MGT 424 Saudi Electronic University Six Sigma Implementations Discussion

3rd Assignment
Instructions to search the case study:
1. Via your student services page, log in to the Saudi Digital Library.
2. After your login with your student ID, search for the following article:
QUALITY IMPROVEMENT IN PRODUCTION ENTERPRISE. CASE STUDY.
By KONIECZNA, Monika1
ISSN number: 1641-3466
Learning Outcomes:
1. Recognize the importance of quality management theory, principles, and practices applied in
businesses on national and international levels. (CLO1)
2. Use quality improvement tools and practices for continuous improvement to achieve the
organizational change and transformation. (CLO3)
Quality Improvement in Production Enterprise Case Study
This paper examines the different meaning of quality and its relation to the companies` continuous development
efforts. In this article, the six-sigma tool as one of the common quality approach was discussed and presented
intensively through a case study application in a book printing company.
Read the case study thoughtfully and answer the following questions:
1- Discuss the different quality term as presented by the author. Which one of these terms is more
practical from your point of view? ( 250 – 300 words – 3.5 points)
2- Describe the printing company` production process current state. Which one of the current issues
listed is more critical and why? ( 250– 300 words – 3.5 points )
3- Do you think the proposed actions for improvements are efficient? Explain. ( 200– 300 words –
3 points )
Answers
1. Answer2. Answer3. Answer4. Answer5. Answer-
ZESZYTY NAUKOWE POLITECHNIKI ŚLĄSKIEJ
Seria: ORGANIZACJA I ZARZĄDZANIE z. 119
2018
QUALITY IMPROVEMENT IN PRODUCTION ENTERPRISE.
CASE STUDY
Monika KONIECZNA
Politechnika Poznańska, Wydział Inżynierii Zarządzania; monika.t.konieczna@doctorate.put.poznan.pl
Abstract. The main objective of this paper is to determine the meaning of quality in present
enterprise as well as its influence for the continuous development. There is shown comparison
of chosen quality management conceptions as well as description of one of them, Six Sigma
which is an innovative approach to quality. Presented case study was developed in a printing
company specialized in production of books in hard covers. This study presents the
proposition of improvement to increase the effectiveness of the production process.
Keywords: quality management, process improvement.
1. Introduction
In recent years, it may be noticed a huge pressure on enterprises to maintain and develop
high quality level in organization, and at the same time to decrease ineffectiveness and reduce
the number of errors. In order to gain and keep customers, organizations have to compete with
each other. Sometimes it may be difficult, because present enterprises show very good
adaptation to upcoming changes. It is essential to understand that the most important in
quality management is to satisfy customers’ needs, because the customers are the factor which
drive the market economy nowadays. There are many different conceptions, methods and
tools that may be used to maintain the good quality level and help in continuous development
in the company. One example of well-known conception is Six Sigma which is an innovative
method introduced in Motorola by Bob Galvin and Bill Smith in the middle of the eighties.
The article focuses on presenting the term of quality and emphasize its role in continuous
development in production enterprise. It also shows differences between conceptions of
quality management and describe one of them in details. Knowing all main conceptions,
methods and tools the company can freely decide which is adequate to its brand and activities
and which to use in specific situations. Presented case study shows the bottleneck which
appears during production process in one of the printing company. There is shown the whole
152
M. Konieczna
analysis of the problem as well as proposition of improvement which may be introduce in
order to increase the effectiveness of the whole process.
2. Quality improvement
There are many different definitions of quality which can be found in literature
(Słowiński, 1996). Generally, quality is defined as the sum of characteristics of a product or
service which gives the opportunity to meet the customer’s needs (Rogoziński, 2000). This
definition can be completed by the definition of quality management, as a continuous
improvement of everything which is performed in the organization in aspects of quality using
well-known methods and with the participation of all employees. According to ISO norm
9000, quality is “degree to which a set of inherent characteristics fulfils requirement” (PN-EN
ISO 9000:2006 – polish version).
The evolution of the term quality may be presented as follows:
 Quality is efficiency in use – J.M. Juran, 1970,
 Quality meets customers’ needs – T. Ishikawa, 1980,
 Quality is something when missing means loss for everybody – G. Taguchi, 1980,
 Quality means zero defects – P.B. Crosby, 1985 (Rączka, 1993).
Nowadays, it may be seen that quality is one of the basic factors which decides about
company’s competitiveness. Quickly changes environment requires from enterprises easily
reacting for them. The company is forced to search for new conceptions and methods of
development. Contemporary environment is characterized by process globalization,
shortening the life-cycle of products and technology. Scientific and technological
development, increased level of education, easy migration of all resources, high distribution
of technology and information, are the chances for organization to achieve better position in
the market and being more competitive (Łukasiński, 2013).
High-quality products and services give the company competitive advantage in domestic
and international market. Good quality increases productivity, while reducing costs, but what
is the most important, it creates satisfied customers who are more willing to buy the products
again and will also recommend the company to other buyers. When mass production has
started, there was a need to introduce quality control to the process and create separate quality
departments. During 1950’ W. Edwards Deming and Joseph Juran were invited to Japan to
help the companies in quality management. They strongly believed in importance of quality
and using statistical tools in order to improve quality. Nowadays, everyone may learn from
the Japanese that it is impossible not to pay attention to quality and that taking care of quality
issues is the responsibility of every employee in organization (Evans, 1992).
Quality improvement in production enterprise…
153
Quality improvement should be connected with a widely understood customer
satisfaction. However, sometimes it is really difficult to define the term of quality which may
be understood in several ways, because it is an individual and subjective evaluation of every
client (Bielawa, 2011). If the quality is assumed as a totality of meeting expectations relative
to acquired product or service it may happen that the same purchase will have different
evaluation from a different customer. Despite these variances it is worth to take care of
quality aspects. The issue is particularly important for everything which goes directly to the
customer. Therefore, it is observed at this time that in management practice many companies
tend to implement variety of instruments related to quality improvement (Lenik, 2011).
Starting from popularization of technical control in production enterprises, from XX
century intensive development of organization form, methods and range of quality
management has started. Especially, the last decades brought new conceptions in this field.
It is difficult to date particular phases of quality management, because they develop
differently in other countries or branch of economy.
Quality management can be divided into stages:
 technical control – it takes place in production enterprise, the objective of the control
is final product and its technical aspects,
 quality control – this stage claims that quality cannot be extorted from technical
controls, but it has to be created in enterprise, the responsibility for quality should be
taken from management and employees,
 quality development – this stage contains more functions of management, controls and
corrections, planning and control stimulating (Woźniak, 2008).
Main conception and standards of quality management are presented in the table below.
Data which may be compared are timeliness, range and dominant feature.
Table 1.
Comparison of chosen quality management conceptions
Conception/Standard
Quality management
system ISO 9000
Timeliness
Used since the 80’ XX
century until today
Standard compliancerequirements of
industry standards
TQM
Used since the 70’ XX
century until today
Known since the 80’ XX
century until today
Kaizen
Known since the 80’ XX
century until today
Six Sigma
Known since the 80’ XX
century, but widely
disseminated only from
last 10 years
Range
Used in every
organization. There is no
geographic, political and
cultural boundaries
Range limited to industry
Dominant feature
Formal and bureaucratic,
but allowing freedom in
the interpretation and
application
Formal and bureaucratic,
not flexible
Known and introduced to
organizations all over the
world
Used in organizations in
which Japanese culture
of work is accepted
For now limited, used
mostly in big
organizations
Appeal for common
commitment and
improvement
Similar to TQM
Based on planning of
venture which goal is to
measure the
effectiveness of activity
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M. Konieczna
cont. table 1
SPC (Statistical
Process Control)
Beginnings from the 30’
XX century (Shewhart),
but widely known during
70’ and 80’
Used in organizations
with mass production,
now a fixed component
in automotive industry
standards
Based on statistical tools
and methods
Source: Hamrol, 2007.
To achieve the goals and realize the tasks of every organization it is needed to have some
funds that enable to form the quality of the products at every stage of the product life cycle.
In literature different techniques and methods supporting quality management may be found.
They may be divided into:
 Conceptions and principles of quality management – by using the principles of quality
management in practice the organization can strengthen its position on the market,
increase the revenue and achieve other benefits. They help in establishing the strategy
and goals of the company. The examples can be TQM, Six Sigma or Kaizen.
 Tools of quality management – in quality management the strategic and operational
decisions at every stage of production process should be made based on facts. To gain
actual data, tools of quality management are essential. They are usually divided into
traditional and new tools. The examples are a block diagram, Ishikawa diagram,
Pareto diagram, histogram, correlation graphs, control card.
 Methods of quality management – the methods are more complex than tools. Using
methods of quality management requires knowledge from statistics, data processing
and consequence. In every method the set of tools are used. The examples can be:
Quality Function Deployment, value analysis, FMEA, Statistical Process Control
(Hamrol, 2017).
Although the term of quality is difficult to clearly define and measure, it is essential to
take care of it in an organization. The main determinant of quality nowadays is a customer
and his needs and expectations which should be met in order to achieve his satisfaction. The
companies need to focus on development and improvement of all the processes and in general
its functioning. Different types of quality management system may be found in different
organizations. It is important to choose the best practice adequate to the branch and activity of
the company.
3. The concept of Six Sigma
Six Sigma is an implementation of proven quality in organization. Sigma is a Greek letter
used in statistics to measure the variability in the process. The performance of the company is
measured by the sigma level in their process. Most of the companies agree on three or four
Quality improvement in production enterprise…
155
sigma performance levels as a norm, but it may be seen that in these cases the processes
create between 6210 and 66807 defects per million opportunities. In order to meet all the
customers’ needs and expectations that are still increasing, the Six Sigma program may be
introduced and implemented in organization. At the Six Sigma level there are 3.4 defects for
million opportunities. Six Sigma is based on reliable and valuable methods that are commonly
known. It refuses the whole complexity which characterizes Total Quality Management
(TQM). It was counted that there were around 400 different methods and tools connected with
TQM which may be overwhelming and difficult to implement and use. Six Sigma based on
smaller amount of methods and tools and trains leaders who are known as Master Black Belts
and have theoretical and practical knowledge about proven methods (Pyzdek, 2013).
Six Sigma may be characterized by six principles:
 concentration on customer,
 based on facts,
 process approach for improvements and management,
 proactive management,
 cooperation without boundaries,
 toleration of defects, but set for perfection (www.projekty.4innovations.pl/2009/08/
charakterystyka-metody-six-sigma).
Sigma Performance Scale is presented below in the form of table. It shows the defects per
million opportunities, percentage of good products and estimated cost or poor quality
according to Sigma level which may occur in organization.
Table 2.
Sigma Performance Scale
Sigma level
1 sigma
2 sigma
3 sigma
4 sigma
5 sigma
6 sigma
Defects for million
opportunities (DPMO)
690 000
308 537
(uncompetitive enterprises)
66 807
6 210 (average enterprises)
233
3.4 (world’s leaders)
Percentage of good
products
31%
69.14%
Estimated Cost or Poor
Quality (% Revenue)
>40%
30-40%
93.32%
99.38%
99.97%
99.99%
20-30%
15-20%
10-15%

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