Lean manufacturing and sixsigma supply chain concepts

1. CHAPTER 8 PROCESS MANAGEMENT: LEAN PRODUCTION & SIX SIGMA QUALITY ISSUES IN SUPPLY CHAIN MANAGEMENT Principles of Supply Chain Management: A Balanced Approach Prepared by INLINE Solutions pvt. Ltd.,

24. The Origins of Six Sigma Quality Six Sigma Metrics (Table 8.5) Note: standard deviations include 1.5 sigma “drift” # of std dev above the mean % of defect-free output DPMO 2 69.15 308,537 2.5 84.13 158,686 3 93.32 66,807 3.5 97.73 22,750 4 99.38 6,210 4.5 99.865 1,350 5 99.977 233 5.5 99.9968 32 6 99.99966 3.4

35. Statistical Tools of Six Sigma (Cont.) Process Map for Customer Flow at a Restaurant (Figure 8.5)

36. Statistical Tools of Six Sigma (Cont.) Check Sheet for a Restaurant (Fig. 8.6) Problem M Tu W Th F Sa Su Tot %Tot long wait ////// ///// //////// ////// ///////// ////////// //// 48 34.0 cold food // / / /// // 9 6.3 wrong food ///// // / // ///// /// / 19 13.5 bad server ////// /// ///// / ////// // / 24 17.0 bad table / // / /// / 8 5.7 room temp // /// ///// ///// 15 10.6 No parking // ///// /////// 14 9.9 other / // / 4 2.9 Totals 17 14 23 13 34 33 7 141 100

37. Statistical Tools of Six Sigma (Cont.) Pareto Chart for Restaurant Problems (Fig. 8.7)

38. Statistical Tools of Six Sigma (Cont.) Cause-and-Effect Diagram for the Long Wait Problem (Fig. 8.8) Poor hiring practices Cooking delays LONG WAIT Washing machine breaks Credit card scanner breaks New automated cooking bays Run out of food Late deliveries Needs frequent maintenance Not enough tables Inadequate waiting area Too much overbooking Preference to VIPs Can’t find customers No system for food or drink pickup Understaffed shifts High turnover Untrained servers, cooks No supervision Methods Manpower Machinery Material