HANOI UNIVERSITY OF SCIENCE AND TECHNOLOGY

SCHOOL OF ECONOMICS AND MANAGEMENT

INDIVIDUAL ASSIGNMENT
QUALITY MANAGEMENT
NGUYEN LINH CHI
chi.nl198007@sis.hust.edu.vn

Lecturer Dr. Do Tien Minh Lecturer’s Signature

Department Industrial Management
School Economics and Management

Hanoi, January 2022

i
 Table of Contents
Acknowledgement ......................................................................................................................... iii

List of Tables ................................................................................................................................. iv

List of Figures ................................................................................................................................. v

List of Abbreviations ..................................................................................................................... vi

PART I: LEAN PRODUCTION .................................................................................................... 1

1. Lean concept ........................................................................................................................... 1
2. Lean principles ........................................................................................................................ 1
2.1. Identify / Define Value (from the customers view point) ................................................ 2
2.2. Map the Value Stream ..................................................................................................... 2
2.3. Create Flow ...................................................................................................................... 2
2.4. Establish Pull ................................................................................................................... 2
2.5. Pursue Perfection ............................................................................................................. 2
3. Wastes in lean production ....................................................................................................... 3
4. Lean implementation .............................................................................................................. 4
4.1. Value - stream mapping ................................................................................................... 4
4.2. Just in time ( JIT) ........................................................................................................... 10

PART 2: SIX SIGMA ................................................................................................................... 19

1. Six Sigma concept................................................................................................................. 19
2. Six sigma principles .............................................................................................................. 19
3. Six sigma implementation and methodologies ..................................................................... 20
3.1. Detailed implementation process DMAIC..................................................................... 21
3.2. Detailed implementation process DMADV ................................................................... 22
3.3. Detailed implementation process Five Whys ................................................................ 22
3.4. Detailed implementation process CTQ Tree.................................................................. 22

PART 3: LEAN/ SIX SIGMA ...................................................................................................... 23

1. Lean Six-Sigma concept ....................................................................................................... 23
2. Lean six sigma benefits ......................................................................................................... 23
3. Combine Lean and Six Sigma............................................................................................... 24

PART 4: CONCLUSION ............................................................................................................. 26

REFERENCES ............................................................................................................................. 27

ii
 Acknowledgement
Before embarking on/ culminating in exploring the topic of a applied statistics essay, i would
like to express my sincere thanks to the lecturer of the applied statistics subject, Mr.Do Tien
Minh. During the research process, he spent his precious time answering all questions as well as
caring and assisting me in a very wholehearted way so thatie can acquire valuable knowledge,
take approaches to the topic quickly and accurately. Therefore, thanks to the knowledge that he
imparted to me these sources, he was able to search and use the right references selectively to
support the completion of the topic on his schedule.

In the process of finding/ researching this topic, i have tried to complete it well, but
perhaps due to limited knowledge as well as other objective factors, my arising problems can be
inevitable. I am expecting the feedback, and further instructions of teachers and readers so that i
can draw on experience and solve them in the next topics.

Best regards!

iii
 List of Table
Table 1: Seven wastes in production .............................................................................................. 4
Table 2: JIT layout tactics ............................................................................................................. 12
Table 3: JIT inventory tactics ....................................................................................................... 13
Table 4: JIT Scheduling Tatics ..................................................................................................... 15
Table 5: JIT Quality Tactics ......................................................................................................... 18
Table 6:Advantages of Lean Six Sigma........................................................................................ 23
Table 7: Comparation Lean and Six Sigma .................................................................................. 25

iv
 List of Figures
Figure 1: The Lean manufaturing concepts .................................................................................... 1
Figure 2: The five lean principles ................................................................................................... 1
Figure 3: Value stream mapping basic concept .............................................................................. 4
Figure 4: Production control .......................................................................................................... 5
Figure 5: Example of Value stream mapping ................................................................................. 5
Figure 6: Scoping the value stream ................................................................................................. 6
Figure 7: The 4 steps of value stream mapping .............................................................................. 6
Figure 8: Value Stream Mapping, The Kaizen Kick-Off ............................................................... 7
Figure 9: Value Stream Mapping, The Process Family Matrix ...................................................... 7
Figure 10:Value Stream Mapping Template Development ............................................................ 9
Figure 11:Value Stream Mapping Current State Map Example ..................................................... 9
Figure 12: JIT techniques.............................................................................................................. 10
Figure 13: JIT partnership ............................................................................................................. 11
Figure 14: Reduce inventory and variability ................................................................................ 14
Figure 15: Reduce lot sizes ........................................................................................................... 14
Figure 16: Reduce setup cost ........................................................................................................ 15
Figure 17: Kanban application of Donna Shader .......................................................................... 16
Figure 18: Diagram of Stoảge area with warning – signal marker ............................................... 17
Figure 19: Steps for Reducing Setup Time ................................................................................... 18
Figure 20: The term Sigma refers to measure of variation ........................................................... 19
Figure 21: The formula of DMAIC .............................................................................................. 21
Figure 22: What is Lean six sigma ............................................................................................... 25

v
 List of Abbreviations
D S
Defince, Measure, Analyze, Design, Single Minute Exchange of Die
Verify SMED .....................................................3
DMADV .............................................. 22 Small group activities
Defining, Measurement, Analysis, SGA’s ..................................................24
Improvement and Control
T
DMAIC ................................................ 20
The Critical to quality tree
J
CTQ ......................................................22
Just-in-time
V
JIT ........................................................ 10
Value stream mapping
VSM .......................................................4

vi
 PART I : LEAN PRODUCTION
1: Lean concept
Basic concepts: Lean is defined as a set of management practices to improve efficiency and
effectiveness by eliminating waste
The benefits of lean manufacturing include reduced lead times and operating costs and
improved product quality.
At the start of any lean intervention, it is important to go through a number of key steps

Figure 1. The Lean manufaturing concepts

2: Lean principles
The core principle of lean is to reduce and eliminate non-value adding activities and was wastes.

Figure 2: The five lean principles

1
2.1: Identify / Define Value (from the customers view point)
Value is always defined by the customer’s needs for a specific product.
For example:
• What is the timeline for manufacturing and delivery?
• What is the price point?
• What are other important requirements or expectations that must be met?
→ This information is vital for defining value
There are many techniques such as interviews, surveys, demographic information, and web
analytics that can help you decipher and discover what customers find valuable. By using these
qualitative and quantitative techniques you can uncover what customers want, how they want the
product or service to be delivered, and the price that they afford.

2.2: Map the Value Stream

The goal is to use the customer’s value as a reference point and identify all the activities that
contribute to these values.
The waste can be broken into two categories:
• non-valued added but necessary
• non-value & unnecessary
2.3: Create Flow
After removing the wastes from the value stream, the following action is to ensure that the flow
of the remaining steps run smoothly without interruptions or delays. Some strategies for ensuring
that value-adding activities flow smoothly include:
• breaking down steps
• reconfiguring the production step
• leveling out the workload
• creating cross-functional departments
• training employees to be multi-skilled and adaptive
2.4: Establish Pull
The goal of a pull-based system is to limit inventory and work in process (WIP) items while
ensuring that the requisite materials and information are available for a smooth flow of work.

Pull-based systems are always created from the needs of the end customers. By following the
value stream and working backwards through the production system, you can ensure that the
products produced will be able to satisfy the needs of customers.

2.5: Pursue Perfection

Wastes are prevented through the achievement of the first four steps:
• identifying value
• mapping value stream
• creating flow
• adopting a pull system.
However, the fifth step of pursuing perfection is the most important among them all. It makes Lean
thinking and continuous process improvement a part of the organizational culture.

2
→ Hence, the five Lean principles provide a framework for creating an efficient and effective
organization. The principles encourage creating better flow in work processes and developing a
continous improvement culture. By practicing all 5 principles, an organization can remain
competitive, increase the value delivered to the customers, decrease the cost of doing business,
and increase their profitability.

3: Wastes in lean production

Waste Definition Lean tool

Overproduction Production ahead of demand. Kanban: "Pull" system of

logistical control.
SMED: Single Minute
Exchange of Die. Quicker
setup enables shorter runs.

Defects The cost of defect production Poka Yoke: Mistake-

and the effort required to
monitor for defects.
proofing. Any intervention
that prevents mistakes
happening in the first place.
Kaizen: An opportunity to
improve something. "Having
no problem is the biggest
problem of all." – Taiichi
Ohno.

Waiting Production interruptions or Heijunka: Production

time spent waiting for the next levelling.
step of the production process.
Standardised work.

Motion When people must move 5S: Optimise the ergonomics

more than necessary for their of the place of work
part of the production ("gemba"
process. For example, moving
pieces between a remote bin
and machine.

Inventory Stocks of finished goods or Just-in-time (JIT) logistics.

work in progress not being
processed. Heijunka: Production
levelling.

Transport Excessive movement of Value stream mapping.

materials, work in progress or
finished goods. Ergonomic design of
production line.

3
 Overprocessing Processing to compensate for Kaizen: Customer-driven
poor design or production improvements.
processes.
Table 1: Seven wastes in production
4: Lean implementation
Overall implementation process
Lean implementation starts with understanding what the customer wants and then continues
with optimizing the entire process from the customer’s perspective

Lean implementation techniques

• Value-stream mapping
• JIT techniques (work standardization, kanban, etc.)
4.1: Value - stream mapping
4.1.1: Basic concept:
Value stream mapping (VSM) studies the set of specific actions required to bring a product
family from raw material to finished goods as per customer demand, concentrating on
information management and physical transformation tasks.

Figure 3: Value stream mapping basic concept

The outputs of a VSM based study are a current state map, future state map and implementation
plan for getting from the current to the future state. Using VSM it should be possible to bring the
lead time closer and closer to the actual value added processing time by attacking the identified
bottlenecks and constraints.

4
 Figure 4: Production control

Shows a value stream map from a manufacturing context where the original time taken has been
identified and then altered to show what has been made possible through understanding what can
be changed
4.1.2: Exapmle: Value stream mapping

Figure 5: Example of Value stream mapping

In this example, the time taken for information to get from the customer to the manufacturer
prior to the start of manufacture was 66 days and amounted to 1360 minutes of actual process
time.

Manufacturing time took 21 days (1075 minutes actual process time). By identifying these
timings and then challenging how much of that time was actually spent adding value and what
was not, it was possible to reduce the total lead time from 87 (66 + 21) days to 20 (15 +5) – a
saving of 67 days throughput time.

5
Although this is from a manufacturing environment, the overall process (in terms of process
steps and flow) is very similar to many service processes in that much of the non-value added
time is spent ‘in transit’ waiting for things to be done – often on administrative tasks.

4.1.3: Four steps for VSM

Figure 6: Scoping the value stream

Understanding the scope of the value stream under examination is a good start when planning
lean process or value stream map. This map is a single area in an organization. However, when
multiple plants, customers, or suppliers are included, an extended level map is created.

Figure 7: The 4 steps of value stream mapping

Step 1: Form a Team to Create the Lean Value Stream Map
Form a cross-functional team of high-level managers and supervisors from throughout company.
Representatives from multiple departments, such as sales, customer service, inventory,
operations, and beyond, will help ensure that information can be passed freely back and forth,
and that items don’t slip through the cracks.

• The ideal team size is about 10 members. Small teams can miss important items, while
large teams can end up being difficult to manage and coordinate.

Step 2: The Kaizen Kick-Off – VSM Planning

Kaizen is Japanese and means "change for the better." During a kaizen, team members begin
developing current and future plans.
It’s important to include an individual with VSM experience to help facilitate the kaizen event.

6
 Figure 8 Value Stream Mapping, The Kaizen Kick-Off
At the kaizen event, the team must complete four important steps:

• Determine the process family.

• Draw the current state map.

• Determine and draw the future state map.

• Draft a plan to arrive at the future state.

Step 3: The Process Family – VSM Planning

A process family, also known as a product family, is a group of products or services that go
through the same or similar processing steps. To determine your process family, create a matrix
similar :

Figure 9 Value Stream Mapping, The Process Family Matrix

7
Along the top row, write all the process steps your organization performs from a 30,000-foot
point of view.

• In the first column, write down the parts (e.g., components, stock keeping units, finished
good items, or services) your organization makes or provides.
• Place an X in the corresponding box if the part goes through the processing step.

Step 4: Identifying Similarities

Examine the matrix and look for sections that have similar or identical processing steps. Also
look for sections that share about 80% of the steps. Consider items that share many of the same
steps and procedures that can be created together—by the same workers using similar or related
steps—more efficiently in a manufacturing cell.

• Biggest "bang for the buck"

• Largest reduction in lead time or inventory
• Biggest impact to the customer
• Highest probability for success
• Most visible to stakeholder
• New product or service line
• Volume or quantity

Step 5: Creating the Current State Map – VSM Planning

To create a current state map, collect the data and information by "walking the flow" and
interviewing the people who perform the task.

When the team is "walking the flow," be sure to gather high-value information from employees,
including:

• Cycle time or processing time

• Changeover time
• Reliability of equipment
• First pass yield
• Quantities
• Number of operators and shifts
• Hard copy information
• Electronic information
• Inventory levels
• Queue or waiting times

Step 6: Start by Creating the Basic VSM Template

8
Once the team has gathered and reviewed the information obtained while "walking the flow,"
begin drawing the value stream map. Figure 10 below shows some common examples and
strategies with VSM template development.

Figure 10Value Stream Mapping Template Development

Calculate the cycle time vs. the inventory time (in days) for the material and information flow.
Figure 11 below features an example of a VSM current state map used for a metal fabricating
company.

Figure 11 Value Stream Mapping Current State Map Example

Step 7: Creating the Future State Map

On the VSM, place a kaizen burst (a sticky note or thought bubble) around any items to signal
improvement is needed. Items may include low equipment reliability or first pass yield; long

9
changeover times; large batches; any waste such as overproduction, motion, transportation,
waiting, defects, or adjustments; and over or extra processing.
Step 8: Creating the VSM Draft Plan
During a typical VSM event, it is possible to create the draft plan based on the information from
the future state map. The plan will need further refinement, especially in determining resources
required, such as time, people, and budgets.

A good plan, as shown in the example below, will include the description of the project, name of
the project leader, possible team members, a schedule (or Gantt chart) of events and deliverables,
an estimate of costs, and the impact, goals, or benefits.

4.2: Just in time ( JIT)

Just-in-time (JIT), with its focus on rapid throughput and reduced inventory, is a powerful
component of Lean.
With the inclusion of JIT in Lean, materials arrive where they are needed only when they are
needed. When good units do not arrive just as needed, a “problem” has been identified. This is
the reason this aspect of Lean is so powerful—it focuses attention on problems . By driving out
waste and delay, JIT reduces inventory, cuts variability and waste, and improves throughput.
Every moment material is held, an activity that adds value should be occurring
4.2.1: JIT techniques

Figure 12: JIT techniques

4.2.2: JIT Partnerships:
JIT partnerships exist when a supplier and purchaser work together to remove waste and drive
down costs

10
Four goals of JIT partnerships are:
• Removal of unnecessary activities, such as receiving, incoming inspection, and
paperwork related to bidding, invoicing, and payment.
• Removal of in-plant inventory by delivery in small lots directly to the using department as
needed.
• Removal of in-transit inventory by encouraging suppliers to locate nearby and provide
frequent small shipments. The shorter the flow of material in the resource pipeline, the
less inventory. Inventory can also be reduced through a technique known as consignment
• Obtain improved quality and reliability through long-term commitments, communication,
and cooperation

Figure 13: JIT partnership

Leading organizations view suppliers as extensions of their own organizations and expect
suppliers to be fully committed to constant improvement. However, supplier concerns can be
significant and must be addressed. These concerns include:
Diversification: Suppliers may not want to tie themselves to long-term contracts with one
customer. The suppliers’ perception is that they reduce their risk if they have a variety of
customers.
Scheduling: Many suppliers have little faith in the purchaser’s ability to produce orders to a
smooth, coordinated schedule.
Lead time: Engineering or specification changes can play havoc with JIT because of inadequate
lead time for suppliers to implement the necessary changes.
Quality: Suppliers’ capital budgets, processes, or technology may limit ability to respond to
changes in product and quality.
Lot sizes: Suppliers may see frequent delivery in small lots as a way to transfer buyers’ holding
costs to suppliers.

11
4.2.3: JIT layout
Lean layouts reduce another kind of waste—movement. The movement of material on a factory
floor (or paper in an office) does not add value. Consequently, managers want flexible layouts
that reduce the movement of both people and material. Lean layouts place material directly in the
location where needed.

JIT LAYOUT TACTICS

Build work cells for families of products
Include a large number operations in a small area
Minimize distance
Design littile space for inventory
Improve employee communication
Use poka-yoke devices
Build flexible or movable equipment
Cross-train workers to add flexibility
Table 2: JIT layout tactics
Distance reduction

Reducing distance is a major contribution of work cells, work centers, and focused factories .

• Large lots and long production lines with single-purpose machinery are being replaced by
smaller flexible cells
• Often U-shaped for shorter paths and improved communication
• Often using group technology concepts

→ The result can be thought of as a small product-oriented facility where the “product” is
actually a group of similar products—a family of products. The cells produce one good unit at a
time, and ideally, they produce the units only after a customer orders them.

Increased flexibility
Modern work areas are designed so they can be easily rearranged to adapt to changes in volume
and product changes. Almost nothing is bolted down.

This concept of layout flexibility applies to both factory and office environments. Not only is
furniture and equipment movable, but so are walls, computer connections, and
telecommunications. Equipment is modular.
Layout flexibility aids the changes that result from product and process improvements that are
inevitable at a firm with a philosophy of continuous improvement

Impact on employees

12
When layouts provide for sequential operations, feedback, including quality issues, can be
immediate, allowing employees working together to tell each other about problems and
opportunities for improvement. When workers produce units one at a time, they test each product
or component at each subsequent production stage.

• Employees may be cross trained for flexibility and efficiency

• Improved communications facilitate the passing on of important information about the
process
• With little or no inventory buffer, getting it right the first time is critical
Reduction space and inventory
Because Lean layouts reduce travel distance, they also reduce inventory.

• With reduced space, inventory must be in very small lots

• Units are always moving because there is no storage

4.2.4: JIT Inventory

Inventories in production and distribution systems often exist “just in case” something goes
wrong. That is, they are used just in case some variation from the production plan occurs. The
“extra” inventory is then used to cover variations or problems.
Lean inventory is the minimum inventory necessary to keep a perfect system running. With Lean
inventory, the exact amount of goods arrives at the moment it is needed, not a minute before or a
minute after

JIT inventory tactics

Use a pull system to move inventory

Reduce lot sizes

Develop just-in-time delivery systems with suppliers

Deliver directly to point of use

Perform to schedule

Reduce setup time

Use group technology

Table 3: JIT inventory tactics
Reduce Inventory and Variability: Operations managers move toward Lean by first reducing
inventory. The idea is to eliminate variability in the production system hidden by inventory.
Reducing inventory uncovers the “rocks” in Figure 14 that represent the variability and problems
currently being tolerated. With reduced inventory, management chips away at the exposed

13
problems. After the lake is lowered, managers make additional cuts in inventory and continue to
chip away at the next level of exposed problems [see Figure 14]

Figure 14: Reduce inventory and variability

Reduce Lot Sizes
Lean also reduces waste by cutting the investment in inventory. A key to slashing inventory is to
produce good products in small lot sizes. Reducing the size of batches can be a major help in
reducing inventory and inventory costs.

Figure 15 shows that lowering the order size increases the number of orders, but drops inventory
levels. Ideally, in a Lean environment, order size is one and single units are being pulled from
one adjacent process to another.
Once a lot size has been determined, the EOQ production order quantity model can be modified
to determine the desired setup time.

Figure 15: Reduce lot sizes

Reduce inventory

• Reducing inventory uncovers the “rocks”

• Problems are exposed
• Ultimately there will be virtually no inventory and no problems
• Shingo says “Inventory is evil”

14
Reduce Setup Costs
Both the quantity of inventory and the cost of holding it go down as the inventory-reorder
quantity and the maximum inventory level drop.

The effect of reduced setup costs on total cost and lot size is shown in Figure 16. In many
environments, setup cost is highly correlated with setup time. In a manufacturing facility, setups
usually require a substantial amount of preparation. Much of the preparation required by a setup
can be done prior to shutting down the machine or process.

Figure 16: Reduce setup cost

4.2.5: JIT scheduling

Schedules must be communicated inside and outside the organization
JIT SCHEDULING TATICS
Communicate schedules to suppilers
Make level schedules
Freeze part of the schedule
Seek one-piece-make and one-piece move
Eliminate waste
Produce in small lots
Use kanban
Make each operation produce a perfect part
Table 4: JIT Scheduling Tatics

Level Schedules
Level schedules process frequent small batches rather than a few large batches.

15
The operations manager’s task is to make and move small lots so the level schedule is
economical. This requires success with the issues discussed in this chapter that allow small lots.
At some point, processing a unit or two may not be feasible.

The scheduler may find that freezing , that is holding a portion of the schedule near due dates
constant, allows the production system to function and the schedule to be met.

Kanban
Kanban is a Japanese word for card . They often use a “card” to signal the need for another
container of material—hence the name kanban.
The card is the authorization for the next container of material to be produced.
An order for the container is then initiated by each kanban and “pulled” from the producing
department or supplier

The system has been modified in many facilities so that even though it is called a kanban , the
card itself does not exist. In some cases, an empty position on the floor is sufficient indication
that the next container is needed. In other cases, some sort of signal, such as a flag or rag ( Figure
17 ), alerts that it is time for the next container. When there is visual contact between producer
and user, the process work like this:

Figure 17: Kanban application of Donna Shader

When there is visual contact between producer and user, the process works like this:

16
 • The user removes a standard-size container of parts from a small storage area, as shown
in Figure 18.
• The signal at the storage area is seen by the producing department as authorization to
replenish the using department or storage area (Because there is an optimum lot size, the
producing department may make several containers at a time)

Figure 18: Diagram of Stoảge area with warning – signal marker

Several additional points regarding kanbans may be helpful:
• When the producer and user are not in visual contact, a card can be used; otherwise, a
light, flag, or empty spot on the floor may be adequate.
• Usually each card controls a specific quantity of parts, although multiple card systems are
used if the work cell produces several components or if the lot size is different from the
move size.
• The kanban cards provide a direct control (limit) on the amount of work-in-process
between cells
Determining the Number of Kanban Cards or Containers

To determine the number of containers moving back and forth between the using area and the
producing areas, management first sets the size of each container.The number of kanban cards is
computed as follows:

Advantages of Kanban
• Containers are typically very small, usually a matter of a few hours’ worth of production

17
 • The process must run smoothly with little variability in quality or lead time because any
shortage has an almost immediate impact on the entire system.
• Kanban places added emphasis on meeting schedules, reducing the time and cost required
by setups, and economical material handling. In-plant kanban systems often use
standardized, reusable containers that protect the specific quantities to be moved.
• Standardized containers reduce weight and disposal costs, generate less wasted space,
and require less labor to pack, unpack, and prepare items

4.2.7 JIT Quality

There is no Lean without quality. And Lean’s “pull” production, smaller batch sizes, and low
inventory all enhance quality by exposing bad quality.
JIT QUALITY TACTICS
Use statistical process control
Empower employees
Build fail-safe methos ) poka-yoke, checkilists,etc…)
Expose poor quality with small lot JIT
Provid immediate feeedback
Table 5: JIT Quality Tactics

Strong relationship
• JIT cuts the cost of obtaining good quality because JIT exposes poor quality
• Because lead times are shorter, quality problems are exposed sooner
• Better quality means fewer buffers and allows simpler JIT systems to be used

Figure 19: Steps for Reducing Setup Time

18
 PART 2 : SIX SIGMA
1: Six Sigma concept
Six Sigma is a method that provides organizations tools to improve the capability of their
business processes. This increase in performance and decrease in process variation helps lead to
defect reduction and improvement in profits, employee morale, and quality of products or
services.
Objective of Six Sigma
• better customer satisfaction
• high quality products and services
• reduced defects
• improved process capability through reduction in process variations
• continuous improvement
• cost reduction through more effective and efficient processes
"Six Sigma quality" is a term generally used to indicate a process is well controlled (within
process limits ±3s from the center line in a control chart, and requirements/tolerance limits ±6s
from the center line)

Figure 20: The term Sigma refers to measure of variation

2: Six sigma principles
Six Sigma success is based on five key principles:

• Focusing on customer requirements

• Using extensive measurement and statistical analysis to understand how work gets done
and to identify the root cause of problems (variations)
• Being proactive in eliminating variation and continually improving the process

19
 • Involving people in Six Sigma cross-functional teams
• Being thorough and being flexible

Customer Focus
Six Sigma is about improving quality. The first step in that process is defining what “quality”
means, from the perspective of the people whose opinions matter most: the customers. A
business needs to measure quality the same way its customers do. By focusing on the customer, a
business can improve its products’ quality.

Identify Root Causes

To correctly identify a root cause, a complete understanding of the process is necessary. This
does not mean just understanding how a process was designed to work. It means understanding
how the process is actually working.

Eliminate Variation
After identifying root causes, make changes to the process that will eliminate variation, and thus
eliminate defects from the process. Also look for ways to eliminate steps that do not add value
for the customer. This will eliminate waste.
Be proactive in identifying variation and eliminating it. Don't wait for signs of variation to
become obvious. Collect data, talk with people, and study the data to find variations in the
process that may have become accepted because “that's the way we've always done things.”

Teamwork
Six Sigma involves teams and leaders who take responsibility for the Six Sigma processes. The
people on the teams need to be trained in Six Sigma's methods, including the Six Sigma
measurement methods and improvement tools that will be used. In addition, they need
communication skills so that they can involve, serve, and communicate clearly with both
coworkers and customers.

Be Flexible and Thorough

Six Sigma requires flexibility in many ways. The business’s management system needs to accept
positive changes as well as empower change. Employees should be motivated to adapt to change.
In the beginning, the benefits of the changes should be made clear to workers. This will help to
create an environment where change is more readily accepted.

3: Six sigma implementation and methodologies

Overall implementation process: starting with identifying the problem and ending with the
implementation of long-lasting solutions.
Implementation tools
• Statistical tools: 7 SQC tools
• DMAIC (Defining, Measurement, Analysis, Improvement and Control)
• DMADV
• 5 Whys
• CTQ Tree
• Root Cause Analysis

20
3.1: Detailed implementation process DMAIC
DMAIC: The DMAIC method is used primarily for improving existing business processes. The
letters stand for:

Define the problem and the project goals. The first step in DMAIC consists of
• organizing the project team
• providing it with a charter (the problem to solve)
• identifying the customers served by the process
• developing a high-level process map.

Measure in detail the various aspects of the current process.The second step in DMAIC consists
of
• collecting data and
• measuring the current sigma level of the process. Assessing the sigma level of the current
process allows the team to make comparisons later, after improvements have been made.
The measurement include:
▪ Input measure
▪ Process measure
▪ Output measure

Figure 21: The formula of DMAIC

Analyze data to, among other things, find the root defects in a process. The analyze step in
DMAIC can be divided into the following phases:
• basic data analysis,
• process analysis, and
• root cause analysis.
Improve the process. The fourth step of DMAIC consists of the following phases:
• generation of alternative improvements,
• analysis and prioritization of the alternative improvements, and
• implementation of the improvements.
Control how the process is done in the future. The control step consists of the following actions:
• develop a control plan
• transfer responsibility back to original owner, and
• disband the Six Sigma team

21
3.2: Detailed implementation process DMADV

The DMADV is typically used to create new processes and new products or services. The letters
stand for:

• Define the project goals

• Measure critical components of the process and the product capabilities
• Analyze the data and develop various designs for the process, eventually picking the best
one
• Design and test details of the process
• Verify the design by running simulations and a pilot program, and then handing over the
process to the client
3.3: Detailed implementation process Five Whys
This is a method that uses questions (typically five) to get to the root cause of problem.
The method is simple: simply state the final problem (the car wouldn’t start, I was late to work
again today) and then ask the question “why,” breaking down the issue to its root cause.

In these two cases, it might be: because I didn’t maintain the car properly and because I need to
leave my house earlier to get to work on time.

3.4: Detailed implementation process CTQ Tree

The Critical to quality tree ( CTQ) diagram breaks down the components of a process that
produces the features needed in your product and service if you wish to have satisfied customers.
Root Cause Analysis

Much like the Five Whys, this is a process by which a business attempts to identify the root
cause of a defect and then correct it, rather than simply correcting the surface “symptoms.”

22
 PART 3 : LEAN/ SIX SIGMA
1: Lean Six-Sigma concept
Six Sigma focuses on reducing process variation and enhancing process control, whereas lean
drives out waste (non-value added processes and procedures) and promotes work standardization
and flow. The distinction between Six Sigma and lean has blurred, with the term "lean Six
Sigma" being used more and more often because process improvement requires aspects of both
approaches to attain positive results

Lean-Six Sigma is a fact-based, data-driven philosophy of improvement that values defect

prevention over defect detection. It drives customer satisfaction and bottom-line results by
reducing variation, waste, and cycle time, while promoting the use of work standardization and
flow, thereby creating a competitive advantage. It applies anywhere variation and waste exist,
and every employee should be involved.

2: Lean six sigma benefits

Advantages of Lean Six Sigma
Application
Improved
Customer Talent Improved across Customer
employee
Loyalty development brand value various satisfaction
performance
sectors
Table 6:Advantages of Lean Six Sigma
Customer loyalty
Quality something most of the customers look for. An organization are far more likely to succeed
if customers are satisfied.

Talent development
Deploying Lean Six-Sigma requires the team to understand Lean Six Sigma principles and their
practical applications. The growth of an organization is associated with improved outcomes and
upskilling your knowledge.

Improved brand value

It’s a well-known fact that customers trust and proceed with the organizations that respond to
their hindrances timely. Implementing Lean helps to set up a culture, processes, and practices
that help build customer success quotient, thereby improving the organization’s brand value.

Applicable across various sectors

It’s a misconception that lean Six-Sigma applies to manufacturing industries. But in the past few
decades, lean applications can be seen in various other sectors such as IT, retail, and BFSI. Thus,
lean six-sigma is proven to have cross-industry application capabilities.
Improved employee performance
It should be understood that lean six-sigma is not merely related to company management;
instead, it is directly related to the team’s day-to-day work. Employees will perform better at
their job and surpass the desired goals.

23
Customer satisfaction
Implementing Lean Six-Sigma allows the organization to improve its business processes and
quality control. This leads to a better-finished product adhering to various criteria like low defect
rate, cost, and quality. A well quality product leads to happy customers.

3: Combine Lean and Six Sigma

Features/ Method Six Sigma Lean

View Process improvement Value Chain improvement

Appproach Defect reduction Wastte reduction

Goal Decrease variability Decrease Non – aggreate

value
Indicators Efficiency and effectiveness
Effectiveness and efficiency
time
Small group activities (
Structure Team formed by Belts
SGA’s)

Projects defined with impace

Projects defined by observing
Nature of work on the external and internal
the value chain flow
customer

Intrinsic Method DMAIC and DMADV Use of 5 principles

Implement improvement in

Deployment Deploy by strategy project to bottlenecks with

Strategies the company’s project dissemination of the Kaizen

concept

Model Association ISO 9000, FMEA, 8D QFD, Kaizen

Typical
Quality Production
Coordination

24
 North American Company( Japaness company ( Toyota
Initial Referrence
GE, Intel, Auto) and production chain )

Table 7: Comparation Lean and Six Sigma

Figure 22: What is Lean six sigma

Lean and Six Sigma both provide customers with the best possible quality, cost, delivery, and a
newer attribute, nimbleness. There is a great deal of overlap between the two disciplines;
however, they both approach their common purpose from slightly different angles:
• Lean focuses on waste reduction, whereas Six Sigma emphasizes variation reduction.
• Lean achieves its goals by using less technical tools such as kaizen, workplace
organization, and visual controls, whereas Six Sigma tends to use statiscal data analysis ,
design of experiment , and hypothesis testing.
Often successful implementations begin with the lean approach, making the workplace as
efficient and effective as possible, reducing waste, and using value stream mapping to improve
understanding and throughput. If process problems remain, more technical Six Sigma statistical
tools may then be applied.

25
 PART 4: CONCLUSION
As mention, the Lean Manufacturing and Six Sigma methodologies are increasingly being
executed together and what we have today is the united work of both, and companies have come
to understand that their integration makes it possible to take advantage of the strengths of both
strategies, becoming a comprehensive and effective, suitable for solving various types of
problems related to the improvement of processes and products.

Routine management, process standardization and the study of times and movements to
eliminate waste are key features of Lean Manufacturing, while finding the root cause for
problem solving requires further deepening and analysis in Six Sigma.

In general, the Lean and Six Sigma can be viewed as useful tools for the operation of the systems
of improvement, innovation and routine management that integrate the system of business
management. The companies have implemented Lean Manufacturing with the aim of improving
the elimination of waste in the processes. Companies using Six Sigma have found that by
selecting projects and assigning them to teams, after a monitoring, the results would appear.
Companies that implement Lean Six Sigma often awareness of the teams, seeking projects from
different scopes with the focus of improving the structure of processes and achieve the results.

26
 REFERENCES

1. Anon., 2018. Consulting, Many Caps. [Online]

Available at: https://www.manycaps.com/blog/the-5-principles-of-lean.html
[Accessed 9 2018].
2. Way, T. L., 2017. The Learn Way. [Online]
Available at: https://theleanway.net/The-Five-Principles-of-Lean
[Accessed 8 2017].
3. ASME, 2016. ASME. [Online]
Available at: https://www.asme.org/topics-resources/content/5-lean-principles-every-
should-know
[Accessed 3 2016].
4. CGMA, 2020. CGMA. [Online]
Available at: https://www.cgma.org/resources/tools/cost-transformation-model/lean-
production.html
[Accessed 4 2020].
5. Jay Haizer, B. R. C. M., 2018. Operation Management. Seven ed. s.l.:s.n.
6. Minh, D. D. T., 2021. Quality Management Lecture. s.l.: s.n.
7. Anon., 2019 . ASQ. [Online]
Available at: https://asq.org/quality-resources/lean/value-stream-mapping
8. Daily, S. S., 2020. Six Sigma Daily. [Online]
Available at: https://www.sixsigmadaily.com/what-is-six-sigma/
[Accessed 2020].
9. Invensis, 2021. Invensis. [Online]
Available at: https://www.invensislearning.com/blog/what-is-lean-six-sigma/
[Accessed 2021 ].
10. Santos, M. B., 2019. Intechopen. [Online]
Available at: https://www.intechopen.com/chapters/68289
[Accessed 2019].
11. Group2Lean, 2018. Group2Lean. [Online]
Available at: https://group2lean.wordpress.com/conclusion-2/
[Accessed 2018].

27