Application of the Six Sigma Concept to a Fictional Organization - Case Study Example

Six Sigma Application of Introduction Six Sigma is a quality control system that is meant to enable a business to have zero defects in its production and operation systems (Arthur, 2009, p. 2). Six Sigma was successfully pioneered by Motorola in the mid-1980s and has since been a popular tool of operations management quality control (Munro, 2010, p. 1). This paper examines the application of the Six Sigma concept to a fictional organization. The paper will be based on a scenario whereby the writer should apply the principles of Six Sigma to a business with production teams spanning across Digital Printing to Silk Screening, Sewing Unit, Cutting Unit and Packing Unit for a clothing manufacturing entity. The idea is to improve the quality of manufacturing in the companys operations system using the Six Sigma concept. The paper will use the Six Sigma theory to link the quality control department, engineering department and production team to cut down on defects, reduce inefficiencies and improve results. To this end, the researcher will use the principles of Lean Six Sigma to propose how to develop and design operations and team activities as well as team strategy in the quest for zero defects. The paper will explain how DMAIC and some statistical tools can be used to improve the system brainstorming and communication can be carried out to attain the best results or the company in the case. Literature Review “Six Sigma identifies defects and errors in production system, which affects manufacturing and business processes and improves quality of the processing systems in order to improve outputs” (Nash et al., 2008, p. 17). Six Sigma is a methodology that was used by Motorola and is still applicable to the operations systems of most businesses. It is a quest for continuous evaluation of output against some stated metrics in order to ensure that the system is improved on a regular basis to meet the demands and expectations of stakeholders. A defect is defined as anything that affects the production process in a way that customer expectation is not met (Smith, 2010). Thus, Six Sigma enables businesses to come up with better ways of aligning consumer needs and expectations with the operation system so that they improve to meet changing demands and trends and also identify product defects and check them. In the wider sense, Six Sigma has impacts on different aspects of the business. Forrest et al. (2001) identify two main components of the Six Sigma system. First of all, the Six Sigma model enables a business to identify metrics. These metrics define defects, business cycle and expenditure. These define the kind of expectations consumer have for products as well as the constraints set by the management of the business. Secondly, these standards affect the operation system which, in turn, affects the business strategy of the company. This involves the view of the business in relation to competition, survival and customer satisfaction. Based on the framework set by the people in top leadership positions of the organization, the organization can define standards and maintain them in order to set up a Six Sigma system of the organization. These ideas are very practical and can be applied to the fictional organization that we would be handling in this paper. The first step for the clothing branding organization under review would be to define a framework for the Six Sigma using one of the most dominant models. Design of the Systems In starting anything, the basic DMAIC model should be used to set the tone or the business we are designing the Six Sigma for. This includes the following: D- Define goals of the improvement activity. M- Measure the existing system. A- Analyze the system to identify ways to eliminate gaps between the existing system and the desired goal. I- Improve the System C- Control the System (Pyzdek & Keller, 2007, p. 3). Define Goals (D) Based on the current performance of the clothing branding company we are working on, there would be the need to define the goals for improvement of activities in the organization. Ideally, the definition of the goals should be based on three main things: 1. Defect limit: We need to set a goal for the number of defective goods that we expect to get at the end of the day. The ideal standard for a Six Sigma method is 3 defects in a million. However, based on the size of the company, sophistication of technology, and methods, we can set a more realistic goal. This goal must be challenging and must be meant to reduce the level of defects and consumer complaints that exist in the company. 2. Cycle lines: The different units of the company, namely the Digital Printing Unit, Silk Screening, Sewing Unit, Cutting Unit and Packing Unit, must all be given specific tasks that translate to the overall defect limit. There would also be interconnection needs and demands based on improving the business cycle and ensuring that more optimal quantities are produced within reasonable timeframes. 3. Expenditure: There should be expenditure targets. Each improvement quest must come with some resource commitment. This commitment should be such that return on investment would not be affected. 4. Strategic commitment: There should be considerations for the overall business strategy of the clothing company we are studying. In this sense, the capacity of competitors, survival needs and unique consumer feedback must be factored into the new system Measurement of Goals (M) Based on these considerations above, I propose the following hypothetical goals to the clothing company under review. These goals must be measured in an individual sense as well as in an absolute sense: 1. To reduce defective goods from 0.01% to 0.001%. In other words, we would reduce defects from 1 defective product in 10,000 units to 1 in 100,000 units. This will obviously cut down consumer complaints and other administrative problems. 2. The cycle lines should be improved based on the inputs of each unit. Thus, there should be statistics on the level of errors in terms of the number of units per department and the number of man hours in delays to the cycle and volumes that are cut. From there, each unit would be given improvement goals and expectations based on the collective goal identified in (1) above. 3. Expenditure: Different improvements in dollar value of each unit must be made. This should be based on the results needed and expected returns per unit. Once this is done, the improvements, which could be in terms of technology or supervision, can be instituted. 4. Strategic commitments: Like our competitors output, market expansion strategy and other survival needs should translate to the number of units we need to produce and the timeliness and quality standards we need to meet. This must be in sync with the strategic plan and management blueprint for the clothing company under discussion. Analysis of the System (A) The current system and production capabilities must be examined. We need to examine if we can realistically cut down defects from 0.01% to 0.001%, or we might need to accept a percentage in between the two values in the short run and improve the system on a gradual basis. These questions must be answered in the Analysis stage. In this stage, the realities of the inputs and output relationship of the different units must be evaluated. Issues such as incompetent staff or technology must be matched against expenditure and resource constraints in the clothing company. There should be other strategic considerations examined at this stage. After a critical evaluation, the company must come up with ways and means of cutting meeting the objectives and system. This should come with a Six Sigma Plan for the organization. This should be agreed upon by all the key supervisors, operations managers and top management of the organization. It should lay out how the improvements would be carried out in the organization. Improvement (I) Improvement involves the implementation of the Six Sigma Plan agreed in the previous step. This would involve the analysis of ways and means through which the pointers identified would be carried out in the best ways possible. This would entail changes to the existing systems and targets as well as the release of resources for the different units to carry out their operations in the quest for reduced defects. Also, there should be other resources made available from the top level management solely for the attainment of the Six Sigma objectives of the company. These should be used and all supervisors and operations managers must carry out their respective functions in the improvement systems agreed upon. Control of the System (C) When the system is instituted, there would be the need to monitor the system and ensure that the different units are doing what is expected of them. This would involve the assessment of the results attained from time to time. The results would be monitored against the proposed position and then adjusted where possible. Control might require remedial actions for failures and people not performing as expected might be called to task. Controlling and application of a new system in the DMAIC model requires some other considerations such as communication and leadership, amongst others, that would be discussed below. These options would help the clothing company under review to attain the best results in the quest for zero defects under Six Sigma. Lean Six Sigma: Leadership and Team Success The lean Six Sigma model has a scope of reducing defects to as low as 3.4 in a million units of production (Sower, 2010, p. 119). This involves the reduction in faults and issues in seven main areas, namely defects, overproduction, conveyance, idle time, inventory, motion and overprocessing (Sower, 2010, p. 119). For the clothing company, the company would have to ensure that the metrics that are set for the core units of the company would spread to inventory, supply and inter-departmental operations. This would require a strong role of management and people at the top of the company. The management of the clothing company would have to find important individuals and supervisors who would play various roles in the affected units in the lean Six Sigma system (Soleimannejed, 2009, p. 152). These important individuals will be delegated with appropriate authority and power to carry out the Six Sigma functions in the units affected. To ensure that the best results are attained, Soleimannejed (2004, p. 152) recommends that the implementation of new Six Sigma functions in an entity should be done in a project management format. There should be Black Belts in each of the units who would play major roles in the activities of the company. This should be supported by Yellow Belts in the different units such as inventory who would carry out connected activities, albeit in a much less pronounced manner when compared to the Black Belts (Gygi et al., 2009, p. 282). The different teams will have to liaise and conduct business together in order to attain the common objective of eliminating different defects and issues in the areas identified in the Lean Six Sigma model. Communication System Design & Change/Conflict Management According to Burton (2011, p. 192), communication in an organization must be in relation to some important things that form a crucial part of the whole process. First of all, the primary and secondary stakeholders should be identified. In this case, the primary stakeholders would be the Black Belts who are involved in regular communication with the management in charge of the project for the change to a Six Sigma system. They should have continuous communication with the different units of the change process. This should be based on the corrective objective of the Six Sigma process. Also, for the other stakeholders who are not primarily involved in the Six Sigma activity of the clothing company, there is the need to provide information that gives them an understanding of the existing system so they do their part in the change process. When information is given, the feedback and response should be gauged by management. This should get management to make changes in the event of conflicts and other negative observations. This might be representative of resistance or failure of the existing system. Otherwise, there should be a strong communication loop that would enable the different units of the Six Sigma process to communicate and make adjustment on the basis of relevant information. Statistical Tools & Measurement Brussee (2010) identifies two statistical tools that can be used by the clothing company to monitor activities and make changes: 1. Quality Function Deployment (QFD) and 2. Failure Modes & Effects Analysis (FMEA) The Quality Function Deployment (QFD) will involve the use of quality standards and targets that would be assigned to different units of the organization such as manufacturing, sales/marketing, accounting, receivables and inventory. These units would have standards that can be measured both statistically and evaluated on the basis of how they change in light of new circumstances. The Failure Modes & Effects Analysis involves the identification of consumer needs and/or stakeholder needs and the assignment of value to each of them. Thus, each unit of the company involved in the Six Sigma exercise would be noted and assessed on a continuous basis. With time, these units would be nurtured for better results. Conclusion Six Sigma is most likely to get the company to maximize returns on investments for the clothing company. This is because it would get all the units to increase their consistency and improve services to consumers and other stakeholders. The concept of Six Sigma could be taken to a higher level using the Lean Six Sigma model which would involve different stakeholders such as suppliers and other production needs and concerns. These would make the Six Sigma model more effective, and defects could be cut to a higher level. Six Sigma can best be carried out if communication is done in a more profound manner and more people get to be informed. Also, feedback should be taken seriously and change made appropriately. Statistical methods such as QFD and FMEA could be employed to make the system better. References Arthur, J. (2009). Six Sigma simplified: Quantum improvement made easy (2nd Edition). Denver, CO: Knoware Publishing. Brussee, W. (2010). Statistics for Six Sigma made easy (2nd edition). New York: McGraw Hill. Burton, T. T. (2011). Accelerating lean Six Sigma results. New York: J. Ross Publishing. Forrest, W., Breyfogle, I, Cupello, J. M., & Meadows, B. (2001). Managing Six Sigma. Hoboken, NJ: John Wiley & Sons. Gygi, C., DeCario, N., & Williams, B. (2009). Six Sigma for dummies (3rd edition). Hoboken, NJ: John Wiley & Sons. Munro, R. A. (2010). Six Sigma for the shop floor: A pocket guide. New York: ASQ Quality Press. Nash, M. A., Poling, S. R., & Ward, S. (2008). Using lean for faster Six Sigma result (3rd edition). New York: Productivity Press. Pyzdek, T., & Keller, P. (2007). Six Sigma handbook (4th edition). New York: McGraw Hill. Smith, B. (2010). The Inventors of Six Sigma. Retrieved September 2, 2012 from http://web.archive.org/web/20051106025733/http://www.motorola.com/content/0,,3079,00.html. Soleimannejed, F. (2009). Six Sigma basic steps & implementation (2nd edition). London: Author House. Sower, V. E. (2010). Essentials of quality with cases & experimental exercises. Hoboken, NJ: John Wiley & Sons. Read More