MGMT20130 Operational Management and Business Analytics

ngthen its product base by strengthening the process required for its manufacture (Antony, Rodgers & Gijo, 2016). Thereby quality of the products can be maintained and organisations can improve the production process so that sustainability within the environment can be maintained.

Therefore, it can be said that the application of six sigma in the lean management of an organisations helps in its growth and at the same time ensure that the process applied for the manufacturing provides sustainability in the environment. The objectives of the six sigma technique can be made equal to the objectives of an organisation and therefore, manufacturing companies tend to apply the method for improving the method. Hence, having determined the objectives an analysis can be made that establishes the synergies between the lean management as well as the six sigma process in an organisation.

Synergies between lean management and six sigma

Kovach et al. (2017) is of the opinion that the synergy between the lean management and six sigma can help in identifying the effects it has on an organisation. The application of both the methods has a combined effect on an organisation that can be summarised by the summation of the separate effects provided by the two concepts. Therefore, an analysis of the synergy can be done that can help in understanding the concept in a proper manner.

Lean	Six sigma
Establish methodology for the improvement of the products	Consists of a policy deployment methodology
Focus on the value stream of the customers	Measures the requirements of the customers
Focus on current situation for project base implementation	Apply cross functional management project, management skills and discovery
Collect necessary documents related to the product and production data	Collects data by analysing tools and processes for mapping and flowchart
Calculate the capacity of the process so that a standard of work can be created	Apply various data collection tools and techniques for understanding its implications
Conduct tests so that improvement can be made	Conduct team skills and project management techniques with statistical method
Reduce the production cycle times and prevent any equipment failure	Apply seven management tools and seven quality control tools

Table: Synergy between lean management and six sigma

(Source: Created by author)

The table helps in the analysis of the synergy that exists between the lean management and the six sigma strategy used by an organisation. It has been seen that the establishment of methodology is done by the application of lean management so that the improvement can be made in the manufacturing process. At the same time, the deployment of policy for the development of a proper method can help in the development of the methods required for manufacturing.

It has also been seen that the application of six sigma helps in identification of the requirements of the customers. As stated by Kumar et al. (2016) customer value stream and the requirements of the cross-functional management can help can help in discovery of the knowledge related to manufacturing of products so that management skills and theories can be applied in the organisations.

As stated by Jacobs, Swink and Linderman (2015) production and its data required for providing quality-manufacturing techniques in an organisation can be laid out so that a flow in the time process can be analysed. In the case of the application of six sigma process mapping and flow chart can be used to collect data. In this regard, it can be said that various tools and techniques are used that can help in the application of data and at the same time ensure that effective calculation can take place. The application of techniques such as SPC data collection, Cause and Effect and FEMA can help in the application of the data collected in an organisation.

As observed by Evans and Lindsay (2014) testing of the quality management and its hypothesis can be made by the application of the lean management technique. The tests are made to confirm the improvement of the products and at the same time ensure that the tests provide results that are helpful for the manufacturing of the products. It has been seen form the analysis of the table that team skills as well as project management techniques are done by the application of statistical analysis that can help in building the products and analysing the potential success rate of the products.

Therefore, it can be said that the synergy of the application of both the lean management and six sigma can help in an effective development of management system and at the same time ensure that the objectives of an organisation is achieved. Keeping the results of the analysis, benefits and challenges of six sigma can be analysed that can help in maintaining a greener operation in the supply chain.

Benefits of six sigma

Cherrafi et al. (2016) is of the opinion that the application of six sigma can help in the help an organisation to gain benefits in manufacturing of its products. One of the benefits that are provided by the application is that a uniform process is maintained. The output of the process can help establishing a proper manufacturing process that can be used for gaining an advantage in the market. This can provide organisations with an opportunity to increase its production method and at the same time ensure that organisations can understand the value of increasing the production function.

Often it has been seen that consistency in the production is not maintained mainly due to excess number of products. In this regard, the application of the six sigma method can help organisations to take control of the defects and ensure that quality of the products are maintained by keeping in mind the number of defects that it needs to management. As observed by Akpolat (2017) the effective application of the six sigma process can help in the reduction of the defects and at the same time reduce the cost of manufacturing.

This ultimately leads to the reduction of the cost of the final products so that productivity of an organisation improves. The focus can be only one product at a time and the development of a standard work procedure can help reducing the production cycle that is required for the manufacturing of a particular product. Albliwi et al. (2014) is of the opinion that it is necessary for organisations to ensure that the application of the six sigma leads to the development of an organisation and help in maintaining a proper standard that can be applied for the development of the workplace. Hence, the application of the six sigma can lead to the benefits with which organisations can improve in the competitive business market.

Apart from this cultural change in an organisation can be maintained by the effective application of the six sigma. Often it has been seen that the application of new tools or techniques can provide organisations with adverse change so that it can be effective in the business market. However, with the application of the six sigma technique it can be helpful for organisations to maintain its culture and make changes that are required for its existence (Conger, 2015). This can provide organisations with an opportunity to impress the customers and maintain customer satisfaction. As stated earlier, measuring the requirements of the customers is one of the important elements of six sigma approach.

Six sigma can also help in the growth of market share of an organisation. This is because with an increase in the quality of products and its reduction in the defects organisations can gain an advantage in the market over its competitors. According to Drohomeretski et al. (2017) the increase in the market share can help in the growth of the organisations and at the same time ensure that product and service development takes place that can help organisations in gaining necessary benefits in an organisation.

Hence, it can be said that the benefits of the application of six sigma is pivotal for the success of organisations. This can provide the organisations with an opportunity to improve its reputation as well as the market strategies so that it can remain competitive in the market. However, the challenges that are faced from the application of the six sigma can prevent organisations from being successful.

Challenges of six sigma

Timans et al. (2016) is of the opinion that challenges exist whiles applying six sigma in an organisation. One of the major challenges that are faced by the application of six sigma in an organisation is that of its implementation. It has been seen that the applicaton of six sigma can be challenging and adopting the method require organisations to spend a vast amount fortune in terms of technology as well as resources. Moreover, the challenges posed by employees in an organisation also provide threat for the application of six sigma in the organisations.

Apart from these interactions between the systems is not considered as the process applied for the application of six sigma can be improved independently. It is necessary for organisations to ensure that application of a proper process is required for the implementation of six sigma in an organisation. As stated by Swain, Cao and Gardner (2018) it is necessary for organisations to understand the application of the resources so that a process can be applied that can help in the improvement of the six sigma. The independent application of the process can provide organisations with an opportunity to develop the contents that are required for the sustainability within a department or organisation.

At the same time six sigma is slow and lacks the tools that are required for improving the business in an organisation. The lack of specific tools can be a problem for organisations as the application of the method can bring about changes. Therefore, it is necessary that six sigma be implemented only after gaining proper tools that are required for the effective management of organisations. However, as stated by Raja et al. (2016) the applicaton of FEMA, cause and effect, SPC data collection may have a negative impact on the development of an organisation as the data collected by these methods are slow and require constant monitoring.

Laureani and Antony (2017) is of the opinion that six sigma can have long duration of projects thereby reducing the time of trying to implement other projects in the business. This can hinder the progress of an organisation as focus needs to be provided on one topic and therefore, expansion of opportunities in the market cannot take place. This can cause problems for an organisation in terms of financial improvement as it seen earlier that application of six sigma can be costly. Hence, it is important that every organisation gain proper business opportunities in the market.

Support provided to the greener operations and supply chain

Antony (2015) is of the opinion that in the modern world, it is required that every organisation maintain a greener and sustainable business opportunity in the business. This can provide a helpful assistance for the environment and at the same time ensure that society demands are fulfilled so that supply chain management can be made in a smoother manner. One of the aspects that need to be kept in mind is the fact that greener operations and supply chain management can help in providing organisations with the necessary changes and success in the business.

 At the same time, it is also necessary that the challenges that are imposed by the six sigma approach be taken into consideration so that it can help in providing effective application in the business unit. The satisfaction of the customers needs to be kept in mind so that organisations can benefit from the application of sustainability in the organisations. In this regard, an evaluation of the challenges made for the production of effective manufacturing unit can be taken into consideration (Goetsch & Davis, 2014). One of the challenges that are presented in the implementation of six sigma is the fact that it is a slow process.

As seen from the analysis, the process of six sigma is slow and provides organisations with the disadvantage of working in more than one project at a time. Hence, it is necessary that the focus be shifted more towards the development of sustainability so that organisations can develop existence in the society. Hence, it can be said that sustainability development in an organisation is one of the important management strategies and the manner in which organisations can implement the strategy depends upon the application of resources and techniques for its development.

Hence, as observed by Fullerton, Kennedy and Widener (2014) it is necessary that organisations that can perform only one project with the assistance of six sigma focus on the development of sustainability and the improvement of the supply chain. Hence, the support provided by this particular challenge can be justified as it provides organisations with an opportunity to improve its functions and provide the effective growth of greener operations in the market. Keeping this in mind it can be said that the improvement in the system interaction process can help in adapting to the changes that are required to be implemented in an organisation.

Martínez-Jurado and Moyano-Fuentes (2014) is of the opinion that people issues within the lean management and six sigma may pose challenges, as employees may be reluctant to accept the changes in an organisation. Hence, a proper motivational skill is required so that employees are provided with the necessary incentive to manage the application of six sigma and improve the sustainability in an organisation. Along with this, the supply chain management in an organisation can be made available by considering the statistical analysis of the effectiveness of lean management and its impact on an organisation.

Hence, it can be said that the effective application of lean management in an organisation along with the adoption of six sigma can help in the development as well as reduce the impact of the challenges of manufacturing. The challenges of the process can benefit the development and shift towards greener operations as it provides organisations with an ability to improve the base of the operations. Therefore, it is necessary that certain changes are made so that organisations can maintain the required solutions necessary for the effective implementation of greener management and improve its supply chain. 

Winemaker problem

Optimum Production Plan

As per the data analysis in [WinmakerSolution.xlsx:Task B (a)] In optimum production plan 1206.9 litres Table wine and 862 litres Dessert Wine will be produced. Along with that 1000 hours of Labour, 448.3 hours of bottling and 2000 Kg of grapes will be used. The optimum profit will be $11551

Sensitivity analysis report

As per the data analysis in [WinmakerSolution.xlsx:Task B (b)] if  $1000 has to be invested in either $2/hours for labour and bottling  or $2/Kg  Grapes purchasing, the best option would be the investing in Grapes purchasing because it will provide (13965-12026)= $1939 additional profit over the other options of investing.

Change in the production plan

As per the data analysis in [WinmakerSolution.xlsx:Task B (c)] considering the demand for both wines are 600 litres for table wine and 600 litres for dessert wine 600 hours of Labour, 300 hours of bottling and 1380 Kg of grapes will be used. The profit will be $7800

Choice of wine produced by the wine maker

As per the data analysis in [WinmakerSolution.xlsx:Task B (d)] considering the tripled market demand (1800), producing the Table wine will be beneficial because it will make the profit of $10666, where producing only Desert wine will make the profit of $9000

Conclusion/Recommendation

After the completion of the analysis, it can be said that it is important that organisations develop a systematic approach for the implementation of six sigma. One of the approaches is the effective conservation of financial capabilities so that six sigma process can be used. At the same time, it is also necessary that the challenges posed while implementing six sigma as an opportunity for improving future prospects. For example, development of a sustainable progress within the environment can help in the effective progress of a society.

Therefore, it can be conclude that an effective six sigma and lean management strategy can help in the development of an organisation and its manufacturing process. The objectives of a six sigma process can help in improving the manufacturing process and at the same time ensure other activities of an organisation also improve. The benefits of six sigma can create a cause and effect relationship and it is necessary that proper activities be undertaken so that organisations can develop its sources in the market. Supply chain management can help in improving the distribution strategy, which in turn can be effective for the development of six sigma in an organisation.

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