...market scenario and the increasing competition, the manufacturing organizations face a constant need for improvement. The manufacturing paradigm has shifted from craft manufacturing to mass production and more recently to a newer approach – the lean manufacturing. In mass production, large quantities of the product were produced and the focus was more on quantity than quality. But with the increase in competition and the gradual saturation of the market the need to develop a new paradigm that focuses more on the process i.e., improved quality, delivery and cost performance has emerged. This has led to the introduction of Lean Manufacturing which focuses on waste elimination and creation of flow within an organization. In the words of Shigeo Shingo “The most dangerous kind of waste is the waste we do not recognize.” Lean and six-sigma are methodologies backed by powerful tools that help in improving quality and productivity thereby improving overall profitability and competitiveness. The lean philosophy was initially pioneered by Toyota manufacturing company and aims at various methods of eliminating waste and improving the process flow. Six Sigma on the other hand, focuses on reducing variation using problem solving and statistical tools. It was first implemented in the Motorola Company as a safety margin for product performance. SIX SIGMA Six Sigma is a continuous improvement strategy that focuses on minimizing defects and variation and aims at achieving 3.4 defects per million...
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...transmitting/storing electronically Identifying, eliminating, or reducing such waste will enable firms to improve productivity, redeploy resources, increase customer satisfaction, and reduce costs. But waste can be pervasive and not easily identified. One Lean technique that can help uncover waste is Value Stream Mapping. A Value Stream Map (VSM) provides an end to-end view of a process, as well as the availability, capacity, and performance of each step in the process. The VSM should include both physical flows and information flows. A Current State VSM shows the process as it is today and highlights opportunities to reduce waste in the current process. Future State VSMs depict how the process may look in the future, after improvements are implemented. This makes Value Stream Mapping a powerful visioning and communication tool. Raising efficiency by applying lean techniques to banking operations There is often skepticism whether Lean, which originated in the manufacturing world, applies to the financial services industries. As banks are very process-intensive with complex flows of information across the business, Lean offers an enormous potential for operational improvement by eliminating process wastes. Rework...
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...It is very important that the organization can see that leadership have bought in to the approach and are willing to support Lean. Numerous examples exist that demonstrate failed attempts at implementing Lean. It is important that organizations appreciate that they cannot simply wake up one day and choose to introduce Lean. It took Toyota many years to develop their culture into one of continuous improvement. For organizations that are new to Lean, the effort required will be significant in order to realize the true value associated with Lean principles. Poor planning will almost certainly result in disappointment and leave a strong negative association with any future Lean attempts along with a big investment with little to no return. With a focus on continuous improvement and continuous flow, manufacturing based on pull rather than push demand will assist organizations in becoming Lean. While Lean is a long journey, it can be one that returns significant value to an organization. What follows is a view of the history of Lean, some of the tools such as Value Stream Mapping, Kaizen, etc, along with the expected benefits, potential barriers, critical success factors, and a quick view of Lean at Suncor. Table of Contents 1.1. Introduction 4 1.2. Concepts, Theories, Tools and Techniques 5 1.2.1. The Toyota Production System 5 1.2.2. The Toyota Way 5 1.2.3. Continuous Flow – Pull versus Push 5 1.2.4. Mudda and the...
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...identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. Lean manufacturing is a comprehensive approach to eliminating waste from your operation. It is a systematic methodology that uses various tools to achieve the goal of reduced waste. The principle of lean manufacturing is to reduce cost through continuous improvement that will eventually reduce the cost of services and products, thus growing more profits. Waste: Waste can be defined as a substance or a thing that is no longer useful in a process. Waste is in fact anything that adds cost, but not value to a product. Toyota executive Taiichi Ohno identified seven types of wastes in manufacturing system, namely: Overproduction- It is considered to be the worst of the wastes, as it multiplies the other 6 wastes and hides your true capability, thereby causing you to make bad decisions such as turn work away or invest in unnecessary additional capacity. Defects- It is also pure waste as poor quality is produced. Time, energy and materials are consumed needlessly, and even if the customer is not lost, you still need to do the work again. Inventory- It is the worst of all the 7 wastes. It ties up cash, requires labor, energy and fixed assets to manage it, and moreover it provides a false sense of comfort by hiding problems. Motion- In terms of ease of elimination and size of improvement impact, the waste of motion ranks very high and is...
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...conclude all of my work together and discuss the principal arguments. Six sigma is a methodology used to focus an organization on reducing variations and errors in processes and driving quality improvement. Developed by Motorola Inc in the USA in 1986, it became well known in the 90’s, when GE CEO Jack Welch evangelized it. Six sigma is now according to many business development and quality improvement experts, the most popular management methodology in history. Six sigma aims to maximise customer satisfaction and minimise defects. In statistical terms, the purpose of six sigma is to reduce the process variation so that virtually all the products or services provided meet exceeded customer expectations. The standard metric for Six Sigma is 3.4 defects per million opportunities. For example for every 1 million transactions that go through a system, there will be 3.4 errors and still achieve six sigmas. Therefore this process has so few defects that is nearly perfect. By the year 2000, six sigma was effectively established as an industry in its own right, involving the training, consultancy and implementation of six sigma methodology in all sorts of organisations around the world. Therefore as well as being a hugely popular methodology used by many corporations for quality and process improvement it also became the subject of...
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...LSS lean Six Sigma Abstract Purpose – Although research has been undertaken on the implementation of lean within various industries, the many tools and techniques that form the “tool box”, and its integration with Six Sigma (mainly through case studies and action research), there has been little written on the journey towards the integration of the two approaches. This paper aims to examine the integration of lean principles with Six Sigma methodology as a coherent approach to continuous improvement, and provides a conceptual model for their successful integration. Design/methodology/approach – Desk research and a literature review of each separate approach is provided, followed by a view of the literature of the integrated approach. Findings – No standard framework for lean Six Sigma or its implementation exists. A systematic approach needs to be adopted, which optimises systems as a whole, focusing the right strategies in the correct places. Originality/value – This paper contributes to knowledge by providing an insight into the evolution of the lean Six Sigma paradigm. It is suggested that a clear integration of the two approaches must be achieved, with sufficient scientific underpinning. Keywords Lean production, Six sigma Paper type Literature review 1. Introduction The Toyota Production System (TPS) provided the basis for what is now known as lean thinking, as popularised by Womack and Jones (1996). The development of this approach to manufacturing began shortly after...
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...Ford Motor Company The Company Background Ford Motor Company is based in Dearborn, Michigan, and has become the second largest industrial corporation in the world. Since Henry Ford had incorporated in 1903, the company had produced over 260 million vehicles. Operating in approximately 200 countries, Ford employed 370,000 workers and obtained significant revenues and profits from its financial services subsidiaries, core business had remained the design and manufacture of automobiles for sale on the consumer market. Operations before SCM was introduced In the past, The Ford Company managed to maintain its position ahead of its competitors by vertically integrating itself as it owned or controlled virtually every aspect of its business. Hence, Ford was able to eliminate inefficient delivery process and control the raw materials for mass production. Ford's mass production which led to mass profits and the company was able to buy and control its resources, everything from the mines and plantations that provided iron ore, coal, and rubber. This helped Ford to track the source of the problem quickly if something went wrong with one of its supplier and fixed immediately so not to slow production. However, until the 1970s when Japanese car manufacturers enter the competition, Ford lost its market share. Since the industry became more competitive and Japanese car manufacturers had took the lead with its more cost and time effective method How did they develop SCM? Ford is taking the...
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...Total Quality Service Management TERM PAPER on STRATEGIC MANAGEMENT PROCESS FOR CONTINUES IMPROVEMENT Subject Description: Total Quality Service Management Topic: Strategic Management Process For Continues Improvement Instructor: Mrs.Alicia F. Andrade Date Issued: Student Name: Romela R.Veracis Course Description: Hotel and Restsurant Services Year: 2nd year Semester: 2nd Semester S.Y. 2015-2016 I Romela R.Veracis a second year HRS student of St.Aloysius Institute of technology have abided by the academic honor policy on this assignment. OBJECTIVES OF THE STUDY: In this report I have tried to l INTRODUCTION With the continual evolution within the business market, it is apparent that companies need to develop and improve their strategies to remain afloat. Lager companies typically pay competitive salaries to hire a Chief Executive Officer who will develop a plan to accomplish its goals. This plan is commonly referred to as “strategic management.” According to Wheelen and Hunger (2010), strategic management refers to decisions and actions taken to establish the long term performance of a company. Undoubtedly, without a well formulated strategy any company will set to fail. It's a key strategic initiative that...
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...tions Managmen Introduction What makes a good process? When a process operates, how do you determine whether it is successful or not? Processes seem simple, yet seem to cause so many problems and the very word 'process' can strike fear into the hearts of many people. If you are leading any type of process improvement program, you have probably felt at times like your efforts were yielding less-than-expected results. It is no wonder: the list of possible hurdles to overcome – restrictive organizational structure, politics, stagnant organizational culture, power trips – goes on and on. Continuous Improvement is the on-going effort to improve products, services and processes by making small, incremental improvements within a business. It is based on the belief that these incremental changes will add up to major improvements over time and it is as much about tactics (i.e. specific improvements) as it is about changing the culture of the organization to focus on opportunities for improvement rather than problems. At the other extreme, there is the Business Process Reengineering which advocates starting from a clean slate with a quantum leaps. Whatever techniques/methods is used it relative the pulse of an organisation. Your objectives In this chapter you will learn about the following: * Understand the 3 Es of operational excellence * Understand the importance of the 3 Es * Understand the techniques/methods to achieve the 3 Es * Understand how to acehive...
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...Going lean This publication was developed during the Lean Processing Programme (LEAP) which ran from to . The programme was sponsored by the Engineering and Physical Science Research Council (Innovative Manufacturing Initiative) and a network of UK automotive/steel supply chain firms: Corus, Thyssen Krupp Automotive Body Products, TKA Chassis Camford, Tallent Engineering Ltd, GKN Autostructures Ltd, Steel & Alloy Processing Ltd, LDV Ltd and Wagon Automotive – UK/USA. Corus was formed in October by the merger of British Steel and Koninklijke Hoogovens. We would like to thank all these organisations for their generous support in both time and finances. The Lean Processing Programme was designed to extend Lean Thinking into this particular group of firms and their associated customer base. Over a three year period it has sought to make radical and incremental change both within and between the firms as well as at a network level. Specific improvements have been made: better understanding of customer requirements, improved learning culture in the firms, faster reaction time, improved delivery performance, reduced new product time to market, better quality product, improved productivity and increased business opportunities. The programme was run by staff at the Lean Enterprise Research Centre at Cardiff Business School together with project management support by Chris Butterworth of Corus. We would like to thank the research team members, all of whom have contributed to...
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...History of Quality Management The history of Total Quality Management can be traced in early year’s of 1920′s in the area of production quality control, and remarkably the concepts developed in Japan beginning in the late 1940′s and 1950′s, pioneered there by Americans Feigenbum, Juran and Deming. Quality Management Gurus and theories Quality Management resulted mainly from the work of the quality gurus and their theories. the American gurus featured in the 1950′s Japan: Joseph Juran, W Edwards Deming, and Armand Feigenbum; the Japanese quality gurus who formulated and extended the early American quality ideas and models: Kaoru Ishikawa, Genichi Taguchi, and Shigeo Shingo; and the 1970-80′s American Western gurus, notably Philip Crosby and Tom Peters, who further extended their thoughts towards Quality Management concepts after the Japanese successes Total Quality Management (TQM) Total Quality Management features centrally the customer-supplier interfaces, (external and internal customers and suppliers). A number of processes sit at each interface. Central also is an organizational commitment to quality, and the importance of communicating this quality commitment, together with the acknowledgement that the right organizational culture is essential for effective Total Quality Management Processes – understanding processes and methods for process improvement Understanding processes is essential before attempt is made to improve them. This is a central aspect to Total...
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...Lean Enterprise Organization Application ISCOM472 – Lean Enterprise January 25, 2016 Describe two core elements of Lean Enterprise that can be used to improve your organization Every organization can benefit from all five of the lean enterprise principles. The two core elements that I selected from Lean Enterprise that can be used to improve the salon at which I work are: 1) identifying value from the client’s perspective, and 2) mapping the value of stream for our services. It is imperative that we listen to our clients and pay attention to what they consider important, if we would like to retain them. The majority of our customers are pleased with our services and prices. Given this fact, I still believe that if we survey them, we might find that there are additional value-added services that they would appreciate which would make them more likely to remain loyal to us. Likewise, if we identify all of the steps in the value stream for our services and products, I am sure that we would find areas that do not create value for our clients or our organization. These areas can be streamlined or eliminated in order to give our clients the most pleasant experience from the moment they book their appointments until they leave the salon with their hair looking beautiful and their purchase of professional retail product in hand. Compare and contrast Six Sigma and TQM to Lean Enterprise I chose to compare and contrast Lean Enterprise with Six Sigma and TQM because although...
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...Dimensions of Quality in Healthcare Presented by: Connie Kirkpatrick, PhD, MS, RN Franciscan Health System Tacoma, Washington Quality Basics Series Taught by quality experts for staff in Quality Improvement Organizations, Quality Basics focuses on the fundamentals of quality in areas such as the history of quality improvement, methods and models, performance measurement and other key topics. 1 Quality Basics Dimensions of Quality in Healthcare Connie Kirkpatrick, PhD, MS, RN Director, Quality & Clinical Support Franciscan Health System, Tacoma, Washington Question from a seminar participant: “I can see that it must work in practice. But does it work in theory?” 2 Dimensions of Quality Learning Objectives Define Quality Define Quality Improvement Describe six key “Dimensions of Quality” Describe seven key “Pillars of Quality” Quality Institute of Medicine: “Quality of Care” is the degree to which health services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge. Institute for Healthcare Improvement (IHI): Quality is turning into outcomes management, and involves minimizing unnecessary variation so that outcomes become more predictable and certain. 3 Quality Basic Principles: All work is a process The process is the main source of quality defects (versus human error) Understanding variability in processes is the key to improving quality Quality Improvement A planned...
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...Sigma Methodology within a finance department. Specifically, the case relates to the Continuing Account Reconciliation Enhancement project undertaken by the finance department of a major U.S. defense contractor. The goal of the project was to streamline and standardize the establishment and maintenance of costing and planning for all business activities within the current financial management process. The Six Sigma implementation resulted in a significant reduction in the average cycle time and cost, per unit of activity, needed to produce the required financial reports. Key Words: Six Sigma, Process Management, Quality Management, Finance Application of Six-Sigma, Page 1 Journal of Case Research in Business and Economics INTRODUCTION In 1987, Motorola developed and organized the Six Sigma process improvement Methodology to achieve “world-class” performance, quality, and total customer satisfaction. Since that time, at least 25% of the Fortune 200, including Motorola, General Electric, Ford, Boeing, Allied Signal, Toyota, Honeywell, Kodak, Raytheon, and Bank of America, to name a few, have implemented a Six Sigma program (Antony et al. 2008, Hammer, 2002). These companies claim that Six Sigma has significantly improved their profitability (Hammer, 2002). For example, in 1998 GE claimed benefits of $1.2 billion and costs of $450 million, for a...
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...Title: Enhancing Productivity & Quality in an integrated Steel Plant – a case study Name of the Scholar : O. Rama Mohan Rao AGM (Pers), Visakhapatnam Steel Plant Dept : Mechanical Engineering Name of the guide : Dr. K.Venkata Subbaiah, Ph.D, Professor in Mech. Engg., Andhra University Dept : Mechanical Engineering ABSTRACT Globalization is making most of the organizations, sectors more intensely competitive. Many organizations are struggling to improve their operating performance in response to market demands for lower costs, higher-quality products and services, shorter lead times, and higher returns on investment in infrastructure and resources. To address issues of competitiveness and to uncover hidden value, our clients find that Lean Six Sigma technique is one of the most powerful platforms available. This research addresses the application of Lean and Six Sigma tools to increase the productivity and improve the quality in the steel industry. It illustrates the procedures of implementing lean tools in a process industry with emphasis on Value stream mapping, 5 s and six sigma tools. Study on Integrated applications of lean & six sigma tools in a continuous process industry are limited. The thesis hypothesizes that there are lot of opportunities for improvement in the process industries like steel if lean and six sigma tools are integrated and utilized. It systematically demonstrates how lean manufacturing tools when...
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