Operations Management

Operations Management 

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Based on the value stream map, the pWe’llial Six Sigma Projects include:

• Increase Rolled % Complete & Accurate: the Rolled % Complete and Accurate was 10%, which indicates high chances of rework due to product defects. Product defects arise from errors within the production process and failure to follow production instructions. Product defects affect sales and the company’s reputation, so it needs to focus on reducing them and guaranteeing high quality.
• Increase Activity Ratio: The activity Ratio was 90%, which indicates activity efficiency. However, employee training and reducing the learning curve can still improve activity efficiency. The learning curve includes the time taken to acquire new knowledge or skills (Jaber, 2016). The company should consider reducing the duration of employee training programs to increase employee productivity and create room for more programs. Sigma’sing. The learning curve will also boost employee morale because they will not spend so much time undergoing training.
• Reduce Total Lead Time: The total Lead Time was five days, indicating product delivery delays. Lead time is the time taken to get goods and services to customers. The company should ensure that its products and services reach customers quickly by eliminating unreliable suppliers from the supply chain, improving internal communications, automating order processing, and using domestic suppliers.
• Reduce Total Process Time: The total Process Time was 1800, which indicates a long process time that could cause output delays. The company should consider increasing value-adding activities to reduce process delays. Palcic et al. (2018) state that value-adding activities increase an organization’s performance. They include activities that contribute to the company’s productivity and improve customer benefit. The main value-adding activities that the company should consider are product inspection to ensure that customers get the right quality, training employees to equip them with the skills and capabilities needed to complete assigned tasks, and improving customer service

I recommend the following Six Sigma Project: Reduce Total Lead Time. The justification for selecting the Six Sigma Project, Reduce Total Lead Time, is that it is the most appropriate project for improving overall organizational performance because reduced lead times attract new customers and create customer loyalty, thus increasing the company’s sales and revenue generation and profitability.

Value Stream Mapping

PROJECT NAME: Six Sigma Project, Reduce Total Lead Time

PROBLEM STATEMENT:

Based on customer reviews, it is evident that most customers are unhappy with the time it takes to dispatch orders. Some customers stated that sometimes their orders might take up to two days to be processed and shipped, making them opt for alternative suppliers if they urgently need a product.

GOAL STATEMENT:

The goal is to reduce the time taken to process and dispatch customer orders as we work on creating a same-day delivery program to create a competitive advantage by attracting more customers and retaining existing ones.

PROJECT SCOPE:

CTQs of PROCESSES WITHIN PROJECT SCOPE:

KEY METRIC:

According to Hoerl (2014), critical-to-quality requirements are crucial to meeting customer demands. The main critical-to-quality requirements of the process within this project’s scope include customer satisfaction, convenience, efficiency, and consistency. We will enhance customer satisfaction by improving our distribution channel’s efficiency, convenience, and consistency.

EXPECTED BENEFITS:

MILESTONES FOR DMAIC OR DMADV PHASES:

PROJECT CHAMPION: Operations Manager

PROJECT LEADER (Green Belt or Black Belt): Logistics manager

PROJECT TEAM MEMBERS: Supply chain manager

AD-HOC MEMBERS: Sales manager

APPROVED BY & DATE: Operations Manager, 5/9/2022

References

Hoerl, R. W. (2014). Critical‐to‐Quality matrices. Wiley StatsRef: Statistics Reference Online. https://doi.org/10.1002/9781118445112.stat04031

Jaber, M. Y. (2016). Learning Curves: Theory, Models, and Applications. CRC Press.

Palcic, I., Ojstersek, R., Ficko, M., & Buchmeister, B. (2018). Value-adding and outsourcing activities in Slovenian manufacturing companies. DAAAM International Scientific Book, 119-130. https://doi.org/10.2507/daaam.scibook.2018.11

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Overview
Six Sigma projects are powerful tools for achieving breakthrough improvements. Improvement projects utilize
the DMAIC methodology, while design or re-design projects use the DMADV methodology. Such projects can
be undertaken for large or small initiatives. However, because they require a fair bit of work in planning and engaging the team, they are usually applied when a significant change effort is likely to lead to an outcome
well over the work put into the project.

Operations Management

In the first two parts of your Operations Management Course Project, you have (A) mapped and analyzed the
value stream and (B) organized a Kaizen or Work-Out to address improvement opportunities that do not
require rigorous data analysis. Now, you are ready to move forward with one or more projects that leverage the
power of Six Sigma’s tools and rigorous data-driven analysis. A project charter is needed for each proposed
Six Sigma project. Project charters enable management to understand, evaluate, and approve projects for
launch.
Instructions
Use your work in Part A and Part B of your Course Project, as well as what you have learned so far in this
course to identify a potential Six Sigma project that can benefit the value stream and your organization.
1) List and describe potential Six Sigma project(s) that you would propose to senior management,
recommend one project, and justify your selection.
2) Develop a detailed Project Charter for your recommended project. The project charter must include the
following:
a. Problem statement
b. Goal statement or objectives
c. Project scope
d. Critical-to-quality requirements, or CTQs, of the processes within the scope of this project
, e. Critical metric Y (or key metrics Y)
f. Expected operational and financial benefits of the project
g. Milestone dates for each phase of DMAIC (or DMADV)
h. Project team (titles of project team leader and members)
i. Champion (title of executive or senior manager)