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Six Sigma performance for non-normal processesAuthor-Name: Aldowaisan, Tariq

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  • Nourelfath, Mustapha
  • Hassan, Jawad

Abstract

Six Sigma is a widely used method to improve processes from various industry sectors. The target failure rate for Six Sigma projects is 3.4 parts per million or 2 parts per billion. In this paper, we show that when a process is exponential, attaining such performances may require a larger reduction in variation (i.e., greater quality-improvement effort). In addition, identifying whether the process data are of non-normal distribution is important to more accurately estimate the effort required to improve the process. A key finding of this study is that, for a low kσ level, the amount of variation reduction required to improve an exponentially distributed process is less than that of a normally distributed process. On the other hand, for a higher kσ level, the reverse scenario is the case. This study also analyzes processes following Gamma and Weibull distributions, and the results further support our concern that simply reporting the Sigma level as an indication of the quality of a product or process can be misleading. Two optimization models are developed to illustrate the effect of underestimating the quality-improvement effort on the optimal solution to minimize cost. In conclusion, the classical and widely used assumption of a normally distributed process may lead to implementation of quality-improvement strategies or the selection of Six Sigma projects that are based on erroneous solutions.

Suggested Citation

  • Nourelfath, Mustapha & Hassan, Jawad, 2015. "Six Sigma performance for non-normal processesAuthor-Name: Aldowaisan, Tariq," European Journal of Operational Research, Elsevier, vol. 247(3), pages 968-977.
  • Handle: RePEc:eee:ejores:v:247:y:2015:i:3:p:968-977
    DOI: 10.1016/j.ejor.2015.06.036
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    References listed on IDEAS

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    1. Nourelfath, Mustapha, 2011. "Service level robustness in stochastic production planning under random machine breakdowns," European Journal of Operational Research, Elsevier, vol. 212(1), pages 81-88, July.
    2. Hsu, Ya-Chen & Pearn, W.L. & Wu, Pei-Ching, 2008. "Capability adjustment for gamma processes with mean shift consideration in implementing Six Sigma program," European Journal of Operational Research, Elsevier, vol. 191(2), pages 517-529, December.
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    Cited by:

    1. Adcock, C J & Meade, N, 2017. "Using parametric classification trees for model selection with applications to financial risk management," European Journal of Operational Research, Elsevier, vol. 259(2), pages 746-765.
    2. Andrea Sujova & Lubica Simanova & Katarina Marcinekova, 2016. "Sustainable Process Performance by Application of Six Sigma Concepts: The Research Study of Two Industrial Cases," Sustainability, MDPI, vol. 8(3), pages 1-21, March.
    3. CHEN, Piao & YE, Zhi-Sheng, 2018. "A systematic look at the gamma process capability indices," European Journal of Operational Research, Elsevier, vol. 265(2), pages 589-597.
    4. Jana Fabianová & Jaroslava Janeková & Daniela Onofrejová, 2017. "Cost Analysis of Poor Quality Using a Software Simulation," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 181-181, February.
    5. Mustapha Nourelfath & Tariq Aldowaisan & Jawad Hassan, 2016. "Evaluating Six Sigma failure rate for inverse Gaussian cycle times," International Journal of Production Research, Taylor & Francis Journals, vol. 54(20), pages 6092-6101, October.
    6. Lepore, A. & Palumbo, B. & Castagliola, P., 2018. "A note on decision making method for product acceptance based on process capability indices Cpk and Cpmk," European Journal of Operational Research, Elsevier, vol. 267(1), pages 393-398.
    7. Kim, Yongjae, 2017. "The effect of process management on different types of innovations: An analytical modeling approach," European Journal of Operational Research, Elsevier, vol. 262(2), pages 771-779.

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