Six Sigma Tools and Decision-Making Models | Free Essay Example

Six Sigma Tools and Decision-Making Models

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Topic: Business & Economics
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DMADV

The DMADV framework is typically viewed as the auxiliary tool used along with the DMAIC approach as a part of the Six Sigma philosophy. DMADV involves the following stages: Define, Measure, Analyze, Design, Modify (Kubiak & Benbow, 2009a). As shown above, the framework does not have the control- and improvement-related elements and is, therefore, aimed at improving the quality of the products or services that are yet to be released. Alternatively, the model is used when DMAIC fails (Kubiak & Benbow, 2009c).

For example, when reconsidering the system of performance management in a company, one should view the application of the DMADV approach. Indeed, starting from scratch, one will need to abstain from using the DMAIC concept and, instead, apply the alternative.

Similarly, if a company aims at increasing its annual yield rate by incorporating an entirely new principle into its financial strategy, the use of the DMADV strategy must be considered. In this case, the framework will serve as the means to test the newly designed system.

DMADOV

Another tool that was sparked by the Six Sigma philosophy, the DMADOV framework involves the following stages: Define, Measure, Analyze, Design, Optimize, Verify (Kubiak & Benbow, 2009a). Therefore, it can be viewed as an improved version of the DMADV concept. The framework can be applied to the tasks that focus on the optimization process, such as testing different modifications of a device before its release into the market.

Porter’s Five Forces

The framework is used to conduct an analysis of a particular market to evaluate the changes of a product to become successful in it.PFF includes the bargaining power of buyers and suppliers, as well as the threat of substitutes and new entries, which comprise the industrial rivalry (Kubiak & Benbow, 2009d). For example, a company producing fast food may conduct the PFF analysis to find out about the following threats and opportunities:

Table 1. Porter’s Five Forces Analysis for a Fast Food Company

Bargaining power of buyers High: customer satisfaction defines the company’s revenues
Bargaining power of suppliers Low: the suppliers do not define the course of the industry’s development
Threat of substitutes High: new modifications of fast food emerge often and can be deemed as innovative
Threat of new entries Moderate: although new companies emerge regularly, they need to build a strong competitive advantage to survive
Industrial rivalry High: the competition rates are very high

Therefore, the chances of an average organization to gain a competitive advantage in the food industry are moderate (Kubiak & Benbow, 2009b).

Hoshin Planning

The Hoshin Planning System is a framework for planning a strategy used to address a particular problem and promote improvements in the organization. The model includes seven steps, which are:

  • Creating organizational vision;
  • Setting breakthrough objectives;
  • Setting annual objectives;
  • Designing the Hoshin Plan Matrix for the annual objectives;
  • Meeting annual objectives;
  • Carrying out an annual review.

For instance, the Hoshin Planning system can be used to improve operations at a textile producing company by setting the design of a brand item of clothing as the breakthrough objective and selling 50,000 items as the annual objective.

TRIZ

Originating from the Russian “teoriya resheniya izobretatelskikh zadach” (Kubiak & Benbow, 2009d, p. 426) and typically rendered as the theory of solving tasks related to inventions, TRIZ, or TIPS (“Theory of Inventive Problem Solving” (Kubiak & Benbow, 2009d, p. 426)) allows generating inventive solutions to practical problems. The theory can be applied to come up with the product that could satisfy the needs of the target audiences that can be designed as strikingly different from each other. For example, TRIZ can be used to design the product that could satisfy the needs of both practical customers and those that enjoy original items.

Pugh Analysis

Pugh Matrix is a decision-making model that serves to identify the best option possible against a specific baseline (Kubiak & Benbow, 2009d). For instance, the matrix can be used to figure out which of the brands designed by a perfume company is most likely to attract the attention of women aged 30-40.

Reference List

Kubiak, T. M., & Benbow, D. W. (2009a). Chapter 39. Common DFSS methodologies. In The Certified Six Sigma Black Belt handbook (2nd ed.). (pp. 414-415). Milwaukee, WI: ASQ.

Kubiak, T. M., & Benbow, D. W. (2009b). Chapter 40. Design for X (DFX). In The Certified Six Sigma Black Belt handbook (2nd ed.). (pp. 416-418). Milwaukee, WI: ASQ.

Kubiak, T. M., & Benbow, D. W. (2009c). Chapter 41. Robust design and process. In The Certified Six Sigma Black Belt handbook (2nd ed.). (pp. 419-423). Milwaukee, WI: ASQ.

Kubiak, T. M., & Benbow, D. W. (2009d). Chapter 42. Special design tools. In The Certified Six Sigma Black Belt handbook (2nd ed.). (pp. 424-430). Milwaukee, WI: ASQ.