SEMESTER SPRING 2013
PRODUCTION AND OPERATIONS MANAGEMENT
ASSIGNMENT # 02
DUE DATE: 2ND JULY, 2013
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.
Since its beginning, the company has always been contributing towards the advancement
and development of the engineering sector in Pakistan by introducing a range of quality
electrical equipments and home appliances.
For improvement in different divisions of the company, management of PEL electronics
wants to implement the concept of “six sigma” so as to develop the appliances that are
near to perfection and reliable. A team of Marketing and Operations department experts
is formulated and are asked for their suggestions and expert opinion on this decision.
Suppose that you are the part of that team what will be your recommendations on the
basis of your knowledge of “Production and operations management” on the following
1. What are the factors that will explain that Pak Elektron Limited (PEL) is prepared
for the deployment of “six sigma”? Provide suitable details to support your point.
2. What possible obstacles that the management of Pak Elektron Limited (PEL) have
to face while implementation of “six sigma”. (15)
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plz share ur ideas specially Q # 1
1 Question ma ye ha k Pak Elektron Limited (PEL) apni product ko developed karny k lea kia factors use kary gie
What are the factors that will explain that Pak Elektron Limited (PEL) is prepared
for the deployment of “six sigma”?
It means PEL kiyon Six Sigma deploy kerna chah rahi hai? Means wo konsay factors hen jis ki waja say PEL six sigma ki taraf aai hai
Six Sigma – what does it mean?
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service.
in first question we have to answer (best possible factors that are needed to prepared to use the “six sigma”)
Question 1 Idea
Success Factor 1—Deployment Plan
I recently heard Stanley Marash of the SAM Group
describe Six Sigma as “TQM with a deployment plan.”
What did he mean by a deployment plan? Read
deployment as “action.” The lack of understanding of
this fundamental point (or lack of experience in
developing a deployment plan) is a primary factor
that contributed to the failure of some of the earlier
quality improvement programs. Certainly, not all the
precursors to Six Sigma failed. I believe that where
they succeeded, you’ll find someone in the organization intuitively understood the need for a well-defined
deployment plan and followed through.
Every structure needs a foundation to support it.
The key to designing a foundation is to know or anticipate the needs of the structure. In other words, what
are the forces that will act upon the structure? They
could be a physical entity or an organization or a new
business initiative. What strengths need to be built
into the foundation? The Six Sigma program, as it was
implemented at GEA (and throughout the GE Co.)
included the best designed foundation I’ve yet to see
for the introduction of a major business initiative.
The program was implemented from the top of the
organization on down. The deployment was thorough
and detailed. It included restructuring of the organization to provide supporting infrastructure, training,
communications and rewards. The leadership was fully
committed and supportive. Plans were tracked to
ensure follow through. Importantly, it fully employed
the success factors that I continue to discuss here
Success Factor 2—Active Participation of
The Senior Executives
Neither the Six Sigma program nor any major initiative
will survive for long without support and commitment
from the senior leadership of the organization. I’m not
talking about someone who approves expenditures and
assigns someone the task of doing the job and coming
back with a report. I’m talking about rolling up your
sleeves and wading in with your people.
If we were visiting a company where management
was actively participating in the program, what behaviors would we observe?
Clear goals will have been established to define the
cost reduction targets, defect reduction target and
timing to achieve the targets. The entire employee
population will have received clear communications
on a frequent basis describing the program, what the
objectives are, progress reports and how each
employee can participate and contribute. Senior executives will have participated in a training program
designed to enable them to intelligently take part in
project reviews. They may even have implemented a
project of their own. Senior executives will have
attended regularly scheduled project reviews. They
were active listeners in the reviews and asked probing
What other behaviors would we see from senior
managers in a successful Six Sigma program? They
would be present at the start of each new wave of
training to address the class participants. It’s an
opportunity to energize the participants, tell them
what is expected of them, give them a commitment of
support from management and communicate how
important their participation will be toward the success of the program and the business. It is also a time
to answer questions to help set people at ease before
they venture down this new path full of unknowns.
A senior manager would have attended the closing
session of a class to once again thank the participants
for their dedication and accomplishments to date.
Senior managers should essentially be a visible part of
Could we expect any other part of the organization
to carry these responsibilities? Not likely. That’s why
this is so critical.
Success Factor 3—Project Reviews
What is the purpose of having a review process? If
reviews are conducted on a regularly scheduled basis,
the process maintains constant, steady pressure on the
BBs and Green Belts (GBs) to drive their projects to a
successful completion and closure. Reviews provide
oversight to make sure that the BBs and GBs are correctly following the Six Sigma strategy and methodology. They ensure proper use of the Six Sigma tools.
They are not technical reviews. The audience is not
there to provide the BB with a technical solution.
Questions and comments should be constructive.
Senior managers should use the forum to understand
what the BBs’ accomplishments and insights were in
the recently completed phase of the project. Applaud
them for their wins and for their creativity. The
process should be one that builds confidence and promotes learning. Think of it as a workshop.
Senior managers should also use the project review
process to understand what the BBs see as barriers to
their progress. Allow the BBs to propose solutions and
find out how management can support the solutions,
such as funding (is it appropriate, are there alternatives?), manpower and organizational issues.
Success Factor 4—Technical Support
How many times have you purchased a new item for
the home that carries those dreaded words: “Some
assembly required.” Puts fear in your heart, doesn’t
it? Sometimes the manufacturer tries to put you at
ease by listing the “few, simple tools” required, except
they usually leave out the most important one-—a
friend. Actually, I once purchased a grill that included “friend” in the list of required tools to complete
the assembly. I appreciated the honesty and the
Bring in the Master Black Belts (MBBs). What is
their role? Project leaders or BBs will need support
from the senior executives or Champions to address
organizational issues, but they will also need support
to address their technical issues. This is the role of the
MBB. They are the teachers, mentors and coaches for
the BBs and GBs. If you think this is just fluff that was
added into the program by Mikel Harry, it’s not. Too
many programs die when the people on the front line
run into barriers or stumbling blocks created by technical issues they don’t fully understand. Or the project
team thinks it does understand the problem, but its
approach fails to deliver the expected results. The
wind comes out of the sail, and the project languishes. Eventually the effort is abandoned.
The MBBs meet with their BBs on a regular basis,
probably weekly, to evaluate the status of the current
project, the approach that the BBs and team are using
and the results of the effort. The MBB is there to provide course correction and help troubleshoot the
unexpected problems the team may encounter. This
is especially critical during BBs’ or GBs’ early projects,
until they get their feet solidly underneath them.
How many MBBs do you need? I’ve seen guidelines,
but I think this is best determined by your own situation. Start with your organizational goal and work
• The quality goal (ppm reduction or achieved
sigma level), along with the target date, will drive
the pace of your efforts.
• The size and complexity of your operations will
determine the number of projects you’ll need to
complete each year to achieve your desired quality levels by the chosen date.
• The number of projects and your pace will guide
the number of BBs required to implement and
lead the projects.
• Finally, the number of BBs in the organization will
determine the number of MBBs you’ll need to
support them. An MBB should expect to spend at
least one hour of contact time each week for each
BB he or she is mentoring. When deciding on the
number of MBBs you need, consider also the time
an MBB will devote to classroom training and
other deployment related activities.
This will help you establish the number of MBBs
you’ll need. Start out with a tight workload for the
MBBs, and grow as needed.
Where do the MBBs come from? These are your
best and brightest. If you can’t afford to stock the program with this level of talent, how do you expect to
protect your investment? Choose people who have
demonstrated strong leadership skills under fire and
the ability to be a change agent. Find people who successfully carried out the responsibilities of a major
project and may have also stepped in to fill a breach
left by others. You’ll need that kind of character.
There is no substitute for tenacity.
Six Sigma is not a magic bullet that solves problems
automatically by having some data entered into a few
blank fields with prompts from a software program. It
requires people who are good thinkers with creativity
and strong analytical skills. Finally, select people who
want to be part of the effort. If possible, create an
atmosphere in which the Six Sigma program is staffed
by pull rather than push. In other words, the participants are involved because they were drawn to the
opportunity rather than forced to participate.
The ambivalence that I have observed in some training classes generally comes from people who were in
the room because they were sent against their will.
What effort can you possibly expect from someone
who feels that way, especially when the going gets
tough? What kind of an ambassador do you think the
“I don’t want to be here” folks will make as they move
about the operations and interact with other employees? Don’t waste their time or yours.
Success Factor 5—Full-Time vs.
One of the early dilemmas faced by many businesses
embracing Six Sigma is whether to assign BBs to full
time or part-time implementation of improvement
projects. This is a business decision to be made on an
individual basis. There isn’t one single answer for all
organizations. Here are some of the points to consider when making this decision:
• Is a major competitive threat looming on the near
• Is a major customer close to leaving you because
of a high degree of dissatisfaction with your performance?
• Is there a major threat to your profitability?
• Is a new product introduction program on the
• Is a major product or service redesign program
planned for the near term?
• Is the company’s stock performing poorly in the
• What are your cost or defect reduction goals and
the schedule to achieve them?
If you’re facing a “significant emotional event,” a
part-time effort is not likely to achieve the desired
results in the time available. One of my former managers, Robert Hoban, used to tell me, “Don’t start vast
projects with ‘half-vast’ ideas.”
Business observers were impressed by a target Jack
Welch’s set for GE in 1995: Six Sigma by the year 2000.
Welch had the full support of the organization, the
resources at his disposal were massive and much of
those resources were dedicated full-time to the implementation of the improvement projects. Don’t
attempt to emulate these objectives and establish
aggressive goals unless you are prepared to apply the
One of my clients carved out 30% of the clerical
staff in his business and dedicated them to full-time
project implementation. This made a number of people uneasy. They asked, “Who is going to do all the
work that these people were doing?” We asked, “What
is the work that they are actually doing? What portion
of their day is actually given to true value-added
tasks?” If you really have faith in the Six Sigma program and faith that your people will successfully
implement their projects and have selected the right
projects, then you should believe that the results of
the projects are going to greatly reduce non-valueadded work and the associated resources.
It took my client about one year for his organization
to become comfortable with the decision, but they
were successful. Those clerical positions that were
redirected were never backfilled.
Success Factor 6—Training
Be sure that the training program is thorough, but
don’t overwhelm people. Don’t “sheep dip” people
and call it training. I’ve seen that. I visited a training
session, a room with 80 people in the class. Most of
those in the back and in the corners of the room had
mentally checked out and were not engaged at all.
What a terrible waste of time and money. People are
not machines. The training strategy was developed
with a mathematical formula. The CEO decided on
the total number of people he wanted trained in one
year. The training team calculated the number of
trainers and weeks available and computed the number of people to squeeze into the room in each session to meet the target. The team did, in fact, move
that number of people through the training process.
I did say “move,” didn’t I? The training program does
not need to be an attempt to make up, in one effort,
all that was neglected for the past decade. You’ll get
there, one step at a time.
I met with a company that asked me to help them
retrain their BBs. This company had started life as an
independent operation. A very large chemical company later acquired them. The new parent firm had
adopted Six Sigma and instructed this new division to
get on board. My contact explained to me that the
initial BB training had included 300 tools. I was
impressed. My contact went on to explain that the
instructor had covered the tools superficially because
of the volume and time available. Sound a little like
another mathematical formula being used as a strategy? The program was designed to be a mile wide and
an inch deep.
Whoever your instructor is, whatever training material is used, whatever training schedule is selected, be
sure that the BBs leave the classroom enabled. I’ve
assessed this by giving a pop quiz at the start of each
day to test the participants understanding of what I
taught the previous day. The project reviews will also
reveal the true level of capability of the BBs. If you see
that the ability to apply the learning is not reflected in
the project reviews, make adjustments in the depth
and pace of the training program.
The initial training schedule that we used in 1995
was four sessions, each one week in duration. Each
session addressed the four phases of the Six Sigma
program as they were defined at that time: measure,
analyze, improve and control.
It wasn’t long before we recognized that one of the
biggest hurdles to the program was good project
selection—identifying the right critical to quality
characteristics (CTQs). We thought this to be intuitively obvious at first. It’s not, for most people. So a
new phase, define, was added to the training and the
project implementation strategy. Be prepared to
make adjustments along the way. The design of a program at any point is a model; it’s not the end. As statistician William Hunter said, “All models are wrong,
some are better than others.”
Success Factor 7—Communications
Develop a plan to communicate the Six Sigma program to your entire organization.
At the onset of the program communicate:
• What Six Sigma is.
• Why the organization is embarking on this journey.
• What the business goals are.
• What the deployment plan is.
• How each employee will be able to participate.
As the program progresses, communicate:
• Training plans.
• Projects selected, in progress and completed.
• Benefits to the business realized to date.
• Customer impact—new customers and incremental sales.
Make people feel a part of the program. Don’t let
them become bystanders watching from the sidelines.
Eventually, you will need all the employees to participate in the program. They will support projects as
team members; they will nominate suggestions for
projects. If the program launch makes the general
employee population feel left out, it will be difficult to
gain its support and contribution when the need arises later on—and it will arise. BBs will lead the projects,
but they will need the benefit of employees with intimate knowledge and experience to help plan and execute the projects. Leave no employee behind.
Success Factor 8—Project Selection
One of the most frequently discussed frustrations I
hear from my clients involves project selection. Let’s
first define what makes a good project. Then let’s discuss setting up a process to identify or capture the
• Focus on CTQ. A good project is one that will
have a measurable impact on a CTQ. In other
words, if you picked an appropriate project and
completed it successfully, your customer should
be able to notice a difference. Bear in mind that
this applies to an external or internal customer.
• The response variable can be easily measured. At
GEA, we struggled with the reliability of a measurement system for belt tension. We even went to
companies in the automotive industry to get some
insight. Basically, they were unable to enlighten us
on that one, in spite of having far more experience. They hadn’t cracked the code on this problem either. There are methods of working
through challenges like this. Unless the impact of
the problem on your customer or finances dictates that you set a high priority, these types of
projects are best done when you have had more
Six Sigma project experience.
Question 2 Idea
Although Six Sigma methods focus on improving a company's bottom line, there are many problems associated with this quality improvement philosophy: the large investment of time and money, a lack of employee buy-in, the ambiguity and difficulty in defining defects, and the difficult decision-making process due to specific shortcomings in the Six Sigma methods. These shortcomings include an overreliance on trained Six Sigma experts, called black belts; a focus on corrective actions rather than a proactive approach, and a lack of interest in the importance of improving process velocity and the use of information technology.
Six Sigma is a process quality improvement methodology that utilizes "the concept of statistical thinking and encourages the application of well-proven statistical tools and techniques for defect reduction through process variability reduction methods," according to Pros and Cons of Six Sigma, written by Jiju Antony. A successful Six Sigma implementation effort results in a process output defective rate of .00034 percent or less.
The initial investment and ongoing costs of implementing Six Sigma methods can actually do more harm than good and can scare many small businesses from incorporating Six Sigma into their business process. Retrieving and analyzing the necessary information to make the data-driven decisions required by Six Sigma can be costly and time consuming. This initial investment varies greatly among companies and processes depending on the size of the process and the amount of relevant data previously collected before the Six Sigma implementation. If no useful data has been collected on the process before deciding to implement Six Sigma, retrieving the necessary information can take weeks to months of paying outside consultants and/or losing productivity from current employees to refocus their efforts.
Any quality improvement method such as Six Sigma requires employee buy-in and needs to become part of the organizational culture. This is difficult to achieve with Six Sigma because of the overreliance on trained and certified experts of the Six Sigma methodologies; these so-called black belts, which many companies have to pay as outside consultants, create a division in the organization rather than a synergy, and do not always utilize all employees and their expertise in the improvement process. Employees who work within the process every day have a great deal of experience and expertise compared to outside consultants trained in Six Sigma techniques; many of these employees know the weaknesses and frustrations of the process firsthand and can provide recommendations for solutions, but they're often overlooked because they are not Six Sigma experts.
A defect is any process output that cannot be used; therefore, a defect is seen as a wasted resource because it would result in customer dissatisfaction. Defining a defect can be difficult for any business process that isn't a standardized manufacturing process, especially innovative business processes. Proponents of Six Sigma believe the methods can be used in any business environment, including the service industry, but defects in industries such as these can be difficult to define and measure because Six Sigma defines defects with the assumption of normality and ignores the severity of defects. A defect in the service industry resulting in customer dissatisfaction can range from a simple misunderstanding of terminology to complete disrespect by the employee towards the customer; these two outcomes receive the same value in Six Sigma methods because they both cause customer dissatisfaction, but they completely differ in the overall result of the organization's customer satisfaction levels.
The decision-making process is often left to a select few individuals, often combining outside consultants trained in Six Sigma and upper management. A problem with this decision-making process is the focus on a corrective approach instead of a proactive, preventative approach. A proactive approach is crucial because marketplace demands are constantly changing and an output not considered a defect today may be seen as a defect by the consumer in the near future. This corrective approach can result in management deciding to undergo a process redesign effort because the continuous improvement efforts failed to reach the Six Sigma threshold; an easier and less expensive fix to improve production and the bottom line could be to focus on improving the speed and efficiency of the process instead of just quality.
Shazil Hassan thanks for sharing
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bstacles to Implementing Six Sigma ( TQM) includes the lack of:
1. Company-wide definition of quality.
2. Strategic plan for change.
3. Customer focus.
4. Real employee empowerment.
5. Strong motivation.
6. Time to devote to quality initiatives.
8. Poor inter-organizational communication.
9. View of quality as a “quick fix”.
10. Emphasis on short-term financial results.
11. Internal political and “turf” wars.
Yar tariq bhai aik hi material ko 3 times kiun post kartay hain ap?
Clearly, training is an essential part of a Six Sigma deployment. Several aspects of the training plan must be considered. For example: What are the training objectives? Who will get trained and in what order? Will everyone receive the same training? If not, what are the criteria for who receives each level or type of training? How will the training be structured and what areas will receive the most attention? What will be the duration of training? What methods, case studies, format, training aids will be used during the training session? Who will conduct the training – internally trained personnel or consultants? What are the selection criteria for choosing instructors?
These are just a few questions that should be taken into account when evaluating the training plan. There are numerous ways to conduct training depending on the objectives or needs of the business and there is no one-size-fits-all solution. However, answering these questions up front and identifying potential issues before training begins will factor into the success of the implementation.
After Six Sigma is initiated and personnel are trained, numerous ideas for projects may be generated. The number of projects launched is far less important than their impact to the bottom line. A handful of successful, completed projects outweigh a multitude of never-ending works in progress.
Maximizing involvement on Green Belt and Black Belt projects may initially help facilitate the culture change within the company if two common pitfalls can be avoided.
Even before launching Six Sigma, it is important to assess how projects are selected. Projects should be directly tied into the key business indicators and metrics. “Feel good projects” (those that may be highly visible but with no positive financial outcome) will ultimately erode support for Six Sigma. Management should be able to agree on the importance of each project, regardless of whether it truly grasp the concepts and tools of Six Sigma. There are more questions to answer relative to project selection: Does management select and staff projects or do the Black Belts identify areas of opportunity and petition for support? What are the selection criteria for projects? What is the process to obtain project sponsorship? Ensuring that the organization feels the impact of projects and keeping management engaged are essential to creating a lasting quality program.
Simply kicking off a Six Sigma program does not guarantee results. However, a company can increase its chances for success by objectively evaluating whether the necessary factors for success currently exist in the organization. Then, the company can start spending time preparing a well-thought-out deployment plan.
Thanks sana :)
Any one share assignment ?? jxt for idea