Quality, Six Sigma and

New Product Development

Dila KUPELI 200961052Emre CIRAK 200961033

Hande HUVEYLI 200961045Seckin DILEK 200961037Zehra BICER 200961024

The Meaning of Quality

Quality is fitness for useQuality is meeting customer expectationsQuality is exceeding the customer expectationsQuality is superiority to competitorsEtc.

Quality Improvement

Quality improvement (QI);

uses quantitative and qualitative methods to improve the effectiveness, efficiency, and safety of service delivery processes and systems, as well as the performance of human resources in delivering products and services.

Models

FADE PDSA

DMAIC (six sigma) Continuous Quality Improvement(CQI)

Total Quality Management(TQM)

Quality Dimensions (manufacturing)

PerformanceReliabilityDurabilityServiceability How much qualified?AestheticsFeaturesPerceived QualityConformance to Standards

Quality Dimensions

(service)EmpathyResponsivenessReliabilityTangiblesAssurance

KANSEİ QUALITY CONTROL IN PRODUCT DEVELOPMENT

What is the Kansei Engineering?

• Kansei Engineering ( emotional / affective engineering) aims the development or improvement of products and services by translating customer's psychological feelings and needs into product's design domain

• Kansei Engineering aims to produce new products based on feelings and demands of the costumer.

Kansei Quality

• Kansei quality is the intentional meaning of the object, it is evaluated intuitively with the tacit knowledge based on the human’s past experiences. This Kansei quality was related in human’s potential demand.

• If we improve Kansei quality in design, we have to understand a users’ tacit knowledge (they don’t even notice.) based on their daily experiences.

Computer Aided Kansei Engineering• 2.type• It is called computer aided Kansei Engineering.• Emotions of the consumer are converted to  desing details by using  

expert systems

Databases in Computer Aided Kansei Engineering

a) Kansei Databaseb) İmage Databasec) Information Databased) Design and Color Database

• Customer orientation which one of the most important elements in Total Quality Management,increases the importance of Kansei Engineering and guidance to engineers about what’s going on in jobs.

• It is possible that to realise continious improvement which has a importance role in TQM , is only depends on technology (kansei Eng) which determines the customer needs and having flexibility to produce these needs.

SIX SIGMA ON NEW PRODUCT

DEVELOPMENT

• What is Six Sigma?• Six Sigma Performance• Six Sigma Capability• DPMO(Defect Per Million Opprtunities)• Six Sigma Belt• Six Sigma Methodology (DMAIC-DFSS)• The Big Picture

SIX SIGMA

• Improve the quality of process outputs • Identifying and removing the causes of defects• Minimizing variability in manufacturing and business processes

Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets

SIX SIGMA PERFORMANCE The number of Sigmas between the center of a process performance measure distribution and the nearest specification limit :

SIGMA CAPABILITY

Sigma Capability & Yield

DEFECTS PER MILLION OPPORTUNITIES (DPMO)

«3.4 DPMO»

SIX SIGMA BELTS1. Green Belt2. Black Belt3. Master Black Belt4. Champion

• Yellow Belt• Brown Belt

SIX SIGMA METHODOLOGY• Six Sigma projects follow two project methodologies inspired by Demings ’Plan-Do-

Check-Act’

1. «DMAIC » is used for …..2. «DMADV «(DFSS as known) is used for ….

DMAIC

DESIGN FOR SIX SIGMA (DFSS)

WHY DFSS? “Desing in” quality when costs are low is important and showing customers six sigma right from the start.

THE OPPORTUNITY OF DFSS• Early problem identification; solution when costs low• Faster market entry: earlier revenue stream, longer patent coverage• Lower total development cost• Robust product at market entry: delighted customers• Resources available for next game-changer

THE BIG PICTURE

DFSS METHODS

SIX SIGMA BALANCED SCORECARD

• Balanced scorecard methodology is an analysis technique designed to translate an organization's mission statement and overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals.

• The Blanced Scorecard process allows an organization to align and focus on all it resources on its strategy

• Developed by Robert Kaplan and David Norton in 1992, the balanced scorecard methodology is a comprehensive approach that analyzes an organization's overall performance in four ways.

1. Financial prespective2. Customer perspective3. Internal business process perspective4. Learning and growth perspective.

Financial perspective• How do we look to stockholder?SurviveSucceedProsper

Customer Perspective• How do our customers see us?New prooductsResponsivenessQuality

Internal Business Perspective• At what must we excel currently? Manufacturing/service excellence New product/service introduction

Innovation and Learning Perspective• Can we continue to improve and create value? Technological leadership Time to market Employee training and satisfaction

Example of BSC

# Case «Mobil NAM&R»

• Mobil NAM&R ‘s problem (early 90’s)• - Unfocused strategy• Full range of products & services to all consumers• Low prices of discount station• Poor financial performance

• Mobil NAM&R ‘s research• - 60% of the consumer be willing to pay price premium• (price-sensitive consumers : 20%)• • "differentiated value proposition"

# Case «Mobil NAM&R» (BSC srategy map)

# Case «Mobil NAM&R» (BSC)

Strategic theme Strategic Objectives Measurement (KPI)

Increase Return onCapital employedRevenue Growth Understand customer needs & Differentiate Productivity Max the asset use Business integrate

Financial

Return on Capital Employed

New revenue from Nongasoline Premium brand for customer

Become industry leader in supply chain category Maximize the use of asset

Actual Return on Capital (ROE)

Nongasoline revenue Profit margin

Cost per Gallon

Actual cash flow

Delight the customer

Win-Win Dealer relations

Customer(CustomerIntimacy

Proposition)

Speedy purchase Friendly, helpful worker Recognize customer royalty

Offer more consumer products Help dealers develop biz skill

Share of targeted customer segment Mystery shopping rating

Dealer profitability Dealer satisfaction

Build Franchise

Customer value

Operational excellence

Good neighbor

InternalProcess

Innovative product and service

Best-in-class franchise teams

Refinery Performance Inventory management Deliver product on-time Become the industry cost leader

Improve environment health & Safety

New product acceptance rate New product ROI

Share of target market Dealer quality rating

Refinery yield gap, Unplanned downtime Inventory level Stock out rate .. Activity-based cost

Reduced number of environmental incidents & safety incident

Motivated and preparedworkerLearning &

Growth

• Core competency and view• Access to strategic information• Align business and personal goal

Ratio of strategic skills to job coverage On-time deployment of system Employee feedback Personal BSC

Data 6% ↑ W/I 3y $1B/year

# Case «Mobil NAM&R» (achievements)

• Mobil NAM&R ‘s achievements (`2000)

Financial perspective

Return on Capital employed: 6% 16%

Sales Growth: more than 2% annually

Cash Expense: 20% decrease

Operating cash flow increase: $1billion per year

• Customer perspective

Mystery-shopper score, Dealer quality: increased each year Number of consumers using “Speedpass”: one million per year

• Internal process perspective

Environmental & Safety accidents: 60~80% down Lost oil-refinery yields due to systems downtime: 70% drop

• Learning and growth perspective

Employee awareness & commitment to the strategy: quadrupled

RISK ASSESMENT

Risk Assessment is simply a careful examination of what, in your work, could cause harm to people, so

that you can weigh up whether you have taken enough precautions or should do more to prevent

harm. Workers and others have a right to be protected from harm caused by a failure to take

reasonable control measures.

Firstly issue risks of conditions within the workplace is indicated.

• The hazards of workplace is identified.

• Safeguard measures are identified against risks and hazards.

• The severity of damages and injury are determined.

• Probability of occurrence these dangerous situations is written.

• Risk weigt is equal to the impact of event (consuquence) multiplied by a qualitative description of probability (likelihood).

• RISK ASSESMENT is evaluated.

• Thus, additional measures to be taken is determined

Risk assessment in software evolutionRisk Analysis Tools Software

Health and Safety Risk Assessment Management Software > TIRA Accident Investigation and Management Software > AIM Document Issuing and Control Management Software > DICSEmployee Absenteeism and Sickness Management Software > SMARTFirst Aid Risk Assessment Management Software > FARMHazardous Substances Risk Management Software > HAZSWorkplace Risk Assessment Management Software > WRAMFire Premises Risk Assessment Software > FIREWork Equipment Risk Assessment Management Software > WERAMGeneral Risk Assessment Management Software > GRAM