“Statistical Quality Control” by Diana Montgomery

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Effects of Eight Components on Quality of Services and Products to Consumers

Consumers usually go for quality services and products. According to Montgomery, knowing how to improve quality is crucial in growth of business enterprise (9). Improved quality has great reward to business owners. Indeed, there are eight various components of quality (Montgomery 11). Customers normally analyze goods and services in order to know whether such products will perform particular functions. In fact, consumers normally go for products that preformed best. Secondly, complex goods like automobile products need to be repaired to improve their performance. Moreover, goods that needs frequent repairs are unreliable. Thirdly, costumers normally like goods and services that are durable. For example, customers are interested to go for durable automobile products that can serve them for longer service life. Fourth, many consumers also consider how economical and easily would it take to repair and maintain such goods. Fifth, customers are interested in products which appeal visually (aesthetics). In addition, manufacturing industries normally like to make products that appeal in terms of sensory features to distinguish their goods from other competing firms. This is done to attract customers. Sixth, consumers normally look for products that posses extra features beyond essential specification. Costumers usually like products made of superior quality which other competing products lack. Seventh, consumers usually purchase products from reputation manufacturing companies. Such reputations would be determined by quality of goods manufactured, and how customers are handled by various companies. Lastly, consumers usually go for products that are designed exactly to meet intention of a manufacturing company. Indeed, goods of high quality have to fulfill labeled requirements of various products. For example, Automobile parts which do not fulfill expectations of the maker thus will cause difficulties to consumers. Moreover, when automobile parts are designed slightly smaller or bigger, several components of motor vehicle will not function and perform what is it intended for.

Differentiate between quality improvement and control, quality planning and quality assurance

According to Montgomery, quality improvement is focused to reduce products wastage (22). Indeed, this is vital in business managements. Quality planning is an important policy that aims to promote long term success in business objectives. Furthermore, quality planning is focused to enhance financial strategy, effective exploitation of human resources, marketing policy and goods development strategy (Montgomery 22). “Ineffective quality planning will lead to wastage of finance, expertise skill and time of a business organization” (Montgomery 22). Ineffective business determination encounters consumer complaints, making defective products and failure in field tasks (Montgomery 11). In fact, quality planning aims at satisfying consumers’ need. Quality planning must adopt eight components (listed in section 1) that promote quality of services and products. Actually, business organizations need to engage in quality improvement.

On the other hand, Quality assurance refers to activities which are employed to promote and maintain quality of services and goods. Actually, quality assurance is aimed at handling customer-supplier quality issues (Montgomery 23). Indeed, “quality assurance normally practices documentation of: records, procedures, task specification, and policy focused to enhance quality of products” (Montgomery 23). In fact, Montgomery viewed that business records are important since it can be used to tracks reports about consumers’ complaints and to provide corrective measures in business management (23). Indeed, quality assurance ensures that all business procedures, and policies, records and task specifications are followed in management of business (Montgomery 23). Actually, “such documentation will develop work specifications in personnel management of a business organization”.

According to Montgomery, quality improvement and control refers to business activities which are focused to fulfill satisfying expectation of consumers (24). In this case, quality improvement and control is aimed to improve quality of goods and services. Actually, Montgomery explained that quality improvement is achieved through use of personnel management which adopts specialized insight in business experience and statistical skills (24). Such strategies are adopted need to instill positive impacts in the current business operations.

Significance of Sigma-Six in Business Operation

According to Montgomery, Six-Sigma is an experience of business management that is used to develop business operations in the modern world (52). Six-Sigma is adopted to attain significant effects of business transactions. Actually, Six-Sigma is a sequence of business events which delivers positive outputs which develop business organizations. Indeed, every business activity is interconnected with other activities in business organizations. Moreover, Six-Sigma ensures that business processes are necessary and thus has to be improved. Initially, six-sigma was used manufacturing industries, but later it was adopted in public sectors, banking, finance and various services in business operation (Montgomery 56). In fact, Six-Sigma is aimed to reduce wastage of business resources that can be experience in long queues and ineffective task outputs.

In fact, a business company can achieve Sigma-six much faster if its business operation eradicates wastage of business resources. Actually, Montgomery viewed that most business organizations normally operate at the level of Sigma three. These show that such business organizations undergo losses because of poor quality of their business operations. Indeed, business firms that operate at Sigma six are more efficient in terms of profit and saving gains in business engagement (60).

Quality control is commonly utilized to promote quality of business products. Indeed, six sigma has capability to develop highest quality of products by reducing defects. Actually, six sigma produce high quality (99.9%) of manufactured goods with little 3.4 defects. While business projects that operate at three sigma normally achieve 50% accuracy rate due to 66810 defects. Furthermore, six sigma minimizes cost by promoting accuracy rate (99.9). Six sigma usually integrate employees to provide highest quality of products. Indeed, defects that exist in three sigma normally hinder production of high quality products. Six sigma is convenient to attain high quality objectives while three sigma is suitable to carry out a certain business process.

Suppose that a certain business company operate at level of three sigma. In addition, such business project achieves 50% annual improvement rate. The question behind this to determine how such business operation will take to attain six sigma. It is important to note that three sigma is rated at 66807 ppm. In addition, when a business attains 50% improvement rate means that such business rates at 3404 ppm to attain six sigma. Relying on such calculation, a business firm that improves 50% yearly will take a period of 14.5 years in order to attain six sigma.

Calculations

The DPMO values of three and six sigma are:

Three sigma = 66, 800 DPMO = 99.73% efficiency
Six sigma = 3.4 DPMO = 99.9997% efficiency

The following instructions should be used to get numbers of years that three sigma have to take in order to attain six sigma:

Get units numbers delivered, quantity of defects and defects per unit.
Calculate DPMO units.
Make use of DPMO to calculate quantity of defects.

Calculate quantity of units produced:

Units produced = DPMO ÷ quantity of defects.
Units produced = 66, 800 ÷ 0.408

In order to calculate number of years, use: Y = YFF = e (66, 800) ÷ 3 = 14.5 years.

Works Cited

Montgomery, Diana. Introduction to Statistical Quality Control. New York: John Wiley & Sons, Inc, 2009. Print.

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“Statistical Quality Control” by Diana Montgomery

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