Concept explainers
Case summary:
M was originally a small car radio manufacturer in the 1920s. Since then it expanded into integrated circuits, paging systems, cellular phones, computers and wireless communication systems. At heart, M was an engineering company, however in the mid-1970s it shifted its focus from products to consumers. Following a goal of total customer satisfaction M is now known for its cutting-edge
In 1986, it devised the Six Sigma methodology. This method changed the measure of quality in the country. Ever since, Six Sigma has become the widely adopted standard measure of quality. Today Six Sigma has evolved from a measure into a comprehensive quality management system and has been implemented by most large corporations. M has reported over $17 billion in savings due to it.
The core focus of Six Sigma is to improve key processes in a company. This leads to drops in waste and cost, while improving quality, processes and customer satisfaction and loyalty and finally improving profitability.
To determine: What are some of the obstacles for a smaller company to implement a Six Sigma program? Are certain features and components of Six Sigma more applicable than others to a small company?
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Operations and Supply Chain Management 9th edition
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- The Japanese are generally credited with starting the global quality revolution that in the 1970s became an integral part of corporate culture, and eventually led to the development of quality improvement programs systems like TQM and Six Sigma. Research and write a report about what Japan did to initiate the quality movement and why it differed from what was being done in the United States.arrow_forwardRead the following paragraph and answer the questions given below. Over the past several years, even the most casual observer will have seen a number of media articles and telecasts decrying significant quality failures stemming from Chinese-made goods toys decorated with lead-based paint, milk products tainted with melamine, contaminated pet food, poorly made counterfeit knockoff products, defective drywall, and many others. For every significant Chinese quality failure reported in the media, how many more are overlooked, ignored, or not even recognized. Like their domestic counterparts, many Chinese suppliers have long been tempted to ignore quality-related issues unless they are required to address them by their foreign customers. Chinese suppliers face the same severe pressures for cost reduction and ever-increasing product performance in terms of quality, lead times, and delivery. Ask a senior manager from a typical Chinese supplier about these quality failures, and you are…arrow_forwardISO has been standardised by the International Standards Organisation. why?arrow_forward
- Could you please elaborate on two main concepts of Six Sigma: DMADV and DMAIC. Also, is it possible to successfully implement Six Sigma without any previous knowledge about this concept?arrow_forwardGeneral Electric was the first company that used the Six Sigma quality program. T or Farrow_forwardDjango Industries conducted an appraisal of all costs associated with production and found the following data. Scheduled maintenance $35,000 Machine downtime $160,000 Annual equipment calibration $39,000 Warranty exchange $125,000 Supplier quality audits $75,000 Equipment repair $56,000 Customer field repairs $97,000 Incoming material audits $80,000 Categorize these costs into the traditional four types of quality costs. What is the cumulative percentage of the two highest categories? a. 70.2% b. 65.6% c. 68.4% d. 71.8%arrow_forward
- How do needs for features and output from a system as well as performance, dependability, and maintainability affect quality assurance strategies?arrow_forwardHow can ISO specifications support an organisation with strategic planning? How can ISO standardise?arrow_forwardPerkins Company has been experiencing lost sales and high returns recently, so they decided to undertake a comprehensive quality program. Here are factors being considered: Finished products need to be inspected before shippingEstimated cost: $45,000 Production equipment needs upgradingEstimated cost: $400,000 Perkins knows that if it undertakes this program, it will be able to reduce warranty repair costs by $25,000. They also know they will be able to avoid lost profits by retaining customers, but they cannot quantify that benefit with any degree of precision. Should Perkins go ahead with the quality program? A) Yes, they should, regardless of any other considerations. B) No, they should not. C) They should, only if the benefit of avoiding lost profits is estimated to be over $420,000. D) They should, only if the benefit of avoiding lost profits is estimated to be over $445,000.arrow_forward
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