Taguchi & Six Sigma
- Gerardo Lujan
- Mar 24, 2017
- 4 min read
The Taguchi method is a quality improvement tool that combines statistical control with process re-design, by doing so, it not only creates robust processes, improving quality and reducing costs. One other relevant point about Taguchi is
that this method has an approach that considers many behavioral aspects of a process. Although the Taguchi method is well regarded for engineering processes, it could be applied towards financial, transportation, health care and other services as a way to meet the increasing demand of service quality from customers (Krishnamoorthy, S., 1999).
The advantage of this method, is that not only considers the quantitative aspects of the process, but as mentioned before, it also takes in consideration the behavioral aspects, for instance, when the method is applied towards a marketing campaign, aspects such as color, graphics, humor and others can be considered in the Taguchi process as control factors, the experiment is designed around changes on these control factors and how they affect the outcome, once the experiment is completed and the results are validated, it is clear how the process can be optimized to significantly increase the results while reducing the cost (Cringley, R., 2003).
As a service provider, I can see this methodology applied towards improving many of the services companies provide today, it is quite common for us to identify services or portions of them where customers are not fully satisfied, despite having performance metrics in place. The Taguchi method could help to identify either root causes as well possible solutions. Although this process can be interpreted as tool for manufacturing activities, the methodology can be applied, from my perspective, to service companies where it can have positive impact. It commences with the initiating steps: [Foster 2010]
Problem identification;
Brainstorming Session, to identify factors, factor settings, possible interactions, objectives;
Experimental Design, to choose orthogonal arrays, design experiment.
The latter, also called Design of Experimients (DOE) consists of making purposeful changes of the input factors (attributes) of an activity in order to observe the corresponding changes in the output (response). DOE is the most cost-effective and efficient method for identifying the many key input factors and in understanding the relationship between those input factors and response [Gunter, 1987]. DOE investigates a large number of input factors with a relatively small number of tests, which helps to identify important/critical attributes of a process or activity. This in turn helps optimize the process improvements efforts as they can be directed in a more focused manner. [Krishnamoorty; Kapadia 1999]
In general, service companies can also greatly benefit from applying Taguchi method.
Mary Collins Hombcom describes how the Taguchi method is applied to improve customer service in a logistics environment. The premise is that customers are no longer satisfied with having the right product at the right time and at the right price, but also, they expect their service providers to deliver more value in the process.
During the research phase, it is important to understand what the relevant customer control factors are, and how they are perceived to create value for the customer. Once these are identified the process can focus on increasing customer service delivery and reduction of variability in performance.
One other important factor that can be considered in the process is how much the customer is willing to trade off service delivery with cost, for example, when special deliveries are requested, the cost increases in order to meet specific targets. The final outcome is an improvement in the customer service levels that addresses the customer expectations in terms of service delivery.
Six Sigma is a methodology to improve quality, with a lot of focus on cost reduction and elimination of waste. The methodology consists on analyzing all the variables that could impact the outcome of a process, the designation of six sigma consists of reducing the number of errors that are allowed in a capable process to a minimum.
Considering that Lean manufacturing has many things in common with Six Sigma, the two models have been combined, with focus on reduction of waste in organizations. I can see Lean Six Sigma having an opportunity within many organizations, especially as a management system methodology and hence, it requires commitment from all levels of the organization and a proper planning, that has made the process successful in multiple enterprises, but there have been other many which have failed in the process. It is not uncommon to witness areas who are pushing for a Six Sigma approach towards process improvement, unfortunately, there's limited buy in from top management and the rest of the organization. In many cases, programs required to develop black belts and green belts within many organizations are not sufficiently strong to deploy company wide Lean Six Sigma initiatives. When GE decided to use Six Sigma methodologies, they planned this to be effective after a few years since the decision was made. I think that in order for Six Sigma to be effectively applied in any organization, it is necessary for it to be a companywide initiative. However, the concepts and methodology can be applied in specific areas of the company, although the results can be limited to the specific processes where it is applied.
Foster, Thomas S. Managing Quality – Integrating the Supply Chain. 4th Edition. Prentice Hall. 2010. Print. P.422-424
Gunter, B. A perspective on the Taguchi methods. Quality Progress. 1987. P. 44-52.
Krishnamoorty, S. ; Kapadia, M.M. A methodology of enhancing profitability through the utilization of experimental design: a catering business case study. Total Quality Management, Vol. 10, No. 7, 1999. P. 1028.
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