Implementation of Six Sigma and Lean Manufacturing - Assignment Example

Running Header: Implementation of Six Sigma and Lean Manufacturing Student’s Name: Instructor’s Name: Course Name & Code: Date of Submission: Table of Contents Table of Contents 2 Introduction 3 The Six Sigma method 3 Phases used in six sigma and the benefits 4 Lean manufacturing 6 Benefits of using lean manufacturing 8 Recommendations 8 Conclusion 10 References 11 Introduction As a result of reported losses brought about by the production of poor quality goods in the manufacturing industry, many firms have introduced a business management strategy that is useful in the reduction of defects and losses. This has resulted to the use of Six Sigma and lean manufacturing methods that are meant for the reduction of defects in production thus improving profits. Six Sigma is a process designed to increase outputs through the improvement of product quality according to De Feomn et al (2005). The main focus brought about by the process is the maximization of designs and operation margins thus minimizing overstress. It also tends to minimize various defects that occur in business processes thus maximizing the companies output. This study shows a report and how the implementation of lean manufacturing and Six Sigma would help the Arrod Widget Company achieve its goals. Once the management employs the Six Sigma process, quality and efficiency issues that have been reported for ten years will seize. Tennant (2001, p. 6) says that this is because the process identifies and eliminates all errors occurring in the production process. The process will also reduce cost of production thus maximizing the total output of the Company. The process is more effective since it uses various quality management strategies for example the use of statistical methods. The process will follow a certain procedure depending on the financial targets which include the increase of the organizational profits. The Six Sigma method The six sigma process is a terminology which is more associated with the manufacturing process which makes use of a statistical model. Harry and Richard (2000) shows that the maturity of the process is determined by the number of products manufactured without errors. This is by ensuring that all the products produced are of high quality and that they perform their work effectively for example the Motorola Company had introduced the process in all its operations in order to achieve their goal for quality. This is because it reduces process variation thus achieving stable results in the manufacturing process. It is effectively used in processes that are easily measured, improved, analyzed and controlled. Effective supply chain management is also maintained due to the introduction of designs that are appreciated by the customers. The Six Sigma process also motivates employees as they are involved in the decision making processes. According to Harry and Richard (2000) the process benefits the organization by building a good company reputation and this benefits a company whose markets its products globally. This is because new customers are created as well as improving the competitive position of the company. Most customers will therefore want to be involved in such a company and their value is improved. The six sigma method also has various operational benefits. One is that the method reduced employees work loads though the use of integrated system. Activities that are of low value are also eliminated and this improves employee’s attitude towards work. The other operational benefit is that the process takes less time thus reducing cycle time and it also simplifies activities in the firm through increased workspace. Phases used in six sigma and the benefits There are various phases set up in which the six sigma process follows. Stamatis (2004, p. 1) describes that one of these phases includes the DMAIC. This is mostly applied in a field that is aimed as developing a business that already exists in nature for example the Arrod Widget Company. The other phase includes the DMADV which is applied in a business whose goal is to introduce new products into the market or a company that would like to develop its process designs. The DMAIC follows a certain procedure which included the definition of the problem for example in the above company the problem would be the production of poor quality goods and the other problem would be in efficient work. The goals of the projects can also be stated in the process. The other step includes the measurement of key characteristics of the current position of the firm. This involves the collection of data necessary to improve the current situation of the business. The collected data is then analyzed in a manner that the effects caused by the current position of the firm. Montgomery (2009, p.23) describes that once the effects are known the current process of the firm is developed through the use of various methods which include design of experiments or mistake proofing. These methods are meant to crate a state process that is standard and long lasting. The last step include controlling process which ensures that the process is effective in the long term process and incase of any defects they are corrected in this stage. The six sigma process performs major roles which ensure that the process is successfully implemented. One of the roles is that it ensures that there is executive leadership in the firm. This is where the top management has to set up a vision in which the company follows after the implementation of the process. To achieve this management has to set up a strong leadership and should support the process. This vision should also be in a manner that it empowers all the other employees in the firm for them to come up with new ideas that are necessary for development of the firm. El-Haik and Suh (2004, p.10) has shown that the champions in the firm should ensure an integrated process is introduced to all and should act as mentors to all the individuals in the firm. There are also the master black belts which assist the champions in the analysis of the statistical data and also ensure the process is applied in all departments of the firm. The black belts help in the specification process and execution of the various projects carried out in the firm. The green belts include all the employees in the firm who are involved in the implementation of the six sigma process. Lean manufacturing Lean manufacturing can also be applied to Six Sigma in order to bring about effective effects. The application involves spreading the processes of lean manufacturing. The problems involved in lean manufacturing can also be solved through deviations derived from standards. Maintenance applied in lean manufacturing can also be developed through the use of the methods used in Six Sigma. Richardson (2007) states that lean manufacturing works basing on certain principles which includes zero waiting time, no inventory, use of internal customer pull, the use of process time and line balancing. These principles are applied in the analysis of the problem. After the problems have been identified the group involved generates an idea which is to be applied in the production process. This idea generation process involves carrying out a pilot test where an implementation plan is drawn up. The past studies have indicated that the reduction of inventory and the scheduling of the production cycle in a manner that the cycle flows in batch sizes bring about effective changes. According to Paton (2002, pp. 19-20) for this change to be implemented, scheduling has to take place where production is performed by use of parallel line configuration. This stage involves effective training of every individual in the firm as it also solves various organizational problems. Individuals in the firm should be introduced to the process for eight weeks to ensure that all stages are established. The implementation stage is made easy and quick through the introduction of effective countermeasure design and the inclusion of all the processes in the firm. Several checkups are carried out to ensure no defects are reported and to keep up with the production time. Several benefits are said to emerge from the implementation of this process. Some of these benefits include the fact that the process of production in batches for example the production of widgets. According to Tennant (2001), the process also increases productivity by over fifty percent thus cost involved in the process is also reduced. The goods produced by the firm are also of high quality due to the many tests performed and maintenance. The process makes it easy in handling the input data and works according to the customer limits. In order to standardize the control process, control charts are introduced. This ensures a regular review where management is capable of checking the flow and correcting incases of a problem. Richardson (2007) argues that the six sigma process is reported to be one concept that has saved millions to those who have introduced the process in the firm. This is because various business principles are integrated in order to attain tangible results. The tools used in sis sigma can be applied in all departments of the firm which includes sales, administration, marketing and design. This is because waste chain is reduced, the customers are well served through the process and it also improves the delivery of goods. The lean manufacturing on the other hand is used in organizations as it streamlines all the operations in the business. It improves the value of products through the elimination of defects that cause wastage of products as illustrated by Gygi et al. (2005). This is ideal in a firm that is involved in the international market. This is because such firms have to ensure their products are of a higher quality to be accepted globally. The products should also be delivered within the time period that the customer requires and finally the products should be of reduced prices. Benefits of using lean manufacturing The benefits of using lean manufacturing are that it reduces wastage of the firm’s products; it also reduced the floor space thus creating a strong production system. The method also improves and creates more delivery systems which ensure less time wasted. This ensures flexibility and improved design of production. According to Dirk (2005) the management may be in a position of implementing both the lean manufacturing and the Six Sigma though they are underwhelmed long term effects. Recommendations In order for the Six Sigma method to succeed in this organization, as a management trainee I request top management to set up a team capable of bringing out the benefits of the projects. To achieve these breakthrough results, management has to work well with certain steps. These steps include linking the lean manufacturing process with the day to day activities of the firm. All the activities carried out by the employees have to achieve maximum benefits. The firm has also to ensure that the accountants are effective in their duties. This is because they will be responsible of varying the profits results, revenue, costs involved and the expenses. Management should also ensure proper documentation and maintenance of financial procedures. This process when carried out early helps the firm to achieve standardized products. The process also assists in the prioritization of activities and the use of limited resources. The management should also ensure that the implementation plan has scheduled time for every activity and who is to be responsible for the work. This factor enhances control and also enables the workers to work according to the stipulated period. To facilitate quick implementation of the process, Management should hold weekly meeting and should form a steering committee which are to evaluate and correct the factors that may cause delays. The people implementing the process should be in various teams as this is easy to determine the team that is lagging behind thus enhancing accountability. After the company have benefited from the process it is necessary to make the results visible to all members. This should be through a dashboard which shows the position of the firm before the lean strategy, the results of the strategy and the current position. This method enables people to develop a positive attitude towards the strategy thus fostering a healthy competition among firms or within the organization. Montgomery (2009, p. 23) describes that the use of this showcase demonstrates that the process does not only improve the production of the form but it also has various benefits to the customers, employees, shareholders and the suppliers. The implementation of this process is also meant to show that change in every business process is inevitable in that every business has to improve or the competition will force the improvement. The process will therefore be effective to this Company since it deals with multiple transactions. The financial benefits brought about by the Six Sigma include increased revenue and saving on costs thus cost avoidance. The method also fastens the return on investment thus improving cash flows. The shareholders also benefit from the system as their value increase with the increase in profitability Conclusion The combination of lean manufacturing and Six Sigma has resulted to increased quality as well as the turnaround time thus creating time to concentrate on the production of more products. Many firms that have implemented the business strategy have also had a good reputation to their customers and the general public as one with quality products. These factors build up a competitive advantage for the firm thus it is in a position of producing increased volumes of goods. The company also attracts more customers since the products brought about by lean thinking are manufactured through the pull method. Lean manufacturing is based on specific value in order to improve continuity. It also makes use of the limited resources of the firm through lean thinking. This development of ideas enables the firm to produce exactly what the customers’ demand and this is mostly applied in the mote vehicle industry. The benefits that come with the information technology include improved rate of system utilization and reduction of support costs. The other benefit is that six sigma maintains a broad property investment and preserves the value of information technology in every organization. This is by eliminating the paper documentation to a more improved and integrated system. It also improves systems security and productivity brought about by the use of automation. References De Feo, A Joseph, B & William 2005, JURAN Institute's Six Sigma breakthrough and beyond quality performance breakthrough methods, McGraw-Hill Publishing Company Limited, New York.  Dirk, D 2005, Six Sigma Survey, Breaking through the Six Sigma hype, Quality digest, vol. 7, no. 4, pp. 45-98. El-Haik, B & Suh, P 2004, Axiomatic quality, John Wiley and Sons publishers.California.  Gygi, C., DeCarlo, N., & Williams, B 2005, Six Sigma for dummies, Wiley publishing, Michigan.  Harry, M & Richard, S 2000, Six Sigma. Random House, Inc, New Delhi. Montgomery, C 2009, Statistical quality control, A modern introduction , John Wiley & Sons, 6 ed., New Jersey.  Paton, M. 2002, A lifetime of quality, viewed 19 February 2011, Richardson, K 2007, The Six Sigma factor for home depot, Macmillan, California.  Stamatis, D 2004, Six Sigma fundamentals, A complete guide to the system, methods, and tools, Productivity Press, New York.  Tennant, G 2001, Six Sigma, SPC and TQM in manufacturing and services, Gower Publishing Ltd. New York. Read More