Chapter 8

PROCESS MANAGEMENT: JUST

IN TIME AND TOTAL QUALITY
MANAGEMENT
Learning Objectives
• Discuss and compare the major elements of lean and six
sigma
• Describe why lean and six sigma are integral parts of SCM
• Discuss the Toyota production system and its association
with Lean production
• Discuss the linkage between lean programs and
environmental protection
• Describe the historical development of lean and six sigma
• Describe and use the various tools of six sigma
• Understand the importance of statistical process control
for improving quality
ELEMENTS OF LEAN
• Waste reduction – Eliminating waste is the
primarily concern of the lean philosophy
includes reducing excess inventories, material
movements, production steps, scrap losses
,rejects and rework.
• Lean supply chain relationships – Firms work
with buyers and customers with the mutual goal
of eliminating waste, improving speed and
improving quality key suppliers are considered
partners, and close customer relationships are
sought.
• Lean Layouts – WIP inventories are positioned
close to each process, and layouts are designed
where possible to reduce movements of people
and materials. Processes are positioned to allow
smooth flow of work through the facility.
• Inventory and set-up time reduction –
inventories are reduced by reducing production
batch sizes, setup times and safety stocks. Tends
to create or uncover processing problems, which
are then managed and controlled.
• Small Batch scheduling – firms produce frequent
small batches of product, with frequent products
changes to enable a level production schedules,
smaller , more frequent purchase orders are
communicated to suppliers and more frequent
deliveries are offered to customers. Kanbans are used
to pull WIP through the system.
• Continuous Improvement – As queues and lead times
are reduced, problems surface more quickly, causing
the need for continual attention to problem solving
and process improvement. With lower safety stocks,
quality levels must be high to avoid process
shutdowns. Attention to supplier quality levels is high.
• Workplace empowerment – employees are
cross-trained to add processing flexibility and to
increased the workplace ability to solve
problems. Employees are trained to provide
quality inspection as parts enter a process area.
Employees roles are expanded, and employees
are given top management support and
resources to identify and fix problems.
• The 7 wastes

1. Overproducing - Production of unnecessary items to maintain high

utilization.
2. Waiting – Excess idle machine and operator time; materials experiencing
excess wait time for processing.
3. Transportation – Excess movement of materials between processing
steps, transporting items long distances using multiple handling steps.
4. Over processing – Non- value adding manufacturing, handling, packaging
or inspection activities.
5. Excess Inventory – Storage of excess raw materials, work in process and
finished goods.
6. Excess Movement – Unnecessary movements of employees to complete a
task.
7. Scrap and rework – Scrap materials and product rework activities due to
poor- quality materials or processing.
Elements of Six Sigma
• Focus on the Customer – Meeting customer
expectations , they expect performance,
reliability, competitive prices on time delivery,
service, clear and correct transaction processing
and more.
• In every attribute that influences customers
perception, we know that just being good is not
enough. Delighting our customer is necessity.
• Quality – requires us you look at our business from the customer’s
perspective , we must look at our processes from the outside –in.
by the understanding the transaction lifecycle from the customer’s
needs and processes.
• Juan's way
• Quality planning – identify internal/external customer and their
needs, develops products that satisfy those needs.
• Quality control – determine what to control, establish standards of
performance, measure performance interpret the difference and
take action.
• Quality improvement – show need for the improvement. Identify
projects for improvements, implements remedies, provide control
to maintain improvements
• Crosby’s Way
• For absolutes of quality
1. The definition of quality is conformance to
requirements
2. The systems of quality is prevention
3. Performance standards is zero detects
4. the measures of quality is the price of non-
conformance
• Deming’s ways
1. Create constancy of purpose to improve product and
service
2. Adopt the new philosophy
3. Cease dependence on inspection to improve quality.
4. End the practice of awarding business on the basis of
price.
5. Constantly improve the production and service system
6. Institute training on the job
7. Institute leadership
1. Drive out fear
2. Break down barriers between departments.
3. Eliminate slogans and exhortations
4. Eliminate quotas
5. Remove barriers to pride of workmanship
6. Institute program of self improvement
7. Put everyone to work to accomplish the
transformation
Malcolm Baldridge National quality Award
Objectives
• Stimulate firms to improve
• Recognize firms for quality achievement
• Establish guidelines so that organization can
evaluate their improvement and provide
guidance to others
• Categories Measured
1. Leadership
2. Strategic planning
3. Customer and market focus
4. Information and analysis
5. Human resource focus
6. Process management
7. Business results
• ISO 9000 and 14000
Quality managements principles
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutuality beneficial supplier relationships
 Discuss the Toyota production system and its association
with lean production

• The term lean production essentially refers to the Toyota

production system or TPS is an integrated socio- technical
system develop by Toyota (automotive manufacturer) to
efficiently organize manufacturing and logistic, including the
interaction with suppliers and customers, to minimize cost
and waste.
• The philosophy is to work intelligently and eliminate waste so
that minimal inventory is needed. This increases cash flow and
reduces physical space needs, and make it easier to deliver the
required results smoothly through internal processes.
• This system, more than any other aspect of the company it is
today. Toyota has long been recognized as a leader in the
automotive manufacturing and production industry.
Discuss the linkage between lean programs
and environmental protection
• Since lean system are ultimately concerned with waste
reduction throughout the firm and its supply chains, the
linkage between lean and environmental sustainability should
be clear.
• Many organizations have realized the positive impact lean
system can have on the environment adopting lean practices
reduces waste. The cost of environmental management and
also leads to improve environmental performance.
• Professors king and Lennox found ample evidence of this
linkage between the concept of lean and environmental
sustainability. They found that firms minimizing inventories
and adopting quality standards.
Describe the historical developments of lean
and six sigma
• When lean and six sigma come together they create a collaborative team
effort to improve performance by systematically removing waste and
reducing variation. To eliminate the eighth kinds of waste, (defects,
over production, waiting, non utilized talent, transportation, inventory,
motion, and extra- processing.
• In order to successfully implement Lean and Six sigma a combination
of tools which is kaizen, value-streaming mapping, line balancing and
visual management.
• This change in culture and the mindset of an organization maximizes
efficiency and increases profitability.
• The evolution of lean and six sigma from mere inspection to modern
interpretation has led to the development of essential processes and
tools that have been key to business performance improvements across
every sector.
 Describe and use the various tools of six
sigma

• Six sigma tools are defined as the problem-

solving tools used to support six sigma and others
process improvement efforts.
• DMAIC – The define, measure, analyze, improve,
and control process is a data-driven quality
strategy used to improve processes. It is an
integral part of a six sigma initiave, but can also
be inplemented as a standalone quality
improvement procedure or as part of other
process improvement initiatives such as lean.
• 5S- The five S’s of lean is a methodology that
results in a workplace that is clean, uncluttered
and well organized to help reduce waste and
optimized productivity. It designed to help build
a quality work environment, both physically and
mentally.
• Value streaming mapping – the pencil and the
paper tool used in two stages. First follow a
product’s production path from beginning to end
draw a visual presentation of every process in
the material and information flows. Second draw
a future state map how value should flow. The
most important map is the future state map.
• Flow – flow is the progressive achievement of
tasks along the value stream so a product
proceeds from design to launch, order to delivery
and raw to finished materials in the hands of the
customer.
• Visual Workplace – a visual workplace is defined
by devices designed to visually share information
about organizational operations in order to make
human and machine performance safer.
Understand the importance of statistical
process control for improving quality
• Statistical process control or ( SPC) allow firms
to visually monitor process performance,
compare the performance to desired levels or
standards and take corrective steps quickly
before process variability's get out control and
damage products, services and customer
relationship. Once a process is working correctly,
firms gather process performance data create a
control charts to monitor process variability's .