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Six Sigma is a method that provides organizations tools to improve the capability of their
business processes. This increase in performance and decrease in process variation lead to defect
reduction and improvement in profits, employee morale, and quality of products or services. Six
Sigma quality is a term generally used to indicate a process is well controlled (within process
limits 3s from the center line in a control chart, and requirements/tolerance limits 6s from the
center line).
Lean manufacturing makes obvious what adds value, by reducing everything else (which
is not adding value). This management philosophy is derived mostly from the Toyota Production
System (TPS) and identified as "lean" only in the 1990s.
The process capability index or process capability ratio is a statistical measure of process
capability: the ability of a process to produce output within specification limits. The concept of
process capability only holds meaning for processes that are in a state of statistical control.
Six Sigma, on the other hand, is different as it focuses on taking quality improvement
processes to the next level. The basic difference between Six Sigma and TQM is the approach.
While TQM views quality as conformance to internal requirements, Six Sigma focuses on
improving quality by reducing the number of defects.
Normal distribution, or curve, has a bell shape and is symmetrical: This is a property of the
normal distribution. Another property is that 'mean = median = mode.' This is because the shape of the
data is symmetrical with one peak.
COPQ consists of those costs which are generated as a result of producing defective material.
This cost includes the cost involved in fulfilling the gap between the desired and actual
product/service quality. It also includes the cost of lost opportunity due to the loss of resources
used in rectifying the defect. This cost includes all the labor cost, rework cost, disposition costs,
and material costs that have been added to the unit up to the point of rejection. COPQ does not
include detection and prevention cost.
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