NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Lean Six Sigma
Assignment for June 2022 Examination

Answer 1:

Introduction:

Lean Six Sigma is an overall quality management philosophy that can be applied to a wide range of
enterprises and industries. The Six Sigma body of knowledge, which was created by Motorola in the
late 1980s, has received contributions from a variety of sources throughout the years. Six Sigma is a
problem-solving, high-performance technique to examining the sources of variation in processes and
determining appropriate solutions that has become quite popular in today's world.

Six Sigma minimizes variability and waste in the workplace, in addition to increasing production. It
assists in the production of items that are as close to ideal as feasible.

To lead change management efforts, managers must be familiar with the Six Sigma method and
comprehend the foundations of the DMAIC (Define, Measure, Analyze, Improve, and Control)
problem-solving process. While Six Sigma is concerned with the statistical management of a process,
Lean is concerned with the elimination of waste from a process in order to make it more cost effective
and efficient.

COVID-19 Impact on Supply Chain Management:

Companies that put cheap costs over flexibility in process management will quickly discover that they
are unable to adjust to changing demands. Some industries, such as those responsible for supplying
toilet paper, found themselves in a precarious position as demand soared—market toilet paper
shelves were frequently empty. Those who had relied only on foreign suppliers were suddenly without
material to work with, as enterprises in other nations were shuttered.

The supply chain's actors have traditionally battled with effective cooperation. Even beyond their
existing challenges, companies now face the reality of inventing new ways to convey progress to
other stakeholders in the supply chain. From a design standpoint, what was formerly little and
manageable now feels insecure.

Benefits of Lean Six Sigma:

Just-In-Time Manufacturing: People are clamoring for bigger stockpiles of various products as the
COVID-19 epidemic unfolds. Increased stock, on the other hand, comes at a higher cost, with
probable waste and manufacturing concerns, leaving vast numbers of damaged or defective products
in a warehouse.

Just-in-time manufacturing aims to reduce waste and surplus product stockpiles by only producing
what is needed at the moment. The most significant advantage of just-in-time manufacturing is that it
allows organizations to immediately identify and solve any possible faults, reducing future production
risk.

Waste Management using 5s: Clean, orderly, and safe work spaces will be critical in recognising
and eliminating excess waste issues when it comes to process management. The 5S approach (sort,
set in order, shine, standardise, and sustain) is an efficient way to eliminate waste in the workplace.
When tools, materials, and equipment are easily available and logically organised, the chances of
human error are reduced.

Continuous Process Improvement: Companies are under pressure to negotiate the rapidly shifting
circumstances as regulations continue to ebb and flow. These are the businesses that are most likely
not focused on continuous process improvement.

To begin, the concept of continuous improvement assumes that everything is a learning opportunity.
Failures can teach us just as much, if not more, than victories. Second, it motivates process
management experts to concentrate on finding the next best improvement. This relieves the pressure
on supply chain managers to find the perfect answer to every problem and instead encourages them
to concentrate on the one thing they can improve right now. They just repeat the process once an
enhancement has been applied properly.

Visual Management: The rapid drive toward remote employment is one of the most difficult aspects
of negotiating the 'new normal' of this epidemic planet. It's easy to fall behind on assignments when
you can't communicate with coworkers face to face, especially when communication is a problem.

While community Kanban boards or floor marks are common examples of visual management, virtual
options are also accessible. For all facets of supply chain management, visual management provides
effective ways for making progress visible. It is vital to provide visibility across the firm, particularly to
key stakeholders, in order to identify problems and promote progress.

Reduce Operating Costs: Defective processes, in general, cost money in any organisation. One of
the most effective strategies to cut costs is to gain a thorough grasp of an organization's operations
with the goal of improving them. The main goal of the Six Sigma technique, which comprises of
DMAIC, is to improve processes (Define, Measure, Analyze, Implement and Control). Six Sigma
process decreases problems to 3.4 faults per million opportunities, according to statistics. When you
spend less time fixing defective items as an organisation, you will cut the cost of achieving quality by
20% and improve operational revenue by 50%. The same can be done in several locations, ensuring
that your operations achieve new levels of cost effectiveness.

Conclusion: Six Sigma specialists were making huge contributions in their respective businesses
before the COVID-19 pandemic. Process standardization is the way of the future in supply chain
management, so people with Six Sigma certifications are in high demand. A highly efficient digital
infrastructure will become necessary in both our present and post-pandemic worlds, and individuals
with Lean Six Sigma experience will lead the way.

Answer 2:

Introduction:

Process control charts (or "process behavior charts," as Wheeler defines them) are graphs or charts
that plot process or management data (outputs) in a time-ordered sequence. It's a one-of-a-kind run
chart. A center line, a 3-sigma higher control limit, and a 3-sigma lower control limit are usually
included. There could also be 1- or 2-sigma boundaries drawn in. The process mean or average is
shown by the center line (and sometimes the median).

The process variation is represented by the control limits, which show us what is usual or "common
cause" variation. Those boundaries are set based on the normal baseline period-to-period volatility to
assist us discern between "signal" and "noise." Again, these are calculated... they are part of "the
voice of process," and you have no say in setting the limitations. If you don't like the control limits or
believe they are too broad, you must enhance the process to reduce variance and noise, which is not
the same as asking "what went wrong?" at any particular point in time.
 The 4 Process States:

1. When a process is statistically controlled and provides 100 percent compliance to

requirements or goals, it is said to be in its ideal state. The procedure is predictable, and the
results are as expected.
2. The process is statistically controlled in the threshold stage, although non-conformance occurs
sporadically.
3. A process on the verge of chaos is one that is not statistically controlled but does not produce
flaws. This is frequently a precursor to the previous condition.
4. The process is out of control and is producing unpredictable non-conformance.

Implementation:

There are a few basic steps to implementing a control chart.

Step 1: Define what needs to be controlled or monitored

Step 2: Determine the measurement system that will supply the data

Step 3: Establish the control limits based on some baseline data

Step 4: Collect and chart the data

Step 5: Make decisions based on the correct interpretations control chart information

Benefits of Control Charts for quality improvement:

 Real-time SPC helps reduce the margin of error: Control charts assist operators to spot and
solve faults before they cause deeper problems in processes and products since they show
what's going on in a manufacturing line in real time. This eliminates the requirement for product
rework or additional product costs to fix an offering.

"Control charts serve as an early warning detection system in your real-time monitoring
software, alerting you that it's time to make a change," explains Steve Wise, Vice President of
Statistical Methods at InfinityQS. "This way, you don't finish the entire race just to discover that
you should have made improvements three hours ago and now have to pay for the
expenditures related with the problem."

 Data accessibility and visibility levels the playing field: Operators, engineers, and managers
may evolve their abilities and procedures based on views and "instinct" if they don't have
access to data. Despite the fact that many experienced industrial workers have good senses,
control charts are likely to confirm what they already know to be true.

But, as Wise points out, not everyone is "an expert at reading the tea leaves of their processes."
Control charts, he claims, "provide novices and new persons with rapid access to the same
information and skills."

Control charts not only level the playing field, but they also validate what individuals already
know and eliminate process fallacies.

 Operational insight for critical stakeholders: Control charts provide a variety of information for
all important stakeholders engaged in the construction of a produced product, from operators
and engineers to managers and executives.

Control charts can bring together data in ways that provide practical insights into whether a
process needs to be altered when they draw SPC-based data from a centralised, unified data
repository. Engineers can use aggregated data to assist them enhance a process. Managers
can also use more advanced box and whisker and Pareto charts to get a holistic view of the
entire plant floor—or even numerous plants.
 Control charts provide a key need for a range of groups responsible for industrial quality control,
allowing them to make decisions based on facts rather than guesswork.

 Visibility into quality data: Knowing when your process is working smoothly is just as critical as
knowing when something is wrong. Operators commonly over-tamper with a process that was
running correctly when trying to discover whether a problem exists, which can lead to greater
variations.

Operators must decide whether to "do something" (change a process behaviour) or "do nothing"
after evaluating a control chart (let the process run as is). Operators are often deterred from
over-tampering with their processes after understanding that they can do nothing.

Conclusion: Control charts are key statistical quality control tools that help to improve quality. Flow
diagrams, cause-and-effect (fishbone) diagrams, check sheets, histograms, scatter plots, and Pareto
diagrams have all been used to meet the needs of customers with the intended qualities and the fewest
potential errors in the output, all while optimising producers' profit. Natural variations in production exist,
but there are also assignable causes that are not random but can be attributed to a variety of internal
and/or external factors such as raw material, machine setting (or adjustment, tool abrasion, systematic
causes of deterioration) or measuring method, human, and environmental effects.

Answer 3-A:

Introductions: When we look at the definition of DMAIC, we see that it is a five-phase method for
enhancing a wide range of organizational processes, such as software development, manufacturing,
and so on. It can also be used to lean and other process-improvement strategies. The acronym stands
for the five phases — Define, Measure, Analyze, Improve, and Control.

DMAIC: The DMAIC method is divided into five phases, each of which is designed to create the
framework for process improvement, set goals, track progress, and analyse outcomes, which are:

1. Define: We choose the most significant and impactful possibilities for improvement during this
phase. This phase also entails mapping the process, determining the focus, scope, and ultimate
purpose, as well as determining how the problem affects all stakeholders.

The following are crucial steps at this stage:

 Determine which possibilities have the greatest potential for improvement.

 Create a voice of the customer table (VOCT) to identify customer requirements..
 Recognize and record business opportunities
 Identify other processes that are related to yours.

A successful Define phase allows you to move on with clear, well-defined project objectives and
timelines.

2. Measure: In the Measure phase, baselines are established to assess a process' performance. It's
tough to track progress without solid benchmarks to compare against. At this point, we:

Develop the techniques for gathering data that will be used to assess success.

 Recognize indicators for input, processes, and output.

 Data about the current state of affairs should be collected and examined.
 Write a summary of the failure modes and impacts analysis.
 Analyze the competence of the process

3. Analyze: Once the data is collected, it is analyzed by project experts. In the data analysis phase,
maximum possible root cause of process variation and waste are identified.
 The following are crucial steps to take at this point:

 Failure mode and effects analysis (FMEA) is used to detect all potential problem areas,
inefficiencies, faults, defects, and flaws.
 Using a multi-vari chart to provide a visual depiction of the variations within a given process.
 Process control implementation
 Creating an improvement strategy

You will be able to successfully collect and document all chances for change after this phase, and
your plan of action will begin to take shape.

4. Improve: With the analysis done and the data in front of you, now is the time to start making
the improvements. Parts of this step:

 Come up with solutions and brainstorm them.

 To estimate the projected advantages of a remedy, develop a design of experiments
(DOE).
 Revise process maps and plans based on the information gathered.
 Plan and sketch out a test solution.
 To improve the process, use Kaizen events.

5. Control: This is a process to bring the process under control to ensure its long-term effectiveness.

 Determine and record the new work standard.

 Quality control plan which ensures everyone is using the same methodologies and
measurements.
 Confirm that the targeted cause is causing fewer failures.
 Monitor process execution and discover any flaws with statistical process control.

Answer 3-B:

Introduction: Six Sigma: Six Sigma is an approach for adopting proven quality improvement
methodologies and principles that is focused, rigorous, and highly effective. Its goal is to establish
error-free business processes by combining aspects from the works of recognized quality pioneers.
Kaizen, on the other hand, is a tried-and-true approach of creating ongoing improvements.

Kaizen: Kaizen's goal goes beyond simply increasing production. When done properly, the process
humanizes the workplace, reduces overwork, and teaches workers how to identify and eliminate waste
in corporate operations.

List of organizations following Kaizen or Six Sigma:

1. Bank of America (Six Sigma): In 2011, the company decided to implement a Lean Six Sigma
improvement programme in order to increase operational efficiency. Bank of America's management
acknowledged the need of integrating Lean Six Sigma in the organization since it provides the best set
of performance measures for evaluating the operation's performance (Hajikordestani, 2010).

2. The Ford Motor company (Kaizen): Toyota is arguably best recognized for its Kaizen philosophy,
but you may be surprised to learn that Ford also utilizes it. Ford concentrated on efficient procedures
under Mulally's leadership and was able to rebound after the late 2000s Great Recession to lead the
company back to success; in 2014, Ford announced that it would be generating over 5,000 jobs.

3. Honeywell International Inc. (Six Sigma): Honeywell International Inc. is a worldwide corporation
that manufactures a wide range of commercial and consumer items, as well as technical and
aerospace technologies. The current Six Sigma programme was updated and renamed Six Sigma Plus
as a result of the merger (Green, 2000). 
4. Great Western Bank (Kaizen): Great Western Bank is a long-established bank in the United States.
Great Western Bank used Kaizen to examine its processes and improve service to its clients. Great
Western Bank demonstrates how Kaizen may be applied to both internal and external processes.

5. Lockheed Martin: Lockheed Martin is a well-known aerospace technology corporation that does a
lot of business with the federal government of the United States. The company is also noted for being a
Kaizen proponent. The implementation of Kaizen by Lockheed Martin demonstrates how the concept
may assist organizations in launching a new product or service.

Combination of Kaizen and Six Sigma: Kaizen and Six Sigma are frequently used together since
they both aim for the same thing: process improvement through waste identification and elimination. It
is vital to remember, however, that these are two distinct management strategies.
Kaizen and Six Sigma can both be used independently to enhance processes.

List of organization using combination of Kaizen and Six Sigma:

1. General Electric
2. Motorola
3. Canon
4. Toyota
5. Honeywell

Conclusion: Kaizen is most effective when used in the Lean spirit of continuous improvement (rather
than as a one-time event) and with the rigour and discipline of DMAIC. It must begin with a company-
wide commitment to continual learning as a means of increasing value for customers and society.
Together, Kaizen and Six Sigma are part of a bigger drive for Lean.