Six Sigma: SPC and TQM in Manufacturing and Services

K. Narasimhan (Bolton Business School Bolton Institute, UK)
Sue White (Marketing Executive Gower Publishing Swhite@gowerpub.com)

The TQM Magazine

ISSN: 0954-478X

Article publication date: 1 June 2001

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Keywords

Citation

Narasimhan, K. and White, S. (2001), "Six Sigma: SPC and TQM in Manufacturing and Services", The TQM Magazine, Vol. 13 No. 3, pp. 201-202. https://doi.org/10.1108/tqmm.2001.13.3.201.1

Publisher

:

Emerald Group Publishing Limited


Many organisations have come to realise that achieving zero‐defect goods and services can lead not only to customer satisfaction but also led to improved internal efficiency and reduced costs. Six Sigma quality and management programme has been a key basis for the success of multinational companies such as Motorola. But many managers, especially in the service sector, have doubted the efficacy of using manufacturing‐based statistical process control techniques. This highly readable book by Tennant may help such managers to overcome their scepticism, as he gives apt examples from the service industry.

The author is an independent management consultant specialising in strategy and Six Sigma. He has worked for three years as quality project manager in a European division of GE Capital, a finance division of General Electric, USA. Thus, he has direct experience of implementing Six Sigma quality principles and practices into a service industry.

The book comprises seven chapters. The topics of “What is Six Sigma” and “Implementing Six Sigma in practice” are covered in the two longest chapters (30 pages each). The other topics covered include the development of quality movement, understanding the organisation and customer, the vision and benefit of Six Sigma. Some key pointers for introducing and using Six Sigma in a range of small to large, global organisations is given in the Appendix.

Chapter 1 is devoted to dealing with the development of quality concepts, theories and practice from the pre‐industrial era. In particular the author briefly traces the circular movement of quality practices originating in America, going to Japan after the Second World War, and returning to America (in the form of TQM) to complete the circle.

In Chapter 2, he deals with the basics of the new concept of Six Sigma. After briefly explaining the new paradigm and the methodology and statistical basis of Six Sigma, he covers in some depth the key statistical issues involved with Six Sigma as a quality methodology. Understanding the organisation and understanding the customer form the topics of Chapters 3 and 4 respectively. In Chapter 3, he explores the concept of core or essential value‐adding activities and enabling or non‐value‐adding activities of organisations. Examples of core and enabling processes for both manufacturing and services are provided. He points out that the aim of quality initiatives must be to make enabling processes more efficient and enhance the core processes. The concepts of internal and external customers, the importance of non‐customers (who have gone elsewhere) and not‐customers (who have not consumed the service) are briefly explored in Chapter 4. Also briefly described is the methodology for conducting customer research to identify customers’ voices for segmenting them. A brief explanation is given of Professor Noriaki Kano’s classification of customer needs into “delighters”, “must‐haves”, and “one‐dimensional”.

Chapter 5 is devoted to explaining the benefits that accrue from adopting Six Sigma quality initiative and methodology. Also briefly explained is the savings that can be made by supplier and customer partnering to reduce transaction costs. The following chapter deals with the key topic of Six Sigma implementation: preparation and launching, learning and improving, and mastering. Also described is a five‐stage methodology comprising the following stages: pre‐work to identify and clarify suitable projects; defining the project in terms of aims, goals, roles, responsibilities, and accountability; measurement of performance; analysis of facts; improvement and control. Three examples of successful Six Sigma initiatives conducted over a two‐year period are briefly described. The author emphasises the need for visible leadership from the top management for the initiatives to succeed.

In the concluding chapter Tennant looks to the future. He points out that organisations seem to level out at a maximum process performance of three sigma and that a higher level performance up to four sigma (often a limit set by inherent capabilities of the process) is relatively easy to achieve using simple quality improvement projects. He warns that simple efforts alone will fail often to provide net benefits, and would necessitate the redesign of the process and the injection of new technology. Six Sigma initiative itself is a process and hence it also must evolve and adapt to the changing needs of the organisation. He emphasises that process‐ownership is the responsibility that comes with the idea of process‐management being the way forward to making an organisation more responsive and adaptable to change. He warns against instituting excessive control of staff in trying to reduce variation (p. 116):

If the aim is to remove all traces of variation and slack from a process, then doing so by rigid control of staff is a serious mistake. It must be clear that control is applied to processes and variation, which are the enemy, not the employees.

The text is well written and easy to read. A summary of the key points covered in a chapter is given at the end of the chapter. The book should be useful for quality professionals, senior management and directors, as well as practitioners. However, the introduction of a paperback edition may also motivate students to purchase this book.

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