Lean Six Sigma Approach - Essay Example

Lean Six Sigma approach TABLE OF CONTENT TOPICS PAGE NUMBER 3 2. Introduction 3 3. Body 4 3.1. Six Sigma Aproach 4 3.1.1. Implementation Of Six Sigma 5 (A) Dmaic 5 (B) Dmadv 6 3.2. Lean Manufacturing 7 3.3. Lean Six Sigma 8 3.4. System Approach 8 4. Position of the attempts Lean Six Sigma 9 5. Compatibility of Lean and Six Sigma 10 6. Conclusion 11 7. Appendix 12 8. References 18 1. Abstract There exists a gradually growing need for improvement of operation management models. The models contribute to a continuous companies’ process improvement. In connection with the present business state requirements, the paper highlights Six Sigma, Lean Manufacturing as well as the most recent approach of Lean Six Sigma. The paper thus aims to analyse and identify the complementarities and differences in the decision of production as per the three models (Anon, 2014). The paper also seeks to determine the competitive priorities leading to the best performance in relation to the selected type. At the start, a theoretical model based on the literature review was developed. At the second step, there was the development of research questions that were exploratory that were applied to Six Sigma, Lean Six Sigma as well as Lean manufacturing model as are implemented in Brazil (Blogs.warwick.ac.uk, 2011). The main results as per the performance and importance of the decisions, there exist some difference between the competitive models. Individually, Lean Six Sigma, Six Sigma and Lean Manufacturing possess importance degrees that are varying in the production planning, vertical integration, facilities as well as control decision areas. The dimension of performance maintaining the best performance is usually based on cost, quality, reliability as well as speed (Anon, 2014). 2. Introduction Combining the two approaches offers the companies numerous advantages. Lean approach brings intuition and action on the floor of the shop. The Act allows the making of quick improvements by the employees. Lean is great in the production boosting, cultural change, as well as factory clean-up (Peoplecert.org, 2013). Six Sigma utilizes statistical techniques and tools in the uncovering of root causes. The methodology also provides metrics to act as progress markers. The program is characterised by effectiveness, focus and popularity although projects takes months so as to finish. Combination use of the two approaches leads to on-going business improvement(Anon, 2013). 3. Body 3.1. Six Sigma Six Sigma is a set tool and techniques meant for the improvement of the process. In 1986, Motorola developed Six Sigma. In 1995, Jack Welch made the methodology central to the strategy of his business at General Electric. Presently, the method is applied to multiple companies. Six Sigma looks to the improvement of process output quality by removing as well as identifying various causes of defects. The model as well looks into the minimisation of variability in the business process and manufacturing. The model employs a set of high-quality management techniques and methods(Anon, 2014). The methods include; system management, statistical measure methods as well as goal orientation. Statistical test is mainly oriented to the performance of the product as well as that of a process. Goal orientation ensures that the target gets near the perfection so as to improve the performance. System of management looks to the achievement of a lasting world-class performance as well as business leadership(Anon, 2013). Each of the six sigma projects initiated and carried out within an organisation has defined the value of the target that is quantifiable as well as defined sequence of all the steps. Since Six Sigma is employed to the improvement of business, it can be used to; reduce the cost, reduce pollution, increase profit, increase customer satisfaction, as well as lessen the time for process cycle. Six Sigma has statistical origin Blog (warwick.ac.uk, 2011). In the application of Six Sigma model, 99.99966% of the product is expected to be free of defects. 3.1.1. Implementation of Six Sigma Six Sigma projects employ two methodologies that are often inspired by Plan-Do-Check-Act cycle of Deming. Each of the two methods composed of five phases known as DMAIC and DMADV respectively (Anon, 2014). (a) DMAIC DMAIC is employed in the projects that are aimed at in the existing business improvement. The methodology comprises of five phases. The five steps are as illustrated below: (i) Define; the system to be employed has to be defined. The project goals, customers’ voice and requirements as well the specificity of the project needs to be critically determined. Definition should be done before the project has been employed. (II) Measure; before the employment or introduction of any given project, the key aspects of the current process should be measured. Related data that is relevant should also be collected. (III) Analyse; the data meant for investigation, as well as verification of the relationship between cause and effect, should be critically analysed. At this stage, what the relationships are should be determined. Attempts should be done to ensure that all relevant factors are considered. The cause of all defects should be investigated. (IV) Improve; Current process optimization based on analysis of data should be put in place. Techniques such as poka-yoke, standard work and mistake proofing, as well as design of experiments, are also employed to create new state process of the future. Pilot runs to establish the process capabilities can also be set up at this particular stage. (v) Control; process of the future state meant for ensuring that deviations from the set targets are corrected before the occurrence of defects is monitored. Control systems should be implemented. Some of the systems include; production boards, statistical as well as visual workplaces continuous control of the process (Peoplecert.org, 2013). Some organisations include a recognize step in the methodology. Consequently, they lead to RDMAIC methodology. Exhibition 3 (b) DMADV DMADV is employed in the projects aimed at the creation and introduction of the new process and product designs. (i) Define; Design goal consistent with the enterprise strategy, as well as the customer demand, should be set. (II) Measure; Characteristics that are Critical To Quality (CTQs) should be identified and measured. Production process capabilities, product risks and capabilities should also be identified and measured. (III) Analyse; alternative designs should be generated and developed. (IV) Design; improved options that are best suited as per the analysis of previous steps should be developed. (v) Verify; Designs should be checked. Pilot runs should be set up at this stage. The production process should then be implemented and should later be handed over to the process owners (Peoplecert.org, 2013). Implementation of Six Sigma in an organisation typically leads to large investments in the development of the black belts. Thus, the black belt must perform relatively well so as to have sound returns on the subject investment. Exhibition 3 3.2. Lean Manufacturing Lean production is a systematic technique and method in which waste is eliminated from within a manufacturing process. Also, Lean considers and takes account of overburden waste as well as the waste created through workloads unevenness. The model facilitates the working at the products’ or customers’ perspective. The model thus looks for the improvement of the value of the commodity. Initially, lean focuses in making prominent facilitation of what adds value to a reduction of everything else. Lean manufacturing as a management philosophy is mostly derived from the Toyota Production System (TPS) in the 1990s. TPS has been famous in the reduction of the Toyota seven original wastes so as to improve the customer value. The model has greatly factored the growth of Toyota to the world’s largest automaker right from a small company. Thus, Toyota’s success can be attributed to Lean manufacturing model. 3.3. Lean Six Sigma Lean Six Sigma is a technique that results from collaborative team abilities and efforts to systematically remove waste so as to improve the performance. The collaboration of the methodology facilitates the removal eight kind of waste (Manavue.ca, 2012). The wastes include; waiting, defects, inventory, extra processing, motion, transportation, non-utilized talents as well as overproduction. Exhibition 5 In 2002, Robert Lawrence and Michael George were the first to publish a book with the title Lean Six Sigma. The book was combining Lean and Six Sigma methodology. The hybrid technique utilises a similar procedure of DMAIC analogous to that of Six Sigma. Lean Six Sigma projects focus on waste elimination as well as critical quality maximization. DMAIC toolkit set for Lean Six Sigma composed of all the tools of Six Sigma as well as those of Lean. The belt training of the hybrid model based on the bel.t system is similar to that of Six Sigma. The belt training comprises of the yellow, green, black and the master belts. Exhibition 4 Each of the belts levels has its sets of skills that describe which of the Lean Six Sigma techniques and tools expected to be contained in an individual degree of belt. The sets of skills outline the elements that a person acquires by undergoing a training program. DMAIC process enhances the ability of black belt to use many distinct tools of quality management. Black belt can take a relatively long time in the development of the skills to be employed so as to use the tools effectively. Thus, system approach focuses on the smaller numbers of the tools that are proven so as to simplify learning. The selected tools under consideration should possess the fundamental characteristics to make them valuable (Search.tb.ask.com, 2014). The tools are participative to enhance interactions among the employees. 3.4. System approach System approach is employed in the coordination of the combination of Lean Six Sigma approach. System approach coordinates employees’ projects with the management. The coordination deals with the management’s oversight roles. The functions include value stream managers and the black belt. The approach has the ability of tracking performance and score results. The ability is absent I the Lean and Six Sigma methods. System approach employs Baldrige-model scoring technique to monitor the performance (Manavue.ca, 2012). Both procedures are used to the reduction of cycle times, cost of production as well as enhancing levels of production. The programs’ flow ideologies and schemes identify chances of improvement with ease with the help of stream mapping assessment (Search.tb.ask.com, 2014). High stressing of comprehensive principles with the recommendations that are targeted so as to achieve development as the primary target is put in place. However, some of the challenges that are complex and call for advanced breakdown may be insufficiently tackled by the standards of the program (Peoplecert.org, 2013). Exhibition 7 illustrates the comparison of Lean, Six Sigma and System approaches. 4. Position of the attempts of combining Six Sigma and Lean Manufacturing Most high performing organisation has got a history of implementing the new Lean Six Sigma approach to the management. As per the history, great performing institutions combine unite the disciplines of Six Sigma and Lean manufacturing to achieve sustainable dramatic results. The results are obtained by integrating the leadership process framework with culture, as well as people. The paper further illustrates the application of Lean Six Sigma with an of Xerox Corporation. Xerox Corporation was incorporated in 1906 on 18th April. The main business of the Company revolves around technology and services to small businesses customer. The aim for this is to move their clients from the small businesses cocoons to the global level (Xerox.com). In 2003, Xerox Corporation management implemented Lean Six Sigma in the company. The implementation was both for internal projects as well as for the Customers business. The project focuses on waste reduction as well as increase of effectiveness in the company processes that are vital. The act brings improvements that are measurable in the corporation’s and customers’ results. Cyndi Quan-Trotter, a black belt Lean Six Sigma in Seattle, is a successful leader in charge of Lean Six Sigma at Xerox. Under her duties, Cyndi has successfully tackled a project that have significantly enhanced the first-line managers skills. The Act has improved the help for the customers as well improvement of the management in the Corporation (xerox.com). 3M and Rush, Companies is also looking forward to the implementation of Lean Six Sigma in its business. The Company deals with the manufacturing of compressed gas in North America. 3M have a plan of making the tanks supply the gas 30% lighter. Consequently, the capacity of the containers shall be increased by 10%. 3M is looking forward to the combined implementation of improved technology (goleansixsigma.com), Leading material and Lean Six Sigma Expertise. The plan shall help in production cost minimization and efficiency. 5. Compatibility of Lean and Six Sigma The paper’s opinion on the Lean Six Sigma implementation is active. Lean, and Six Sigma remain to be two different approaches that are still compatible. The Approaches are of high excellence and continued improvement (Warwick.ac.uk). Six Sigma mainly focuses on improvement of quality as well as defect reduction. The approach mainly concentrates on process variation and solves the problems by analytical methods. The approach mainly focuses on quality (goleansixsigma.com). Lean management basically looks for the reduction of waste, cost saving as well as the improvement of cycle time. Both techniques work for the achievement of continuous improvement and quality improvement for the business. The two approaches work in different ways and possess different methodology although they have a common goal of customer satisfaction. The common objectives encourage the combination of the techniques for the best results achievement (Warwick.ac.uk). Combining the approaches improves the working in any given organisation. Lean Six Sigma is an approach resulted into by the combination of the two methods. The combination will lead to more satisfying results. The compatibility of the tools depends on the manner by which they are combined. The dependency is simply because the approaches are distinct and work differently. The performance of individual approach is high and thus the combination promises excellent performance. Since the methods require resources, the performance of the combination will as well be factored by the manner in which the company combines resources (goleansixsigma.com). Compatibility of Lean and Six Sigma may vary depending on the combination of different tools and resources. 6. Conclusion Lean Six Sigma process requires deeper statistical techniques to measure and analyse all the supply chain divisions and levels. Fault eradication leads to the improvement of the methods. The combination of the two processes allows faster resolution, and simpler identification of the quality matters as well as that of the challenges. This move facilitates quality decisions as well as the attainment of better positive results. The combination as well does bring people concerned with the reality of the firm’s floor (Search.tb.ask.com, 2014). A control chart is showing the depiction of the sigma drift. The process means the movement towards the upper specifications. The control chart is intended to monitor and maintain the Six Sigma qualities (Anon, 2013). 7. Appendix Exhibition 1 Exhibition 2 The following is an illustration of a normal distribution graph. The graph underlies the assumptions of Six Sigma model. Sigma signifies the horizontal distance on the X-axis. The greater the distance the greater the spread the encountered values. For the green curve, mean=0 and sigma=1. The lower and the upper specification limits (LSL and USL, respectively) are at a distance of Six Sigma from the Mean. As per the normal distribution properties, values lying such far are very unlikely. Even if mean were to move at a point of 1.5Sigma, the trend is still safe. Exhibition 3 Pictorial illustration of the DMADV methodology Pictorial illustration of the DMAIC methodology Exhibition 4 Illustration of Lean Six Sigma organization structure Exhibition 5 Illustration of DOWNTIME; DOWNTIME signifies the eight wastes that are eliminated by Lean Six Sigma. Exhibition 7 Comparison of Six Sigma, Lean and System Approach. Program Lean Six Sigma System Approach Theory Remove waste Reduce Variation Improve process Application Guidelines Identify value Identify Value stream Flow Pull Perfection Define Measure Analyse Improve Control Understand process and system Link to account ting sheets Select opportunities to improve the process Employees create action plans for improvement program True performance is scored using a Baldrige model Focus Flow focused Problem focused Opportunity focused Assumptions Waste removal will improve business performance Many small improvement are better than system analysis A problem exists Measurements are valued System output improves as variation in all processes is reduced Supporting processes linked to main process Main processes linked internally All improvements can be leveraged within the system Primary effect Reduced flow of time Uniform process output Understanding linkages in the system Secondary effects Less Waste Fast throughput Less inventory Improved quality Less variation Uniform output Less inventory Improved quality Conservation of resources and reduction of waste Less inventory Improved quality Criticism Statistics or system analysis not valued Training all employees can be time consuming System interaction not considered Process improved independently of system Black belts may become an elite corps Lacks popular appeal of other methods Takes time to develop the skills to use the tools properly References Anon, (2014). [online] Available at: http://www.scotland.gov.uk/Resource/Doc/129627/0030899.pdf [Accessed 3 Jan. 2015]. Anon, (2013). [online] Available at: http://isites.harvard.edu/fs/docs/icb.topic747719.files/Supplemental%20Reading%20Folder/Lean_Six%20Sigma.pdf [Accessed 3 Jan. 2015]. Blogs.warwick.ac.uk, (2011). Compatibility study of six sigma and lean, 23/12/11, Akshays blog. [online] Available at: http://blogs.warwick.ac.uk/akshaykothari/entry/compatibility_study_of/ [Accessed 3 Jan. 2015]. Blogs.warwick.ac.uk, (2011). Compatibility study of six sigma and lean, 23/12/11, Akshays blog. [online] Available at: http://blogs.warwick.ac.uk/akshaykothari/entry/compatibility_study_of/ [Accessed 3 Jan. 2015]. Manavue.ca, (2012). Lean Approach - Improving Performance - Optimizing Added Value. [online] Available at: http://www.manavue.ca/si_mve_a/Lean_Approach.html [Accessed 3 Jan. 2015]. Peoplecert.org, (2013). What is Lean Six Sigma. [online] Available at: http://www.peoplecert.org/en/Lean_Six_Sigma/what_is_lean_six_sigma/Pages/lean_six_sigma.aspx [Accessed 3 Jan. 2015]. Search.tb.ask.com, (2014). Ask.com. [online] Available at: http://search.tb.ask.com/search/GGmain.jhtml?searchfor=www.researchgate.net%2Fpublication%2F241702299_Lean_Six_Sigma_the_contribution_to_business_excellence&st=kwd&ptb=0610956F-DF52-4F44-B447-AD8C1A4AE5DE&n=780bfb8a&ind=2014051210&p2=^HJ^xdm007^YYA^ke&si=CM6dorjnpb4CFQIGwwodvV8AWw [Accessed 3 Jan. 2015]. Xerox.com, (2015). Xerox Uses Lean Six Sigma to Enhance Quality. [online] Available at: http://www.xerox.com/about-xerox/citizenship/news/lean-six-sigma-quality/enus.html [Accessed 4 Jan. 2015]. Sixsigmaonline.org, (2015). A Clear Explanation of Lean Six Sigma. [online] Available at: http://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/a-clear-explanation-of-lean-six-sigma.html [Accessed 3 Jan. 2015]. Read More