Similarities and Differences in Implementation of Quality Frameworks in Manufacturing and Service Sector
Introduction A production defect in a company like GE (General Electric) might result in that specific product or the part being removed from the assembly line and not sent out as finished product. However, in the service sector, a process error might prove to be costly as in the case of the JPMC or Citigroup […]
How Central Bankers and Policymakers are Losing Control of the Global Economy
The US Fed and Tapering of Quantitative Easing (QE) The recent announcement that the United States Federal Reserve was thinking of tapering the Quantitative Easing program or QE immediately spooked the stock markets, which went into free fall. Mind you, this was not the actual tapering off the program but just a line of thought. […]
Contract Logistics Pricing Methods
Warehousing and Contract Logistics forms an important part of Supply Chain Networks. Contract Logistics projects are of two kinds. The first being a flow through the warehouse that can be a Finished Goods warehouse for the purpose of consolidation and merging or documentation purposes or in the case of supplier shipments, inventories being consolidated to […]
The New Trend: Insourcing IT Services
Insourcing is the opposite of outsourcing! Well, that sounds obvious, isn’t it? However, many people do not know what it means. However, this is a trend that is hitting the market in developing countries. Take India for instance; it is the largest exporter of software services in the world. A few bellwether companies primarily ran […]
How Effective are Sanctions in Enforcing Compliance and when do they Backfire?
How do Sanctions Work? Often, we read about the United Nations or the United States imposing sanctions on nations and businesses in order to force compliance with their agendas as well as to make the recalcitrant entities be more responsible. Indeed, while the UN sanctions are usually aimed at enforcing compliance with global norms of […]
DMADV is a six sigma methodology. It is used to design new processes or products where none exist and get it right in the first time.
This is a part of the DFSS “Design For Six Sigma” concepts which place focus on creating processes right the first time.
The focus of DMADV is on quantifying the customer needs in terms of specifications before trying to improve them. This reduces the ambiguity as well as provides a measurable basis for measurement of the improvements.
Purpose: The purpose of DMADV exercise is to build a new process or to re-engineer a process completely. It required a constant eye on the needs of the customer and finding the best solution to fulfill them.
The steps involved in the DMADV methodology have been outlined below:
Define Customer Needs: The DMADV begins by helping define the customer needs better. The difference is not trivial. While methodologies like DMAIC begin by defining the process requirements, DMADV is customer focused. The orientation is towards studying the implicit and explicit needs of a customer. Customer need not be a person or even an organization. The process that uses your output as its input can also be your customer. Hence the emphasis is on backward induction. One starts be thinking how they want things to be and work backwards.
Measure Specifications: At this stage, consumer needs are translated into metrics that can be measured. This is because unless something is measurable, it is difficult to objectively state whether any improvement has taken place. Specifications of the way needs are being met and they way they ought to be met give the BPM analysts an objective measure.
Analyze the Problem: At this stage the problem is analyzed on a deeper level. The behavior of each activity in the process as well as the value it adds is observed. Finally the problem point is found out and/or better ways of organizing the process are looked at.
Design to Meet Customer Needs Better: At this stage, many alternative processes are designed. These processes are then looked upon as alternative solutions and the one that meets the customer requirements best are chosen.
Simulate to Verify: The DMADV methodology uses objective statements to verify whether consumer needs are being met better. Simulations are run after the new process is deployed. The measurements are then compared with the previous measurements to ensure that improvement has taken place and in the right direction.
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Continuous Improvement and Business Process Re-Engineering
February 12, 2025
