Lean manufacturing is a philosophy of production that had its origins in Japan with the Toyota production system, whose main objectives are the elimination of waste and the creation of value (Zhu, Johnson, & Sarkis, 2018).
To understand the lean system of manufacturing, we must clear about what is lean production. The lean production has been defined from multiple forms. Between these definitions it is found that “the lean manufacture is an integrated system that allows you to achieve the production of goods and services with the minimum cost” (Mingfeng, David, Xin, & David, 2018).
Sometimes it is also associated with waste disposal especially when there are excess inventories and capacity, to minimize the effects of variability in the chain, time of processing or demand. Lean manufacturing establishes the smoothness between all dimension like elimination of waste, maximise capabilities, and minimize inventory by controlling the variation in the system (Vinod, R, & P, 2018).
Six Sigma is a rigorous methodology of improvement, developed by Motorola in the 80s, whose fundamental principle is that it is the approach to the client. Use the process DMAIC and statistical methods, to define the problems and situations to improve. Measure for information and data, analyse the information collected, implement process improvements and finally, Control the processes or products with the aim of achieving results sustained, which in turn generates a cycle of continuous improvement (Salman, 2006). The implementation of six sigma impacts positively on many critical aspects of the quality and customer satisfaction.
The efforts of six Sigma focus on three main aspects: improving the customer satisfaction, reduce cycle times and reduce defects. To successfully implement Six Sigma Malek (2018), suggests that the focus on the client, use the best talent, commitment of the leaders of the organization and arrange of the necessary support through an adequate structure of actors with specific roles. Finally, we find that six sigma, it is useful and important in the supply chain because through the intensive use of statistical tools can be identified the key processes of the organization that require improvements, this Six Sigma one or the other way they affect consumer satisfaction in front of the product or service offered (Malek & Darshak, 2015).
Over the years they have developed methodologies and philosophies to maximize the value for companies as they illustrated in the evolutionary Fig 1, however, the approaches and objectives of these methodologies and philosophies have been limited to the productive area, just like your tools.
Lean 6σ is a philosophy and methodology that combines lean manufacturing with 6σ, and how to improve the processes in a way that involves the costs of poor quality, processes outside of control, and waste factors. Which is Critical of customer requirements. As expressed by Spector (2006, p 42) “The lean thought and 6σ are two of the most effective techniques of improvement available today, however, many companies are still struggling to take advantage one or two disciplines to achieve the desired results. “
The convenience of the joint application of lean thinking and 6σ is to be able to achieve the best results offer each of the philosophies, as stated by (Dimitris 2013), its recommendations for the future of six sigma. which also to consider what was previously mentioned, aims to overcome some criticisms made to these two methodologies (Dimitris, Dimitrios, Dimitrios, & Giorgos, 2013).
giving introductory review of lean 6σ components one by one, its time to move on further to analyse and discuss specific organisation which has adopted and achieved lean 6σ methodology for its specific enterprise, we will discuss the main approach they have followed especially for logistic point of view. But before that, we shall discuss about some literature review for general purpose lean 6σ and then specific about logistical approach using lean 6σ for their organisation.
Literature review
There are numerous examples of implementing and analysing lean 6σ process in almost each field of industries, whether it is a manufacturing or servicing, the importance of implementing lean 6σ methodologies clearly stated by Rui 2015, they states that, the implementation not only resulted in improving production and quality in beverage industries, engaging employee and motivating for continues improvement, but also given best result in terms of environmental perspective, and customer satisfaction (Rui, Filipa, & Inês, 2015).
The study done by Qingyuan 2018, dealt with environmental sustenance in Healthcare industries especially hospital. He implemented the additional dimension mechanism for combining the lean and green framework for hospital with the help of using traditional IDEF meta model, this is due to the reason that, the hospital is one of the most waste generating organisation. The lean and green implementation must to do thing in healthcare industries (Zhu, Johnson, & Sarkis, 2018). The study proposed by Ruben (2017), proposed the framework for lean 6σ with environmental consideration in Indian automotive firm.
The prerequisite of the implementing firm should be at least at 3σ level, the basic process in this framework consists of standardised model for lean 6σ by implementing life cycle impact assessment at each steps of the implementation, if any steps not up to the standard, then these steps is reconsidered with different perspective, using shop floor engagement program with some standardized QC tools. The main benefits of this process are that it invokes continuous improvement program even after successful implementation of 6σ methodology (Vinod, R, & P, 2017).
The further we will discuss about lean 6σ study with logistical point of view, in this regard, value stream mapping is important for logistical point of view, especially in food supply chain industries. The analysis and implementation using VSM is can be an effective and efficient tool for several improvements not only for the identification of the wastes but for the determination of the greening of the agri-food supply chain. But this implementation just maintains the basic requirement of lean 6σ (Dimitris, Dimitrios, Dimitrios, & Giorgos, 2013) . For the development of the LSSL model, several literature review about the chain of supplies,
lean manufacturing, lean six sigma and logistics is done fundamentally, with the purpose of extracting the concepts and fundamental principles that surround these terms, to establish the theoretical and conceptual framework of the model. Similarly, a review was made exhaustively for various tools that apply for improving the lean 6σ process, taking as reference and the detailed collection of tools made by (Ang, Suhaiza, Mohammad, & T, 2015)and (Debadyuti, 2018), which were applicable to logistic context. The continuous study of logistics improves the supply chain to much higher level and integrate the entire supply chain to the extent of defensive environment practices.
One of the process which is identified making niche implementation is by using profile deviation analysis to map the supply chain and corporate environmental strategy, by mapping these two, the implementor try to find the issue starting from policy making to shop floor reality, rest of the thing is implemented through basic tools and techniques used in lean 6σ implementation (Tienhua, Yen-Chun, Yenming, & Goh, 2014).
Now we are going to discuss the implementation of lean 6σ in Mumbai harbour port truck management firm,This port is most important ports in India, where container is unloaded through ships and further transfer to almost all cities of India on around 0.12 million trailers at around 300 trailers on daily basis.
In early 2015, there is always news of mismanagement and declining transfer rate is heard. Due to being important port, the transporter forum has decided to implement some model, so that this mismanagement can be reduced. After consultation from several firm, the following model is implanted with the following procedure.
Modelling of truck transportation system in Mumbai harbour
The strategy proposed in the model responds to the need for coordination and synchronization of the entire Mumbai port that will improve the service to client and minimize logistics costs. The Strategy basically consists of achievement of a strategic goal that is the aligned to the supply chain. Focus of SCM alignment in the present Model is given below.
To achieve alignment with the transporters with port they must change the movement system of product type push, this is based on incomplete or inaccurate information of the demand, to a Pull or mixed type method, based on a quick response to the demand sent by different cities in real time, the total demand is dynamically aligned with container available. The alignment of container and demand also contributes to the improvement of the flow, reduction of containers, minimization of the whip effect along the chain, and decisively to the reduction of cycle times.
Adopted methodologies
The adopted methodologies by transporter is simple but very effective, and it is DMAIC methodologies, we will discuss each of the word and the activity incorporated by transporter in Mumbai harbour port.
The Harbour transportation model is developed with the help phases of the DMAIC methodology, which has been selected for being the tool lean 6σ for development of continuous improvement. The transporter has selected this tool for being clear in its phases and the purposes pursued in each of these, and in turn versatile by its ability to apply to different contexts to the manufacturing How an example of this last are applications of Six Sigma in the field of health (Foster, 2016) (Zhu, Johnson, & Sarkis, 2018) (Anass, Said, Andrea, Ahmed, & Khalid, 2016).
The basic purpose was to transporter know their customer and their needs. The type of container going to Srinagar (which is farthest destination) is different than container going to Nagpur. For this purpose, VOC, CTQ and Kano system were implemented.
Project presentation: to present The final proposal of the project is made Project charter, which consists of number of people linked to the transportation services with their names and dedication time, determination objectives (clear definition of the objective, phases of the project and their respective dates of delivery) and financial measure of the project, or what is expected to be gained with its development (VPN of the project).
Measure the level of logistics service and take Comparisons of change over time (for the same measurement periods of the cost) were adopted by the transporter. Some other measurement like Delivery time, Loading, Unloading, and fuel efficiency also taken into consideration. The tools utilised for this purpose is Value Stream Map (VSM), SIPOC diagram (Provider, Entries, Processes, Departures and Client), XY matrix etc.
Measurement of the performance of the processes involved for the achievement of the objective of the transportation business: as a starting point they have perform a detailed VSM that allows visualize the multiple levels of the process, highlight waste, bottlenecks, recognize the flow of the container, for the information value, and make the decision points visible. At last selection of critical points were done so that, the findings of situations problematic or that have the potential to improvement according to what was previously reviewed. The reason for selecting critical points is limit the analysis space, and that in the later measurements these do not turn tedious, expensive, delayed, inconvenient for the operation or unnecessary.
For the development of this phase in the previous step the most tools were selected adequate. The selection of tools performed according to the nature of the problem, complexity and type of data to analyse. Causal analysis at critical points: in this phase their objective is to determine the root causes of the problems, limitations or opportunities for improvement in points critics selected in the previous phase, and that solve the limitations found in the QFD. For the detection of waste causes, variability and defects are presented. There are some tools, from which they selected those that analysts consider most appropriate for according to the problem in question and the level of to be searched. The tools are:
Pareto analysis, Control chart, Cause and effect diagram, FMEA, Anova and regression analysis etc.
In this phase the purpose is to formulate proposals of improvement that impact the objectives of the project, the logistical objectives and the strategy of the supply chain. Each proposal must be accompanied by detailed analysis of the necessary resources for the implementation, operating costs of the new system and potential benefits, so that you can select the alternative that adds more value to the client and the company. The analyse the different improvement they have used the tools which is Simulation, TPM, Visual control, 5S and optimisation techniques and training etc.
The control over the implementations can define the success and permanence of the same, and the incorporation of the transporter in a process of continuous improvements. To sustain the improvement, they have recommended the following,
After analysis phase, the transporter representatives start feeling that, what are the major causes that, the shipment is lagging behind the target. They found that, there is no record for number of vehicle coming to the port, about dozens of vehicle are stuck in the highway due to unappropriated road permit and waiting in somewhere on the highway, so that somebody will bring their road permit and then start driving,
They started card system, and only they have to swap the card at each location, whether they are on entry, exit or running, After successful implementation of card system and properly coordinating with E-trans-info company, they are able to visualize the gaps, Now after making entry swap, the system auto-allocate the related container, only person have to confirm the auto-allocation. Similarly at the time exit swap, the entire related document, like road permit, test certificate, and tax receipt is being given by single window delivery system. Each and every vehicle passes though emission at the entry time. Now the vehicle is waiting in highway due to wrong permit. The current problem is that, the tax receipt is still given as manual and it takes time, The transporter are in the process of making it online, in this way, the process will be much improved.
TASK B- Solution of Winemakers Problem
As per given problem, we have modelled the problem to solve with the help of linear programming in excel solver,
The number of litre for each kind of wine is the decision variable for optimising the objective. Suppose the table wine is being produced is denoted as x1 and desert wine is denoted as x2. The objective function will become as max(Z) = x1 * 8.0 + x2 * 5. We have used SUMPRODUCT function to optimise the profit under the constraints, which is given as follows,
The labour hour labour hours
The bottling hour labour hours
The grapes required kg
The multiplication of decision variable with wine produced is the resources utilized in making each wine respectively
In solver we have given the objective function max (Z) by changing the cell as “wine Produced”. After running the solver, the results obtained from the solver is $ 10672.53 by producing 1332.60 litre of table wine and only 2.3436 litre of desert wine.
In this condition we can say that the optimum production plan for the given constraints is 1332.60 l litre of and 2.3436 litre of desert wine, in this condition the maximum profit is $ 10672.53. Resources utilised is 67.82%
After running the sensitivity analysis report, it was found that there are 534.4465 hours of labour hour, 400 hours bottling hours and 2000 kg of grapes consumed in maximising the profit. The other meaning of this obtained data is we have 465.55 labour hours, 399.75 bottling hour are not used in this process, and amount of grapes which is consumed 100%.
As given in question, the additional labour hour, bottling hour and grapes are available at $ 2/ hour, and $ 2/ kg respectively, In such condition we have two option to maximise profit, Either we buy everything from given amount and produce wine in order to maximise profit after resetting all the data and add the profit occurred in previous calculated profit, or we must utilise the unused labour hour and bottling hour, with total investment only in purchasing grapes. That is why we have solved the problem in two parts, (b-1) and (b-2). The constraints for the given condition are converted as cost by multiplying the given rate with respective item. After running the solver in first case it was found that, the optimised additional profit generated for first case is $ 1819.68 , In this condition the total profit is $ 1819.68 + $ 10672.21 = $ 12492.21.
But since, we are learning about Lean Six sigma, and we have to utilise that skill in this problem, we will utilise the unused labour hour and bottling hour as a better chance to ease the mass of grapes constraints by investing the addition amount in purchasing grapes. In $ 1000, we can purchase 500 kg of additional grapes and utilised it with the help of unused resources. In this condition the only one constraint if being changed and it is amount of grapes will be 2500 kg in place of 2000 kg.
Rest all constraints and variable will be same as problem (a). After running the, solver it was found that, almost 80% of resources were utilised and optimised profit is $ 13339.20. This amount is $ 847 more that result obtained in part of the same question. Resources utilised is 79.38 %
As per market demand it is clear that, the production should not go beyond 600 litre of each kind of wine. In this condition, we have to add to additional constraints to the solver, on and above constraints present in solution (a). The constraints will be like this
After adding the constraints we must again run the solver, the results obtained is as given below
The optimised profit is $ 5170.81, in which the production plan is 600 litre of table wine and 74.162 litre of desert wine. Resources utilised is 50.93%
As given in question, We have to analyse each case by producing one wine at a time, in first case the extra constraints is given as We have to add the above constraints in the given solver this is additional constraints for problem (a). After running the solver it was found that, the maximum table wine produced is 1333.33 litre with given resources and the profit generated is $ 10666.67. Resources utilised is 67.77 %
For second case, i.e. producing only desert wine we must provide the additional constraints in solution (a) as given below.
Again, running the solver, it was found that, the maximum desert wine produce is 99.99 litre and profit generated is $ 500.
For the above two cases, the best solution is for case (i) in which only table wine is produced, the maximum profit by producing table wine is $ 10666.67. Resources utilised is 36.16 %
Part A (lean 6σ in industries)
To achieve the objectives of the harbour port logistic model. The implementation is kept very simple but useful process of DMAIC. Most of the time the logistic problem of an organisation is being solved with the help of DMAIC methodologies, this will definitely reduce the number of variability and defects to add greater value, additionally helps to reduce the waste also, but the objectives of the lean thinking that are relevant and possible to achieve the increase in the speed of flow and the elimination of wastes, are still require some additional tools for further continuous improvement.
Implementing, emission check definitely report the transporter for unwanted exhaust, but, certain parameter still require to reduce the emission. As discussed earlier in literature review, additional dimension mechanism for combining the lean and green framework for logistic perspective will be helpful in integrating the lean and green harbour port model. The continuous improvement in logistics improves the supply chain to much higher level and integrate the entire supply chain to the extent of defensive environment practices. One of the process which is identified making niche implementation is by using profile deviation analysis to map the supply chain of harbour port with transporter corporate environmental strategy.
The further study is required to know the tolls and techniques which possible can be used to enhance their operational efficiency to much greater level, so that logical part of any lean 6σ industries should feel this logistical portion of their firm as defensive firm. Among the possible limitations that may arise during the implementation of the harbour port logistic model are: a) The lack of commitment to the project on the part of the government organisation; b) Not providing sufficient support and training to the people involved; c) Not allocate sufficient resources (time, money, personnel, etc.) for the proper application of the model if this methodology should not be applied in a complete and consistent manner, which may lead to undesirable results and a rejection of the model.
Part B (Winemaker problem)
After solving the above four problem with different condition it was found that, how we can utilize our resources, to maximise the profit in different cases and according to the market demands, we must decide our production plan. This is key concept for the lean six sigma processes, from our point of view the production plan is second part of solution (b), in which we have utilised around 70% of our available resources and maximised the profit which maximum in all possible solution. This also indicates that, how resource utilisation is related to maximisation of profit. As we have discussed in part-I about using different tools and techniques used in lean six sigma process, the linear programming is also one of the useful tools which is often used in industries especially in optimising logistic problem.
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