Six Sigma Essay

Superior Essays
This case study deals with improving the labor cost and productivity for a flavor and food additive company. The problem was resolved using a Six Sigma DMAIC problem solving methodology. The basic equation of Six Sigma, Y = f(x), defines the relationship between a dependent variable ‘Y’ or the outcome of a process and a set of independent variables ‘x’ or possible causes which affect the outcome.
The Company Amigis is an Asian flavor and food additive company which had an increase in one of its production lines last year. This was a result of a transfer of production from an affiliate company. Amigis is constrained by strict labor laws and powerful unions. This has made Amigis unwilling to hire additional full-time employees. The
…show more content…
In the measure stages the team used a cause-and-effect analysis which helped the team better define the identifying factors of the inefficiencies of the project. The group also used root cause analysis in the analyze phase to find the root causes of their problems are. During the improve phase the team used Casual Leveraging for Liquid to track their leveraging index and a process map for hiring casual labor to clearly define their guidelines for requesting casual labor.
1. Link to Strategic Imperatives The link to strategic imperatives is high for this Six Sigma project. The project team set out to increase their labor efficiency especially with contract labor and they were able to do that. The improvements that were made to their process stuck to their strategic imperatives throughout the project.
2. Application of Six Sigma Tools The application of six sigma tools was high on this project. The cause-and-effect analysis and root cause analysis were used to clearly define the scope of the project and the direction they wanted to take. Their use of other tools during the control phase demonstrated clear knowledge of the project and what they were trying to accomplish.
3. Active Sponsor Engagement In this project the sponsor engagement was medium. The sponsor was mentioned neither positively nor negatively in the case study.
4. Team Actively

Related Documents

  • Decent Essays

    Hrm/531 Week 2

    • 556 Words
    • 3 Pages

    Late payment of vendor invoices, which means late fees and lost cash discounts: The help with the new ERP Mal-Bal will be able to make payments to vendors in time for the system can integrate with the inventory purchased from the stores department. Late deliveries to customers: The old software integration of data is a problem and in order to make timely deliveries and the purchase order will be received by the marketing needs to be marked to material dispatch section in time. The lack of which will result in a delay of deliveries. Growth in inventories, accompanied by an increase in stockouts: Integration of data and lack of availability of information to employees will result in stock in hand not matching with the product demand and purchase department may…

    • 556 Words
    • 3 Pages
    Decent Essays
  • Superior Essays

    Summary Goldratt

    • 1350 Words
    • 6 Pages

    Summary of Main themes In this book, one of the main themes that Goldratt seeks to expound on is the struggles that managers go through. In their work of ensuring that the supply chain runs smoothly, managers often have to deal with a hoist of operational, human resource and even social problems that make it difficult to achieve the set goals. This book gives the story of one Alex Rogo who is facing serious consequences if the manufacturing plant he manages does not improve within three months. Managers in different companies face this typical problem, as there is a lot of pressure from supervisors. .…

    • 1350 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    There are also many concepts and tools that either don’t apply or will not improve processes. In the Chipotle case, it was beneficial to use Six Sigma. “Six Sigma specifically addresses customer requirements, or the “Voice of the Customer,” by focusing on reducing variation in existing processes to give results that are essentially defect free (Ward et al, 2015). ” Chipotle would not have benefitted from International Standards Organization (ISO) quality because it better suited for technical companies and does not guarantee improvement and safety.…

    • 1043 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Synopsis The given case study “What’s wrong with Walooms” stated the problem about the Walooms one of the products of the Company. The sales report is not good as expectation and as training manager I supposed to create the training course for salesforce. Before doing important decision, I must do the research. Hypothesis is most important things in research, and there were many hypotheses.…

    • 964 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    BUSINESS UNIT STRATEGIES BJ’s work on the business model of low cost differential strategy. This strategy has been quite successful for them and the chain currently operates 215 club locations and more than 120 gas stations across 15 states. The company says that its mission is “to provide brand named products to their customers at prices that are lower than the prices found at department stores, retail operations”. There are two types of members, small business operators and consumer members. While all the other competing clubs considers small business operator to be their foremost member, BJ’s focuses more on retail customers and this approach can be seen in their merchandising, real estate and club operation strategies.…

    • 1724 Words
    • 7 Pages
    Great Essays
  • Decent Essays

    1.2 You need to develop this further. You need to clearly explain how Kotter’s model can be used. PLANNING TEMPLATE TITLE: ………. Development Task Actions STEP 1 Establish a Sense of Urgency.…

    • 859 Words
    • 4 Pages
    Decent Essays
  • Superior Essays

    Lean Management Case Study

    • 3945 Words
    • 16 Pages

    Jeanne D’Arc Credit Union is the third oldest credit union in the United States, and second oldest in Massachusetts. Opening their doors in 1912, the credit union offered financial services to immigrants working in the textile Mills in Lowell, Massachusetts. Over the years the company has grown exponentially, but has remained truthful to its original mission; “Helping members make smart financial choices”. This mission has been carried out via methods that are tried and true. Examples include, offering specialty products, free workshops, and seminars to assist members in achieving financial independence (About Us, n.d.).…

    • 3945 Words
    • 16 Pages
    Superior Essays
  • Improved Essays

    When I was consulting at the Bechtel Corporation, I had to engage simultaneously in various projects relating to logistics, supply chain, inventory management. When confronted with having to do a number of things at the same time, I always use the same approach, which is that of snowballing. For me, snowballing means starting with what I know I can do at a particular moment, and using the completion of modest, achievable tasks to give me confidence in being able to complete much larger and more difficult tasks. With this approach, I wade in to whatever I can do and use the momentum to keep going. At Bechtel, this approach allowed me to lead a team that was able to achieve a number of valuable results (5-fold reduction in inventory overhead,…

    • 317 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Vineet Nayar extensively followed the change models proposed by Lewin and Kotter. Kurt Lewin developed a three stage model of planned change that discusses how to initiate, manage, and stabilize the change process. The three relevant stages are known as unfreezing in which you create a motivation to change, changing, by implementing your new strategies and structure in place, and refreezing in which you support and maintain your change (Kreitner & Kinicki, 2013). For example in the case study, Vineet implemented the 3 stages of Lewin change model in how he wanted to see change take place and he exhausted several avenues to come up with new innovative ways to be productive and competitive, allow his employees to add more value,…

    • 849 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Student Flights

    • 808 Words
    • 4 Pages

    Communication plan for trading hours of flight centre Audience: management team and customer service team Topic: change in trading hours of student flight centre As per the high demand of customers we have decided to have a discussion about the change in trading hours. There will be time divided between all people so that they can give their ideas about the proposals. So we will set a 10 minutes timeframe for all our members of management and customer service team.…

    • 808 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The distinctiveness of DMAIC is that there are five interconnected steps (define, measure, analyze, improve, and control) that systematically help organizations structure a plan for solving the root cause of business problems (Kumar & Kaushish, 2015). Due to Franklin Electronics desire to create a simple status report, they only included results for the first four of the forty-five anticipated work packages. The report provided makes it unclear for Spokane Industries if the costs of goods were higher than expected, if Franklin Electronics purchased more supplies than necessary for only these four packages, if there are costs being reported that actually pertain to other work packages, if the learning curve for these work packages required additional staff, or a number of other possibilities. Considering that this crucial cost reporting information was missing, the effect was that the cost variance in dollars seemingly continued to increase over time. Franklin Electronics should implement the use of a cause-and-effect diagram, such as Ishikawa or fishbone diagram, which will allow for targeting of where the defect occurred, with regard to budget overruns and schedule delays (Kumar & Kaushish, 2015).…

    • 1092 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Simulation has become a popular research tool in process management, particularly for process flow optimisation. According to Maria 1 ”A simulation of a system is the operation of a model of the system”. It presents a lucrative mechanism for problem-solving particularly for complex and unmanageable problems. It is a flexible methodology that can be used to examine the performance of proposed business activities and observe their interactions with other components. Simulation can offer insight to business managers and provide evidence to justify an investment or adoption of a particular process or service.…

    • 292 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    According to this process in the first step, we identify our problem, which should be straightforward, but critical. In the second step can make list what is the essential element of the situation. The third step allows a person to look at the advantages and disadvantages regarding the situation. In step four, a conclusion is made, what is the greatest solution for problem, while in step five a person evaluates the efficacy of the chosen solution. These five steps can help a person to break down the problem into separate parts, which are effective to find the solution of a big problem which is less…

    • 870 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    In this module we have learned that companies who focus on operations management are able to position themselves better to serve their customers. Effective operations management lays the foundation for strategic decisions that affect processes, quality, capacity, and inventory. Krajewski, Malhotra, & Ritzman (2016), teaches how a firm’s internal processes need to be organized to ultimately be effective in a competitive environment. This paper analyzes the case study of Vistron Inc: The Z-Glass Project. First, this paper will identify the operational management problems at Vistron.…

    • 1154 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Executive Summary Operation management is one of the important activities to determine the success of the company. As known for all, the operation management in any kind of business is the key activity for the organization. In this paper will discuss the operation management and process design of Carrefour, Carrefour is the second largest retail supermarket in the world, and we will investigate the fact in spite of the severe competition that exists in the retail industry. The company was able to make its mark on the globe and achieved impressive success by regulating the operation management function.…

    • 998 Words
    • 4 Pages
    Improved Essays