Critical Requirements

Six sigma projects can be directed at any number of CTX (critical to X) requirements as given below:

1. Critical to Quality (CTQ)

2. Critical to Delivery (CTD)

3. Critical to Price (CTP)

4. Critical to Safety (CTS)

Let us look at a few examples for each of the CTX requirements.

Critical to Quality (CTQ)

• Critical to quality improvement projects may include:

• Simplifying product designs Aligning product designs with customer requirements.

• Meeting current marketplace quality levels.

• Exceeding current marketplace quality levels.

• Exceeding reliability and maintainability requirements.

• Exceeding product appearance expectations.

• Meeting technical requirements Providing products that are more durable.

Cost of Quality (COQ)

Cost of quality improvement projects may include Reducing internal rejections.

• Reducing external rejections

• Minimizing salvage and sorting operations

• Reducing warranty claims

• Reducing product variation

• Reducing process variation

• Reducing various forms of waste

Eliminating unnecessary inspections Critical to Delivery (CTD). Critical to delivery improvement projects may include:

• Providing exact amounts of product.

• Providing service within a specific time interval.

• Ensuring immediate responses to customer questions

• Providing a product or service on the proper day and time

• Providing more rapid field service

• Providing cost-effective delivery methods

• Meeting customer packaging requirements.

• Minimizing shipping damage.

Critical to Price (CTP)

Critical to process improvement projects may include:

Designing products that are easier to assemble.

• Minimizing changeover times

• Reducing in-process inventories

• Minimizing product touch times

• Optimizing work cell design

• Streamlining internal work flows

• Reducing process flow variation

• Enhancing process velocity

• Eliminating redundant operations

• Maximizing product yields

• Speeding up operations

• Reducing cycle times

• Minimizing equipment downtime

• Maximizing preventative maintenance

• Performing value stream mapping

Critical to Safety (CTS)

Critical to safety improvements may include:

• Simplifying tasks

• Mistake proofing operations

• Providing operator visual prompts

• Providing safety cut-off devices

• Using warning alarms

• Providing adequate employee training

• Providing clear written instructions

• Protecting both operators and equipment from damage

• Making products that are user-friendly

• Providing constraints to prevent incorrect product use

• Providing back-up redundancies for critical processes

• Conducting safety reviews Expanding prototype testing

A process-focused business constantly realigns processes to remain capable of meeting changing market demands. Only by gaining predictability can an enterprise truly maintain capable processes to changing customer demands. Three key terms that help us define process capability are:

Process Baseline: Process baseline is the average, long-term performance level of a process when all the input variables in the process are running in an unconstrained fashion.

Process Entitlement: Process entitlement is the best case, short-term performance level of a process when all the input variables in the process are centered and in control.

Process Benchmark: Process benchmark is the performance level of the process deemed by comparison to the best process possible. It takes us to the best that anyone has ever done. In practical terms this means researching and finding the best that has ever been done in the industry. Six Sigma facilitates in understanding variation in our business processes!!!

Cost of Poor Quality (COPQ).

Traditional Cost Concept:

Most companies utilize financial reports which compare actual costs with budgeted costs. The difference is called a variance and, if significant, may prompt management action. Departmental budgets may also be established with the results reported on a monthly or quarterly basis. These costs are necessary to carry out the functions of each department, including the control of product and process quality. The responsibility for financial control usually rests at the departmental or plant level. Until the 1950s, few, if any, companies focused any attention of the costs of poor quality. These results were hidden among various labor, material and miscellaneous expense categories. Only the most obvious quality department charges were identified.

Six sigma projects can be directed at any number of CTX (critical to X) requirements as given below:

1. Critical to Quality (CTQ)

2.Critical to Delivery (CTD)Critical to Price (CTP)Critical to Safety (CTS)

Let us look at a few examples for each of the CTX requirements.

Critical to quality improvement projects may include:

Simplifying product designs Aligning product designs with customer requirements.

• Meeting current marketplace quality levels.

• Exceeding current marketplace quality levels.

• Exceeding reliability and maintainability requirements.

• Exceeding product appearance expectations.

• Meeting technical requirements Providing products that are more durable.

Cost of Quality (COQ)Cost of quality improvement projects may include

• Reducing internal rejections.

• Reducing external rejectionsMinimizing salvage and sorting operations

• Reducing warranty claimsReducing product variationReducing process variation

• Reducing various forms of waste

• Eliminating unnecessary inspections Critical to Delivery (CTD).

• Critical to delivery improvement projects may include:

• Providing exact amounts of product.

• Providing service within a specific time interval.

• Ensuring immediate responses to customer questions

• Providing a product or service on the proper day and time

• Providing more rapid field service

• Providing cost-effective delivery methods

• Meeting customer packaging requirements.

• Minimizing shipping damage.

Critical to Price (CTP)Critical to process improvement projects may include:

• Designing products that are easier to assemble.

• Minimizing changeover times

• Reducing in-process inventories

• Minimizing product touch times

• Optimizing work cell design

• Streamlining internal work flows

• Reducing process flow variation

• Enhancing process velocity

• Eliminating redundant operations

• Maximizing product yields

• Speeding up operations

• Reducing cycle times

• Minimizing equipment downtime

• Maximizing preventative maintenance

• Performing value stream mapping

Critical to Safety (CTS)Critical to safety improvements may include:

• Simplifying tasksMistake proofing operationsProviding operator visual prompts

• Providing safety cut-off devicesUsing warning alarmsProviding adequate employee training

• Providing clear written instructionsProtecting both operators and equipment from damage

• Making products that are user-friendly

• Providing constraints to prevent incorrect product use

• Providing back-up redundancies for critical processes

• Conducting safety reviews Expanding prototype testing

• Providing protective devices when applicable