Research Proposal: Quality Management System and Continuous

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[. . .] He was the one who had used statistical process control to raise productivity in U.S. factories during World War II. The two project methodologies are (Coronado, & Antony, 2002):

i. DMAIC- for improving an existing business process: The five phase pattern of the DMAIC are:

Define customer requirement: the basic requirement are limited to customer acceptance. The quality to improve on is based on customer experience and organizations have to be prepared for the unexpected from the customer.

Measure existing performance: Black belt experience is used here to apply the statistical tools. The three main areas of measurement are input measurement which includes raw materials and production specifications; measurement of the process flow which includes cost associated, time, skills and training required; and finally the measurement of output and level of customer satisfaction.

Analyze the existing process: The analysis involves evaluating whether the system is adding value to the process, providing necessary support required or is it adding no value to the system.

Improve the process: It requires a creative thought and rational view of the system. Cost benefit analysis is also being done to see what changes need to be brought about in the efficient utilization of resources.

Control the new process: it requires the routine and continual contribution of the management in the continuous improvement mechanism.

ii. DMADV-for creation of new projects or system design.

Define system goals that are parallel to customer demands and the corporate strategy.

Measure and identify factors critical to quality, product capabilities, manufacturing process capacity, and risk associated.

Analyze in developing and designing alternatives, creating and evaluating design and choosing best among the alternatives.

Design details, optimize the design, and plan for design verification. This phase is run simultaneously.

Verify the design, set up pilot projects and implement the production process

2.3. Implementing Six Sigma

Six Sigma for effective implementation needs overall implementation leader and required forming a steering committee at a senior level to provide a vision for the process and to oversee it. The principal responsibility of this committee will be to nominate process areas for improvement (Antony, 2004). Each area of improvement will constitute a separate project and will have its own Six Sigma project team and champion. The project team comprises of staff experiences in the process under observation. When the projects are of small scale, they will be the operational staff themselves. Staff involved in the leadership of projects may possess varying grades of qualification in Six Sigma which can be categorized as under (Calcutt, 2001):

a) Master Black Belt: these are in-house consultants in Six Sigma and dedicate all their time to it. Especially skilled in the statistical techniques and can work on several projects simultaneously.

b) Black Belts: they also dedicate all their time in Six Sigma and lead specific projects.

c) Green Belts: they also lead projects but they are managers who hold on to other job responsibilities together with Six Sigma.

Six Sigma projects requires large amount of training in both the capacity, for leaders and for process operating staff who builds up the project teams. Empowerment is the feature of the system in which improvements are expected to flow from the bottom to upwards. Team members are likely to entrust in bringing about the improvement work under review. During the implementation phase the project management techniques are applied while using Six Sigma.

2.4. Lean Strategy for Continuous Improvement:

Lean strategy to continuous improvement focuses on reducing waste and making operation process more efficient. Lean encourages value addition to the business through elimination of waste from the production process. Lean enables companies to get competitive edge on quality, delivery and price (Bhasin, & Burcher, 2006). Lean manufacturing is derived from the Toyota Production system-TPS and was named Lean in 1990s. It has been adopted by the industry for is popularity in reducing waste and improving customer satisfaction (Sahoo, Singh, Shankar, & Tiwari, 2007).

Since its origin was from the manufacturing background there is a misconception in the industry that Lean work well only for the manufacturing businesses. However the fact is it can do wonders for production and service both. Lean can be applied in any business and any type of processes. Lean principles are commonly applied in healthcare and government departments, banking services and hotel industry. For its effective implementation it requires a complete transformation of the prevailing business operations. Lean approach takes a long-term view of the process under review (Womack & Jones, 1994).

2.5. Lean and Sig Sigma Interrelated

The tool to continuous improvement and a way of quality management system through Lean and Six Sigma is often used inter-changeably. As they both focus on the core values of improving upon the process quality though optimum utilization of the resources and maintaining high level of customer satisfaction. Both these methods when applied together give a maximum output. Six Sigma is useful in applying statistical methods for controlling variation and output quality through the probability of eliminating the defects which increases waste and customer dissatisfaction. Whereas Lean manufacturing possess the capacity to improve speed of the process and reduce cost of wastage and unnecessary inventory pile up. Both these processes are committed to add value to the business processes, increasing the product and service quality and enabling companies to survive and improve in the highly competitive market place.

2.6. Industrial application of lean / six sigma

In the research paper the industrial application of Lean / Six Sigma will be on the following four sectors of the economy:

1) Service Industry

2) Manufacturing Industry

3) Construction Industry

4) Mining Industry

2.6.1 Lean / Six Sigma in Service Industry

Lean Six Sigma originally developed to improve quality by eliminating waste and building strong customer satisfaction. Many of the service firms are also now adopting this technique to make the business process more effective and efficient. Banks have been using this tool as their strategy towards growth, lowering operating cost and improving customer satisfaction through stringent customer complaints resolution mechanism. To look at how Six Sigma works for banks this research proposal has analyzed the Six Sigma strategy used by Citibank.

Citibank has set up the corporate goal of becoming a 'premier financial company'. To achieve this target it has decided to implement quality management tool that satisfies customer in real time without any fault wherever in the globe the bank is operating with its client. Citibank took up the challenge of implementing the Six Sigma strategy to its financial organization. It started off by identifying well-known manufacturing management theories and implements these to their non-manufacturing environment.

They had adopted methodologies like cycle time reduction-CTR, along with the defect detection by applying Six Sigma methods and implement internationally through empowered teams which have resulted in considerable improvements in the process time line, cash management and customer allegiance and satisfaction. Identification of defects by using Six Sigma is done by the employees identifying fundamental hurdles in achieving customer satisfaction at Private Bank then they use Six Sigma program to correct the problem. Citibank had targeted itself in reducing the defects and cycle time by 10 times and this will get doubled after every two years. Solution of the problem through Six Sigma was made by using a simple tool known as Pareto chart. The chart highlights the most occurring problem or the problem that covers most of the cost. This chart provides confirmation on which problem to be rectified first. The implementing team constituted bankers and operations staff that observe the whole process and tabularize the defects analyzing them on the Pareto chart. Citibank has also implemented this system of metric in their Global cash management group and account opening department. Thus all the business functions of the Citibank operations had undergone transformation with the Six Sigma approach.

The results of Six Sigma process through CTR was quiet appreciating. CTR has faced the challenges of many of the Citibank group which also includes reduced internal call backs by 80%, external call backs by 85% and credit processing time by 50% in the private bank- Western Hemisphere and global equipment finance has decreased the credit decision cycle from 3 days to 1 day. The success credit also goes to the level of commitment shown by the team members that had freedom to make decisions and the involvement of senior sponsors in the continuous improvement process. The quality director for Citibank in Czech Republic Peter Klimes had said:

"Our senior country operations officer and our corporate bank head were our most active supporters of our CFPM projects. Their commitment helps balance back- and front-office aspects of the projects."

Hospitals and clinics have been found with the problem of patient waiting time. Due to the tight schedule many of the patients are not willing to have long waiting time because of which they are reluctant to take appointments or in many cases go for the clinics which have long… [END OF PREVIEW]

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Quality Management System and Continuous.  (2011, April 11).  Retrieved April 19, 2019, from https://www.essaytown.com/subjects/paper/quality-management-system-continuous/6972687

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"Quality Management System and Continuous."  11 April 2011.  Web.  19 April 2019. <https://www.essaytown.com/subjects/paper/quality-management-system-continuous/6972687>.

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"Quality Management System and Continuous."  Essaytown.com.  April 11, 2011.  Accessed April 19, 2019.
https://www.essaytown.com/subjects/paper/quality-management-system-continuous/6972687.