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Lean, six sigma and lean six sigma

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Lean, six sigma and lean six sigma : an analysis based on operation strategy

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Technical Seminar on
Lean, Six Sigma and Lean Six
Sigma : an analysis based on
operations strategy
By
Spoorthi Sham
1PI14SSE12
Department of Information Science and Engineering
PES INSTITUTE OF TECHNOLOGY
Under the guidance of
Nypunya Devraj
Assistant Professor
Dept of ISE
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Unstable
economic
conditions
Customer
demands
Competition
Ability to
change
Reliability
and speed
Continuous
improvement
Operations
at lower
cost
Introduction
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Continuous improvement concepts
•Improved quality
•Reducing waste
•Simplifying production line
Models based on these concepts
•Total Quality Management (TQM)
•Lean manufacturing
•Six sigma
•Lean six sigma
Outcomes of using these models
•Adds value for stakeholders
•Gives a competitive edge
•Reduced cycle time
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Introduction
Lean Six Sigma
Six Sigma
Lean
Purpose
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Operations Strategy
• Two complementary models – process model and
content model
• Decision areas – structural and infrastructural
• Competitive priorities
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Lean Manufacturing
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Six Sigma
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Lean Six Sigma
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Objectives of LSS
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An exploratory survey
Step 1 : Development of a theoretical conceptual model
Lean Manufacturing / Six Sigma / LSS
Decision Areas
Structural
Capacity
Facilities
Process technology
Vertical Integration
Infrastructural
Organization
Quality
PPC
Human resources
New Product Introduction
PMS
Competitive Priorities
Cost
Quality
Reliability
Speed
Flexibility
Innovation
R1
R2
H1
H1
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Step 2 : Preparation of questionnaire and analysis of its result
An exploratory survey
Block Theme Scale
1 Identification of operations management model Nominal (multiple choice)
2 Identification of company and the respondent Nominal (multiple choice)
3
Identification of level of importance of competitive priorities
Interval(the five-point
Likert scale)
4
Level of change necessary in the decision areas of the company for
the implementation of the operations management model
Interval(the five-point
Likert scale)
5
Classification of how much the actions in the decision areas from
the use of the production management model adopted by the
company contribute to the competitive priorities
Interval(the five-point
Likert scale)
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Step 3 : Statistical analysis of the results (1)
An exploratory survey
Decision Area : Facilities v/s Competitive priorities
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Step 3 : Statistical analysis of the results (2)
An exploratory survey
Decision Area : Vertical Integration v/s Competitive priorities
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Step 3 : Statistical analysis of the results (3)
An exploratory survey
Decision Area : PPC v/s Competitive priorities
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Conclusions
• Companies that deploy lean manufacturing, Six Sigma and LSS
models achieve superior performance in competitive
priorities like quality, reliability and speed.
• Application of LSS makes it possible to reach a wider range of
competitive priorities compared to the isolated application of
the models.
• In addition to cost reduction, the models allow the
organizations to be faster, have superior quality, to offer
greater reliability in products and services and flexibility to
serve customers.
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References
[1] Skinner, W. 1969. “Manufacturing – Missing Link in Corporate Strategy.” Harvard
Business Review 47 (3): 136–145.
[2] Skinner, W. 1974. The Focused Factory. New Approach to Managing Manufacturing
Sees our Productivity Crisis as the Problem of How to Compete.” Harvard Business
Review 52 (3): 113–121.
[3] Leong, G., D. Snyder, and P. Ward. 1990. “Research in the Process and Content of
Manufacturing Strategy.” OMEGA International Journal of Management Science 18 (2):
109–122.
[4]Hayes, R., and S. Wheelwright. 1984. Restoring our Competitive Edge: Competing
Through Manufacturing. New York, NY: Wiley.
[5]Hill, T. 1983. “Manufacturing Strategic Role.” Journal of the Operational Research
Society 34 (9): 853–860.
Thank You
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