...The Impact of ‘Lean’ The purpose of this module: This module will look at how to manage within a lean environment and what considerations need to be taken account of when making management decisions. We will then look at the impact of lean across several industry sectors and conclude my looking at the way Lean and Six Sigma have become closely integrated. Timing: 60 – 90 minutes Lean Process Management When you start to undertake Lean reviews within an organization you have the opportunity to integrate it into the corporate strategy and long term vision for the business. Agreeing to review all production areas within a business to ensure they are efficient using lean methodology can make a big difference to the way you perform and deliver. Lean Process Management Many organizations use the balanced scorecard to report on their performance. The balanced scorecard reports on performance by four quadrants or areas to demonstrate how the business is moving towards its vision or corporate strategy. These areas are Financial, Customer, internal business processes and learning and growth. Lean has significant overlap with these areas to help develop and achieve the corporate goals. Lean Process Management It focuses on the customer and their values, it measures structured improvements, often with financial values, it puts quality and internal process improvement as a continual cycle and it engages with all employees offering ...
Words: 6096 - Pages: 25
...UNLV Theses/Dissertations/Professional Papers/Capstones 10-1-2011 Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation Justin M. Lancaster University of Nevada, Las Vegas Follow this and additional works at: http://digitalscholarship.unlv.edu/thesesdissertations Part of the Business Administration, Management, and Operations Commons, Hospitality Administration and Management Commons, and the Strategic Management Policy Commons Repository Citation Lancaster, Justin M., "Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation" (2011). UNLV Theses/Dissertations/Professional Papers/Capstones. Paper 1150. This Professional Paper is brought to you for free and open access by Digital Scholarship@UNLV. It has been accepted for inclusion in UNLV Theses/ Dissertations/Professional Papers/Capstones by an authorized administrator of Digital Scholarship@UNLV. For more information, please contact marianne.buehler@unlv.edu. 1 Lean and Six Sigma in Hospitality Organizations: Benefits, Challenges, and Implementation. By Justin M. Lancaster Masters of Science University of Nevada Las Vegas 2011 A professional paper submitted in partial fulfillment of the requirements for the Master of Science Hotel Administration William F. Harrah College of Hotel Administration Graduate College University of Nevada, Las Vegas December 2011 Chair: Dr. Robert Woods 2 PART ONE Introduction The hospitality...
Words: 7223 - Pages: 29
...1 Lean Six Sigma Experience in Companies Narek Danoyan Contents 1.1 Lean Six Sigma in Xerox . . . . . . . . . . . . . . . . . . . . . 1.2 Lean Six Sigma in Caterpillar . . . . . . . . . . . . . . . . . . 1.3 Lean Six Sigma in General Electric . . . . . . . . . . . . . . . 1.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 5 6 7 1 2 CHAPTER 1. LEAN SIX SIGMA EXPERIENCE IN COMPANIES Abstract: During the recent years the Lean Six Sigma improvement methodology has found its wide usage in different high-profit companies. Among such companies are General Electric, Raytheon, Caterpillar, ITT, Solectron, etc. The following article provides information on the Lean Six Sigma implemtations in three such companies, namely Xerox, Caterpillar and General Electric. 1.1 Lean Six Sigma in Xerox Xerox company profile Industry: document services, digital imaging, computer peripherals Number of employees: 133,200(2010) Total assets: US$ 24 billion Prior improvement methodologies used in Xerox and reasons for switching to LSS. Though the earlier approaches assisted Xerox in improving business processes, Xerox had some deficiencies and the results were limited in scope. In 2002 company decided to adopt the integration of Six Sigma and Lean Manufacturing, which in a short time helped to achieve significant improvements[2]. Figure 1.1: Xerox LSS Framework[2] 1.1. LEAN SIX SIGMA...
Words: 1380 - Pages: 6
...Advanced Quality Applications Six Sigma MBA 774 Dr. Abdallah Abdallah Introduction Certified Six Sigma Black Belt Exam / ASQ Six Sigma enterprise wide deployment Business process management Project management Six Sigma - Define Six Sigma – Measure Six Sigma – Analyze Six Sigma – Improve Six Sigma - Control Lean enterprise Design for Six Sigma Total 6% 6% 10% 6% 20% 15.3% 14.7% 10% 6% 6% 100% 9 9 15 9 30 23 22 15 9 9 150 (a 4 hour test) 2 Six Sigma Enterprise-wide deployment What is Six Sigma? Six sigma is a highly disciplined process that focuses on developing and delivering near perfect products and services consistently Six sigma is also a management strategy to use statistical tools and project work to achieve breakthrough Profitability and quantum gains in quality 3 What is Six Sigma? 4 Fundamental Beliefs • Everything is a process 5 Quality is ….. Do the right thing, Design the right product, the right process and do things right Consistent product, consistent process First time ….. Every time 6 What is Sigma? s Sigma - the lower case Greek letter that denotes a statistical unit of measurement used to define the standard deviation of a population. It measures the variability or spread of the data. 7 Lower Specification Limit (LSL) Upper Specification Limit (USL) x 8 Specification, variation and process capability Lower Specification Limit LSL Large variation, incapable Upper Specification...
Words: 2517 - Pages: 11
...Ballentine Hall 105 Instructor: Katherine Hermiz Correspondence: katherine.hermiz@hasbro.com Office Hours: By appointment only Class Time and Place: Tuesdays 6:00-8:45pm, Ballentine Hall 105 Textbook: (1) The Six Sigma Handbook, 3rd Edition. By: Thomas Pyzdek and Paul A. Keller. (2) Statistics for Six Sigma Made Easy! By: Warren Brusse Prerequisite: BUS 202 and 210 or STA 308 Required Materials: To take full advantage of the class, students should bring their textbooks, class notes, handouts, notebook, pencil/pen, calculator, and laptop computer (w/ charger) to each class. Allow $10 - $20 to purchase additional materials. Class Description: This class is an introduction to Lean Six Sigma Operations and a multitude of techniques that are used in the evaluation and analysis of business processes. In addition to this course, students may be actively working on a project at a URI approved business partner. Yellow Belt Certification: In order to receive Six Sigma Yellow Belt certification you are required to successfully complete this course and pay the $200 fee. Upon satisfying both requirements you will be awarded a Six Sigma Yellow Belt certificate. Green Belt Certification: In order to receive Green Belt Certification you need to complete all of the yellow belt requirements and successfully complete an internship and present the project in class. Academic Integrity Statement: As an institute of higher learning, we recognize that academic dishonesty detracts from the value...
Words: 1342 - Pages: 6
...Six Sigma is a set of tools and techniques/strategies for process improvement originally developed by Motorola in 1981.[1][2] Six Sigma became well known after Jack Welch made it a central focus of his business strategy at General Electric in 1995,[3] and today it is used in different sectors of industry.[4] Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.[5] It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in the methods.[5] Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example; process cycle time reduction, customer satisfaction, reduction in pollution, cost reduction and/or profit increase.[5] The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million), although, as discussed below...
Words: 4296 - Pages: 18
...strategies may promote the implementation of green strategies in global maritime logistics and the MPA. In this report, the utilisation as well as impacts of Lean and Six Sigma strategies will be analysed. In addition to this, the two strategies will be compared and contrasted. Lean and Six Sigma assist in working efficiently and reducing wastes. In recent times, IT has proven to be a vital tool in assisting organisations and global maritime logistics. This report will examine the relationship between IT and quality (TQM), efficiency (Lean) and collaboration and has shown assist them in their objectives and gain a competitive edge. This report has shown that IT has proven to be effective in helping organisations and global supply networks work and communicate among one another effectively and efficiently. 1.0 INTRODUCTION In this report, its main focus is on determining the most optimal cost reduction strategies in the implementation of green strategies in global maritime logistics such as the Singapore maritime logistics network or Maritime and Port Authority of Singapore (MPA) and for this particular paper, the researcher has chosen two specific cost reduction strategies specifically: Six Sigma and Lean. Container ports the world over are increasing at an alarming rate and ports have to take into account of its efficiency, throughput and green performance. TASK 1 2.0 COST REDUCTION STRATEGIES TO ACHIEVE OBJECTIVES Six Sigma and Lean are the strategies that will be critically...
Words: 3028 - Pages: 13
...Chapter 9 Six-Sigma Quality I. Total Quality Management a. Total Quality management Defined b. Malcolm Baldrige National Quality Award Defined II. Quality Specification & Quality Costs c. Developing Quality Specifications i. Design Quality Defined d. Cost of Quality ii. Conformance Quality Defined e. Functions of The QC Department iii. Quality At The Source Defined iv. Dimensions of Quality Defined v. Cost of Quality Defined III. Six-Sigma Quality f. Six-Sigma Methodology vi. Six-Sigma Defined g. Analytical tools for Six-Sigma & Continuous Improvement vii. DPMO Defined viii. DMAIC Defined h. Six-Sigma Roles & Responsibilities ix. PDCA Cycle Defined x. Continuous Improvement Defined xi. Kaizen Defined xii. Lean Six-Sigma Defined xiii. Black Belts, Master Black Belts & Green Belts Defined IV. The Shingo System: Fail-Safe Design i. Fail-Safe Procedures Defined j. Poka-Yoke Defined V. ISO 9000 & ISO 14000 k. ISO 9000 Defined VI. External Benchmarking for Quality Improvement l. External Benchmarking Defined VII. Summary VIII. Case: Hank Kolb, Director of Quality Assurance IX. Case: Appreciative Inquiry- A Different kind of Fishbone Six-Sigma Quality 1. Total Quality Management a. Total Quality management...
Words: 356 - Pages: 2
...Quality Issues with Toyota Motor Vehicles Randy Kenepp 821 Vickie Drive Del City, OK 73115 Phone: 405-473-7998 Email: rkenepp@gmail.com Managing Quality - BSOP 588 Professor: Richard Sheng October 19, 2014 I. Introduction: Toyota Motor Corporation (TMC) is a motor vehicle and production business. TMC is headquartered in Aichi Prefecture, Japan. TMC was founded August 28, 1937 by Kiichira Toyoda. Kiichira Toyoda’s son Akio Toyoda is the current President of the company. The company was originally a division of the Toyoda Automatic Loom Works Company founded by Kiichira’s father, Sakichi Toyoda. World War II halted many of the company’s initial manufacturing, but by 1950, Toyota reopened production facilities. In the 1960s and 1970s, TMC began rapidly exporting automobiles to foreign markets (The Editors of Encyclopædia Britannica, paragraph 4). TMC has continued to grow and has manufacturing plants and distribution channels setup in many countries. As of May 2014, TMC has a 397.05 billion yen, or 3.69 billion dollars, of capital. As of March 31, 2014, TMC has 338,875 employees. TMC has had a long standing reputation for quality. TMC’s quality philosophy is stated on their website, Toyota-Global.com (2005), “In June 1961, TMC decided to adopt the system of Total Quality Control (TQC) to modernize management operations. To realize TQC, all employees in Toyota were required to ‘regard the next processes (on the production line) as their customers and provide them...
Words: 3561 - Pages: 15
...history of Six-Sigma The roots of Six Sigma as a measurement standard go back to Carl Frederick Gauss (1777-1885) who introduced the concept of normal curve. Six Sigma as a measurement standard in product variation can be traced back to the 1920´s when Walter Shewhart showed that three sigma, from the mean is the point where a process requires correction. As history would seem to have it, the beginnings of Six Sigma really come from 1979 when an exasperated Motorola executive named Art Sundry said, at a meeting, “The real problem at Motorola is that our quality stinks!”. Apparently, this statement led to series of activities that in turn led to the discovery of the crucial correlation between higher quality and lower development costs in manufacturing products of all kinds. The problem was that the common thought was that quality initiatives simply cost too much money. What Motorola realized is that if these initiatives were done right, improving quality would actually reduce costs. Motorola decided to take the approach that high quality products should actually cost less to produce. Motorola reasoned that the highest quality producer should be the lowest cost producer. THEORETICAL ANALYSIS OF THE CONCEPT OF SIX-SIGMA What is Six-Sigma Six-Sigma has at least three different meanings depending upon the context; there is not one answer to what is Six-Sigma. The first answer to what is Six-Sigma is that it is a management philosophy. Six-Sigma is a customer...
Words: 3749 - Pages: 15
...DIRECTORATE/DEPT: Directorate for Professional Education POC: HM1 (FMF) Alexis Rios 532-6037 ISSUE TITLE: TARGETING PERFECTION THROUGH SIX SIGMA ISSUE: Six Sigma is a defect reduction methodology that transforms organizations by forcing them to focus on the quality of the customer experience. The term sigma refers to deviations from an ideal level of operation, where each level of sigma, starting from one, allows for fewer defects. BACKGROUND: Six Sigma is an overall enterprise improvement methodology structured to reduce product or service failure rates to near perfection. Utilizing a disciplined, data-driven approach, Six Sigma practitioners use data to monitor, control, and improve operational performance by eliminating and preventing defects in products and associated processes, including management, service delivery, design, production and customer satisfaction. CURRENT/ALTERNATIVE PROGRAMS: Current program: Villanova University Lean Six Sigma Black Belt Certification program. Alternative I: None EVALUATION OF ALTERNATIVES: Effective management decisions due to heavy reliance on data and facts instead of gut-feelings and hunches. Hence costs associated with firefighting and misdirected problem-solving efforts with no structured or disciplined methodology could be significantly reduced. - Increased understanding of customer needs and expectations, especially the critical-to-quality (CTQ) service performance characteristics which will have...
Words: 481 - Pages: 2
...Become A Certified Quality Specialist: Six Sigma Certification Would you like to find employment in just about any industry while assisting with improving quality and increasing efficiency? Do you enjoy working with statistical methods and verifiable data instead of having to rely on guesswork or assumptions? If so, obtaining Six Sigma certification can help to give you a competitive edge in the job market. Not only can certification improve your scope of knowledge, but you will also be able to bring valuable skills to any job, such as the ability to save time, resources and cost. Six Sigma is a process that is beneficial for many different industries and the skills you learn by becoming certified are always in high demand. Six Sigma Certification Information...
Words: 1044 - Pages: 5
...The Emergence 1 The Emergence of Lean Six Sigma Carl E. Pierce MBA 5101-06F – Strategic Management and Business Policy Professor Larry R. Williams October 15, 2006 The Emergence 2 Introduction Every organization has problems that get solved over and over again, only to reappear. Organizations work hard for months, generating solutions that people know will work, but don’t. To have any chance of success, implementation of Lean Six Sigma must be accompanied by new positions, new training, and new ways for different layers of the organization to communicate. By delivering products and services with speed, customer satisfaction and lower cost through operational excellence is essential to achieve and sustain superior shareholder returns in businesses and government enterprises. Operating excellence is becoming a priority in services like banking, insurance, retail, and government, because so much of the cost is tied into operations. Lean Six Sigma and Six Sigma are all about change and managing change. We all want improved results; it is just the challenge of making the changes and managing change necessary for the improved results that present the challenges. For some managers, the changes brought by Lean Six Sigma can present a challenge to their normal management approach. Decisions...
Words: 1819 - Pages: 8
...Lean manufacturing training and six sigma training are two of the most valuable skills in business today. Businesses of all types are utilizing six sigma, lean manufacturing, and lean six sigma as the primary continuous improvement methodology.Our Lean Manufacturing Certification course, delivered worldwide to individuals, colleges, and training centers, includes all of the major concepts in a single course. Definition: What does it mean to be "Six Sigma"? Six Sigma at many organizations simply means a measure of quality that strives for near perfection. But the statistical implications of a Six Sigma program go well beyond the qualitative eradication of customer-perceptible defects. It's a methodology that is well rooted in mathematics and statistics. The objective of Six Sigma Quality is to reduce process output variation so that on a long term basis, which is the customer's aggregate experience with our process over time, this will result in no more than 3.4 defect Parts per Million opportunities (DPMO). What Is Six Sigma ? Six Sigma is a meticulous methodology that make use of information management by facts and statistical analysis to define, measure and improve a company's operational performance, practices and systems. It identifies and prevents "defects" in manufacturing and service-related processes to anticipate, and achieve or exceed total customer satisfaction. What is the Six Sigma Objective? The primary objective of the Six Sigma methodology is the implementation...
Words: 2493 - Pages: 10
...manufacture and development of electronic, defense, industrial and Medical products. Within the corporate structure of XXXXXXXXXXXX America, their newest site, known as a green site sue to its non-supported and total adaptation of the facility, is the North Las Vegas Site. This factory has been in operation since January of 2011 and is the single manufacturing plant for industrial size solar panels, measuring 60Ft x 60Ft. As the design and development of this product increases, the plan in the next year is to add over 500 employees to the site headcount. As with all XXXXXXXXXXX sites, the corporate culture and policies are expected to be enforced with one unique task. XXXXXXXXXXXXX has what is commonly known as the “XXXX culture”, and one of its roots is LEAN manufacturing. What is unique about LEAN is the concepts and training can be replicated but the actually process is unique at each location. Currently the location has a core team of approximately 7 senior managers, Plant, Program, Facilities, Materials, Human Resources, Engineering, and Business Excellence and 90 direct and indirect labor employees focused on the set up, design and build of the prototype panels. The concept at the plant is to simultaneously design, build and prepare for New Product Introduction (NPI) and design a LEAN process for developing this product. In order to profit and ensure the success of the business, support the customer demands and maintain an equitable profit margin...
Words: 1751 - Pages: 8
