BUSI 830 LU Application of the Six Sigma Through DMAIC Phases Case Study-hw.pdf

The Application of the Six Sigma Through DMAIC Phases on Saucy Lodge &

Restaurant

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Table of Contents 
Abstract ................................................................................................................................ 4 
Introduction ................................................................................................................... 5 
Case Study ‘Plan’ ........................................................................................................... 5 
Define phase .................................................................................................................. 7 
1 Defining the problem .............................................................................................. 7 
Measure phase ............................................................................................................ 10 
1 Mapping out the Currently Process ................................................................... 10 
2 Defects ................................................................................................................. 11 
3 Opportunities ...................................................................................................... 11 
4 Data Collection Plan ........................................................................................... 11 
5 Validating the measurement system ...................................................................... 13 
Analyze phase ............................................................................................................. 13 
1 Performance Objectives ........................................................................................ 13 
2 Value Vs NVA ..................................................................................................... 13 
3 Opportunities to Improve Root Cause ................................................................... 14 
Improvement phase .................................................................................................... 15 
1 Experiments Solutions .......................................................................................... 15 
2 Operating Tolerances ......................................................................................... 17 
Control phase ............................................................................................................. 17 
1 Process Control and Capability Plan ..................................................................... 17 
Conclusion ................................................................................................................... 18 

References ......................................................................................................................... 20

Abstract

This paper presents a case study of the Saucy lodge. This company has experienced

various weaknesses. One of the weaknesses that affect the company and which has led to the

dwindling of its profits is the use of an aged and obsolete reservation system. Also, the

company does not have an online booking system. With this in mind, the six sigma tools

could help the company to improve on its services and ensure that the expectations of the

guests are met. Using the six sigma tools, a new model was proposed for the company that

would allow guests to seamlessly access the lodge at all times. In addition, the six signal tools

helped to recommend investment technology that would enable guests to the hotel to do

online booking and reservations.

1 Introduction

The majority of contemporary organizations are attempting to enhance their overall

performance amid the ever-rising competition intensity (Kim, 2021). In doing this, the

organizations are striving to employ suitable strategies in their entire endeavors. Among the

strategies being employed by modern organizations is a continuous quality improvement

(CQI). Companies are deploying CQI to have a competitive edge over their competitors

(Wong & Headrick, 2020). For organizations to deploy the CQI approach, they have to

deploy the total quality management (TQM). When applying TQM, firms have adopted as

well as applied several utilities that fall under various names, including tools, methods and

systems among others; most of these have enabled organizations to achieve TQM. However,

hardly have these utilities enabled firms to realize profitability. For organizations to achieve

profitability through the application of TQM, they have to use the Six Sigma model. This

model facilitates organizations to realize almost zero defects in manufacturing, which results

in high profit for organizations (Srinivasan et al., 2016). Besides, this method leads to

increased quality since it permits organizations to make mistakes that are less than 3.4 defects

per million opportunities (DPMO). For organizations to realize this goal, they have to follow

the define, measure, analyze, improve and control (DMAIC) phases approach. One of the

companies that could benefit from this approach is the Saucy Restaurant chain. This project

aims at conducting a study on Saucy Restaurant, analyzing the service system in Saucy

Restaurant and employing the SIX sigma tools, such as service quality (SERVQUAL) and

service blueprint to deliver high-quality service with improvised client satisfaction.

2 Case Study ‘Plan’

This paper is based on the case study research design. This research design was used

after considering various factors, including the benefits that the case study offers. First, the

case study was chosen as the most appropriate research design because it enables a researcher

to gain concrete, contextual as well as in-depth know-how regarding a certain real-world

subject (Yin, 2018). According to Yin (2018), a case study allows for the exploration of key

characteristics, implications and meanings of a certain case.

It is worth noting that the Six Sigma DMAIC approach has not yet been employed in

the hotel industry. The case study employs DMAIC tools for purposes of redesigning an

enhanced service system for Saucy Restaurant operation in the United States. This is meant

for ensuring that the company can reliably deliver superior services to meet their client

expectations.

Saucy Restaurant offers a wide range of products and services that include lodging,

beverage and beverage. In addition, it offers catered events for individuals coming from

across the globe. It is renowned for its amazing products and services. However, the

company’s customer service remains its leading weakness. The company has been unable to

keep and retain top-notch talent. Employees at the Saucy Restaurant stay at the organization

for an average of 2.2 before they leave. The main reason for the high employee turnover is

the seasonality of the restaurant; it only has frequent clients during summer. It experiences

client scarcity during winter because it is located in Prospect Creek Camp, Alaska, which is

the coldest part of the United States. Because of the seasonality, the organization is forced to

cut by half the employees’ wages. As a result, many employees choose to quit the

organization.

To enhance or improve the prevailing service process at the organization, the

company must first comprehend and understand all the aspects that need enhancement. The

company can put a procedure in place in order to ensure that the employees are effectively

trained in order to provide better services from their first contact with the clients until the

clients leave. Both a training program as well as comprehensive acquiescence to service

enhancement recommendations are supposed to pledge that the client would have a greater

experience, and that will eventually aid the company in realizing immense profits.

Moreover, the company must differentiate itself from its competitors in order to gain a

competitive edge. It could do this by offering top-notch service and thus raising the overall

product’s quality. In addition, in order to ensure that the company offers consistent, top-notch

service, it would need a system to be prudently designed and implemented by both

technology and people. In addition, to streamline its services to guests, it should streamline

its operational system. It could achieve that through the implementation of both procedures as

well as policies that would ensure the consistent provision of the best customer service to its

guests. This can better be achieved through the use of the DMAIC approach. The next part of

the case study discusses how the services at the company could be improved or enhanced

using the DMAIC approach. The part will explain each of the phases of the DMAIC

approach.

3 Define phase

During this phase, the project leaders create a “Project Charter”, the process’ a high-

level view and they start to comprehend the needs of the process customers. This is an

important phase since it is the phase where teams define the outline of their efforts for both

themselves as well as the leadership of the organization (Smętkowska & Mrugalska, 2018).

3.1 Defining the problem

Several problems affect the organization. The main weakness that affects the

company and that which has led to the dwindling of its profits is the use of an aged and

obsolete reservation system. In addition, the company does not have an online booking

system. Lack of an online reservation system is a limiting factor for the organization. Thus,

there is a need for the development of an effective and dynamic online reservation system.

When developing the new system, the company CEO can act as the Project Champion to

oversee the project completion.

Goal Statement

To discontinue the existing aged and obsolete reservation system and introduce an

advanced booking and reservation system

Value Stream Mapping

Figure 1 below is the Value Stream Mapping of the restaurant. It illustrates the current

processes at the restaurant from the time a client arrives at the restaurant until he or she

checks out. It starts when a client enters the hotel up to when he/she leaves the restaurant

after spending some time in the restaurant. As evident in the figure below, the process can be

slightly complex in case the client has some food or beverage. As evident, the system is

currently set for producing bills for beverage and lodging and food, instead of a single

merged bill. This is one of the areas within the restaurant that needed to be improved.

Figure 2: Value Stream Mapping for Saucy Lodge

Customer and their Requirements

The customer includes adults who would like to try the restaurant’s products and

services. The customers are drawn from across the globe. For the clients, the old system has

brought about inconvenience in booking and making reservations. This is what has

necessitated the need for the creation of a new system.

Figure 3 demonstrates the current process and procedure for managing guest

reservations all through business hours. With this process, the client gets information from

varied sources, which may include websites, social media or referrals from a friend. After

getting the information, they call for reservations. They have to call because they cannot

make reservations online since the restaurant does not currently have this service. Once the

call is made, the receptionist at the restaurant replies to the phone call, processes the

reservation and then plugs the new reservation into the booking system.

Figure 4: Saucy Lodge prevailing process of managing guest reservations

The contemporary service process at the restaurant shows that there is room for

improvement. Even though the company has staff to aid the client through the peak season,

they are at large danger of leaving out on sales, especially when there exists no employee to

serve the clients when they call. Furthermore, the company risk a high level of customer

dissatisfaction by not being consistently available to serve their needs. Besides, the company

needs to find accurate people as well as invest in training them to deliver top-notch client

service; the company should make this a priority even though seasonality makes this difficult.

One of the most important changes that should be implemented by the company is the

introduction of the online booking engine. This would help to save the company the need for

employing people to be on standby to receive reservations (Foris, Crihălmean & Foris, 2020).

Online booking is important because it is not time and resource-sensitive (Foris, Crihălmean

& Foris, 2020; Motter & Downes,2021). In addition, booking online helps an organization to

reach a bigger audience simply by linking to internet restaurant websites and travel engines.

What is more, in most cases, it is increasingly convenient for the client.

4 Measure phase

Measurement occurs throughout the project’s life cycle. However, a critical question

that needs to be answered during the Measure Phase centres on the current performance of

the process. Does it seek to answer questions such as what is the problem’s magnitude? How

bad is the problem? When the team begins gathering data, they primarily focus on the process

in addition to what clients care about. The two major targets during this phase are reducing

lead time or enhancing quality. In addition, during this phase, the team refines all the

definitions of every measure. Similarly, the team determines the prevailing performance, that

is, the baseline of the process.

4.1 Mapping out the Currently Process

The figure below shows the mapping out of the current system.

Figure 5:Current reservation process

Since there is no online booking or reservation, the guests make a call to the

organization’s reception. After receiving the call, the recipient updates the caller if there is

vacant room for reservation. The recipient allocates a room to the caller if available,

otherwise, the client is informed that all the rooms have been booked.

4.2 Defects

The main defect in the organization is that they are using an aged and obsolete

reservation system. Also, the company does not have an online booking system. Therefore,

return clients and potential clients have to first call the organization in order to determine if

there are spaces available for booking. These two aspects need of the organization will need

to be improved for the organization to realize its full potential.

4.3 Opportunities

The company can realize its full potential by investing in a modern booking and

reservation system. The new reservation and booking system will allow people from across

the globe to book at their comfort.

4.4 Data Collection Plan

The method that would be used is the Servqual survey data collection method. This

method will be used to collect data regarding service quality and it would help to compare

Saucy Lodge and ideal Lodges and restaurants. This study will not be in isolation, instead,

various reports show that service quality is among the most searched aspect of management

research (Raza et al., 2020; Rita Oliveira & Farisa, 2019). For that reason, numerous studies

have been done geared at knowing the different factors that determine service quality.

Similarly, studies have been done to determine how service quality affects customer

perceptions (Herhausen et al., 2020; Kumar & Hundal, 2019). For that reason, scholars have

come up with the Servqual Survey, which is a standard approach to measuring service

operations (Talavera, 2020; Yildirim, Yildirim & Ozcan, 2019). The survey’s purpose entails

asking clients what they expect in the services that are being offered against what their

perception is of the services being received (Talavera, 2020; Pekkaya, Pulat İmamoğlu &

Koca, 2019).

A Servqual Survey was conducted for the Saucy Lodge Restaurant that compared

clients’ prospects of a perfect restaurant to their perceptions of the Saucy Lodge Restaurant.

A weighted average method was used for the analysis of the gap score by providing a higher

weight or significance to the question valued more by the clients. This is evident in the Figure

below. As evident from the figure, the entire five dimensions contain negative results; this

implies that the services at the Saucy Lodge Restaurant do not meet the clients’ expectations.

In addition, as evident from the dimension, the empathy measurement has the slightest

weighed median gap score. On the other hand, the tangibility service length has the utmost

weighted score.

Figure 6: median servqual study outcomes based on service facet.

4.5 Validating the measurement system

This process ensured that the measure is a suitable numerical characterization of the

entire claimed attributes by showing that the representation condition is satisfied. The

measurement used for validating the measurement system was the size of the sample. The

sample size of large enough and therefore the data was a true representation of the

population.

5 Analyze phase

The analysis phase helps project teams to identify issues or problems in the

production process that causes product or system defects. The phase is loaded with tools to

aid spot the issues in the production processes as well as to determine if the problems are

defects’ root causes. It relies on the data collected in the measure phase in order to identify

the product defects’ cause. Some of the activities in this phase include identifying

performance objectives, value vs NVA and opportunities to improve the root cause.

5.1 Performance Objectives

i. To ensure that clients can book their services online by December 2022

ii. To introduce a new and modern reservation system that will increase the number

of people served every day

5.2 Value Vs NVA

Value-added activities are tasks that increase the market function and form. Some

examples of such activities include upgrading the information system, making the reservation

process clear and transparent and facilitating online booking. On the other hand, the NVA

activities include tasks that do not raise or increase the market function and form. Some of

the examples include filing, copying and recording. Others include waiting, inspecting,

reviewing as well as obtaining approvals. Such tasks and activities need to be eliminated or

reduced.

5.3 Opportunities to Improve Root Cause

This phase entailed the analysis of the restaurant's service operation issues. In this

phase, a fishbone diagram was developed. The diagram identifies the reason why the services

provided by the restaurant are inconsistent and the areas that face the highest inconsistent

levels. To start with, in the booking part of the figure, it is clear that the booking system is not

linked to an online reservation engine; this makes the booking-taking capability to be limited

only to the time when an employee is available at the reception. Considering the delay

challenge that it exposes the organization to, this should be an area that should be improved.

Thus, this provides the organization with an opportunity to improve the root cause.

Also, the system does not trace client preferences or behaviour. Therefore, the

customers may fail to feel or have the perception that their preferences or loyalty is being

considered. In addition, in the people part of the diagram, one can see that both the rural

location as well as the seasonality of the restaurant makes it challenging to hire as well as

obtain a highly dedicated staff; these two factors lead to a high turnover as well as high

training costs. Employee turnover leads to a need for the recruitment of new employees and

training of the same. Employee training is an expensive undertaking (Yin, 2018). As evident

in the defined section or phase, it is clear that the restaurant does not provide any kind of

service guarantees. In addition, there is no sufficient staff who can help in handling the entire

reservations coming in. In addition, the phase shows that there exists no system that could

help in handling all the incoming reservations, especially when there is no present staff.

Figure 7: Fishbone diagram for Saucy Lodge

6 Improvement phase

The main task or activity in the improvement phase is determining the solutions to the

problems that have been identified during the first three phases. During this step, teams focus

on eliminating the root causes. In addition, it entails the implementation of the improvements.

Furthermore, the team should design the action plan for purposes of monitoring the

continuous enhancements.

6.1 Experiments Solutions

This part of the case study shows proposed service blueprints. One of the proposed

strategies is for the restaurant to provide an increased streamlined service system. The

system could be achieved by investing in recruiting as well as retaining top-notch talent

notwithstanding the challenges the organization faces. In addition, it is recommended that

the company should consider raising the hours during which their employees are present in

the reception so as to answer calls and take reservations. Similarly, it is recommended that

the company should invest in an online booking engine; this is important since it would

ensure that the guests are responded to even when the restaurant is closed or after staff leave

the facility. What is more, the company should also consider consistently determining to

enhance the company’s service as well as investing in the training of the entire staff. This is

what Yin (2018) recommends. The proposed blueprint is evident in the figure below. The

figure shows the projected changes from check-in to check out. As evident from the figure,

the primary distinction between the current and the proposed system is the fact that by having

an online reservation system, the client experience is likely to be increasingly flawless. The

proposed system helps in producing a precise itemized bill that contains all charges in one

instead of providing several multiple bills.

Figure 8: Saucy Lodge projected service proposal from check-in to check-out.

In addition, the figure below shows the proposed service process of the restaurant.

Even though with the proposed system the guest could still make a reservation using their

phones, the system also provides them with an option of making a reservation online by using

travel agencies, via the restaurant websites as well as other travel websites that the saucy

restaurant is linked to.

Figure 9: Saucy Lodge proposed process of managing guest reservations

6.2 Operating Tolerances

There are various operating tolerances that the new system will work with. Some of

these include slow internet that could affect the working of the system and possible hacking.

7 Control phase

This step entails implementing the actual changes, regardless of whether they are

behavioral, physical or both. It entails rewriting procedures as well as work instructions.

Also, it may include retraining staff on new procedures, installing systems to measure as well

as monitor new processes and finally writing an action plan.

7.1 Process Control and Capability Plan

The control phase would be very important for the organization. During this phase, a

plan would require to be inaugurated for unceasing training, investing in a top-notch labour

force as well as investing in both systems and support. Currently, there is an increase in

employee turnover at the organization. This is a real challenge to the organization because the

company will always lose its top-notch employees to competitor organizations. The company

should consider resolving the issues that lead to employee turnover. One of the issues is the

seasonality of the restaurant, which leaves some of the employees without income during or

getting so little income during the low-peak seasons. To improve the seasonality of the

restaurant, the management should consider the introduction of services that could be

accessed and enjoyed throughout the year. This would help to ensure that all the employees

remain engaged in the organization throughout the year. As a result, employee turnover is

expected to decline.

Continuous training is another important activity during the control stage. The hotel

industry keeps on changing. The changing environment in the hotel industry calls for new

skills. For this reason, an organization in this industry should ensure continuous training to

ensure that employees could handle the new expectations as recommended by Yin (2018).

The training should be done every six months and should be department specific. This would

ensure employees in each of the departments have the skills required to meet the customer

expectations.

8 Conclusion

The significance of the DMAIC approach cannot be understated. It is an effective

technique that could help in structured management. The primary emphasis of this tool is the

measurement as well as the analysis, which helps in ensuring that opportunities for growth

and improvement are implemented in a manner that ensures the utmost positive impact. One

of the features that give the tool a competitive edge is the fact that it contains faster cycle

times. The DMAIC tool takes the friction out of improvement. This results in faster cycles as

well as a shorter time towards the realization of a positive change. The augmented visibility,

communication as well as accountability that the solution affords implies that there will be

decreased downtime between all the steps in the enhancement cycle. The faster every

enhancement goes from the beginning to the end, the sooner the organization can benefit

from the impact and proceed to the next initiative.

The six sigma tools could help the Saucy lodge improve its service process and ensure

guests’ expectations of the highest-quality service are met. The new model proposed for the

Saucy Lodge would allow guests to access the lodge at all times and is expected to make their

knowledge increasingly faultless and pleasurable. In addition, the recommended investment

in technology would enable clients to do online reservations. However, the introduction of

the new system will call for fresh employee training to ensure the new system does not lead

to new problems, including delays in the delivery of services. It was also proposed that the

company’s management should ensure that the company is connected to travel sites and tour

agents; this would ensure that the company reaches a wide and bigger audience.

Nevertheless, it should be noted that the new changes, especially the linking of the company

to travel agents and travel websites is costly and it calls for new extensive training.

The fact that the organization decided to change to be more effective could be

compared to Jesus’ teachings in Romans 12:2. In this verse, “Change your mind” is the core

theme and he challenges people to change their way of thinking since regardless of how

many times they read the bible if their minds do not change, they would simply impose their

biases as well labels on what they read. The company seemed to have heeded the teachings of

this bible verse and chose to change. The change will lead to seamless access to services and

a consequent increase in customer satisfaction.

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ISSN: 1750-9653 (Print) 1750-9661 (Online) Journal homepage: https://www.tandfonline.com/loi/tmse20

Application of Lean Six-Sigma methodology

to reducing production costs: case study of a

Portuguese bolts manufacturer

Maria do Rosário Cabrita, João Pedro Domingues & José Requeijo

To cite this article: Maria do Rosário Cabrita, João Pedro Domingues & José Requeijo (2016)

Application of Lean Six-Sigma methodology to reducing production costs: case study of a

Portuguese bolts manufacturer, International Journal of Management Science and Engineering

Management, 11:4, 222-230, DOI: 10.1080/17509653.2015.1094755

To link to this article: https://doi.org/10.1080/17509653.2015.1094755

Published online: 13 Nov 2015.

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InternatIonal Journal of ManageMent ScIence and engIneerIng ManageMent, 2016

Vol. 11, no. 4, 222–230

http://dx.doi.org/10.1080/17509653.2015.1094755

Application of Lean Six-Sigma methodology to reducing production costs: case

study of a Portuguese bolts manufacturer

Maria do Rosário Cabrita, João Pedro Domingues and José Requeijo

unIdeMI, department of Mechanical and Industrial engineering, faculty of Science and technology, fct, universidade nova de lisboa, 2829-516

caparica, Portugal

ABSTRACT

This study describes a procedure that applies the Lean Six-Sigma approach to reducing the production

costs of a Portuguese bolts manufacturer. The project was proposed by the product’s customer,

who suggested improving some parameters of the processes associated with its manufacture. The

customer’s expectations and requirements are called ‘Voice Of the Customer’ (VOC) focusing on the

reduction of production costs. Bolts manufacturing has some particularities, such as the considerable

lot-size and the high level of products produced. Some of the important Six-Sigma and Lean tools are

discussed, which will be of help to Six-Sigma practitioners. The empirical study illustrates methods

used to Define, Measure, Analyse, Improve and Control (DMAIC) the Six-Sigma approach. This study

consolidates the efficiency and the excellence of the DMAIC methodology, providing arguments to

demonstrate its usefulness for the implementation of improvements, both in terms of quality and in

terms of the effectiveness and efficiency of the processes. This case reveals that there exists an important

complementarity between the methodology used and the Lean Six-Sigma concepts when dealing

with a continuous improvement project in the context of bolts manufacturing. The findings reinforce

conclusions from other studies that the DMAIC methodology can be used in any improvement project,

and not just for Six-Sigma projects, whence the methodology emerged.

JEL CLASSIFICATION

l23; l60; d24; M20

ARTICLE HISTORY

received 22 May 2015

accepted 12 September 2015

CONTACT Maria do rosário cabrita [email protected]

1. Introduction

Implementation of the Lean management paradigm in man-

ufacturing is a way of allowing an organization to attain its

objectives and, consequently, better competitiveness in the

market. This paradigm, along with the various methodologies

associated with it, allows an organization to focus on rational-

ization of its resources and on the elimination of all activities

that do not aggregate value to the product. Thereby, with the

elimination of waste, it is possible to verify an increase in pro-

duction flexibility, as well as in product quality. The aim of Lean

is to create simplified, efficient value-adding processes while

sharing information. It can be assumed that the implementa-

tion of Lean on the manufacturing systems allows a company

to attend, in a competitive way, the demand of the clients,

reducing at the same time the production costs. Most of the

applications and case studies in this field are descriptions of

how companies have adopted, created, and implemented Lean

principles in their organizations or industry.

Lean manufacturing is a management philosophy derived

mostly from the Toyota Production System (TPS). Lean man-

ufacturing uses less of everything compared with mass produc-

tion. A Lean manufacturing system works with interconnected

processes. Improvement in one area will improve the system as

a whole. A widely accepted definition of Lean manufacturing

is a ‘systematic approach to identify and eliminate waste (non

value-adding activities) through continuous improvement by

flowing the product at the pull of the customer in the pursuit

of perfection’ (Brue & Howes, 2006; Weigel, Suen, & Gupte,

2013). It focuses on reducing the business cycle time so as to

become more responsive to customer demand, while using

fewer resources and improving products and processes. These

materialize in lower costs, increased productivity and highly

profitable and flexible production capability – i.e. overall, in

increased operational efficiency.

Lean production is a production system that aims at con-

tinuously reducing the time between client order and delivery,

and eliminating everything that adds unnecessary costs and

time to the production of the products. Broadly speaking, Lean

production aims to increase the organization’s productivity,

maximizing the output and minimizing the input, so improv-

ing the efficiency and effectiveness of its processes (Bhasin &

Burcher, 2006; Corbett, 2007).

Six Sigma as a powerful business strategy has been well rec-

ognized as an imperative for achieving and sustaining oper-

ational and service excellence (Aghili, 2009; Kumar, Antony,

Madu, Montgomery, & Park, 2008). Lean Six Sigma is the

application of Lean techniques to increase speed and reduce

waste, while employing Six Sigma processes to improve quality

and focus on the Voice Of the Customer (VOC). Therefore,

both Lean and Six Sigma together are proven methodologies

that increase efficiency, effectiveness and quality, resulting in

continuous improvement to increase value for the customer

(Assarlind, Gremyr, & Bäckman, 2013).

Existing literature explicitly identifies higher customer sat-

isfaction as a significant benefit from the integration of Lean

and Six Sigma concepts (Teresko, 2008; Thomas, Barton, &

Chuke-Okafor 2009) but it does not demonstrate a consensus

on how to create such integration. The purpose of this study is

KEYWORDS

dMaIc methodology; lean

Six Sigma; Portuguese bolts

manufacturing; process

improvement; value; Voice of

the customer (Voc)

InTeRnATIOnAL JOuRnAL Of MAnAgeMenT SCIenCe AnD engIneeRIng MAnAgeMenT 223

measuring, analysing, improving and controlling processes

(Kwak & Anbari, 2006).

Six Sigma is a discipline with formal steps for improving

process performance. The sequential steps are called The Six

Sigma Improvement Model, or the Define, Measure, Analyse,

Improve and Control Methodology (DMAIC), as developed

in the following section.

3. DMAIC methodology

Existing literature explicitly identifies higher customer satis-

faction as a significant benefit from the integration of Lean

and Six Sigma concepts (Teresko, 2008; Thomas et al., 2009)

but it does not demonstrate consensus on how to create such

integration. The first step to implement Lean Six-Sigma is to

identify the critical elements of a process. Then the team anal-

yses its capability and tries to stabilize itself by reducing or

eliminating variations. The basic transfer function is applied,

which depends on a few vital factors. The foundation of Lean

Six Sigma is to look at products/services through the customer’s

eyes and determine how improvements can eliminate ‘waste’.

The Lean Six Sigma process is broken down into five inter-

connected stages: Define, Measure, Analyse, Improve and

Control (DMAIC), as depicted in Figure 2. This sequence of

events for any project makes the process systematic, scientific,

fact based and data driven. The DMAIC process is the centre-

piece of the Six-Sigma problem-solving methodology, and is

recommended for the systematic handling of any project. The

tools of Six Sigma and operational excellence are most often

applied within the framework of DMAIC. As such, DMAIC is

an integral part of a Six Sigma initiative. It is systematic and fact

to explore the application of Lean Six Sigma tools aiming at the

reduction of production costs in bolts manufacturing via the

Define–Measure–Analyse–Improve–Control (DMAIC) meth-

odology. In adressing this objective, each phase of the DMAIC

cycle follows the principles proposed in the literature. Beyond

the current section, the paper has been structured as follows:

Section 2 introduces the Lean Six-Sigma benefits; Section 3

explores the principles followed using the DMAIC methodol-

ogy; Section 4 describes the application of case study in PSF

company, and; Section 5 ends the article with the conclusion

and managerial implications.

2. Lean Six-Sigma benefits

Lean Six Sigma is a blend of two improvement methods: Lean

and Six Sigma. Lean and Six Sigma complement each other.

Lean accelerates Six Sigma, delivering greater results than

would typically be achieved by Lean or Six Sigma individually.

Combining these two methods we build a comprehensive tool

set to increase the speed and effectiveness of any process within

your organization – resulting in increased revenue, reduced

costs and improved collaboration. Pepper and Spedding (2010)

argue that Lean was the contributor of strategy and structure

that would drive improvements, while Six Sigma contained the

‘tools to leverage improvement to its full potential’. Arnheiter

and Maleyeff (2005) referred to Lean Six Sigma as an inte-

grated entity that incorporates the benefits of both Lean and

Six Sigma.

In essence, the principles of Six Sigma have been derived

from Total Quality Management (TQM) theory. However,

its structured and systematic framework, combined with the

employment of statistical techniques, makes it an excellent

tool for process diagnostics. Central components of Lean Six

Sigma’s two underlying concepts have been derived theoreti-

cally, which is one of several ways of deconstructing Six Sigma

and Lean.

We may say that Lean is anchored in four concepts: Lean

tools and techniques – notably value stream mapping (Alukal,

2003; Womack, 2006), involvement of people (Holbeche, 1997),

continuous improvement (Ricondo & Viles, 2005) and removal

of waste (Alukal, 2003). Similarly, Six Sigma can be said to be

based on seven elements: DMAIC (Hoerl, 2004), the Six Sigma

toolbox (Magnusson, Kroslid, & Bergman, 2003), Six Sigma

organization (Hoerl, 2004; Magnusson et al., 2003), reduction

of variation (Nave, 2002), customer focus (Bergman & Klefsjö,

2003), decisions based on facts (Goh & Xie, 2004) and bottom

line focus (Goh, 2002).

Organizations can utilize Lean Six Sigma for continuously

improving their business processes (Aguezzoul & Nyoungue,

2012; Snee, 2010). Lean is a philosophy that reduces or elim-

inates unnecessary time, materials and effort. Six-Sigma is

a concept designed to improve the overall effectiveness by

defining, measuring, analysing, improving and controlling pro-

cesses. Lean Six Sigma allows organizations to reduce expenses

and improve productivity, as defined in Figure 1.

Therefore, Lean Six Sigma refers to an analytical business

process that enables companies drastically to improve their

profitability by designing and monitoring everyday business

activities in ways that minimize waste and resources (Habidin

et al., 2012). The prime directive is continually to seek out and

eliminate waste and wasteful practices. Six Sigma is a concept

designed to improve the overall effectiveness by defining,

Figure 1. the benefits of using lean Six Sigma.

Figure 2.the dMaIc methodology.

224 M. D. R. CABRITA eT AL.

based and provides a rigorous framework of results-oriented

project management.

At the definition step, a problem is identified and it is deter-

mined which aspect of a particular process is to be improved.

At the measurement step, a baseline is developed of how that

system, process or issue is functioning. At the Analyse step,

the root causes of the problem are analysed by using the data

gathered during the measurement phase. Step 4 is the improve-

ment process. Changes are identified and implemented during

this phase. The changes (or solutions) are designed collectively

to improve the process. Changes may include the complete

removal of some steps in a process or the introduction of tools

to improve those that remain. Finally, control is the handover

to the process owner who commissioned the project.

The DMAIC cycle provides an organized sequence of actions

that are used in the implementation of process improvements

and problem solving. Following a structured method like this,

the creation of hasty conclusions is avoided and an adequate

investigation of alternative solutions to a given problem is

ensured. Through frequent and continuous revisions at each

stage of the DMAIC cycle, organizational leaders can monitor

and ensure the proper execution of each phase of project imple-

mentation (Schroeder, Linderman, Liedtke, & Choo, 2008).

4. Case study

The case study is developed with a Portuguese bolts manu-

facturer. For reasons of confidentiality, the company is called

PSF herein. By adoptin the Six-Sigma method, PSF was able to

understand fluctuations in a process that allowed it to pinpoint

the causes of the problem. This case study demonstrates that

there is a need for manufacturing companies to have a system-

atic methodology in carrying out the improvement processes

through the Six-Sigma concept. A suitable process improve-

ment methodology based on Six Sigma is needed to ensure

proper and systematic process flow to achieve the improvement

(Chakravorty, 2009; Goffnett, 2004; Schroeder et al., 2008).

Therefore, in order to demonstrate the applicability of the pro-

cess improvement methodology, the methodology was adopted

in a phase-by-phase approach as shown in Figure 2. Detailed

discussion of each phase is given as follows.

Define

Our study discusses the processes associated with a particular

product (the MSC screw), manufactured by the company PSF,

whose production is standard but not continuous. The project

was suggested by the product’s customer, who felt the need to

improve some parameters of the processes associated with its

manufacturing. Therefore, in this case, the project definition

was accomplished by a final customer, who is very important

for PSF, representing a quite significant percentage of its sales

(the product is the second most manufactured by PSF). Thus,

this project has automatically become a priority and sponsored

by the administration of both companies (PSF and the client

company). The needs and expectations of this product’s cus-

tomer were established, which served as the basis for delineat-

ing the project’s goals. The mission of the project was to attain a

global improvement of several parameters associated with MCS

manufacture, namely the improvement of the effectiveness and

efficiency of the procedural processes through the implemen-

tation of Lean Six Sigma tools and methodologies. Basically, it

was expected that Lean Six Sigma would help to maximize the

organization’s efforts toward delivering a satisfactory product to

the customer, allowing the company to allocate resources/reve-

nue produced from newly improved processes towards growing

its business. More specifically, the client requested that PSF’s

administration improve some parameters associated with the

manufacture of this product as shown in Figure 3, which repre-

sents the tool ‘Voice Of the Customer’ (VOV). The importance

of this tool is considerable, since it consists in setting the data

that represent the needs and expectations of customers and

their perceptions regarding the products manufactured by the

company (Chakravorty, 2009).

Based on the improvement requirements provided by the

customer, it was possible to define the critical quality char-

acteristics, represented in the tool critical-to-quality tree in

Figure 4. Such characteristics compose the metrics that should

be monitored throughout the project in order to improve

them.

The characteristics to be improved that were identified

as having a direct influence on the production costs of the

company comprized the production downtime and the stock

level along the production flow. These two characteristics were

defined because both have had significant impact in the com-

pany’s performance. The aim of reducing the stock level by

10% was derived from the analysis of the company’s histor-

ical reports. In line with the customer’s requirements, it was

intended that providing a better service to the customer would

require reduced stock levels, resulting in streamlined processes

with products being completed faster and more efficiently at

no cost to quality.

Focusing on those two characteristics, improvements in

the parameters requested by the customer were expected to

be obtained. Having defined the characteristics to be improved,

a statement of the project can then be reported (Table 1), based

on what the project is intended to achieve. This tool can be

considered the identity card of the entire project (Chakravorty,

2009).

Measure

Measure is the second step of the Six-Sigma methodology.

A baseline measure is taken using actual data. This measure

becomes the origin from which the team can gauge improve-

ment. It is within the Measure phase that a project begins to

take shape and much of the hands-on activity is performed. The

goal of Measure phase is to establish a clear understanding of

VOC

Characteristic

Demand is expected to increase in the coming years.

For this reason, it is considered important to negotiate

a reduction of the purchase cost of the product

Production Costs

Figure 3.Voice of the customer (Voc).

Figure 4.critical-to-quality tree.

InTeRnATIOnAL JOuRnAL Of MAnAgeMenT SCIenCe AnD engIneeRIng MAnAgeMenT 225

(3) Heat treatment buffer. The part is taken to an inter-

mediate output buffer for heat treatment. This buffer

is supplied by production teams and emptied by the

team responsible for heat treatment.

(4) Heat treatment. At this stage, the part is introduced

into quenching and tempering furnaces, which have

a processing capacity of, respectively, 1000 kg/h and

2000 kg/h. Tempering is one of the processes used

in the heat treatment of metals for increasing hard-

ness and endurance by heating to high temperature

and then fast cooling. Quenching is a heat treatment

that aims to correct flaws resulting from tempering,

which can make the steel overly rigid and fragile and

cause internal stress in the material.

(5) Intermediate buffer. The part is placed in an inter-

mediate buffer and is not yet in its final shape.

This buffer has the function of supplying the team

responsible for surface treatment, which is under

subcontract.

(6) Surface treatment. In this phase, the part is shipped

for the company responsible for this process, in

which the part is the target of zinc and nickel bathing.

(7) Sorting and packaging. The part returns to a buffer

in the factory and is taken for quality control. The

parts are unitarily verified and all the relevant meas-

ures – already specified by the customer – are ana-

lysed. The control is made automatically. Parts that

lie outside specifications are replaced at the input of

the machine, because good part rejection is possible.

This kind of error is due to inadequate positioning

of the product while being analysed by the machine,

resulting in a high rate of rework (in order of 30%).

Good parts are automatically placed in packages that

the current state of the process the company wants to improve.

In this phase, a detailed study of the MCS product production

flow was developed. For that, the Value Stream Map (VSM) is

a very useful tool, which gathers all information for the exe-

cution of the tasks to be performed at this stage of the meth-

odology (Rother & Shook, 2009). A simplified VSM includes

all the metrics identified at the Define stage, as well as others

that can be relevant for the project’s scope. Theoretically, many

authors consider that there will be a lack of reliability of existing

company data, so there will be a need to verify this reliability.

To accomplish this requirement, the company uses an infor-

mation system that aims at continuous data updating, which

entails the assumption that its collection is reliable and feasible.

The production flow in the VSM is detailed in the following

steps.

(1) Supply. The raw material used in the manufacturing

of this product is bought from one supplier, being

steel coils of 80 meters length. The delivery lead time

of this raw material, after placement of the order, is

about eight weeks. However, the delivery frequency

is usually three months. The coils are kept outside the

factory, in a park specifically for that purpose.

(2) Fabrication. Each coil of raw material is first sub-

jected to a pickling treatment in order to remove

inorganic impurities and rusting. The target of the

wiredrawing process is to reduce its cross section.

The material is continuously and automatically cut,

then introduced into the stamping machine where

the part undergoes plastic deformation in two stages.

Finally, the part is subjected to a process of thread-

ing, where it undergoes a process of deformation by

combs. Each coil enables the production of about

200,000 bolts.

Table 1.Project charter.

Name of the project:

Improvement of the effectiveness and efficiency of the processes associated with McS manufacturing.

End date of the project: September 2013

Mission of the project:

global improvement of several parameters associated with McS manufacturing, aiming at the improvement of the effectiveness and efficiency of the practice of

processes, through the implementation of lean Six-Sigma tools and methodologies.

Scope of the project:

It is intended to meet the customer’s improvement requirements for the costs of production in order to achieve an expected decrease in purchase cost and

increase in future demand.

Description of the problem:

the customer wants to improve the parameters of McS manufacturing processes in order to reduce production costs and, consequently, purchase cost.

Definition of goals:

the following target is proposed to be achieved by September 2013: 10% reduction in stock level.

History of problems:

History of stock levels – see appendix B;

Restrictions and assumptions:

Impossibility of monitoring all phases of the dMaIc cycle (specifically the control phase), due to the short timeline of the project.Implementations will be done

on a small scale and on one particular product, so the improvements obtained do not involve global processes. the extrapolation of the improvements carried

out shall be made in the future.

Team for the project:

champion – general managerMaster black belt – Production managerBlack belt – two technicians for continuous improvement Pivot element – one technician

for production operations

Preliminary schedule:

Proposed dates of completion for each phase: Define – 1 february 2013; Measure – 15 March 2013; Analyse – 30 april 2013; Improve – 31 July 2013; Control –

31 december 2013

226 M. D. R. CABRITA eT AL.

registered, the raw material buffer and the occurrence of some

desynchronization in its supply to the stamping machines, the

implementation of a two Kanban cards system was devloped,

linking the processes related to pickling and stamping with

a supermarket principle regulating the production. Thus, the

methodology consists on the following sequence of operations:

when an operator (A) has only one coil of feedstock in the

stamping machine, he should make a request for a new coil, by

completing a transport Kanban and placing it on the Kanban

board. An operator responsible (B) for the transport of material

in the factory, which has a set route, collects the card filled out

by operator A when he passes by the Kanban board. Operator B

carries the collected card to the supermarket where the pickled

material is, placing the card on another Kanban board in the

inlet section (this board has an input section and an output

section) and removing the desired item from the supermar-

ket, which is taken to the stamping machine that requested

it. The operator responsible for the pickling (C), depending

on the material removed from the supermarket, initiates the

processing of a coil with the same kind of material as the one

that was removed, after collecting the transport Kanban that,

at that moment, was converted to a production Kanban. After

pickling, the coil is replaced by operator C in the supermarket.

Theoretically, it is a supply system driven by two Kanban cards

with different functions, but in practice the system is coordi-

nated by only one card that has different functions depending

on its position.

The Kanban system used is associated with two col-

ours– green and red. Each column of the Kanban boards

corresponds to a different stamping machine. Each machine

is programmed to take two coils of pickled material, with

one being processed and another in the input buffer. When

the coil in processing is fully processed, the coil at the input

buffer comes to processing and a Kanban card is issued to

order a new pickled coil for placement in the input buffer.

This Kanban card is placed in the column of the respective

machine in the green zone. If the pickled coil that has been

placed in processing is fully consumed without a new coil hav-

ing reached the input buffer, a new Kanban card is issued and

placed in the red zone, meaning that the machine is stopped

for lack of pickled material.

It is important to determine the route to be taken by the

forklift in the supply of pickled materials. For this, the con-

sumption of raw material by the stamping machines was cal-

culated, considering the maximum possible cadence. In this

case, the calculation was based on the following data, belonging

to a machine that manufactures product other than MCS, yet

belonging to the same section of stamping machines where the

Kanban system is being implemented.

• Maximum cadence of the machine: 160parts/minute;

• Number of machines: 5 stamping machines;

• Maximum daily output:

• 160 parts/minute × 60 minutes × 16 hours = 153,600

parts/day;

• Number of parts per coil: 65,574 parts/coil;

• Number of coils needed per day:

• (153,600parts/day)/(65,574parts/coil)=2.34coils/day;

• Consumption time of one coil:

• (65,574 parts/coil)/(160 parts/minute) = 6 hours and

50minutes;

• Maximum number of coils per day: 2.34coils/day×5

machines = 12coils/day;

have previously been positioned in the machine for

that purpose.

(8) Final storage and shipping. The final product is

placed in the warehouse, ready for shipping to the

final customer. Each lot is composed of 48,000

bolts and deliveries are usually made twice a week,

depending on the number of lots ordered. Stock is

controlled by computer and supermarket principles

are followed, whereby maximum and minimum lev-

els of stock are established. This implies that the sort-

ing process supplies the supermarket depending on

the existing stock of final products.

Analyse

The previous steps evidence that a desynchronized process

exists concerning the supply of raw material to the stamping

machine, together with the occurrence of downtimes of that

machine. This finding was obtained through the analysis of

data available on the company’s computer system, whence it

is possible to determine the causes of losses related to machine

availability. Table 2 lists the itemized causes that led to stop-

page of the stamping machine throughout 2012, as well as the

respective downtime. It can be seen that the major cause of

machine stoppage is due to the lack of raw material, with a

relative percentage of occurrence of about 29.5%, this being

the failure on which improvement actions will be taken. At the

same time, high and unbalanced stock levels were recorded,

taking into account the existence of various types of raw mate-

rial according to their composition.

To meet the goals outlined for this project, in particular

the reduction of production costs, it is important to adopt

measures to improve the production’s synchronization and

to avoid production stoppages, which only entail costs and

no benefits. The main cause for the occurrence of these two

problems is related to the difficulty of communication between

the worker responsible for the supply of stamping machines,

the workers responsible for stamping and the workers respon-

sible for pickling. Taking into account the fact that the buffer

of pickled material is located in a different building from the

one where the stamping process takes place, communication

between these two workstations and the supply are irregular

and desynchronized. The failures associated with this section

of the production flow, as well as their effects and their causes,

are shown in Table 3, which sets forth the application of the tool

Failure Modes and Effects Analysis (Stamatis, 2003). Based on

these problems, the implementation of a system driven by two

Kanban cards between these two workstations can be a viable

solution to the problems found.

Improve

Recently the organization adopted a pull system instead of

push system, which was the basis of the old production system.

Currently, with this system yet to be totally implemented in the

mindset of the entire organization, production is carried out on

the basis of orders from customers, with a well-organized flow

of information going through the whole production flow in the

downstream direction. For the cementation of this type of pro-

duction system, the use of Kanban is fundamental and there-

fore should be implemented (Cimorelli, 2006; Panneerslevam

& Kumar, 2007). Taking into account the high level of stock

InTeRnATIOnAL JOuRnAL Of MAnAgeMenT SCIenCe AnD engIneeRIng MAnAgeMenT 227

of one steel coil in the supermarket of the supply system used

to manufacture the MCS product. Analysing the weekly con-

sumption of the previous year, excluding the special causes

mentioned above, it appears that only four times during the

year were more than three coils consumed in a week. With

the implementation of the supermarket, even if there is a

need to use more than three coils, the pickling process has

sufficient production capacity to meet this need quickly and

without any risk of stock rupture. In periods when the pro-

duction of MCS is not performed, to avoid immobilization

of stock, the pickled material for the manufacture of this

product may be used in the manufacture of other products

with the same type of material, until there are forecasts of

new MCS production.

With the implementation of this tool, it was possible to

obtain the differences shown in Figure 5.

The benefits achieved are as follows.

• Improvement in transparency of processes and in the

ease of its visual management, as well as in the system

of communication between the workstations. There is

a greater independence of each workstation, since they

can manage their work depending on the level of mate-

rial in the supermarket.

• Increased delivery capacity, with reduced possibility of

production downtime due to lack of raw material in the

stamping machine.

• Increased control in the amount of existing stock and a

reduction of its level – a previous average of 1 million

parts to a current average of 500,000 parts – and of the

respective storage space required.

• This supply system also contributes to increasing the

value of the stamping machine’s availability, as it elim-

inates the possibility the machine having to be stopped

for lack of raw material.

• Working hours of the stacker = 8hours/day

• Transport capacity of the forklift: one coil

Thus, the route of the stacker was set to check Kanban board

40 in 40minutes, so there is no risk of delay in supplies (8hours

per day/12coils per day=0.67hours/coil). Besides the route,

it is also necessary to calculate the value of stock that must

exist in the supermarket without having the risk of stock rup-

ture or having an excessive amount of stock. To do this, it is

necessary to take into account the daily consumption of each

type of raw material, as well as the productive capacity of the

pickling process, so that production levelling can be assured.

In this project, it is intended to analyse only improvements in

MCS production flow, which is manufactured on only one of

the stamping Machines, and as such this study will focus on

that product and on its type of material. For this, the compa-

ny’s information system data were used; more specifically, the

values of weekly consumptions of pickled steel coils recorded

in 2012.

Regarding MCS product stamping, being as the machine’s

maximum cadence is 160parts per minute and that it is pos-

sible to manufacture 200,000 parts from one coil, it may be

deduced that the maximum production in a normal working

week (16hours a day, 5days a week) is 3.84 coils or 768,000

parts, under perfect operating conditions. It must be noted

that, in weeks 20 and 28, the consumption of pickled mate-

rials was, respectively, 5 and 4.43 coils. These values exceed

the theoretical maximum due to the execution of overtime

hours during those weeks, thus representing a special cause

of variation. Excluding the null values due to stoppages in

manufacturing the product, it is estimated that the average

weekly consumption of coils in the stamping machine is 2.37.

As such, taking into consideration that there are always two

coils in the stamping machine (one in processing and another

in the input buffer), it is suggested to maintain the existence

Table 2.detail of losses related to stamping machine downtime (in hours).

Month (2012) Lack of raw material end of shift Changeover time Lack of tool exchange of consumable Damaged tool

Others

(<5%)

January 52.77 – – – – – –

february – – – – – – –

March – 34.33 7.83 – – – 0.57

april 170.37 36.73 0.95 – 28.25 31.28 19.57

May 2.38 41.07 3.3 0.4 2.23 43.53 6.25

June – – 41.25 – – – –

July 1.15 – 19.45 13.33 28.67 – 19.95

august – – – 1.8 5.3 – 4.35

September – – 22.9 – 6.4 – 7.83

october – – – – – – –

november 1.25 – 0.75 63.78 9.2 – 40.85

december – – – 3.45 0.02 – 0.83

total 227.92 112.13 96.43 82.77 80.07 74.82 100.2

Percentage 29.5 14.51 12.48 10.71 10.36 9.68 12.97

Table 3.failure modes and effects analysis (feMa) for coil supply for stamping.

fMeA Possible failures Product Process

Process function Mode (s) effect (s) Cause (s)

Current

control S O D nPR

Supply of

coils to the

stamping

machine

raw material delay in

supplying

stamping

machine

Production

stoppage

communica-

tion failures

non-existent 9 7 7 441

High level of

stock

Higher

production

costs

lack of

control in

the existing

stock level

non-existent 5 7 7 245

notes: S – severity level; O – frequency of occurrence; D – detection probability; nPr – number of Priority risk (=S×O×D), e.g. 9×7×7=441.

228 M. D. R. CABRITA eT AL.

calculating the average of the measurements recorded in the

company’s computer system.

When such measurements are made, it is suggested that the

tasks shown in the diagram represented in Figure 6 be applied.

The last phase of the methodology used in this case study

is of the utmost importance and is vital to ensuring the main-

tenance of the improvements made. Since this phase is an

untimed step, because it can only be considered concluded

when the new methods are totally intrinsic to the organization

and when the improved metrics demonstrate a strong stability,

it was not possible to follow up on this phase for the purposes

of this paper. However, the proposals related to the tasks that

must be performed in the future ensure the correct execution

of this phase.

5. Conclusions

This paper expands the theoretical foundation for combining

Lean and Six Sigma by studying and analysing a practical appli-

cation of the concept. As a result, it provides new factors of

importance for successful Lean Six-Sigma applications, such

as having a clear structure that guides the company in terms

of what components of Lean Six Sigma to apply. Detailing

the practices of the five phases of the DMAIC, the Six-Sigma

empirical study describes and studies the functions and the

efficiency of the bolts manufacturing processes and the same

Control

This phase is the longest stage of the DMAIC cycle, which

requires considerable levels of commitment and involvement

by the team responsible for the project and for the workers. At

this stage, the implementation of control measures regarding

the new parameters of the processes is required, ensuring that

they continue to be practiced. As such, continuous monitoring

of the processes is necessary, focusing on the observation of

the performance of the production flow’s new parameters. In

this sense, several members from the PSF team were respon-

sible for ensuring that the schedule of action items sustained

the improvement(s) that had been achieved. Moreover, to

this selected group were allocated the role of monitoring the

performance of this process. Their role was to maintain close

supervision and training of operatives to achieve further

improvements. SPC charts were used to analyse the down-

time of the stamping machine by plotting data points, control

limits and a centreline. The objective was to monitor process

performance and maintain control with adjustments only when

necessary. SPC charts are used as predictive tools and are part

of a mature predictive maintenance program. Special cause

variation, as distinct from common cause variation, refers to

changes in process performance due to sporadic or rare events

indicating that a process is not ‘in control’. To sustain improve-

ments, the PSF team monitored the level of stocks with the

charts developed in the Measure and Analyse phases of the

improvement process. A review of these charts indicated that

there had been noticeable improvements in most of the activ-

ities – specifically, less variability in activity durations.

In this case study, the implemented Kanban system requires

a strong component of education and continuous training to

pass on to the workers, so that they can learn and interiorize

the new working methods. It is important to maintain control

over the amount of stock between these processes, that being

the main goal of the implemented improvement. Therefore,

for the control of this improvement, it is only necessary to fol-

low up the registration of the amounts of stock, which is quite

affordable and trivial by consulting the computer system that

the company provides. Thus, it is possible to control its evo-

lution over time and, if there is any irregularity, to explore the

possible causes of this decline and take steps to reverse them.

To ensure the monitoring and maintenance of the improve-

ments made, it is essential to measure regularly the parameters

of the processes that have been improved, so the improved

Key Performance Indicators must be measured monthly by

Figure 5.Improvement in parametres.

Measurement and

quantification of Key

Performance Indicators

(monthly average)

Do the values exhibit a

considerable variation?

Control

performed

successfully

Determine the causes of

variation (using Lean

Six Sigma tools)

Solve the problems by

eliminating the causes

of variation and

generating prevention

measures

Yes

Figure 6.diagram representing the control tasks to be performed.

Table 4. comparison between the main target of the project and the results

obtained.

Characteristic established goal Result obtained

Stock level -10% -10.75%

InTeRnATIOnAL JOuRnAL Of MAnAgeMenT SCIenCe AnD engIneeRIng MAnAgeMenT 229

implementation of the integrated approach throughout the

organization.

Disclosure statement

No potential conflict of interest was reported by the authors.

Funding

We gratefully acknowledge the support given by UNIDEMI, R&D

unit, Mechanical and Industrial Engineering, Faculty of Science and

Technology, FCT, New University of Lisbon, Portugal.

ORCID

Maria do Rosário Cabrita http://orcid.org/0000-0001-8394-2260

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methodology can be extended to numerous other examples

in the industry.

Lean Six Sigma possesses a vast array of tools to improve

productivity and reduce variability in manufacturing compa-

nies. Without a systematic model, such as the one proposed

based on the DMAIC process, companies begin to implement

these philosophies with the misplaced belief that it does not

matter where they start. The proposed model described in this

paper allows companies to adopt a systems approach to the

implementation of Lean Six Sigma.

This case study emphasizes the importance and the rele-

vant impact that the implementation of Lean Six-Sigma phi-

losophy can have on improving the processes of a company.

Thus, the implementation of this management paradigm is a

way that aims at achieving considerable improvements in the

effectiveness and efficiency of the processes carried out by an

organization and it can be an important contribution to the

company’s growth and to establishing a distinguished position

in the market. It was also demonstrated that the DMAIC cycle

is an organized and effective methodology for defining and

implementing improvement opportunities, creating at the same

time a global mentality of continuous improvement.

In this project, we analysed the main causes responsible for

the downtime of the stamping machine. For that, the histori-

cal records of the machine’s downtime in 2012 were analysed,

leading to the identification of a lack of raw material as the

main factor responsible for production stoppages (representing

29.5% of total stoppage time in 2012). Simultaneously, by ana-

lysing the VSM a high average level of stock was found between

the processes of pickling and stamping. The existence of a high

level of stock and the occurrence of line stoppages due to lack

of raw material can only be due to the occurrence of irregu-

larities in communication between the two workstations. As

such, a Kanban supply system was implemented driven by two

cards, which allowed all the problems identified to be solved.

The application of this system resulted in a reduction of 50%

in the average stock level between the two workstations men-

tioned, as well as an increase of 10% in the level of availability

of the stamping machine by eliminating the possibility of lack

of material. This increase resulted in an improvement in the

hourly production capacity of 15%.

It can be argued that the goals initially set for this project

were completed successfully. Implementation of the Lean Six-

Sigma framework in PSF provided an impetus for establishing

best practice within the company. Moreover, it also provided the

company with a performance benchmark on which it could base

future performance enhancement programmes. The proposed

framework for Lean Six-Sigma implementation needs to be val-

idated in different scenarios to establish its validity. This can be

considered as one of the limitations of the proposed framework.

Six Sigma placed a clear focus on getting bottom-line

results. With this project, the company was able to increase

the production capacity of the stamping machine and reduce

production costs while meeting customer requirements. By

reducing the costs of production, it was possible to negoti-

ate the purchase cost of the MCS product with the customer,

implying benefits for both parties. In short, Table 4 summarizes

a comparison between the main target of this project and the

results obtained.

Finally, successful implementation of the proposed inte-

grated framework of Lean and Six Sigma provided an impetus

for bringing a cultural change in the company with systematic

230 M. D. R. CABRITA eT AL.

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26, 536–554.

DMAIC Case Study (DRAFT) Grading Rubric

Criteria

Ratings

Pts

Case Study ‘Plan’

view longer description

5 to >4 pts

Advanced

Section provides a topic sentence for doing a case study and the

study ‘plan’.

4 to >3 pts

Proficient

Section provides either the topic sentence for doing a case study

or the study ‘plan’.

3 to >0 pts

Developing

Section provides a bullet for doing a case study or the study

‘plan’.

0 pts

Not Present

Not completed.

5 / 5 pts

Define Phase

view longer description

6 to >5 pts

Advanced

Section provides a topic sentence for the Define Phase (with

bullets for key steps such as: customers, problem statement,

resources, crucial support, high-level process map, etc.).

5 to >4 pts

Proficient

Section provides a topic sentence for the Define Phase (with

bullets for only a few key steps such as: customers, problem

4 / 6 pts

statement, resources, crucial support, high-level process map,

etc.).

4 to >0 pts

Developing

Section provides a topic sentence for the Define Phase (with no

bullets for key steps such as: customers, problem statement,

resources, crucial support, high-level process map, etc.).

0 pts

Not Present

Not completed or not related to requirements for the section.

Measure Phase

view longer description

6 to >5 pts

Advanced

Section provides a topic sentence for the Measure Phase

(includes key steps such as: defects, opportunities, units, metrics,

data collection plan, validating the measurement system, etc.).

5 to >4 pts

Proficient

Section provides a topic sentence for the Measure Phase (with

bullets for only a few key steps such as: defects, opportunities,

units, metrics, data collection plan, validating the measurement

system, etc.).

4 to >0 pts

Developing

Section provides a topic sentence for the Measure Phase (with no

bullets for key steps such as: defects, opportunities, units,

metrics, data collection plan, validating the measurement system,

etc.).

0 pts

Not Present

4 / 6 pts

Not completed or not related to requirements for the section.

Analyze Phase

view longer description

6 to >5 pts

Advanced

Section provides a topic sentence for the analyze phase (includes

key steps such as: performance objectives, value vs NVA,

opportunities to improve root cause, variation, etc.).

5 to >4 pts

Proficient

Section provides a topic sentence for the analyze phase (with

bullets for only a few key steps such as: performance objectives,

value vs NVA, opportunities to improve root cause, variation,

etc.).

4 to >0 pts

Developing

Section provides a topic sentence for the analyze phase (with no

bullets for key steps such as: performance objectives, value vs

NVA, opportunities to improve root cause, variation, etc.).

0 pts

Not Present

Not completed or not related to requirements for the section.

4 / 6 pts

Improve Phase

view longer description

6 to >5 pts

Advanced

Section provides a topic sentence for the Improve Phase

(includes key steps such as: experiments, solutions, operating

tolerances, implementing the best solution, etc.).

5 to >4 pts

Proficient

4 / 6 pts

Section provides a topic sentence for the Improve Phase (with

bullets for only a few key steps such as: experiments, solutions,

operating tolerances, implementing the best solution, etc.).

4 to >0 pts

Developing

Section provides a topic sentence for the Improve Phase (with no

bullets for key steps such as: experiments, solutions, operating

tolerances, implementing the best solution, etc.).

0 pts

Not Present

Not completed or not related to requirements for the section.

Control Phase

view longer description

6 to >5 pts

Advanced

Section provides a topic sentence for the Control Phase (includes

key steps such as: standards, process control/capability,

documentation/report, etc.).

5 to >4 pts

Proficient

Section provides a topic sentence for the Control Phase (with

bullets for only a few key steps such as: standards, process

control/capability, documentation/report, etc.).

4 to >0 pts

Developing

Section provides a topic sentence for the Control Phase (with no

bullets for key steps such as: standards, process

control/capability, documentation/report, etc.).

0 pts

Not Present

Not completed or not related to requirements for the section.

4 / 6 pts

ID’d the Lean Six Sigma Tools

view longer description

5 to >4 pts

Advanced

ID’d 3 or more Lean Six Sigma Tools.

4 to >3 pts

Proficient

ID’d 2 Lean Six Sigma Tools.

3 to >0 pts

Developing

ID’d 1 Lean Six Sigma Tool.

0 pts

Not Present

No Lean Six Sigma Tools.

5 / 5 pts

References and Citations

view longer description

5 to >4 pts

Advanced

References >10

4 to >3 pts

Proficient

References = 10

3 to >0 pts

Developing

References <10

0 pts

Not Present

No References

5 / 5 pts

APA Format & Structure

view longer description

5 to >4 pts

Advanced

Required section headings included.

4 to >3 pts

3 / 5 pts

Proficient

Most required section headings included.

3 to >0 pts

Developing

Partial section headings included.

0 pts

Not Present

No structure provided.

Total Points: 38

BUSI 830

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DMAIC CASE STUDY (FINAL) ASSIGNMENT INSTRUCTIONS

OVERVIEW

In this final Module: Week, you will synthesize the qualitative research methodology of Case

Study research (and applications) (Yin, 2018) as well as the practical use of Lean Six Sigma

(Hall & Scott, 2016; George et al., 2005) to develop a business-facing DMAIC-based case study.

Also, the seven article readings and your own supporting research has provided a variety of

example designs to include single-case holistic to multiple-case embedded case studies.

INSTRUCTIONS

After reviewing the Learn material for this Module: Week and review of the rest of the course, in

current APA format, design a comprehensive (non-Kaizen) DMAIC Case Study integrated with

Lean Six Sigma tools and biblical worldviews. This must include a plan overview section, as

well as design, measure, analyze, improve, control phases.

Create a real-world case (that is, make sure the story is believable, i.e. it consists of sequence of

time and events, problems and issues to solve, identities [positions/titles] and so on.) Sanitize all

names and use only fictitious data. Use at least 3 Lean Six Sigma tools (George et al. (2005) by

chapter [e.g. a value stream mapping and process flow tool, a data collection tool, an identifying

and verifying causes tool, etc.]) and show your work (i.e. if using a value stream map,

measurement selection matrix, scatter plot, etc.; design a graph, chart, or figure as appropriate,

insert, and refer to such as per APA.) If there could be any doubt, the emphasis of this project is

the DMAIC Case Study process. (HINT: The Cabrita et al. (2016) article serves as an excellent

example.)

Required Format

This 2400 minimum, 3000 maximum word paper needs to be written with these main sections:

Cover page

Abstract

Introduction

Case Study ‘Plan’

Define Phase

Measure Phase

Analyze Phase

Improve Phase

Control Phase

Conclusion

References

Other Requirements

Materials submitted to fulfill requirements in one course may not be submitted in another course.

Concerns about the propriety of obtaining outside assistance and acknowledging sources should

BUSI 830

Page 2 of 3

be addressed to the instructor of the course before the work commences and as necessary as the

work proceeds.

 The cover page must include this statement as an author’s note: “By submitting this

assignment, I attest this submission represents my own work, and not that of another

student, scholar, or internet source. I understand I am responsible for knowing and

correctly utilizing referencing and bibliographical guidelines. I have not submitted this

work for any other class.”

 In addition to the course textbook(s) and the Bible, this paper must include at least 10

references from scholarly articles that have publication dates no older than 5 years. Do

not use any books other than the Bible and the textbooks. Do not conduct interviews.

 There should be at least one instance of biblical integration (at least one scripture

reference).

 In-text citations are required to support your statements, points, assertions, issues,

arguments, concerns, paragraph topic sentences, and statements of fact and opinion.

 The required cover page, abstract and the reference pages are not included in the required

assignment word count but are required as part of your paper.

 The APA required abstract and conclusion section headings and subject headings (see

above) are expected. For papers this length, there should be at least three (3) ‘levels of

headings’.

 The introduction and conclusion sections should not be longer than ½ page each since the

assignment is short in word count.

 The required abstract should be written as a stand-alone document and not written as an

introduction since an introduction section is required. Therefore, refrain from using

phrases such as, “in this paper,” and do not use citations. See example in APA manual.

 Sources of information from Wikipedia, dictionaries, and encyclopedia will not be

accepted.

 Paragraph lengths: Each paragraph should have a topic sentence unless it continues from

or provides support to the prior paragraph. A paragraph is defined in this course as being

at least 4 sentences in length.

 All parts of the assignment must be based on scholarly and biblical literature.

 Avoid clichés, slang, jargon, exaggerations, abbreviations, figurative language, and

language that is too informal and too subjective.

 Submit your final document for grading with file name syntax: Last NameFirst Initial

Project#. For example: PhilebaumJ Project8.doc (no .pdfs)

Grading Metrics

Consult the accompanying rubric for how your instructor will grade this assignment. Also, any

form of plagiarism, including cutting and pasting, will result in zero points for the entire

assignment. All quoted materials must be properly cited in current APA format.

Note: Your assignment will be checked for originality via the Turnitin plagiarism tool. The tool

is a starting point for instructors to check overall Academic Integrity and higher scores generally

indicate a higher probability of Academic Misconduct. The higher a score, the higher the

BUSI 830

Page 3 of 3

probability that there are too many quotations included in the narrative, and/or there are passages

that have not been properly cited.

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