Definations – Six Sigma

Statistical Process Control (SPC)

In manufacturing processes, statistical process control (SPC) is a technique for attaining quality control.

Total Quality Management
W. Edwards Deming’s approach to overall quality management is the source of a more recent paradigm for improvement. This model evaluates health care for process flaws that contribute to errors in care. Japanese manufacturers widely used his tactics, resulting in increased international demand for Japanese products.

Deming’s Principles

Create purpose consistency.

Take the initiative in implementing the new philosophy.

Reduce your reliance on inspection to attain quality.

Put an end to the practice of granting contracts based on the lowest cost.

Constantly improve. Implement on-the-job training.

Institutional Leadership.

Get rid of fear.

Break through departmental barriers.

Remove any slogans, exhortations, and goals.

Management by numbers and management by objective must be abandoned.

Leadership can be substituted.

Remove impediments to pride in craftsmanship.

Education and self-improvement are instituted.

Put everyone to work in order to complete the transformation.

Six Sigma

DMAIC (Define, Measure, Analyze, Improve, and Control) is a basic process improvement methodology.

Define the range of out-of-tolerance values.

Key internal procedures that are crucial to quality should be measured.

Investigate the causes of faults and opportunities for improvement.

To stay within tolerance, improve the process.

Control the process to keep on track.

DMADV (Define, Measure, Analyze, Design, Verify) is the fundamental methodology for implementing new processes (at first). Pioneered by Motorola.

Define the process and where it would fail to satisfy the needs of the client.

Determine whether the procedure fits the needs of the customer.

Analyze the choices to fulfill the needs of the customer.

Change the process to match the needs of the clients.

Check to see if the adjustments meet the needs of the customers.

Analysis of Cost-Benefit

The process of balancing entire projected expenses and whole expected gains.

Initial expense versus projected return monetary calculations

Less tangible outcomes like risk, reputational damage, market penetration, long-term strategy alignment, or malpractice risk may be given monetary amounts.

Pareto Efficiency 
A Pareto improvement or Pareto optimization is a movement from one option allocation to another that can make at least one individual better off without making any other individual worse off. 
When no additional Pareto improvements can be made, a resource allocation is Pareto efficient or Pareto optimal. 

Kaldor-Hicks Efficiency 
Using Kaldor-Hicks efficiency, a more efficient outcome may be detrimental to some people. 
An outcome is more efficient if those who benefit may theoretically compensate those who suffer, resulting in a Pareto optimal conclusion (i.e., no one is worse off). 
Disparities in the marginal value of money between rich and poor people are connected with aggregation issues. 

Error Illustrations 
Wrong-site surgery, for example, amputating the wrong limb. 
Giving the incorrect medication (wrong patient, wrong chemical, wrong dose, wrong time, wrong route). 
Diagnosis error.