Six Sigma has been successfully deployed across organizations all around the world. It is a data-driven methodology built around a framework to identify and reduce defects and variation in critical organization processes. It addresses the accuracy and consistency of these processes. Six Sigma also helps to build a culture of continuous improvement through its prescriptive framework.
Lean originated in a manufacturing setup but its concepts have found application across a range of industries. Unlike Six Sigma, it addresses the speed and efficiency of a process by identifying waste and eliminating non-value adding activities from it. This also helps simplify it. Studies have shown that the cost of poor quality, the cost associated with defective products or services, increases as the number of steps or the complexity of a process increases. Probability of defects being generated goes up as the number of steps increase. This results in greater reworking, and this of course costs money.
Lean Six Sigma is a combined approach that utilizes the strengths of the two methodologies. The two approaches complement each other well. By combining the two approaches, organizations and businesses will find dramatic improvements.
The next chapter describes the life cycle and process of implementing Lean Six Sigma in an organization.
Which of the following statements is true about Six Sigma quality?
Motorola invented Six Sigma methodology
Six Sigma implies 3.4 defects per million opportunities
Six Sigma is a statistics and data-driven methodology
All of the above
Which of the following statements is not correct?
Accuracy is indicated by measures of central tendency
Precision implies the gap between actual and target performances
Precision is measured by standard deviation
Precision is an indication of variation within the process
The equation Y=f(X) is at the core of Six Sigma methodology. Which of these statements is not correct?
Y is a dependent variable and X is an independent variable
Y is an independent variable and X is a dependent variable
Y should be controlled and X should be monitored
Both B and C
Which of these statements is correct in view of Lean principles?
Waste is any non-value added activity in a process that should be eliminated
Process cycle efficiency is an indicator of the time taken by value added activities as the percentage of the total process time
The lower the number of steps in a process, the higher the velocity of the process
All of the above
Six Sigma does not focus on:
Reduction of defects
Improving the cost of poor quality
Reduction of variation
Eliminate NVA
Lean does not focus on:
Reduction of variation
Eliminating waste
Reduction of defects
Improvement in process velocity
Sigma Level indicates:
Closeness of process performance to the customer requirements
Variation in the process
Capability of the process
All of the above
Lean Six Sigma methodology:
Is applicable only for manufacturing organizations
Has cost saving as the primary objective
Has not been effective in service organizations
None of the above
Answers: 1 – D; 2 – B; 3 – D; 4 – D; 5 – D; 6 – C; 7 – D; 8 - D