First off I am pleased that you, Books-R-Us, is going to adapt to the Six Sigma process. Not only will things run smoother, the product better, but the end customer will also be happier. I am going to plan out the course for you below; if you need any additional help here is the master black belt who you will want to contact:
Now assuming that everyone has already read Six Sigma for Everyone by George Eckes, I’m not going to go into defining all of the technical terms; he does a fine job of doing that in his book.
Business Case: We are going to revamp out assembly line project to run both effectively and efficiently. The assembly line is the core of the business, and if it isn’t running both effectively and efficiently, we are loosing money.
Problem Statement: We have made no steps to improve our line, even though we have the demand for our books. We only have one employee, who by the way can’t keep up with the demand. We need to get to the point to where for every 1,000,000 books are sold madam customer only rejects 3 or 4. Now this would be easy to do if we were only putting out 5-6 books a day, but we also need to put out a great number of books.
Project Scope: Bottom line, like I have sated over and over, is improving our effectiveness and still maintain a level of being efficient. Easier said than done, right? Wrong, if we focus on where the bottlenecks are in the line, and focus on the areas that are causing the books to be rejected (I.E. the folding process) we can improve our system dramatically. We are not going to worry about the bottom line and net profit. That isn’t your job as assembly line workers; we will leave that up to the group of executives for Books R Us. We realize that in the beginning we may be loosing money because this is going to take time to turn things around. We only want to worry about the assembly line, that’s it.
Goals and Objectives: Right now at the current step of the process (with one employee), we are making 4 books per shift, but we are also having 4 books rejected. We are loosing money, obviously. We have the demand for our books, if we put our 1,000 books and madam customer rejected 0, we would sell 1,000 books.
Peak Garage Door Inc. has set a goal to increase their sales for 2004. Garage door industry is expecting a growth of 2.4% while the management of Peak is looking to increase company’s sales 26.4%. The company currently has 50 exclusive dealers and 300 non-exclusive dealers. Management has three proposals in front of them. The first suggestion is to increase the number dealers in their existing markets. The second recommendation is to develop an exclusive franchise agreement with existing non-exclusive dealers. The third recommendation is to decrease the number of dealers and focus company’s resources on increasing support for the existing dealers. Of course there is an option for them to leave everything as it is. My suggestion is to go with the second recommendation due to the fact that exclusive dealers produced 70% of company’s sales and non-exclusive dealers contributed only 30%. In order for Peak Garage Doors Inc. to reach their sales goal for ‘04 they will have to gain more exclusive dealers since they contribute much more profit to the company.
In today’s operational management arena, there are certain expectations from a managerial aspect that must be met in order to be successful. A comprehensive look at the Space Age Furniture Company will show exactly what the Materials Requirement Planning (MRP) calculations are for this company at present time and then take the information given in order to properly suggest ways to improve the sub-assemblies. In addition, there will be an analysis on the trade-offs between the overtime and inventory costs. A calculation will be made on the new MRP that will improve the base MRP. This paper will also compare and contrast the types of production processing to include the job shop, batch, repetitive, or continuous, and determine which the primary mode of operation should be and exactly why. A detailed description on how management can keep track of the job status and location during production will also be addressed. Finally, there will be a recommendation on they type of changes that need to occur that will be beneficial to the company and at the same time add value to the customer. This paper will conclude with summary of the major points.
There are many people that benefit from Lean Six Sigma which include mainly customers, suppliers, employees, and also stockholders. Lean Six Sigma is a way for businesses to improve, to reduce waste and to become more successful. In the future, more and more organizations will adopt or practice some of the Lean, Six Sigma, or both in order to stay competitive in today’s market. In some cases, blending both Lean and Six Sigma can be costly and difficult; however the end result can create an organization that focuses on quality, accuracy, and speed to meet the goal which is profitability.
1) Six Sigma should not be viewed as a quality program that is commissioned to reduce defects but as a methodology that helps companies better meet the needs of their business. KM shares this goal.
Even though I have no real experience in software development I know that dealing with software is not easy and can be very frustrating. Six sigma incorporates many tools that help organizations determine their customer requirements. Before reading this article I thought six sigma was just about statistics and improving processes. It is so much more than that. It’s also about managing all given information or data quantitative or not. Six sigma can help with customer requirements and also with understanding processes capability.
Even though Six Sigma significantly influences and effects primarily contingency factors of an organization, these sectors in turn influence the structural factors of a company. While Six Sigma can be applied to many industries and a variety of organizational structures, certain aspects of Six Sigma operate more efficiently when specific structural aspects are applied. Primarily, implementing Six Sigma influences the hierarchy of authority and the centralization of an organization.
transformational and lean six sigma. These are the two best models out there in my opinion. Let’s
This project belongs in the engineering-efficiency category; therefore, it has to fit at least 3 of 4 performance hurdles, which are 1. Impact on EPS; 2.Payback; 3.Discounted cash flow and 4. Internal rate of return.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and have not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed price contracts with little to no stipulations. For this project Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project. Franklin Electronics won the contract because they had the lowest price. They developed a work breakdown structure that consisted of 45 work packages with 4 of the work packages being delivered in the first 4 months. They also developed a simple status report consisting of the work packages due, budgeted cost for work scheduled, budgeted cost for work performed, actual cost for work performed, cost variance and price variance. When they deliver the first status report, the Franklin Electronics project manager is called into an emergency meeting because Spokane Industries vice president is unhappy with the progress. In this paper, we will discuss Six Sigma process improvement for tracking time and cost, recommendations on how Franklin Electronics can use project management principles to meet their goal of improving efficiency and empowering management to make better and informed decisions through the use of Earned Value Management, how an effective Earned Value Management System contributes ...
The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization.
Frank has been working as product engineering manager for 14 months but he had not been told clearly about his objectives as a manager, sometimes he questions his effectiveness as a manager. He is not been able to prioritize his tasks and he often forgets many things he has to do in a day. He tries to be organized by maintaining a TO DO list but still is unable to achieve them. Product engineering department faces the biggest problem of not being able to develop elaborate and error free manufacturing documents which are required by manufacturing to build a product designed by applications department. The current documentation is very poor and its causing delays in production as inexperienced operators are unable to proceed with certain products, als...
The Consumer and Industrial Products, Inc a company where their headquarters is based in the United States , also doing business internationally with facilities in Europe, Asia and South America. They are a manufacturing company what produced well known products to individuals and industries. This company is experiencing a great deal of trouble with their internal Payable Audit System (PAS) and how it would purchase goods; receive goods and pays for them. They are challenged with the redundancy and the lack of productivity to their system. They were finding ways to lower costs and eliminating steps in how these processes are getting accomplished. They decided that they needed to change their system and the way they did things at their business. There are some people, their roles and departments that will be closely involved with the process of this project. Some of these important roles will come from Ted Anderson director of disbursements, Peter Shaw the user project manager and Linda Watkins project director for the Payable Audit System (PAS). In addition, the Steering Group and the IS management department will have some important roles to the project too. Finally, there will be several major problems with the development of the project and how the one person would deal with these issues.
The Six Sigma approach was designed by Motorola in 1986. The primary objective of the concept was to develop a tool for tallying the process defects and, as the result, improving business operations. The foundations of the approach are the customer needs, statistical analysis of data and facts, and timely execution. The method promises numerous benefits such as increasing performance and profitability of an organization, improving product or service quality and employee morale, decreasing costs, the growth of market share, the higher level of satisfying customer needs, etc. (Meredith & Shafer, 2013). The primary advantage
The cafeteria serves about one hundred and fifty residents of Cambridge Hall and approximately one hundred residents from Nottingham Hall. The cafeteria serves hot foods, salads, snacks, sandwiches, and beverages. The data has given me information on the percentage of customers that preferred a hot meal (interactive and precooked) to snacks, the ratio of customers that prefer precooked hot meals over an interactive hot meal, line formation, service times at the different stations, arrival times and the location of the different stations. I also learned that the peak hours of operations are from 5:00 p.m. to 6:30 p.m. and that the cafeteria has two cash registers available but only one is being utilized during the peak hours. If customers decide on a hot meal there is a 2 to 1 ratio that customers will purchase a precooked meal over an interactive meal. Through an informal customer survey, reasonable waiting times were established for the precooked line (5 minutes), the interactive line (10 minutes), and the cashier payment line (1minute).
The Harvard Bookstore is a locally owned, independently run bookstore in Cambridge. Against all odds and global market trends, it has survived the rising popularity and demand of eBooks and online bookstores such as Amazon. This is partly due to the unique Espresso Book Machine that it has invested in, which creates perfectly bound paperbacks of any eBook within minutes. In this report, we analyse the business, identifying its strategy and thinking behind its actions through the use of Operations Management theories, with particular focus on the 4V’s.