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cost/benefit analysis. Irwin/McGrawHill 53 Six Sigma DMADV Process Measure Validate Define Analyze Design Validate: Test detailed design with a pilot implementation. If successful, develop and execute a fullscale implementation. Tools in this step include: planning tools, flowcharts/other process management techniques, and work documentation. 。 Management 7 Business Results 6 Process Management Information, Analysis, and Knowledge Management Irwin/McGrawHill 13 Malcolm Baldrige National Quality Award (2022) Leadership (120 points) Strategic Planning (85 points) Customer and Market Focus (85 points) Information and Analysis (90 points) Human Resource Focus (85 Points) Process Management (85 points) Business Results (450 points) Irwin/McGrawHill 14 Categories for the Baldrige Award ? Manufacturing panies or subsidiaries that: ? produce and sell manufactured products or manufacturing processes or ? produce agricultural, mining, or construction products. ? Service panies or subsidiaries that sell service ? Small businesses ? Education Institutions ? Health Care Organizations ? NonProfit (new) Irwin/McGrawHill 15 Characteristics of a Baldrige Award Winner ? The panies formulated a vision of quality and how they would achieve it. ? Senior management was actively involved. ? Companies carefully planned and anized their quality effort to insure effective initiation. ? They vigorously controlled the overall process. ? Studies have shown MBA Winners’ success. Irwin/McGrawHill 16 ISO 9000 ? Series of standards agreed upon by the International Organization for Standardization(ISO) ? Adopted in 1987 ? More than 100 countries ? A prerequisite for global petition? ? ISO 9000 directs you to: ? document what you do and then do as you documented. Irwin/McGrawHill 17 ISO 9000 Series ? 9001 ? Model for Quality Assurance in Design, Production Installation, and Servicing. ? 9002 ? Model for Quality Assurance in Production and Installation ? 9003 ? Model for Quality Assurance in Final Inspection Test Irwin/McGrawHill 18 Three Forms of Certification 1. First party: A firm audits itself against ISO 9000 standards. 2. Second party: A customer audits its supplier. 3. Third party: A qualified national or international standards or certifying agency serves as auditor. Irwin/McGrawHill 19 ISO 9000 versus the Baldrige Award ? Which should we pursue first? ? What are the differences between the two? ? Do you have to be ISO 9000 certified before going for the Baldrige Award? Irwin/McGrawHill 20 ISO 9000 versus the Baldrige Award Baldrige ISO 9000 QS 9000 Evans and Lindsay The Management and Control of Quality, Southwestern Books, p536. Irwin/McGrawHill 21 Costs of Quality: Categories ? Appraisal costs ? Prevention costs ? Internal failure costs ? External failure costs Irwin/McGrawHill 22 The 110100 Rule 1 10 100 ? Defects caught at their source cost the anization $1. ? Defects caught outside of the source department but within the anization cost $10. ? Defects that reach the external customer cost $100! Irwin/McGrawHill 23 Cost of Poor Quality Category Examples Failure – Costs – Internal Prevention Costs Reshipping Quality Administration Unnecessary Travel Time Quality Planning Repicking/Picking Quality Systems Design Unpacking/Storing Returns Calibration and Maintenance Reorder Time Production/Inspection Equipment Crediting Time Vendor Assessment Quality Training Failure Costs – External Appraisal Costs Loss of Sales Ining Test and Inspection Complaints InProcess Inspection Returns Final Inspection Warranty Claims Sampling Procedures Quality Audits Irwin/McGrawHill 24 COPQ Pr