Lean Six Sigma Internal Assignment Applicable For December 2020 Examination

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Lean Six Sigma

Internal Assignment Applicable for December 2020 Examination


1. Several Indian companies are using Six Sigma methodology as a tool for
improving their supply chain performance. Using an industry example, explain
how Six Sigma deployment has helped the company in improving its supply
chain performance.

Answer: Six Sigma is a quality-control methodology developed in 1986 by Motorola,


Inc. The method uses a data-driven review to limit mistakes or defects in and process.
Six Sigma emphasizes cycle-time improvement while at the same time reducing
manufacturing defects to a level of no more than 3.4 occurrences per million units or
events. In other words, the system is a method to work faster with fewer mistakes.

Six Sigma represents a management ideology, which focuses on statistical


improvements to a business process. It advocates for qualitative measurements of
success over qualitative markers. Therefore, practitioners of Six Sigma are those
business people who use statistics, financial analysis, and project management to
achieve improved business functionality.

The supply chain represents a process of delivering value to customers by creating


and delivering products. Supply chains span from raw materials to manufacturing,
distribution, transportation, warehousing, and product sales. Supply chain is the
network of entities through which material and information flows. Those entities
include suppliers, manufacturers, wholesaler, retailers and customers. In today’s
highly competitive environment, supply chain performance is very vital for the
survival of firms because customers judge the performance of firms based on their
supply chain performance. So, supply chain has become an important dimension for
firms to give maximum attention in order to excel in a competitive environment.
Hence, the importance of supply chain management (SCM), that is, the set of
synchronized decisions and activities that effectively integrate suppliers,
manufacturers, transporters, warehouses, retailers, and customers. It is a good idea to
use Six Sigma in supply chain projects in order to improve supply chain performance.

Six-Sigma Deployment in SCM


Organizations relate to upstream partners such as suppliers and downstream partners
such as customers through a supply chain - a network of suppliers, factories,
warehouses, distribution centers, and retailers, through which raw materials are
acquired, transformed, produced, and delivered to customers. The chain consists of
activities associated with the flow and transformation of goods from raw materials
through to the end user. Thus, supply chain encompasses all parties involved, directly
or indirectly, in fulfilling a customer request. As such supply chain includes all the
activities related to the processing of materials and the conversion of goods from the
stage of raw materials to the stage of delivery to final customer, along with
coordinated and integrated management. Given the diversity of entities and activities
in a typical supply chain, organizations need to manage the chain effectively to reap
its benefits.
Six Sigma is flexible enough to be applied to different challenges throughout
business, also in diverse areas such as SCM. Six Sigma is gaining recognition not
only in a product and manufacturing environment but also in supply chain operations.
Six Sigma metrics as a framework for evaluating and benchmarking the performance
of supply chain. Using Six Sigma methodology, quality management can be
employed in SCM to improve the performance of various issues in the whole supply
chain network. The concept of Six Sigma is an effective methodology for monitoring
and controlling supply chain variables.

Six Sigma Deployment in SCM: Key Benefits

Financial Benefits:

 Reduced total inventory level (Finished Goods, Raw material etc.)


 Low Carrying cost of Inventory
 Reduced Inventory Obsolescence
 Reduced Third party storage
 Administrative Saving (Order Management, Purchasing, Production labor)
 Reduced Cost of poor quality
 Higher efficiency of SCM

Service Level Improvements:

 On time Delivery
 Order Completeness
 Order Correctness
 Damage Free delivery
 High customer service level
 Low stock out level
 Higher effectiveness of SCM

Six Sigma deployment in Boeing Production System


The Boeing Production System is composed of several elements that work in concert
to ensure an output of the highest-quality cost-effective products in the least amount
of time. The Boeing Production System principles—Lean manufacturing, Six Sigma,
value streams, global manufacturing and managing supplier relationships—are all
elements that are critical to the company's competitiveness.
One area of opportunity comes from managing what is called the "value stream" of
building an airplane. Simply defined, value streams represent the overall production
flow of building an airplane, from raw material to finished output. Put another way,
it's the path by which a company's value, in the form of its products and services,
makes its way to the customer.
From suppliers to factory to office to market, along value streams are opportunities to
cut costs and increase efficiencies. By breaking down all aspects of producing an
airplane into manageable chunks—or streams—of activity, it becomes easier to
identify areas for improvement. This in turn helps increase the focus on what's value-
added and what isn't, fundamentally reducing costs and improving quality.
In Commercial Airplanes, part of the value-stream process has resulted in the
implementation of many successful practices like those Japanese manufacturers use in
environments such as Toyota and Fujisawa. In-house design and right-sized
equipment and machines are considered a competitive advantage. Activities are time-
based, paced to the production line, which is in turn paced to customer demand.
Inventory is replenished based on kanban "pull." Mistake-proofing and built-in
quality are throughout the entire factory and part of every process.

CONCLUSION

Six Sigma is a well-structured knowledge management approach that focuses on


reducing variation, measuring defects, and improving the quality of products,
processes and services. It is a highly disciplined process that helps organizations to
calculate how well a process is performing and focus on developing and delivering
near-perfect products and services.

2. What are process maps? Select an Indian organization, and explain how process
mapping could be used for improving the efficiency levels in the organization.
(10 Marks)

Answer: The process map is a tool that graphically shows the inputs, actions and
outputs of a process in a clear, step-by-step map of the process. The purpose of
process mapping is to help team members and others within the process to understand
the process.

Process mapping is the graphical representation with illustrative descriptions of how


things get done. It helps the participants to visualize the details of the process closely
and guides decision making. One can identify the major areas of strengths and
weaknesses in the existing process, such that the contribution of individual steps in
the process are recognized. Further, it helps to reduce the cycle times and defects in
the process and enhances its productivity.
The major components of a process map include the inputs, outputs and the steps in
the process.

Why do businesses need process maps?


Process mapping provides the visual glimpse of different processes of the business. It
provides the necessary information and helps to determine the Who, What, Where,
Why, When and How aspects of the process and problem, and even guides towards
possible solutions. Some of the reasons for the need of a process map are:

 Pictures guide better than words. The use of graphs, charts, tables and images
guides better than a big compiled report with lot of data fixation issues in it.
 Process maps facilitate improvements in the process, since it becomes easy to
pin point the specific areas that need changes, like bottlenecks, delays,
capacity constraints etc. in the light of efficiency and effectiveness of the
process.
 Decision making becomes fast as it deals with the ‘show me’ aspect and not
the ‘tell me’ aspect of the process and the problem areas.
 The improvements made in the process can easily be tracked using process
maps since it becomes possible to audit and understand different areas in the
process as well as the organization.
 Visual illustration for training would be much more effective than any oral
tools explained, as the visual examples register faster in human brains and
helps them understand the things better and fast.
 In the need of change, when the organization moves on making the changes
without understanding the current working process, it is likely to commit more
mistakes or deploy its resources in creating more troubles. Process maps
provide a detailed outlook of the current process and guides the effective
management of change.
 Process maps serves as a measurement tool for a process that is very much
necessary to manage and finally improve it.

Improving the efficiency levels in the organization

Process maps can help you improve operations and add value to your organization.
In lean manufacturing, process maps are powerful tools that can help you understand
what your current processes look like now, and what they should be. On continuous
improvement projects they are essential. If you have embarked on the journey of
making your facility more efficient, but are facing difficulty figuring out exactly
where you need to make changes, you should consult with proven operations
consultants who can use process maps to help identify your problem areas and
eliminate them.

Process maps provide a realistic view of a production process


According to Six Sigma Material, that process maps involve the creation of detailed
flow diagrams of processes, using color coded symbols. These maps provide a high-
level view of what operations look like and how processes work with one another.
The intention behind using process maps is to help you see your processes as they
really are.
Using process maps, operations consultants can help you identify automation
opportunities, duplication, redundancy, poor decision-making, delays, and idle time.
Addressing any one of these areas can raise efficiency at your plant, but addressing
them all is a game changer. In lean manufacturing, this is known as waste elimination.
Process maps are documents that should be updated and analyzed on a regular basis.
The more detail they have, the easier it will be for you to have the best process and
capture opportunities.

Enhance your value stream with process maps


Process maps can add value and reduce costs in an organization. It is essential to have
a clearly defined goal to work toward. In this way, the analysis of your process map
will be based on amending existing processes to get you to where you need to be.
A comprehensive process map captures your value stream – the processes that your
product goes through, from raw material to customer delivery. In your value stream, a
product goes through a series of steps that either add value or waste time. Done right,
a process map will find those weak areas and allow you to improve them.

A comprehensive view of a facility’s processes


Six Sigma Material explained that a successful process mapping exercise combines all
types of diagrams and should show you your processes from a macro bird’s-eye view
as well as on a granular level, but accomplishing this will require effort from your
whole team. Additionally, improving your operations will involve educating everyone
on what the processes are like and how they should be improved. Some improvements
are self-evident, others need a little bit of extrapolation.
There are many software programs that can help you handle the complexity involved.
These solutions can help you identify rework loops, communication issues, delays,
and other issues. Lean principles are all about improving your value stream by
removing obstacles, delays, and other inefficiencies. In this area, getting outside help
is a good idea so that you can successfully achieve your desired results.

CONCLUSION

A good process map should illustrate the flow of the work and the interaction with the
organization. It should make use of common language (symbols) that are easily
understood by everyone. An ideal process map should contain proper detail with
respect to multiple paths, decisions and rework loops.

3. Another train derailment, 65 dead. Everyone reacts with anger; the usual blame
game, Railways announce some cash relief. The present day price for the life of a
major rail accident victim is Rs 5 lakhs and a vague rail job offer to next of kin.
Enquiry ordered. Matter over, rail business moves on. Unfortunately in most of
the densely populated developing countries, including India, loss of human lives
may not impact as much as it does in developed countries. That is why Indian
Railways' existing safety policies are never impacted by either the frequencies or
enormities of rail accidents. Now the question is whether Indian Railways should
make some drastic rethinking on their approach to rail safety?

Since 2002-03, the Indian Railways have focused on shoring up their revenues,
adopting multiple strategies. Longer passenger trains and heavier freight trains
helped cater to the increase in demand for passenger services and afford
economies of scale. However, the introduction of several hundreds of new
passenger trains and heavier freight trains year after year, on many of the busy
routes, demands more intensified track maintenance.

Routes being heavily occupied, even nominated daily traffic blocks are curtailed.
Till Dedicated Freight Corridors emerge, in several of the oversaturated routes,
trains will continue to run under increasingly risky operating conditions. Vision
2020 repeats the same, familiar safety policy prescriptions, contained in tenth
and eleventh 5 year Plan documents. Since most of these within the box thinking
have failed to deliver, it is now time to think of railway safety, the way Richard
Branson did with his Virgin Trains in the UK.

Like Branson's Virgin Train Operating Company, we too need trains that should
be able to survive accidents at full speed, regardless of cause and passengers
should be able to safely walk out of coaches at accident spots. In existing bogie
designs, at the time of accidents, one coach tends to ride over the other one,
crushing the coach in front. Sivadasan, R. (2011, July 16). 'We need Six Sigma
trains'.
Retrieved August 30, 2020, from
https://www.deccanherald.com/content/176907/we-need-six-sigma-trains.html
Read different published case studies/ research papers and
a. Prepare a roadmap for Indian Railways to make all its trains a “Six Sigma
Train”? (5 Marks)

Answer: Passenger transport is generally considered as an effect of where people are


in the exact time and their transport request to the correct location is met. Passenger
demand is geared towards providing services in the required time frame with desired
quality. The most relevant way of assessing quality of passenger railway transport is
considered the concept examining selected quality indicators which are very
significant and means decisive factor for the traveling public.

The Six Sigma methodology is considered an integral part of quality management


whose principles can be applied in railway transport processes
In the case of implementation of the Six Sigma methodology, defects should be
defined that indicate problems and impair process capability.
Possible areas of its application are described as follows:

• Insufficient capacity of railway infrastructure


• Lack of information and provision of relevant data for passengers
• train delays
• planned closure activity
• Negative impact on the environment
• Insufficient reliability of the rail sector

The applied methodology will serve the needs of the infra-structure manager to
achieve stable processes and, in con-junction with the management of railway
undertakings, to achieve satisfaction with the provided transport services for the end
customer, who is a passenger in rail passenger transport.

Roadmap

 The aim of the transport operators in the field of infrastructure manager and
railway undertakings is to provide transport services for the traveling public
safely, economically and especially on time. The timeliness of trains is a key
factor in the choice of passenger transport mode. The punctuality of trains is
measured by comparing the planned time schedule of a train with the actual
driving time according to its identification number.

 Capture the interaction of different factors and compare the continuity of


multiple variables like the number of delayed trains, date and weather. It
allows them to continuously monitor the providing the transport services.

 In case of train delays it is appropriate to analyze the given situation from the
point of view of the operation itself, management, means of transport,
accidents, influence of human factor as well as external environment. By using
brainstorming with experts in the field, the necessary information about the
possible origin of the negative effect is collected and the necessary measures
are formulated.

CONCLUSION
The aim of Six Sigma is to propose the development of an efficient and functioning
system for monitoring and evaluating the quality of rail passenger services, which will
enable problems to be solved in everyday operations.

b. Explain how Indian Railways can use lean techniques for optimizing flow?

Answer: Lean management is one of the top tools that eliminate waste in any process.
Lean techniques are typically used in a production environment.
The purpose of KAIZEN is to improve work processes in a variety of ways. Kaizen is
a generic Japanese word for improvement or making things better. The word Kaizen
means “Continuous Improvement.” It comes from the Japanese words “kai” which
means “change” or “to correct” and “zen” which means “good.”
By following the principles of kaizen, The Railways can embark on a well-thought
growth path, with both short- and long-term inputs, to bring a significant turnaround
in the functioning of railways, the nation's economic lifeline. It can adopt a strategy to
improve five core areas: Customer experience, new sources of revenue, cost
optimisation, investment in infrastructure, and structural reforms. IT-based initiatives,
which don’t cost much but yield substantial results can be taken. These initiatives are
vital from the public perception point of view. Starting with ease of booking and
cancelling tickets, these measures have resulted in making train travel a much less
stressful exercise.
A host of new mobile apps can also be made, which makes online booking a breeze.
This will eliminate the hassle of queuing up at a ticket counter. Online booking can
also make it easier for international passengers to book their tickets from abroad.

Further 5S Technology can also be adopted. As 5S methodology and lean building


practices become more wide spread in the construction industry, there is a growing
need for smart safety solutions that are designed to align with lean building practices.
The 5S methodology aims for systematic order and efficiency to improve the way
work is performed in manufacturing and construction to eliminate wasted time,
energy, and materials. The 5S methodology refers to:

Sorting—Installation and inventorying is easy when supported with neatly organized


and configured guardrail kits that are self-contained with minimal components.

Setting—A complete kit contained on mobile carts allows all guardrail components to
be neatly stored and easily moved while eliminating double or triple handling of
materials to achieve a desired “just in time” delivery of equipment to the point of
operation.

Shining—The construction and installation of conventional 2x4 wooden guardrail


produces scrap material, debris, and hazards that must be removed. Using engineered
guardrail systems eliminates this clutter—it’s a “clean” and visually appealing
product.

Standardizing—Guardrail panels and bases are easily laid out, installed, dismantled,
and moved to their next location creating a simple and standardized process that will
eliminate variation and shortcuts. This standardized installation process allows for
rapid installs as fast as 10 feet per minute.
Sustaining—ensure a construction grade product with a long durable life that offers
significant return on investment and sustained contribution to an organization’s 5S
methodology.

CONCLUSION
Lean and the Six Sigma method goes hand in hand. Lean is part of the Six Sigma
approach of problem-solving as eliminating waste goes a long way to solving
problems in any process.

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