A decision analysis view of six sigma

Mahmood Al Kindi, Ali E. Abbas

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

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 languageEnglish
Title of host publication2010 IEEE International Systems Conference Proceedings, SysCon 2010
Pages389-393
Number of pages5
DOIs
Publication statusPublished - 2010
Event4th International Systems Conference, SysCon 2010 - San Diego, CA, United States
Duration: Apr 5 2010Apr 8 2010

Other

Other4th International Systems Conference, SysCon 2010
CountryUnited States
CitySan Diego, CA
Period4/5/104/8/10

Keywords

  • Decision analysis
  • Six sigma

ASJC Scopus subject areas

  • Hardware and Architecture
  • Electrical and Electronic Engineering

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  • Cite this

    Al Kindi, M., & Abbas, A. E. (2010). A decision analysis view of six sigma. In 2010 IEEE International Systems Conference Proceedings, SysCon 2010 (pp. 389-393). [5482485] https://doi.org/10.1109/SYSTEMS.2010.5482485