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Value-Added Analysis

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Six Sigma

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Comprehensive evaluation of work activities, materials flows, and paperwork

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Identify and eliminate wasteful or unnecessary activities

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Learning from other firms with high-quality processes

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Statistical Quality Control

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Reducing the time to develop, make, and distribute products or services

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Set of quality standards by the International Organization for Standardization

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Certification and auditing to meet standards

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Extends ISO standards to environmental performance

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Focuses on efficient resource use and environmental impact reduction

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Subcontracting services to improve efficiency and quality

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Example: Eastman Kodak outsourcing computing to IBM

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Managing and monitoring quality using statistical techniques

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Includes acceptance sampling and in-process sampling

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Developed by Motorola, aims to eliminate mistakes

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Target of Six Sigma quality: 3.4 mistakes per million

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Example: GE's significant cost savings with Six Sigma

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Applicable to both manufacturing and service organizations