Abstract
We present a decision analytic model for the decision to incorporate a Six Sigma quality process. We investigate the effects of some key elements on the Six Sigma decision. These elements include implementation cost; attitude towards risk; defect costs, and firm size (number of production or service stages). The optimal solution reveals several managerial insights regarding the impact of the various factors related to the Six Sigma decision. Naturally, implementation cost makes Six Sigma less attractive while attitude towards risk plays a role in determining the optimal sigma (quality) level. In addition, the best decision alternative for small and middle sized firms is not necessarily to have the highest quality standard or highest sigma level. In some instances, as we shall see, it may be more important to consider other profit generating alternatives before taking the Six Sigma route.
| Original language | English |
|---|---|
| Title of host publication | 2010 IEEE International Systems Conference Proceedings, SysCon 2010 |
| Pages | 389-393 |
| Number of pages | 5 |
| DOIs | |
| Publication status | Published - 2010 |
| Event | 4th International Systems Conference, SysCon 2010 - San Diego, CA, United States Duration: Apr 5 2010 → Apr 8 2010 |
Other
| Other | 4th International Systems Conference, SysCon 2010 |
|---|---|
| Country | United States |
| City | San Diego, CA |
| Period | 4/5/10 → 4/8/10 |
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Keywords
- Decision analysis
- Six sigma
ASJC Scopus subject areas
- Hardware and Architecture
- Electrical and Electronic Engineering
Cite this
A decision analysis view of six sigma. / Al Kindi, Mahmood; Abbas, Ali E.
2010 IEEE International Systems Conference Proceedings, SysCon 2010. 2010. p. 389-393 5482485.Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - A decision analysis view of six sigma
AU - Al Kindi, Mahmood
AU - Abbas, Ali E.
PY - 2010
Y1 - 2010
N2 - We present a decision analytic model for the decision to incorporate a Six Sigma quality process. We investigate the effects of some key elements on the Six Sigma decision. These elements include implementation cost; attitude towards risk; defect costs, and firm size (number of production or service stages). The optimal solution reveals several managerial insights regarding the impact of the various factors related to the Six Sigma decision. Naturally, implementation cost makes Six Sigma less attractive while attitude towards risk plays a role in determining the optimal sigma (quality) level. In addition, the best decision alternative for small and middle sized firms is not necessarily to have the highest quality standard or highest sigma level. In some instances, as we shall see, it may be more important to consider other profit generating alternatives before taking the Six Sigma route.
AB - We present a decision analytic model for the decision to incorporate a Six Sigma quality process. We investigate the effects of some key elements on the Six Sigma decision. These elements include implementation cost; attitude towards risk; defect costs, and firm size (number of production or service stages). The optimal solution reveals several managerial insights regarding the impact of the various factors related to the Six Sigma decision. Naturally, implementation cost makes Six Sigma less attractive while attitude towards risk plays a role in determining the optimal sigma (quality) level. In addition, the best decision alternative for small and middle sized firms is not necessarily to have the highest quality standard or highest sigma level. In some instances, as we shall see, it may be more important to consider other profit generating alternatives before taking the Six Sigma route.
KW - Decision analysis
KW - Six sigma
UR - http://www.scopus.com/inward/record.url?scp=77954436298&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=77954436298&partnerID=8YFLogxK
U2 - 10.1109/SYSTEMS.2010.5482485
DO - 10.1109/SYSTEMS.2010.5482485
M3 - Conference contribution
SN - 9781424458837
SP - 389
EP - 393
BT - 2010 IEEE International Systems Conference Proceedings, SysCon 2010
ER -