Lean System and the Environment

1. The lean system is concerned with waste reduction throughout the firm and its supply chain.

2. 2.1 Adopting Lean system approach has a positive impact to our environment which includes:

Reduces waste

Cost of environmental management and

Leads to improved environmental performance.

3. Professor King and Lennox they have analyzed thousands of companies in 1990s and found
evidences that firms minimizing inventories and adopting quality standards were more likely to
practice pollution prevention and also had lower toxic chemical emission.

4. The Illinois-based Hospira are dedicated to eliminate the waste in all areas of production and
they are also in progress of reducing the 2.4 billion pounds of waste that hospital the produce
every year in the U.S. Hospira developed and launched a new IV intravenous bag that
produces 40-70- percent less waste than other flexible IV bags.

5. Pictorial Offset Corp. the management desire to reduce waste that led them to remove 300
chemical products from the plant and begin recycling cardboard paper and steel strapping
waste. The firm have achieved ISO 9000 and ISO 14000. They are also recognized as being
carbon-neutral and planting 5,000 trees in New Jersey.

The Origins of Six Sigma Quality

6. 6.1 The Six Sigma was pioneered by global communications leader Motorola in 1987. The Six
Sigma is a (capital Ss) registered trademark of Motorola.

6.2 Six Sigma is a statistics-based decision-making framework designed to make significant

quality improvements in value-adding processes.

7. Quality perfection that refers to the statistical of 99.99966 percent of the time. The goal of Six
Sigma is to have a process that produces only a defect of 0.00034 percent of the time or 3.4
times out of every million measurement opportunities.

8. 8.1 sigma drift is 1 ½ or 1.5 standard deviation

8.2 defects per million opportunities (DPMO)

8.3 opportunities for a defect to occur (OFD)

9. 9.1 The Six Sigma is not just a statistic but also a broad improvement strategy that includes
the concepts and tools of total quality management (TQM).
 9.2 Proactive in nature and seeks to permanently fix the root causes of problems, instead of
repeatedly spending time and money as problems occur in the business.

10. Formula in calculating the defects per million opportunities (DPMO):

11.

12. The Six Sigma cannot guarantee continued or even initial business success.
Example: The Six Sigma originator Motorola has struggled financially

Comparing Six Sigma and Lean

13. 13.1 The Six Sigma and Lean have the same goal. They both seek to eliminate waste and
create the most efficient system possible. The difference of Six Sigma and Lean, they identify
the root cause of waste differently.

13.2 Lean practitioners believe that waste comes from unnecessary steps in the production
process, while Six Sigma proponents assert that waste results from variation within the
process.

Lean Six

14. It is a process improvement methodology designed to eliminate problems, remove waste and
inefficiency, and improve working conditions to provide a better response to customer’s
needs.

15. There are three businesses claimed that firms are healthier when using Lean Six;
Celestica
ON Semiconductor
Xerox

16. Who benefit from using Lean Six Sigma?

The Business
The Employees
The Customer

Six Sigma and Supply Chain Management

17. 17. 1 The impact of poor quality on supply chain cause potential damage to a firm’s
reputation.
 17.2 The Mattle had a problem to deal with regarding the Chinese-made toys it was selling
in many of its global markets. They announced to pull millions of toys they have released
because of the quality problems includes the use of lead paint and tiny magnets that
could be swallowed.

18. The objectives of Six Sigma program made a decision to understand, meet and then strive to
exceed customer expectations.
Ex: fast-food sandwich vs. restaurant sandwich
g-tech vs. pilot

19. According to American Society for Quality, “Quality is defined by the customer through his/her
satisfaction.”

20. Good supply chain trading partners use Six Sigma methods to assure that their suppliers are
performing well and that their customers’ needs are being met.