Case Study:

ABC Company recently discovered that the costs due to shipment of defective items had risen to an alarming level. To correct the situation, they decided to implement a Quality Assurance Program. Previously, all inspection was done by workers on their own work. Because of the lack of formal education in quality assurance for the present employees and managers, it was decided to form a team of recent college graduates for Quality Assurance Programs (QAP).

The team which was formed was given the responsibility of reducing the percentage of defective items being produced to half of the present level in one month. Problems however, began to crop up immediately; conflicts arose between the inspectors of the QAP and the workers. Some of the older employees felt they were being insulted whenever a quality problem was traced to their work. This resentment often results in their work deteriorating further instead of improving. Other workers believed they were being wrongly accused of shoddy workmanship. Some even accused the inspectors of actually making defects in their work so that they could claim they had found a problem spot (defect) and hence, look good in the eyes of the QAP Manager.

Management now felt that Six Sigma has to be implemented in the company.

a. If you are a Quality Assurance Manager how will bring Six Sigma effectiveness in the ABC

Company? Who are the key players required in Organizing Six Sigma in ABC company?

b. Explain five reasons for Six Sigma Failure.