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Lean 6 sigma case study
Operations Management processes and
Lean 6 sigma case study
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Cargill, Nestle Purina, and Lockheed Martin each provide a large level of attention to the development of their organizations operations management process. Cargill Corn Milling focuses on the requirements of the key work processes segmented by customer value, profitability, and sustainability to improve processes (Cargill Corn Milling, 2008). This management process ensures alignment with expectations of key work process customers, supplier and partners. In addition, their Best Practice Model (BPM) includes key steps and the requirements for each step to design processes and modify processes for efficiency, effectiveness, agility, and cost control improvement. Cargill Corn Milling final steps taken is to incorporate the Management of Change …show more content…
Customer value is analyzed by market segments and product line using tools and the collected data produces product line strategies (Cargill Corn Milling, 2008). On the other hand, Nestle Purina has several supporting processes, critical to their goal for achieving customer value and sustained financial success (Nestle Purina, 2010). For example, Nestle Purina Organizational Questionnaire (OCQ) process of taking the voice of the customer and deploying it to employees and their behavior has been refined and improved numerous times over the last several years (Nestle Purina, 2010). This and various other processes go through multiply cycles of improvement prior to the process is agreed upon by management and leadership. Lockheed Martin, has adopted 7 to 20 Lean Six Sigma (LSS) program teams to develop innovative solutions for customer value and cost control (Lockheed Martin, 2012). They also monitor and control program and product cost through Program Performance Measurement Process (PPMP) which consist of five key areas of program management to provide reporting data. This process is reviewed by various levels of management, customers and suppliers at least monthly to identify any potential issues that could impact their ability to meet cost projections (Lockheed
Anheuser-Busch, as an ever-expanding company, continually re-invents, innovates, and improves its internal processes. Part of this is the continuous improvement of its supply chain management processes. Having vertically integrated most of its supply chain, Anheuser-Busch is less involved in supplier selection and the improvement of external sourcing. Rather, they focus on their internal processes in order to create a competitive advantage in the market. In an attempt to decrease costs, and in turn improve their bottom line, the company looked internally. They found a startling inefficiency: the water material requirement in their products was extremely high. This not only conflicted with their corporate social goals, but threatened to be a long-term unnecessary cost driver Anheuser-Busch chose to actively innovate its processes and sourcing channels. In their analysis of the company, it became apparent that production of Anheuser-Busch products required a tremendous amount of water.
Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.
I chose this article because I have been involved in process improvement projects that were quite successful. However, upon examination of the same company several years later the process improvement projects had faded away, and bad habits had returned.
Bjerke, Juel M. "Week 2 Lecture Notes - Achieving Business Process Excellence and Process Re-engineering." MFGO 601 - The Globally Integrated Manufacturing Company. 2 Nov. 2011.
As you would imagine, having to look at our current processes and breaking each process down at micro level was a very daunting task for everyone involved in the project. After going through the progression of identifying which processes were potential changes, the leadership and project team members were tasked with communicating the findings and what the official implementation plan for these changes would look like. From my perspective, this was the biggest pitfall for the team. Our communication plan was not as detailed as it should have been in terms of illustrating value to other team members and leaders within the division. In addition, the project and leadership teams set unrealistic processing goals for team members. Thus, minimizing the division’s potential to create short-term wins for individual team members, as well as for the organization as a whole. Therefore, one could identify our breakdown occurring during the second cluster of Kitters’ Eight Steps of Change. Thus, this paper will attempt to address how change management can help leadership implement a change within the organization through analysis and
To be the number one aerospace company in the world and among the premier industrial concerns in terms of quality, profitability and growth
Operations management, by russel and Taylor, chapter 8 hr in operations management, pages 332-333, accessed on the 5th of February 2013
Pyzdek and Keller (2013), states that strategic planning seeks to deliberately upset the probabilities by innovations and organization change. Cagill, Nestle Purina, and Lockheed Martin each understand the requirement to provide overall direction that involves the design of objectives, resource allocation, and policy development to achieve organization success. Nestle Purina strongly focuses most of their efforts and goals in the documenting in their Blueprint. The Blueprint for Nestle Purina is the output of the annual planning process directed by leadership and the analyzing after using a four-phase structure to forecast change (Nestle Purina, 2010). Leadership decisions are the base for the organization and the constructing the operations
14. The Villain Cost of Poorly Performing Processes level DPMO CP 3 2 308,537 Not Applicable 3 66,807 25%-40% of sales 4 6,210 15%-25% of sales 5 233 5%-15% of sales 6 3.4 < 1% of sales Each sigma shift provides a 10% net income improvement Cost of Poorly Performing Processes (CP 3 ) Sigma ( ) is a measure of “perfection” relating to process performance capability … the “bigger the better.” A process operating at a “Six Sigma” level produces only 3.4 defects per million opportunities ( DPMO ) for a defect. Without dedication of significant and appropriate attention to a process, most processes in leading companies operate at a level between 3 and 4 sigma. Why is Six Sigma Important?
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
Schonberger, R.J. and E.M. Knod Jr. Operations Management: Continuous Improvement. Richard D. Irwin, 1994, p. 44. 16. Selto, F.H. and D.W. Jasinski. "
Manufacturing businesses and business leaders need to increase their focus on key success factors such as: innovation, productivity improvement, investment in people & skills, and funding. Innovation is not just about retention and development, or the latest technology. It’s also about practical and efficient problem solving and business transformation. In the manufacturing industry, this can be achieved by: refining or exploring new supply and distribution channels, establishing new business offerings, developing leaner organizational arrangements, improving processes, providing a better customer experience, and accessing green, clean technology – high on the agenda for environmentally conscious customers (Performance, 2011)
University of Phoenix(Ed.).(2003) Operations management for competitive advantage[University of Phoenix custom edition e-text]. New York: McGraw-Hill. Retrieved February 01, 2005, from university of phoenix, Resource, MGT554- operations management website: https://mycampus.phoenix.edu/secure/resource/resource.asp
•Customer-focused outcomes: measures and indicators of process effectiveness, and performance. Like production costs, and market improvement, customer satisfaction and dissatisfaction, customer retention and
New Product Strategy (NPS): Apart from recognizing that the first step for every NPD process is to define a strategy for the product, Bhuiyan (2011) also suggests certain metrics and procedures which will allow companies to go through this step correctly. Bhuiyan (2011) suggests at looking at an expected ROI which the management is targeting by investing in the project before going forward with it. The expectations should be clearly communicated across all departments. Bhuiyan (2011) backs this point by quoting Cooper & Kleinschmidt (1995) which claims that companies which define expectations clearly to their teams, have a 32% higher success rates in their NPD projects. Bhuiyan (2011) also suggests using a Balanced Scorecard (BSC) approach to link the financial objectives with the corporate strategy. BSC is a popular tool developed by authors Kaplan and Norton in 1996. “The scorecard measures organizational performance drivers across four perspectives which provide its framework: financial, customers, internal business processes and learning and growth” (Bhuiyan, 2011).