Involving employees in six sigma

Six sigma is a quality improvement philosophy with systematic and formal approach. In order to successfully implement and utilize six sigma the basic disciplines of it should be adopted by the entire organization. Furthermore, employee involvement is crucial in six sigma implementation. This thesis addresses the challenges of long-lasting involvement in the case company. It focuses on gaps of involving six sigma trained employees, Black Belts. Theoretical framework of the thesis illustrates different factors influencing employee involvement. Influencing factors can be divided into ten categories: organizational culture, managerial commitment, leadership style, employee empowerment, employees’ perceptions, communication, training, goals, performance measurement and incentives. Factors and categories overlap and are related to each other. The framework provides holistic view of employee involvement in six sigma context but can be used also with other quality management philosophies. This thesis was conducted as a case study and written on an assignment to a power and automation technology company. Due to the nature of research problem, the data collection was conducted by interviewing case company personnel. In order to study involvement from employees’ point of view interview questions were designed to be open-ended and to allow the interviewees to tell freely about the phenomenon. This thesis provides empirical support on previous studies in organizational support, management commitment and employee empowerment. In addition, it indicates the importance of separate function for Black Belts in the organization. The gaps in Black Belt involvement can be categorized under two categories: Management driven gaps are related to management commitment, organizational structure and culture and information systems. Black Belt driven gaps are related to practice and effort of using six sigma. This thesis finds solutions for bridging these gaps in the case company by applying findings from literature research and suggestions given by the interviewees. For each gap, actions are suggested for bridging the discrepancy between current and desired situations. The thesis states that in order to embed six sigma in the organization the most crucial gaps, lack of management commitment, six sigma vision and possibilities to use six sigma, should be diminished.

Involving employees in six sigma

Six sigma is a quality improvement philosophy with systematic and formal approach. In order to successfully implement and utilize six sigma the basic disciplines of it should be adopted by the entire organization. Furthermore, employee involvement is crucial in six sigma implementation. This thesis addresses the challenges of long-lasting involvement in the case company. It focuses on gaps of involving six sigma trained employees, Black Belts. Theoretical framework of the thesis illustrates different factors influencing employee involvement. Influencing factors can be divided into ten categories: organizational culture, managerial commitment, leadership style, employee empowerment, employees’ perceptions, communication, training, goals, performance measurement and incentives. Factors and categories overlap and are related to each other. The framework provides holistic view of employee involvement in six sigma context but can be used also with other quality management philosophies. This thesis was conducted as a case study and written on an assignment to a power and automation technology company. Due to the nature of research problem, the data collection was conducted by interviewing case company personnel. In order to study involvement from employees’ point of view interview questions were designed to be open-ended and to allow the interviewees to tell freely about the phenomenon. This thesis provides empirical support on previous studies in organizational support, management commitment and employee empowerment. In addition, it indicates the importance of separate function for Black Belts in the organization. The gaps in Black Belt involvement can be categorized under two categories: Management driven gaps are related to management commitment, organizational structure and culture and information systems. Black Belt driven gaps are related to practice and effort of using six sigma. This thesis finds solutions for bridging these gaps in the case company by applying findings from literature research and suggestions given by the interviewees. For each gap, actions are suggested for bridging the discrepancy between current and desired situations. The thesis states that in order to embed six sigma in the organization the most crucial gaps, lack of management commitment, six sigma vision and possibilities to use six sigma, should be diminished.

Improvement of Operational Efficiency effectiveness (OEE) using Six Sigma DMAIC Methodology — Case Bottomer line AD2378

Overall Equipment Effectiveness (OEE) is the key metric of operational excellence. OEE monitors the actual performance of equipment relative to its performance capabilities under optimal manufacturing conditions. It looks at the entire manufacturing environment measuring, in addition to the equipment availability, the production efficiency while the equipment is available to run products, as well as the efficiency loss that results from scrap, rework, and yield losses. The analysis of the OEE provides improvement opportunities for the operation. One of the tools used for OEE improvement is Six Sigma DMAIC methodology which is a set of practices originally developed to improve processes by eliminating defects. It asserts the continuous efforts to reduce variation in process outputs as key to business success, as well as the possibility of measurement, analysis, improvement and control of manufacturing and business processes. In the case of the Bottomer line AD2378 in Papsac Maghreb Casablanca plant, the OEE figures reached 48.65 %, which is below the accepted OEE group performance. This required immediate actions to achieve OEE improvement. This Master thesis focuses on the application of Six Sigma DMAIC methodology in the OEE improvement on the Bottomer Line AD2378 in Papsac Maghreb Casablanca plant. First, the Six Sigma DMAIC and OEE usage in operation measurement will be discussed. Afterwards, the different DMAIC phases will allow the identification of improvement focus, the identification of OEE low performance causes and the design of improvement solutions. These will be implemented to allow further tracking of improvement impact on the plant operations.

Lean, Six Sigma ja Total Welding Management hitsaavassa verkostossa

Diplomityössä tarkastellaan hitsaavan verkoston laadunhallintaa ja siinä ilmeneviä erilaisia ongelmakohtia. Tämän lisäksi työssä tarkastellaan kolmen eri laatutyökalun Lean, Six Sigma ja Total Welding Management soveltamista hitsaavan verkoston laadunhallinnassa. Teoriaosassa käsitellään sekä yleisesti että hitsauksen osalta laatua ja laadunhallintaa, sekä edellä mainittuja laatutyökaluja. Tutkimusosaan tietoja hitsaavista verkostoista kerättiin kaikkiaan kolmesta eri verkostosta. Näiden kerättyjen tietojen pohjalta tarkasteltiin valittujen laatutyökalujen soveltuvuutta verkostomaiseen käyttöön. Verkostoitunut toiminta aiheuttaa monia uusia haasteita yritysten laadunhallinnalle verrattuna yksittäisiin hitsaaviin yrityksiin. Suurimpia tutkimuksessa havaittuja ongelmakohtia ovat suunnittelun ja valmistuksen yhteistyön erilaiset puutteet, laatutasoon ja sen varmistukseen liittyvät asiat, sekä verkoston sisälle syntyvä niin sanottu hiljainen tieto ja sen häviäminen. Tutkimuksen tarkastelujen perusteella havaittiin, että kaikkien tutkimukseen valitun kolmen laatutyökalun soveltaminen myös verkostomaisessa toiminnassa on mahdollista, mutta se vaatii huomattavasti suurempaa työpanosta kuin soveltaminen yksittäisessä yrityksessä. Myös näiden kaikkien kolmen työkalun yhtä aikainen käyttö on mahdollista. Juuri oikean työkalun valitseminen kullekin hitsaavalle verkostolle vaatii tarkkaa perehtymistä verkostoon ja sen tilanteeseen.

Excelling in procurement : IT Contract Management with Lean and Six Sigma. Case study on legacy contract management at Philips Global IT.

Few people see both opportunities and threats coming from IT legacy in current world. On one hand, effective legacy management can bring substantial hard savings and smooth transition to the desired future state. On the other hand, its mismanagement contributes to serious operational business risks, as old systems are not as reliable as it is required by the business users. This thesis offers one perspective of dealing with IT legacy – through effective contract management, as a component towards achieving Procurement Excellence in IT, thus bridging IT delivery departments, IT procurement, business units, and suppliers. It developed a model for assessing the impact of improvements on contract management process and set of tools and advices with regards to analysis and improvement actions. The thesis conducted case study to present and justify the implementation of Lean Six Sigma in IT legacy contract management environment. Lean Six Sigma proved to be successful and this thesis presents and discusses all the steps necessary, and pitfalls to avoid, to achieve breakthrough improvement in IT contract management process performance. For the IT legacy contract management process two improvements require special attention and can be easily copied to any organization. First is the issue of diluted contract ownership that stops all the improvements, as people do not know who is responsible for performing those actions. Second is the contract management performance evaluation tool, which can be used for monitoring, identifying outlying contracts and opportunities for improvements in the process. The study resulted in a valuable insight on the benefits of applying Lean Six Sigma to improve IT legacy contract management, as well as on how Lean Six Sigma can be applied in IT environment. Managerial implications are discussed. It is concluded that the use of data-driven Lean Six Sigma methodology for improving the existing IT contract management processes is a significant addition to the existing best practices in contract management.

Lean Six Sigma in a Manufacturing Lead Time Improvement Project

The objective of this research is to demonstrate the use of Lean Six Sigma methodology in a manufacturing lead time improvement project. Moreover, the goal is to develop working solutions for the target company to improve its manufacturing lead time. The theoretical background is achieved through exploring the literature of Six Sigma, Lean and Lean Six Sigma. The development will be done in collaboration with the related stakeholders, by following the Lean Six Sigma improvement process DMAIC and by analyzing the process data from the target company. The focus of this research is in demonstrating how to use Lean Six Sigma improvement process DMAIC in practice, rather than in comparing Lean Six Sigma to other improvement methodologies. In order to validate the manufacturing system’s current state, improvement potential and solutions, statistical tools such as linear regression analysis were used. This ensured that all the decisions were as heavily based on actual data as possible. As a result of this research, a set of solutions were developed and implemented in the target company. These solutions included batch size reduction, bottleneck shift, first-in first-out queuing and shifting a data entry task from production planners to line workers. With the use of these solutions, the target company was able to reduce its manufacturing lead time by over one third.

How Lean Six Sigma and Agile principles optimize ITIL-based processes

Imagine the potential implications of an organization whose business and IT processes are well aligned and are capable of reactively and proactively responding to the external and internal changes. The Philips IT Infrastructure and Operations department (I&O) is undergoing a series of transformation activities to help Philips business keeping up with the changes. I&O would serve a critical function in any business sectors; given that the I&O’s strategy switched from “design, build and run” to “specify, acquire and performance manage”, that function is amplified. In 2013, I&O’s biggest transforming programme I&O Futures engaged multiple interdisciplinary departments and programs on decommissioning legacy processes and restructuring new processes with respect to the Information Technology Internet Library (ITIL), helping I&O to achieve a common infrastructure and operating platform (CI&OP). The author joined I&O Futures in the early 2014 and contributed to the CI&OP release 1, during which a designed model Bing Box and its evaluations were conducted through the lens of six sigma’s structured define-measure-analyze-improve-control (DMAIC) improvement approach. This Bing Box model was intended to firstly combine business and IT principles, namely Lean IT, Agile, ITIL best practices, and Aspect-oriented programming (AOP) into a framework. Secondly, the author implemented the modularized optimization cycles according to the defined framework into Philips’ ITIL-based processes and, subsequently, to enhance business process performance as well as to increase efficiency of the optimization cycles. The unique of this thesis is that the Bing Box model not only provided comprehensive optimization approaches and principles for business process performance, but also integrated and standardized optimization modules for the optimization process itself. The research followed a design research guideline that seek to extend the boundaries of human and organizational capabilities by creating new and innovative artifacts. The Chapter 2 firstly reviewed the current research on Lean Six Sigma, Agile, AOP and ITIL, aiming at identifying the broad conceptual bases for this study. In Chapter 3, we included the process of constructing the Bing Box model. The Chapter 4 described the adoption of Bing Box model: two-implementation case validated by stakeholders through observations and interviews. Chapter 5 contained the concluding remarks, the limitation of this research work and the future research areas. Chapter 6 provided the references used in this thesis.

Production Quality Analysis of Special Elevator Cars Based on Six Sigma Approach

Project scope is to utilize Six Sigma DMAIC approach and lean principles to improve production quality of the case company. Six Sigma tools and techniques are explored through a literature review and later used in the quality control phase. The focus is set on the Pareto analysis to demonstrate the most evident development areas in the production. Materials that are not delivered to the customer or materials that damaged during transportation comprise the biggest share of all feedbacks. The goal is set to reduce these feedbacks by 50 %. Production observation pointed out that not only material shortages but also over-production is a daily situation. As a result, an initial picking list where the purchased and own production components can be seen, is created, reduction of over- and underproduction and material marking improvement are seen the most competitive options so that the goal can be reached. The picking list development should still continue to make sure that the list can be used not only in the case study but also in the industrial scale. The reduction of material missing category can be evaluated reliably not sooner than in few years because it takes time to gather the needed statistical information.

Six Sigman soveltamisedellytysten ja -apuvälineiden luominen

Diplomityön tavoitteena oli luoda soveltamisedellytyksiä ja -apuvälineitä Six Sigma -parannusprojektien läpiviennille Perlos Oyj Connectorsin meistoprosessissa. Työn teoriaosassa käsitellään Six Sigman perusteoriaa, organisointia ja soveltamista sekä suorituskykymittariston ja tiedonkeruumenetelmien luomista. Kirjallisuuden tarjoaman teorian jälkeen työssä tutustuttiin meistoprosessiin ja Perloksen tapaan soveltaa Six Sigmaa prosessien parantamiseen. Tämän perusteella kehitettiin tiedonkeruu-, dokumentointi- ynnä muita apuvälineitä parantamisprojektien tueksi. Lopuksi koekäytettiin luotuja välineitä meistoon tehdyn osittaisen Six Sigma -projektin yhteydessä. Luotettavan tiedon saaminen prosesseista on perusedellytys Six Sigma -projektien läpiviennille. Menetelmän kouluttaminen työntekijöille on myös tärkeää. Erilaiset dokumentointi- ja laskentakaavakkeet toimivat projektien läpiviennin ja seurannan tukena. Työssä luotuja tiedonkeruu-, koulutus-, dokumentointi- ynnä muita apuvälineitä voidaan käyttää jatkossa apuna Perloksella tehtävissä Six Sigma -projekteissa. Mittaristoa ja tiedonkeruuta tulee kehittää edelleen, jotta prosessien toimintaa voidaan analysoida tehokkaasti. Työn lopussa on ajatuksia Six Sigman käytöstä sekä tiedonkeruujärjestelmien jatkokehityksestä.

Developing Supply Management Processes in a Global Process Automation Organization

Tämän työn tarkoituksena on tutkia prosessien uudelleensuunnittelua ja erityisesti hankintaprosessien uudistamista kansainvälisessä prosessiautomaatioyrityksessä. Työn aihealuetta tutkitaan sekä henkilöstön, uuden teknologian että prosessien kehittämisen näkökulmasta. Prosessien kehittämisessä työkaluna on käytetty tunnettua laatutyökalua, Six Sigmaa. Työn päätavoitteena on luoda uudet toimintamallit kehitettäville prosesseille. Kirjallisuuden lisäksi työ perustuu kirjoittajan kokemuksiin ja havaintoihin projektitiimin jäsenenä. Prosessien kehittämistä tarkastellaan myös muutoksenhallinnan näkökulmasta. Tämä on alue, jota ei saisi koskaan jättää huomiotta kehityshankkeissa. Kehitettäessä liiketoimintaprosesseja muutoksenhallinta on menestyksen kannalta ensisijaisen tärkeää. Muutoksenhallintaa tutkitaan työssä sekä organisaation että yksilön kannalta. Tässä työssä esitellään lisäksi maailmanlaajuisesti tunnettu ja käytetty laatutyökalu, Six Sigma. Six Sigmaa on käytetty myös työn lopussa tarkasteltavassa case-osuudessa. Case-osuudessa prosesseja tutkitaan aina nykytilasta uusiin toimintamalleihin saakka. Prosesseja ja niiden suorituskykyä analysoidaan yhtäjaksoisesti kehitysprojektien edetessä.

Teräsosatehtaan tuotantoprosessin kehitysprojekti

Tässä insinöörityössä tutkittiin lean-toiminnan sisällyttämistä Peikko Finland Oy:n toimin-taan. Työssä esitellään sekä lean-toiminnan että Design for Six Sigma -metodin työkaluja teoriatasolla. Teräsosatehtaalta valitulle pilottiprosessille laadittu uusi toimintasuunnitelma ja sen vaatimat kehitystoimenpiteet esitellään Peikko Finlandille tehdyssä laajemmassa raportissa (78 sivua ja 7 liitettä). Insinöörityön päätavoitteena oli minimoida projektin aikana määritellyn pilottiprosessin välivarastointi ja eräkoko sekä lyhentää tuotteiden läpimenoaikaa. Työn alussa keskityttiin tutkimaan projektiin vaikuttavien asioiden teoriatausta sekä laatimaan projektin vaatimat perustiedot, esimerkiksi ABC-analyysi Peikko Finland Oy:n teräsosatehtaan tuotteista. Laadittujen perustietojen perusteella valittiin pilottiprosessi, jota tutkittiin tarkemmin projektin myöhemmissä vaiheissa. Pilottiprosessista tutkittiin ongelmakohdat ja sen jälkeen laadittiin uusi suunnitelma, jossa määriteltiin tuotteiden uudet eräkoot ja niiden tarvitsemat välivarastoinnit. Uuteen suunnitelmaan sisältyi myös suunnitelman implementoimiseen vaadittavat kehityskohteet ja ratkaisuehdotukset niihin. Projekti rajattiin päättymään uuteen suunnitelmaan, joten implementointi suoritetaan vasta insinöörityön luovutuksen jälkeen. Tämän vuoksi saavutettujen tehostusten toimintaa ei voitu varmistaa tuotannossa, mutta teoriassa uusi suunnitelma pienentää eräkokoa ja väli- ja valmistuotevarastointia noin 70 %. Uuden suunnitelman mukainen läpimenoaika on 90 % lyhyempi kuin läpimenoaika nykyisellä toimintatavalla.

Multifactor Performance Study on Complex Systems for the Benefit of Management

The primary objective is to identify the critical factors that have a natural impact on the performance measurement system. It is important to make correct decisions related to measurement systems, which are based on the complex business environment. The performance measurement system is combined with a very complex non-linear factor. The Six Sigma methodology is seen as one potential approach at every organisational level. It will be linked to the performance and financial measurement as well as to the analytical thinking on which the viewpoint of management depends. The complex systems are connected to the customer relationship study. As the primary throughput can be seen in a new well-defined performance measurement structure that will also be facilitated as will an analytical multifactor system. These critical factors should also be seen as a business innovation opportunity at the same time. This master's thesis has been divided into two different theoretical parts. The empirical part consists of both action-oriented and constructive research approaches with an empirical case study. The secondary objective is to seek a competitive advantage factor with a new analytical tool and the Six Sigma thinking. Process and product capabilities will be linked to the contribution of complex system. These critical barriers will be identified by the performance measuring system. The secondary throughput can be recognised as the product and the process cost efficiencies which throughputs are achieved with an advantage of management. The performance measurement potential is related to the different productivity analysis. Productivity can be seen as one essential part of the competitive advantage factor.

Opettajien työelämäjaksojen kehitysprojektien mallintaminen osaksi Etelä-Karjalan ammattiopiston toimintaa

Tämän diplomityön tavoitteena oli selvittää, kuinka pilottiprojektien pohjalta voidaan kehittää toimiva prosessimalli. Prosessi, johon uudenlaista kehitystapaa lähdettiin hakemaan, oli Etelä-Karjalan ammattiopiston opettajien työelämäjaksojen toteutusprosessi. Opettajien työelämäjakson erilaisia toteutusmalleja oli testattu jo useammassa eri erilaisten rahoitusten avustuksella perustetuissa pilottiprojektissa. Ulkopuolisen rahoituksen päättyessä tuli ajankohtaiseksi kehittää Etelä-Karjalan ammattiopistolle oma työelämäjaksojen toteutusmalli. Mallin kehitystyössä voitiin hyödyntää aikaisemmista projekteista saatuja palautteita, jolloin mallin kehitystyö lähti liikkeelle tiedossa jo olevista asiakkaan toiveista ja tarpeista. Toimintaa kehitettiin prosessina, koska Etelä-Karjalan ammattiopistossa on alettu satsaamaan voimakkaasti laatuun ja laadun jatkuvaan parantamiseen. Laatua taas ei synny ilman, että toiminnat määriteltäisiin ja kuvattaisiin prosesseina. Koska koulutusorganisaatioille prosessiajattelu on vielä aika vierasta, tässä työssä selvitettiin ensin teoriakatsauksen pohjalta, mitä prosessiajattelu tarkoittaa ja mitä hyötyjä sillä voidaan saavuttaa julkisella sektorilla. Lisäksi kartoitettiin niitä tapoja ja keinoja, joiden avulla prosesseja voitaisiin parantaa ja uudistaa. Prosessin uudistamisprosessiin löytyi teorian pohjalta työkalu, jota muokattiin niin, että sitä voitiin hyödyntää juuri tämäntyyppisessä uudistustyössä. Työn lopputuloksena syntyi työelämäjakson toteutusta kuvaava prosessimalli, jota on jatkossa tarkoitus testata ja kehittää työelämäjaksoilta saadun palautteen perusteella.