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
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U2 - 10.1109/SYSTEMS.2010.5482485
DO - 10.1109/SYSTEMS.2010.5482485
M3 - Conference contribution
AN - SCOPUS:77954436298
SN - 9781424458837
T3 - 2010 IEEE International Systems Conference Proceedings, SysCon 2010
SP - 389
EP - 393
BT - 2010 IEEE International Systems Conference Proceedings, SysCon 2010
T2 - 4th International Systems Conference, SysCon 2010
Y2 - 5 April 2010 through 8 April 2010
ER -