Running Head: DFSS

Management: Design for Six Sigma

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Design for Six Sigma

Introduction

Design for Six Sigma (DFSS) is a distinct and relatively new methodology for managing business

processes (Jacowski, 2008). It is associated with the traditional Six Sigma methodology. In fact, Design

for Sigma Six stemmed out of the traditional Six Sigma methodology. DFSS has a few only slightly

different from the traditional Six Sigma. Whereas the traditional Six Sigma methodology is applicable to

existing business processes, DFSS is meant for new business processes.

Recommendation Plan

DFSS methodology’s approach entails defining, measuring, analyzing, designing, and then

verifying business processes. From this approach, DFSS is sometimes referred to as DMADV. DFSS

endeavors to initiate a new process to fill a gap where none existed. It is also applicable in situations

where existing products are not effective and need to be replaced. DFSS creates processes, which are

aimed at filling gaps that they are meant to effectively.

The first step in the plan for implementing DFSS in our organization will entail identification of

the scope of the program with respect to the type of product or service to be delivered by the organization.

Secondly, our organization will assess the possible impacts and/or outcomes that can arise from

implementing the program and the type of involvement that will be required. Third in the process will be

making decisions with respect to the type of implementation approach that should be adopted. Fourth, the

steering committee will be identified to guide the implementation process as well as giving them the

requisite training. Lastly, allocation of duties and responsibilities to successful candidates will begin in

addition to identifying the sponsors of the project.

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Implementing DFSS in Our Supply Chain Organization

1

Due to its universal acceptance, DFSS can be used to manage the business processes of any

organization. Within an organization as well, DFSS can be used in different divisions or departments to

achieve varied objectives (Krow, 2006). Often the company or division concerned will execute DFSS to

suit their unique needs.

The production department is the primary area of our organization where DFSS will be used. This

department is divided into various divisions according to what they produce. One of our divisions

produces industrial products that are used in a number of industries including transportation, maintenance,

and equipment manufacturing industries. Though this is division is the strongest among our divisions, it

fairs poorly compared to its competitors. It ranks third among its competitors in terms of market share.

The market leader in this market segment has four times our market share. It is worrying to know that the

number one division to our company lags behind its competitors. To our company, it means that there is

more that could be done. DFSS can be used to improve the competitive edge of this division and the

competitiveness of other divisions as well.

Quality is very important to the industrial division. This is because most of the products of this

division are used in human safety applications. A slump in quality of goods produced by this division

would be catastrophic to the whole organization. Even though our division has an upper hand in terms of

quality compared to its competitors, there could be gains to be made from assuring customers that

additional steps have been taken to guarantee quality products. DFSS could be used in the production

departments in the ways mentioned above. This approach is applicable to the other two divisions, one

producing electrical goods and the other automotive goods.

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DFSS can also be applied to other operations of the organization. DFSS could be used in

marketing to develop efficient ways of promoting and distributing the company’s products. It would not

make much sense to tighten production systems while no effort is being made to sell these products.

DFSS is also applicable in the Human Resources Department. This department is tasked with the

responsibility of ensuring that the organization is sufficiently staffed by qualified personnel. DFSS can

help to devise a procedure of selecting the best team for the organization.

2

DFSS would have the biggest impact in the production department. The production department

creates value embodied in the products that the company is known. The other departments merely add to

the value that the production department has created. Ultimately, the company will be made or destroyed

by its products. If the company produces poor quality products, no amount of efforts by the marketing

department or any other department would conceal this fact. This is the reason why DFSS would make

the biggest impact in the marketing department.

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Our supply chain operations involve the movement of materials and services, finances and

information as they move from our suppliers to our various departments to our customers. The main aim

of our supply chain operations is to minimize inventories since we largely operate a just-it-time system.

Materials and finances in the form of cash balances are the two items that we will endeavor to manage

using DFSS.

For materials, the DMADV methodology will be used. The five elements of DMADV are Define

Measure, Analyze, Design, and Verify. In the first phase, the targets of the production process and the

requirements of customers will be defined. Measurement involves finding out what exactly customers

want. It also involves benchmarking to determine the relative standing of the company. In the third phase,

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options are analyzed to determine what meets the expectations of customers and what does not. After an

analysis of the different options, processes are designed to meet customer needs. The final step is to verify

whether the process adopted is meeting customer needs.

Case Study of DFSS Application

The list of companies that have employed the use of DFSS to improve their processes is a long

one. Some of these companies include Microsoft, Xerox, Pfizer, BP, Mercedes-Benz, Canon, and Ford

(Chowdhury, 2002). These companies used different elements of the DFSS methodology to achieve

different results.

Company of Choice: FORD

Ford serves as a good example of what can be achieved when DFSS is used to manage business

processes. Ford mainly uses DFSS in its manufacturing segments. The specific areas where DFSS has

been applied in Ford Corporation include assembly, casting, grinding, and heat treatment.Ford started off

its application of DFSS with the design and production of its new V-6 engine. This was a hybrid engine

that was produced in response to the growing number of consumers going green. The DFSS program was

also applied to the design of a hybrid transaxle for Ford Cars. This was done in Ford’s new plant in Ohio.

Since production of the V-6 engine began, Ford has applied DFSS to other components that it

produces. In all these applications, Ford has tried to link the different phases of the product development

process with the ultimate effectiveness of the outcome (Gerhost, Gromping, Lloyd-Thomas, and Khalaf,

2006). One of the new products that owes its existence to DFSS is the robust exhaust manifold. DFSS

was used in the production of robust exhaust manifolds to reduce iterations, improve production times,

and systematically come up with a strong solution.

DFSS has been beneficial to Ford Corporation. Unlike other process development methodologies,

DFSS does not leave out any of its components. Attention is given to all the six elements of DFSS. This

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sort of comprehensiveness has given Ford improved customer responsiveness. This is evidenced by the

development of hybrid products. The benefits of improved customer responsiveness were reflected in

increased sales generally.The invention of new products and new techniques of production have also

improved Ford’s image. Customers now view Ford as a progressive organization that one should

associates. The benefits of improved customer perception are evident from increased sales. In addition

Ford saved over a billion dollars in waste the around the period it implemented DFSS (Subbjar, 2005).

Other advantages that Ford has been able to achieve through the use of DFSS include but not

limited to statistical thinking in product development and control of quality by integrating strategies into

service and product performance, and focusing on the customer through offering personalized services

through the voice of the customer initiative (VOC). Additionally, the company has employed DFSS in

process alignment and product design whereby concepts such as product design and voice of the customer

initiatives have been merged together to aid the decision making process and solving problems that occur

during the process alignment.

Simply put, the adoption of the DFSS by Ford Corporation has improved the effectiveness of new

service and product development at the company in addition to integrating discipline, rigor, and creativity

in various production activities. In turn, the DFSS has ensured that production and development processes

have enabled the company to improve on the quality of products delivered by the company in addition to

ensuring that the company’s performance is achieved at the highest sigma levels. Coupled with the

company’s market experience in production and manufacturing activities, the adoption of DFSS has

accelerated service delivery in the company with particular performance being noted in the financial

segment. Conversely, the company has been able to enhance its competitive advantage through investing

in innovation and adoption of new technologies into production activities.

Benchmarking

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Benchmarking processes of companies is a very important aspect of strategic management

(Camp, 2006). It is used by organizations to evaluate different facets of their processes in comparison

with the processes of the company that has the best practice in a given field. For benchmarking to be

beneficial to an organization, that organization should compare its processes to the best performers’

processes. Given that we rank third in terms of market share, we should benchmark against the firm that

has the largest market share in our industry.

There are many parameters that one can benchmark. Focus should however be on those

parameters that one can control and that are important in determining the success or failure of a company.

These parameters include sales, cost of sales, cycle times, and quality (Camp, 2006).

Competitors are unlikely to be willing to share information with each other especially if the

information could help their competitors to be more competitive. If the information required for

benchmarking is not publicly available, unorthodox means may have to be employed to get the

information.

The outcome of benchmarking may necessitate changes within our division. Reorganizations of

personnel and processes may have to be effected. It is unfortunate that most of the major decisions

affecting the division are made by the manager of the corporate North America Warehouse (NAW) who

reports to the vice president. Though the definition of changes to be made may originate from the Senior

Technical Officers of our division, the final say comes from the vice president. This could impede the

quest to achieve the organization’s goals.

There are many parameters that can be used to measure the success of the division. These include

profitability, percentage of defective products and costs. There is competition in the industry in which our

division operates. For this reason, prices, costs, and quality of product are almost homogenous. The most

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important measure of success in this situation is market share since the firm with the largest market share

will be the firm that has a winning mix of price, cost, quality, and effective marketing.

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References

Camp, C. R. (2006). Benchmarking: The Search for Industry Best Practices That Lead to Superior

Perfomance. New York: Taylor & Francis.

Chowdhury, S. (2002). Design for Six Sigma: The Revolutionary Process for Achieving Extraordinary

Profits. Boston: Dearborn Trade Publishing.

Gerhost, F. Gromping, U. Lloyd-Thomas D. and Khalaf, F. (2006). Design for Six Sigma in product

development at Ford Motor Company in a case study on robust exhaust manifold design.

International Journal of Product Development. Issue: Volume 3, Number 3-4 / 2006. Pages: 278 -

291

Jacowski, T. (2008). What Exactly is DFSS. Retrieved on April 4, 2011 from :

http://www.articleslash.net/Business/Management/389682__What-Exactly-is-DFSS.html

Krow, K. (2006). Design for Six Sigma. Retrieved on April 4, 2011 from http://www.npd-

solutions.com/dfss.html

Subbujar. (2005) Total Quality Management. New Delhi: Tata McGraw Hill.