Some also wonder where the six sigma term that is used so often in lean manufacturing came from. The sigma is a Greek letter which is used to represent the standard deviation of a targeted population (Gupta, 2003). The six sigma term therefore comes from the idea that, if one has six standard deviations that come between the mean result of any process and the nearest limit for specification, than one will create virtually no items that actually exceed those specifications (Gupta, 2003). This idea is the main basis for what is called the process capability study, which is generally used by quality professionals, and the six sigma term has roots within that particular tool.
In summary, all management theories are very important when it comes to what is appropriate for businesses (Achanga, et al., 2006). The theory of constraints is discussed first because it is the theory that goes back the farthest, and because it is originally thought to be what created the rest of the issues that were discussed within this paper. The theory of constraints was actually the first tool that was widely used when it came to business management and quality satisfaction (Achanga, et al., 2006; Hines, Holweg, & Rich, 2004). Until that point in time, not all businesses were that concerned about the quality that they had, and even those that were concerned were not necessarily that good at being able to ensure this quality (Holweg, 2007). They did not know what they should be doing to make sure that the products that they made met the standards of quality that their customers wanted.
Some of these problems with quality came from the fact that parts and finished goods often sat around in warehouses, and this could cause these items to become damaged or not to work properly (Holweg, 2007). Even if the quality seemed to be fine when the business had made the product, the quality may have been poor when the customer finally received the product, and so the company received a reputation for having poor quality, which was unfortunate for the company that was working hard to have good quality control and provide good products (Holweg, 2007).
Because of these problems with quality, just-in-time inventory became very important, since this stopped the needed components from sitting around, and also stopped the finished goods from sitting around (Holweg, 2007). Both of these areas were important to the companies that kept having problems with quality based on the fact that their raw materials and their finished products had to sit for so long before they could be used or delivered to stores. Just-in-time planning avoided all of this and therefore became a significant part of the business life of many of the companies that used it (Emiliani, 2000).
In some ways, however, just-in-time was not really enough. It helped to improve quality and customer satisfaction, and it also helped to increase profits, but not to the extent that some companies wanted, and there were other companies that still had problems with quality control in other areas (Emiliani, 2000). Because of this, the idea of total quality management came about. This idea was created in Japan, but it was also worked on in the United States, and through a combination of work in the U.S. And migration of ideas to the U.S., total quality management was adopted by many businesses (Emiliani, 2000).
Most of these businesses were those that made parts or components, or provided products where quality control was very significant, such as electronics. By using total quality management, a company could focus on all aspects of the issue of quality, from the raw materials that were coming in to the finished product that was going out and the way that customers were handled (Emiliani, 2000). If there was a problem with a finished product, it would be repaired or replaced without hassle, and the goods that were produced by companies that used this total quality...
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