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Impact of implementation of lean six sigma in an organization
Review of literature on theory of constraints and lean and six sigma
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Table of Contents
I. Introduction 2
II. Then Why Do Most CI Programs Produce Such Disappointing Results? 2
The Improvement Conflict
What’s wrong with the traditional approach?
Resistance to Change:
The Reasons for Unsatisfactory Results?
III. TLS Theory of Constraints Lean Six Sigma 8
The TLS Process:
IV. Results of TLS: 11
Sanmaina-SCI DOE results:
Tata Steel Results:
V. The Path Forward – Implementing TLS 13
VI. TLS Summary: A Synergetic Solution 14
VII. TLS Benefits: 14
VIII. Bibliography 15
Introduction
Many organizations struggle with their continuous improvement (CI) efforts; real bottom line results, whether in cost savings or increased revenues, just never materialize for many organizations. In spite of the widespread implementation of Lean and Six Sigma methods, poor results persist.
Then Why Do Most CI Programs Produce Such Disappointing Results?
At the heart of continuous improvement is the matter of change. In order to improve the process, we must change it. However, not every change results in an improvement. We would not bother to make a change if it didn’t result in something positive, yet many changes we make result in little real improvement. Why is there is there such a mismatch between our expectations for change and the results?
There are two distinct approaches to improvement. One, the traditional approach, can be best summed up in the phrase, “A cent plus a cent plus a cent plus a cent… will accumulate into a fortune.” This, the additive approach, says that if we improve a lot of different places, it will improve the entire system; or put another way, “every little bit helps”.
In contrast, the systems approach to improvement can be summed up with the phrase (paraphrasing Archimedes), “If I ...
... middle of paper ...
...ir sphere of process influence
A culture of continuous improvement exists
Significant progress towards world class with ZERO capital investment
Bibliography
1. Theory of constraint – a status report, International Journal of Production research.
2. Constraint Management: what is the theory? International Journal of operation and production Management
3. http://www.tocpractice.com/page/%E2%80%98toc%E2%80%99-promotion-%E2%80%93-tata-steel-experience
4. http://www.toc-goldratt.in/index.php
5. http://www.leanproduction.com/theory-of-constraints.html
6. Goldratt, E.M. & Cox J. (1984), The Goal, North River Press, New York
7. Pinnacle strategies – The TLS approach (www.pinnaclestrategy.com)
8. http://www.toc-goldratt.in/product/TOC-Insights
9. http://www.leanproduction.com/agile-manufacturing.html
10. http://www.benchmarksixsigma.com/professionals
In The Goal: A process of ongoing improvement, Eliyahu Goldratt uses a form of literature that can be used even in today’s society to introduce his business theory of constraints. This theory is based on a chain with shortfall link in it. Basically, when analyzing any multipart system at any specific time, you will find the area of the system has a limited ability to maximize its goal. In order for this system to accomplish significant improvement it’s necessary to identify the constraint and redefine the system. Goldratt offers a great deal of information that is so basic to today’s management system that any who reads could absolutely benefit from.
Gregory George: you can see it step by step, my view is if you can teach someone how to clean a bathroom, if they can pick up how to clean a toilet and do it good; that’s improvement. If you come in there and you have zero skills on how to clean a toilet and a bathroom, then in six months you are able to do a bathroom route and do it well; you expect mistakes.
myself, or seek outside assistance to address certain issues. Overall, this project helped me view
Change is good." We hear the catchy phrase everywhere. From company slogans to motivational speeches, our world seems to impose this idea that change is always a good thing. Assuming that the change is for the better, it is probably a true statement in most cases. The root of this idea seems to come from the notion that we are dissatisfied with the state that we are in, so, in order to create a more enjoyable surrounding, we adjust. Others, however, stray from this practice, and instead of trying to adapt to the people around them, they try and change others.
Another area of improvement is not allowing people a great deal of freedom and choice in deciding how to do their work, which falls under the “Enable Others to Act” section of the model. One method of improving this section is by asking people more questions starting with phrases like, “how do you see…?” or “what do you think about…?” By seeking their input I can see where my influence is too great and not permitting them leeway to do the work. Additionally, I need to recognize when I am intervening in the process too much. Recently my two First Class Petty Officers and I had a discussion on how we can improve the way we are doing business. They confronted me on this specific topic and I have taken strides to improve. I will sit down with them again and check my progress and solicit feedback on how to improve the current processes
There is a lot of literature on the concept of continuous improvement (CI). Studies show that CI is very important to creating competitive advantages in highly competitive industries such as the automobile industry (Bhuiyan & Baghel 2005; Li et al. 2009; Schaeffer, Cadavid, & Backström 2010). These studies suggest that manufacturing firms use CI to eliminate waste in all organisational systems and processes (Bhuiyan & Baghel 2005; Li et al. 2009). Currently, manufacturing firms use lean manufacturing, six sigma, lean six sigma, and the Kaizen methods of CI methodologies to reduce wastages, simplify the production line, and improve quality (Swink & Jacobs 2012).
Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral.
The 7 Levels of Change provides a different way of thinking to enhance behaviors and processes. The author demonstrates throughout the book a seven process of change that builds upon the next. He believes that by thinking differently, being creative and stepping out of the norm is the catalyst to solutions and results beyond one’s expectations. Although the author uses the analogy of a new work environment to expound on the level of changes, the fundamentals can be used in both your personal and professional life.
What usually happens when a certain change program does not provide the expected results is that another program is to be implemented. However, this only tends to exaggerate the problem. All these ongoing change programs end up undermining the credibility of the change effort. Those programs that are not specifically tailored to the problems or issues they are addressed ...
Eliyahu Goldratt, an Israeli physicist turned business guru, is the founder of the Theory of Constraints (TOC), who developed revolutionary methods for production scheduling in the late 1970s (Balderstone & Mabin, 1998). Goldratt also developed other theories about the methodology of systemic problem structuring and problem solving which are utilized in developing solutions with intuitive power and analytical rigor that, while more refined, are still being utilized today. The TOC stood in direct contrast to other accepted methods of production scheduling at the time, such as Materials Requirements Planning (MRP). MRP is a production planning and inventory control system that integrates data from production schedules, inventory, and the bill
How should we implement change? It's a simple enough question, surely there's a simple answer-especially since we get to do it so often. Every time we implement a new system or install a new process, we're implementing change.
The Goal: A Process of Ongoing Improvement is a very popular and bestseller book in management section. Eliyahu M. Goldratt and Jeff Cox wrote the book in 1984. It comes in 390 pages. It published by The North River Press. In 20 years, over than three million copies were sold, translated into 21 languages and taught in over 200 collages. The way the book is written was like telling a story although the contents are science. That is because the author thinks it is the best way for education.
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
Improvement in the quality is a continuous process; by discontinuing the continuity will shatter the business competitiveness in the market. Generally, six sigma, lean and Kaizen are being used for continuous improvement by the companies. But in case of manufacturing companies, they need to be more calculative and carful in the continuous improvement is essential but the company should be cautious in not investing in destructive research. It is not possible for implementing the TQM in all process (Ashkenas, 2013).