General Electric

“At Motorola we use statistical methods daily

throughout all of our disciplines to manufacture an

wealth of data to derive real actions….

How has the use of statistical methods within

Motorola Six Sigma initiative.

Over the past decade we have reduced in-process

defects by over 300 fold, which has resulted in

cumulative manufacturing cost savings of over 11

billion dollars”*.

MOTOROLA

Barrier #1: Engineers and managers are not interested in

mathematical statistics

Barrier #2: Statisticians have problems communicating with

managers and engineers

Barrier #3: Non-statisticians experience “statistical nervousness”

which has to be minimized before learning can take place

Barrier # 4: Statistical methods need to be matched to

management style and organizational culture

Barriers to implementation

Focus of Six Sigma*

Accelerating fast come through performance

Significant financial results in 4-8 months

Ensuring Six Sigma is an extension of the Corporate culture, not the program of the month

Results first, then culture change!

*Adapted from Zinkgraf (1999), Sigma Breakthrough

Technologies Inc., Austin, TX.

Six Sigma principles asserts

Continuous efforts to achieve stable and predictable process

results (reduce process variation) are of vital importance to

business success.

Manufacturing and business processes have characteristics that

can be measured, analyzed, controlled and improved.

Achieving sustained quality improvement requires commitment

from the entire organization, particularly from top-level

management.

Features that set Six Sigma apart from other quality

improvement initiatives include:

A clear focus on achieving measurable and quantifiable financial returns from any Six Sigma project.

An increased emphasis on strong and passionate management leadership and support.

A clear commitment to making decisions on the basis of verifiable data and statistical methods, rather than assumptions and guesswork.

Applications Where Six Sigma Is Better Six Sigma initiatives are based on a preplanned project

charter that outlines the scale of a project, financial targets, anticipated benefits and milestones. In comparison, organizations that have implemented TQM, work without fully knowing what the financial gains might be. Six Sigma is based on DMAIC (Define-Measure-Analyze-Improve-Control) that helps in making precise measurements, identifying exact problems, and providing solutions that can be measured.

TQM vs. Six SigmaTQM Six Sigma

A functional specialty within the

organization.

An infrastructure of dedicated change

agents. Focuses on cross-functional value

delivery streams rather than functional division

of labour.

Focuses on quality. Focuses on strategic goals and applies them to

cost, schedule and other key business metrics.

Motivated by quality idealism. Driven by tangible benefit far a major

stockholder group (customers, shareholders,

and employees).

Loosely monitors progress toward

goals.

Ensures that the investment produces the

expected return.

People are engaged in routine duties

(Planning, improvement, and control).

“Slack” resources are created to change key

business processes and the organization itself.

Emphasizes problem solving. Emphasizes breakthrough rates of

improvement.

Focuses on standard performance, e.g.

ISO 9000.

Focuses on world class performance, e.g., 3.4

PPM error rate.

Quality is a permanent, full-time job.

Career path is in the quality

profession.

Six Sigma job is temporary. Six Sigma is a

stepping-stone; career path leads elsewhere.

Provides a vast set of tools and

techniques with no clear framework

for using them effectively.

Provides a selected subset of tools and

techniques and a clearly defined framework for

using them to achieve results (DMAIC).

Goals are developed by quality

department based on quality criteria

and the assumption that what is good

for quality is good for the

organization.

Goals flow down from customers and senior

leadership's strategic objectives. Goals and

metrics are reviewed at the enterprise level to

assure that local sub-optimization does not

occur.

Developed by technical personnel. Developed by CEOs.

Focuses on long-term results.

Expected payoff is not well-defined.

Six Sigma looks for a mix of short-term and

long-term results, as dictated by business

demands.

Conclusion Six sigma is also different from TQM in that it is fact based and data

driven, result oriented, providing quantifiable and measurable bottom-line

results, linked to strategy and related to customer requirements. It is

applicable to all common business processes such as administration, sales,

marketing and R & D.

Although many tools and techniques used in Six Sigma may appear similar

to TQM, they are often distinct as in Six Sigma; the focus is on the strategic

and systematic application of the tools on targeted projects at the appropriate

time. It is predicted that Six Sigma will outlast TQM as it has the potential of

achieving more than TQM.