The purpose of this paper is to describe a business management system that addresses the following issue: Lean Six Sigma, total quality management, and other process improvement…
Abstract
Purpose
The purpose of this paper is to describe a business management system that addresses the following issue: Lean Six Sigma, total quality management, and other process improvement efforts center on the execution of process improvement projects; however, often these projects (e.g. Lean Six Sigma Black Belt projects) are identified in silos and do not benefit the business as a whole, e.g. $125 million is reported saved, but nobody can find the money.
Design/methodology/approach
The paper “Where process‐improvement projects go wrong,” Wall Street Journal, January 25, 2010 (www.smartersolutions.com/blog/forrestbreyfogle/?p=2726) elaborates on the shortcomings of typical process improvement efforts by building an analog between process improvement programs and a spring's stress‐strain curve – stretching, yielding, and failing. To address the described issues, process improvement efforts need to be part of an overall enhanced business management system in order to have long‐lasting success. This structured organizational framework should integrate predictive scorecards with targeted strategies creation that blends analytics with innovation, which lead to the establishment of functional performance goals that pull for the creation of enterprise‐as‐a‐whole‐beneficial improvement projects, which positively impacts these target objectives.
Findings
The described nine‐step Integrated Enterprise Excellence (IEE) business management system provides the framework for achievement of these above‐described needs. The IEE system, for example, blends analytics with theory of constraints, competitive assessments, and economic environment so that created project work efforts have a whole‐system‐performance measurement benefit.
Research limitations/implications
In Lean Six Sigma and Lean kaizen event programs, improvement projects are often selected from a brainstorming‐list of potential opportunities. Initial gains when starting such a deployment can be achieved; however, this effort typically stalls out and the process improvement teams are laid‐off when times get tough. The reason for this rough‐time downsizing is that the previous team process improvement project efforts were not, in the eyes of executives, expended in areas so that a significant overall enterprise benefit was achieved. IEE provides a business management system for addresses these issues so that business improvement efforts have a whole‐organization benefit.
Practical implications
The IEE system can be used by management to address the business management problems of the day, e.g. management issues that led to the financial crisis and the problems that Toyota is now experiencing.
Originality/value
Many who have studied the IEE system have said that this system provides a framework for how business should be run and should be taught in business schools.
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Nandkumar Mishra and Santosh B. Rane
The purpose of this technical paper is to explore the application of analytics and Six Sigma in the manufacturing processes for iron foundries. This study aims to establish a…
Abstract
Purpose
The purpose of this technical paper is to explore the application of analytics and Six Sigma in the manufacturing processes for iron foundries. This study aims to establish a causal relationship between chemical composition and the quality of the iron casting to achieve the global benchmark quality level.
Design/methodology/approach
The case study-based exploratory research design is used in this study. The problem discovery is done through the literature survey and Delphi method-based expert opinions. The prediction model is built and deployed in 11 cases to validate the research hypothesis. The analytics helps in achieving the statistically significant business goals. The design includes Six Sigma DMAIC (Define – Measure – Analyze – Improve and Control) approach, benchmarking, historical data analysis, literature survey and experiments for the data collection. The data analysis is done through stratification and process capability analysis. The logistic regression-based analytics helps in prediction model building and simulations.
Findings
The application of prediction model helped in quick root cause analysis and reduction of rejection by over 99 per cent saving over INR6.6m per year. This has also enhanced the reliability of the production line and supply chain with on-time delivery of 99.78 per cent, which earlier was 80 per cent. The analytics with Six Sigma DMAIC approach can quickly and easily be applied in manufacturing domain as well.
Research limitations implications
The limitation of the present analytics model is that it provides the point estimates. The model can further be enhanced incorporating range estimates through Monte Carlo simulation.
Practical implications
The increasing use of prediction model in the near future is likely to enhance predictability and efficiencies of the various manufacturing process with sensors and Internet of Things.
Originality/value
The researchers have used design of experiments, artificial neural network and the technical simulations to optimise either chemical composition or mould properties or melt shop parameters. However, this work is based on comprehensive historical data-based analytics. It considers multiple human and temporal factors, sand and mould properties and melt shop parameters along with their relative weight, which is unique. The prediction model is useful to the practitioners for parameter simulation and quality enhancements. The researchers can use similar analytics models with structured Six Sigma DMAIC approach in other manufacturing processes for the simulation and optimisations.
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Rodney McAdam and Brendan Lafferty
Increasing competitive pressure in all business sectors (e.g. private, public SME) is reflected in the continuing quest for business improvement philosophies and methodologies to…
Abstract
Increasing competitive pressure in all business sectors (e.g. private, public SME) is reflected in the continuing quest for business improvement philosophies and methodologies to address this challenge. Recent developments have included increased organisational and academic interest in the six sigma approach to business improvement. There are many organisational examples (mainly USA and UK based) of large scale improvements in defect and process measures attributed to this approach. However, there is a paucity of critical studies on six sigma beyond that of “how to” and that of descriptive accounts, with a focus on measures and results rather than employee involvement and motivation. The aim of this paper is to explore the development of six sigma in a multilevel case analysis, from both a process perspective and a people perspective. The findings show that the case organisation had to widen its conception and application of six sigma to include people and organisational criteria to enable the approach to become embedded in the organisation.