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following Table 1. Furthermore, six-sigma, as a quality improvement methodology, has
gained considerable attention [4]. Application of the six-sigma methods allowed organization
to sustain their competitive advantages by integrate the process with engineering, statistics
and project management [5]. Numerous articles and books provide the basic concepts and
benefits of the six-sigma methods [6-7]. Six-sigma applications in the service sector are still
limited although it has been embraced by many big service oriented companies such as Lloyd,
American Express, J.P. Morgan, ESB, Egg, Financial Services, Zurich, BT etc. The last
decade has seen many service organizations such as Bank of America, Citibank, Caterpillar,
Mount Carmel Health System and Baxter Healthcare in USA and Europe, success by sig
sigma implementation [8-10].
Table 1 Motorola’s (six steps to six-sigma) Quality Improvement
Manufacturing
(Manufactured Product)
Non-Manufacturing
(Administration, Office, Service)
1. Physical and functional identification from
voice of the customer
1. Identification of the product or service
that is created and given to internal and
external customers
2. Determine the essential characteristics of
the product
2. Identify a product or service from the
customer, and determine what customers
consider important
3. Determine for each characteristic, whether
it can be controlled by the process, part or
controlled by both
3. Identify your needs (including needs of
the supplier) to provide products or
services so satisfy the customer
4. Determine the maximum coverage for
each characteristic
4. Define the process for doing work (a
process mapping)
5. Determine the variation on the process for
each characteristic
5. Mistakes-proof processes and eliminate
delays the work and efforts wasted
6. If the process capability (Cp) is less than
two then do improvements on materials,
products and processes required
6. Always continuous improvements by
measuring, analyzing, and controlling the
process improvements (build quality and
cycle time measurement and improvement
goals. Metrics commonly used is the
number of defects per unit)
Sources: Motorola Material, Fukuda
The program presented in Table 1 describes that improvement action will be implemented
in a project by project. It provides a clear organizational structure, in which improvement
project are led by belt as black belt and green belt. To guide black belt and green belt activity,
the program provides a methodology consisting of a collection of tools and stepwise strategy
consist of five phase improvement cycle – DMAIC, within six-sigma companies has become
increasingly common [11]. The goal of this paper is to review and examine lean and six-
sigma practice and identify the key factors influencing successful lean and six-sigma.
Therefore, this paper integrated lean and six-sigma project and potential applications in
managing traditional projects. Wider application to the organization will succeed through
senior management involvement, organizational commitment and culture change.
2. RESEARCH METHODOLOGY
The six-sigma method is often imagined as the breakthrough with five phases of DMAIC:
Define-D, Measure-M, Analysis-A, Improve-I, and Control-C. It represents a problem solving
methods “specifically designed to lead a six-sigma black belt to significant improvement
within a defined process” [12, 7]. Thus, the aim of this paper is to identify the issues facing
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and implement the lean and six-sigma in organization. In order to achieve the objective, the
researcher used secondary data such as journals and documents, books, thesis, and scientific
websites specialized in eliminating wastes.
Two sources were used to collect the primary data. First, wastes identification was
implemented through a brainstorming session with some managers to answer seven wastes
questions. The illustration and analysis are based on literature review and the answers of the
brainstorming groups. Second, a questionnaire was distributed to the management of all of the
manufacturing division having more than some employee, and member of the research team
offloaded and analyzed the results and resolution through the use of the statistical procedure.
The data collection in this study involves quantitative and qualitative methods. Using this
approach, information can be generated from the practical issues in implementation of lean
six-sigma. Some qualitative data were set on ten point scale, where 9 = extremely important, 7
= very important, 5 = important, 3 = somewhat important, and 1 = not important.
Furthermore, the last step is to determine the weighting to calculate the ranking of
importance.
3. LITERATURE REVIEW
3.1. Six-Sigma
Six-sigma is a systematic approach for improving manufacturing or service processes.
Strengthen of six-sigma lies in its framework to facilitate the application of tools and
techniques in a build data driven to support decision making [14-15]. The application of six-
sigma was predominant in manufacturing process improvement. Recent developments show
that its application is increasing in non-manufacturing operations such as transactional
processes [16]. In order to apply six-sigma more broadly, need to introduce non-
manufacturing that also involve processes. Identification of process parameters is one of the
key to implementation of six-sigma in nonmanufacturing or service [17-18].
The success of six-sigma depends on certain success factors such as, top management
commitment; tools and techniques; application of six-sigma methodology in DMAIC; and
identification of KPIs such as financial impact measurement [19, 14]. Meanwhile, the
statistical aspects of six-sigma must complement business perspective and challenges to the
organization to implement six-sigma. Various approaches to six-sigma have been applied to
increase the performance of different business sector. Integrating data and six-sigma
processes in to organization still has room for improvement. Culture changes require time and
strongly commitment before implanted into the organization [18]. Effective six-sigma
principles and practices will more succeed by refining the organizational culture continuously.
Six-sigma is a business improvement approach that seeking to find and eliminate causes of
defects or mistakes in business processes by focusing on process output which critical in the
eyes of customers. Six-sigma principles can be used to shifts the process average, help to
create robust product and process and reduce excessive variation in process which lead to
poor quality.
The term of sigma is a measure indicating the deviation in the performance characteristic
from its mean performance. The basic goal of a six-sigma strategy is to reduce variation of
performance characteristic. In order to improve the quality, it is imperative to measure or
quality variation and then developed potential strategies to reduce variation. There are many
literatures available on tools and techniques used in sig-sigma. Tools are mostly having a
clearly defined role but narrow in focus, whereas techniques have wider application and
require training, creativity and specific skill [1]. Some other literature provide classification
scheme for tools and techniques used. Some researchers [3] discussed tool sets in three
groups; statistical tools, process tools, and team tools. As for six-sigma tools and techniques
4. Hari Supriyanto and Diesta Iva Maftuhah
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specific to service organization, a researcher [1] provides a guideline for service organization.
The statistically based problem solving methodology of six sigma and process data can be
used to generate solution. Table 2 represents the principles – strategies and technique – tools
for six-sigma.
Table 2 Six-sigma principles – strategies and techniques – tools
Six-Sigma Principles and
Business Strategy
Six-Sigma Techniques and Tools
Project management Statistical process control
Data-based decision making Process capability analysis
Knowledge discovery Measurement system analysis
Process control planning Design of experiment
Data collection tools and techniques Robust design
Variability reduction Quality function deployment
Belt system (Master, black, green, yellow) Failure mode and effects analysis
DMAIC process Regression analysis
Change management tools
Analysis of means and variances, hypothesis
testing, roots cause analysis, process mapping
Six-sigma is likely to remains as one of the key initiatives to improve the management
process than just being remembered as one of the fads [20]. The primary focus should be on
improving overall management performance, not just counting defects. Integrating between
principles and characteristics of six-sigma with Human Recourse Functions [21]; Total
Quality Management [22-23]; Lean Production [24]; ISO 9000 [25]; ISO 9001 [26],
everything are efforts to optimize the positive effect of the six-sigma principles.
The key indicator and success for the effective implementation and introduction of six-
sigma in UK manufacturing and services organizations have been revealed as the following;
understanding of six-sigma methodology; management involvement and commitment; tools
and techniques; linking six-sigma to customer; linking six-sigma to business strategy; projects
selection; organizational infrastructure; review and tracking; linking six-sigma to supplier;
culture change; projects management skill and training [19]. However, other researchers [20]
provides useful implementation tips for successful six-sigma application, such as continuing
training and education of participants and managers, visible and sustained commitment
management, selecting project leaders and setting clear expectations, leadership skill,
selecting and picking strategically important projects. The following Table 3 represents
saving and benefits from six-sigma in manufacturing sector.
Table 3 Savings and benefits from six-sigma in manufacturing sector [27,19, 28]
Company / Project Metric Measure Benefits Savings
Motorola (1992) In process defect levels 150 time reduction
Raytheon / aircraft integration
system
Depot maintenance
inspection time
88 % reduction measured in
days
Business / GE Railcar lease
turnaround time in the
shop
Reductions up to 62 %
Allied signal (Honeywell) /
lamination plant in South
Carolina
Capacity Cycle time
Inventory On-time
delivery
Up 50 % Decrease 50 %
Decrease 50 % Increase
approaching 100 %
Allied signal (Honeywell) /
Bendix IQ brake pads
Concept-to-delivery
cycle time
Reduced from 18 months to
8 months
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Hughes aircraft missile systems
group / wave solder operation
Quality / productivity
Improved 1.000 % /
improved 500 %
General Electric Finance $ 2 billion in 1999
Motorola (1999) Finance $ 15 billion over 11 years
Dow Chemical Projects / rail
shipments
Finance
Saving more than $ 2.45
million for capital
expenditure
DuPont plant / Yerkes in New
York (2000)
Finance
Savings more than $ 25
million
Telefonica de Espana (2001) Finance
Savings and increased
revenue of 30 million euros
in the first 10 months
Texas Instrument Finance $ 600 million
Johnson and Johnson Finance $ 500 million
Honeywell Finance $ 1.2 billion
3.2. Lean Thinking (LT)
The concept of lean thinking developed from Toyota Production System-TPS with identifying
the value of a long process and steps eliminating waste by way of sorting out and getting rid
of non-value added activities against value added activities. Lean focuses on efficiency to
produce products and services as fast as possible and at lowest cost. The top management
should begin first to commit against LT and should deploy and exert efforts down to various
levels to improve processes flow and efficiency. Lean strategy brings a set of proven
techniques and tools to reduce set up times, inventories, lead times, equipment down times,
scraps, another hidden and invisible wastes in the process [29].
Lean Production or Lean Thinking has the philosophy to achieve improvements in most
economical ways with focus on reducing waste [30-31]. The concept of waste became one of
the most important concepts in quality improvement activities and the first idea by Taiichi
Ohno’s famous production philosophy from Toyota in the early 1990s [32]. This philosophy
was furthermore called as Toyota Production System-TPS in Japan and in 1986 named as
Lean Production and Lean Thinking [30].
One of the experts on quality control [33] might be the first to deal with the different
forms of wastes. Furthermore, reduction and identification of waste have become one of the
main activities in quality improvement. This identification of waste is called the Cost of Poor
Quality (COPQ).
3.3. Lean Six-Sigma
Lean is primary focus on information and build value adding with in along the process steps
whereas six- sigma can be helpful in handling poor performing. Many lean principles are
fundamentally base on qualitative models and developed from a long research. Six-sigma on
other hand can play a critical role in understanding what is happening inside the process steps.
Figure 1 shows the strong relationship between lean and six-sigma to increase organizational
performance.
6. http://www.iaeme.com/IJME
Figure
Lean and six-sigma will le
application of both lean and s
applications. Lean and six-sig
waste on process flow and the
and reduce cycle time. Six-
variations. It can be seen at F
value. Lean focuses on reducti
or wastes. Six-sigma focuses
quality items in along processe
Figur
Some of similarities betwe
improvement, such as both me
both are process centric and p
require management support f
[29].
4. CASE STUDY AND R
A case study is presented
manufacturing will be improv
joined and eliminated by redu
process and as simultaneousl
steps included the systematic
defining a realistic target to re
and quantity waste; and imp
Lean speed enables six
quality
Hari Supriyanto and Diesta Iva Maftuhah
ET/index.asp 503 ed
re 1 Relationship between lean and six-sigma
l lead to business competitiveness and quality
d six-sigma require learning of various techniq
igma both are emphasis of process flow. Lean
he thinking is to increase productivity by incre
-sigma focuses on process flow and pres
t Figure 2 describing defect rate (DPMO) as
ction of cost by eliminating all sorts of non-valu
es on reduction of cost by systematically so
sses.
ure 2 Defect rate (DPMO) and sigma value
ween lean and six-sigma approaches to proces
methodologies are focusing to business need an
process focus; both concept need multi-disci
t for success; both can be used in non-manuf
RESULT
ed and taken where systematically the c
roved by applying of lean six-sigma methodo
eduction the down time with implement the c
sly reducing the variation of along business
ic approach of the current state through walk
reach the ideal state; preparing the process m
mplementing the improvement actions [34].
bles six-sigma Six-sigma quality enables le
speed
editor@iaeme.com
ty improvement. The
niques, tools and the
an focuses minimum
reasing how to work
ressure to minimum
s an input for sigma
alue adding activities
sorting cost of poor
ess management and
and customers need;
sciplinary team; both
ufacturing or service
control process of
dologies. Waste was
e change of working
ss process. The LSS
lking along process;
map to inefficiencies
The questionnaire
nables lean
7. A Lean
http://www.iaeme.com/IJME
survey was designed and used
steps are to conduct in-depth
which is better grounded, mo
selected and based on the ide
preferable [36].
The manufacturer of gas s
the activity hence, types of ac
types, such as value added (V
added (NVA) [37].
Fig
Based on a long process an
is 23.3 % value adding activi
well as 43.52 % is non-value a
peppered throughout the prod
must be identified more depth
on the surface. Non value ad
commonly accepted wastes
overproduction, (2) waiting, (3
inventory, (6) unnecessary mo
the weight of each waste so ca
highest ranking means that it n
this case are the defect, inappr
an Six-Sigma Manufacturing Process Case Study
ET/index.asp 504 ed
ed to help in understanding of six-sigma in org
th case study. Case study approach helps in d
more generalizable and more accurate [35].
dea of theoretical sampling. In this case, theo
s stove is the case study company. Based on th
activities are classified in the manufacture of g
(VA), necessary but non value added (NNV
igure 3 Value Stream mapping of product
and overall activity that flow along the produc
ivity and 35.19 % is necessary but non value
e adding activity. It shows that there are still a l
roduction process flow. Therefore the non-va
th to know the type of wastes that is hidden a
adding activity is an activity that causes wast
s in Toyota Production System-TPS [38-
, (3) transportation, (4) inappropriate processin
otion, and (7) defects. The following Table 4
can be calculated and viewed the highest rank
t needs the attention from the management to d
propriate and waiting waste.
editor@iaeme.com
rganization. The next
developing a theory
. The case study is
eoretical sampling is
the identification of
f gas stove into three
VA), and non-value
uction process, there
e adding activity, as
a lot of waste that are
value added activity
and does not appear
ste. There are seven
-39], such as (1)
sing, (5) unnecessary
shows qualitatively
nking to lowest. The
do improvements in
8. Hari Supriyanto and Diesta Iva Maftuhah
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Table 4 Seven wastes
No. Waste
Score
Total Ranking
1 2 3 4 5 6 7 8 9
1 Overproduction 1 2 1 1 23 4
2 Waiting 4 1 24 3
3 Transportation 3 1 1 7 7
4 Inappropriate Processing 2 1 1 25 2
5 Unnecessary Inventory 2 2 1 23 5
6 Unnecessary Motion 2 2 1 14 6
7 Defects 1 1 1 2 28 1
Weighted 8 7 6 5 4 3 2 1 0
Each row shows a certain wastes and on the seven other wastes; similarly each column
shows the degree of interest which is filled by the management as expert judgment.
Furthermore, each field of management multiplied by the weight indicated on bottom row.
The weights of each row and column were added to obtain total score. The result of the
multiplication in form the total of each wastes, then retrieved the ranking of waste from
highly risky (1) until the riskless (7). In seven types of waste as calculated and weighted seen
that the highest weight is on defect waste. This waste connected directly with defects per
million opportunities (DPMO) as input to calculate the value of sigma. Based on the
identification of defects and critical to quality-CTQ, types of non-conforming that cause its
defects waste can be obtained. CTQ can be used as basis for generating alternative solutions.
CTQ in defect waste and waiting waste can be seen in Table 5.
Table 5 Critical to quality in defect waste and waiting waste
Critical to Quality (CTQ) in defect waste
Critical to Quality (CTQ) in waiting
waste
1. paint defective: uneven paint and bubbly
1. delay material and not within
specifications
2. rivet defective: the hole is too big / small
and not within specifications
2. The engine stopped and the damage
3. deformed body: body dents and require
reprocessing
3. rework process
Meanwhile, based on CTQ, DPMO as an input for sigma value can be seen in following
Table 6.
Table 6 DPMO and Sigma value
Period Production (Unit) Defect (Unit) DPMO Sigma
Value
1 70007 2182 15584 3.7
2 58544 1668 14246 3.7
3 119081 3900 16375 3.6
According to the data defective products above, thereafter for each period can be shown
the amount of each types of non-conforming shown in table 7.
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Table 7 The types and amount of nonconforming of gas stove
Type of
Nonconforming
Amount (Unit)
Rivet 2773
Body 1878
Paint 1784
Burner 1315
Based on the types of nonconforming, it can be seen that the highest nonconforming
contained in the type of rivet and body which causes body to be damage or product defects.
The second waste was inappropriate processing. This waste that cause defect products. Which
causes inappropriate processing is inaccuracy in the process of blanking machine, the machine
that makes holes for process of joining by using the process of the rivet. The third waste is
waiting waste. Waiting waste is a certain amount of time when operator does not use the time
to perform value added activities due to waiting for flow of products from the previous
process. The indication of waiting on the production process is stated by downtime caused by
the machine breakdown. Machine downtime is influenced by several factor such as cleaning,
waiting for the material, change tools, the machine is done setting, power failure, maintenance
and broken machine,
However, based on the first waste, it can be concluded that a defect and / or
nonconformities are caused by the waste that is inappropriate processing waste. The process
associated with this defect is blanking process. One reason for the failure is the blanking
punch pressure-less; and this is caused the electric power lacking. The emergence of these
wastes will result in waste of waiting. This waste gives an indication of the long lead time,
and causing a decline in production capacity. Another consequence is the decline in
productivity. Furthermore, alternative solutions can be degenerated based on such wastes
which is described in Table 8.
Table 8 Alternatives solution
Sub Waste Effect Root Cause Improvement
Breakdown Machine Power Failure Less Electrical Power Raise The Power
Rivet Defective
Operator Error
Operators Are Not
Careful
Improvement Of
Inspection
Hole Processing
Errors
Limited Number Of
Jig Fixture
The Addition Of
Jig Fixture
Body Defective The Body Scratched
There Are No A
Protective
Provide A
Protective Layer
5. CONCLUSIONS
Implementation in lean six-sigma have been proved and success in the last few years. It is
becoming a main driving force for technology driven and project driven. Factors influencing
successful lean six-sigma projects include management involvement and organization
commitment, project management and control skill, continuous training, and culture change.
Tracing some of shortcomings, key indicators and weakness of six-sigma gives opportunities
for implement lean six-sigma project. It allows better support for strategic and direction, and
improving needs for mentoring, training and coaching. Contributing to the development of a
lean six-sigma conceptual framework, where the main objective of six-sigma is reducing
variation and that of lean is reducing cycle time. This paper presents the application of lean
10. Hari Supriyanto and Diesta Iva Maftuhah
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methodologies to eliminate waste in along the process and to reduce defect to increasing
sigma value.
Lean six-sigma has been proved as structured methodology to improve organizational
processes. With focus on customer and systematically translate critical to quality
characteristics into improvement project so the success of the organization will be realized. It
can be said that lean six-sigma programs enable organization to become more creative
through dual focus on efficiency and continuous improvement. In addition, as firms that take
advantage on lean six-sigma programs, monitoring, ability in identifying, and finding the
needs of future customers maybe dreadfully required.
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