John Maleyeff

The integration of lean management and Six Sigma

Purpose – To eliminate many misconceptions regarding Six Sigma and lean management by describing each system and the key concepts and techniques that underlie their implementation. This discussion is followed by a description of what lean organizations can gain from Six Sigma and what Six Sigma organizations can gain from lean management.Design/methodology/approach – Comparative study of Six Sigma and lean management using available literature, critical analysis, and knowledge and professional experience of the authors.Findings – The joint implementation of the programs will result in a lean, Six Sigma (LSS) organization, overcoming the limitations of each program when implemented in isolation. A thorough analysis of the two programs provides some likely reasons why the programs alone may fail to achieve absolute perfection.Practical implications – A lean, Six Sigma (LSS) organization would capitalize on the strengths of both lean management and Six Sigma. An LSS organization would include three primary t...

Exploration of internal service systems using lean principles

Purpose – The purpose of this paper is to attempt to provide insight into the management of an internal service system derived from a perspective of Lean management. These internal service systems would exist within professional service units of development, engineering, information technology, human resources, and consumer affairs.Design/methodology/approach – A meta‐analysis of approximately 60 internal service systems was performed. The objectives of the meta‐analysis were: identification of structural similarities; categorization of wasteful activities; tabulation of typical problems; and synthesis and exploration.Findings – Internal service systems have numerous common structural characteristics, including the importance of information, process flows across functions, many hand‐offs of information, hidden costs and benefits, and no explicit motivation for urgency. The wasteful activities can be classified into seven groups: delays, reviews, mistakes, duplication, movement, processing inefficiencies, ...

The continuing evolution of Lean Six Sigma

Purpose – The purpose of this paper is to identify upcoming challenges related to the implementation of Lean Six Sigma (LSS) principles and techniques. Particular emphasis is placed on the changes needed to ensure that LSS continues to support an organizations competitiveness.Design/methodology/approach – The methodology begins with a review of the projections of business experts as they relate to the practice of LSS. Then, the ASQ Six Sigma Body of Knowledge forms the basis of a reconciliation of these changes and the methods currently employed by LSS practitioners. Finally, four main modifications to standard LSS are proposed.Findings – In total, four implications to LSS practice are defined (rigorous value definition, vigorous accounting for risk, global workforce considerations, and international regulatory concerns); specifics are offered that explain how LSS practitioners need to respond. A construct is presented illustrating how the complexity of a LSS project will be affected by the four implicat...

Six Sigma and Introductory Statistics Education.

A conflict exists between the way statistics is practiced in contemporary business environments and the way statistics is taught in schools of management. While businesses are embracing programs, such as six sigma and TQM, that bring statistical methods to the forefront of management decision making, students do not graduate with the skills to apply these methods effectively. Based on the concept of process thinking, it is argued that evolutionary rather than revolutionary changes should be made in the way statistics is taught. The difference between the process thinking approach and the classic statistical approach is illustrated using several business‐related examples.

Benchmarking performance indices: pitfalls and solutions

Many organizations include benchmarking as a component of their performance management system. Often, a performance index is used to quantify the ability of an organizational entity to operate successfully. Benchmarking a performance index is done inappropriately when statistical methods are employed that ignore sample size effects or use aggregate performance data over a period during which changes occurred within the organization. Benchmarking will also be ineffective when invalid targets are employed. When benchmarking is done incorrectly, customer satisfaction may actually decline due to gaming and poor morale among employees. Based on the philosophy of W. Edwards Deming, the techniques of statistical process control (SPC), and basic undergraduate statistics, a system is described for effectively benchmarking a performance index. Examples are presented to illustrate the pitfalls that exist in many performance management systems and to explain the system presented for effective benchmarking.

Internet Education: Potential Problems and Solutions.

The Internet has been welcomed by educators as a great tool for use in the classroom or to create virtual classrooms. It can be used to connect students in disparate countries as well as an increase in student comfort with technology. This paper highlights some of the unplanned and unanticipated consequences that might be encountered as the use of the Internet in education increases. These consequences are discussed as potential problems, categorised as problems of judgement, distance, and ethics. Implications for educators and administrators are addressed by suggesting course design, pedagogical, and student activity solutions.

Goal setting with Six Sigma mean shift determination

A comprehensive approach to quality goal setting is presented that is consistent with Motorolas six‐sigma metric development. In particular, process mean shifts are determined and incorporated into the goal setting process. Methodology includes basic probability theory, statistical control charts, and capability indices. Data for an aircraft part consisting of hundreds of laser‐drilled holes are used to illustrate the procedures. As a result of applying the methods, quality goals are customized based on the number of opportunities for defect, the target end‐product quality level, and the mean shift shown to exist for the processes involved in the products manufacture. The methods described overcome the mistakes implicit in blindly conforming to the standard six‐sigma goal of 3.4 defects per million.

Using Lean Six Sigma to improve investment behavior

Purpose – This paper aims to use Lean Six Sigma (LSS) and consumption mapping concepts to develop a disciplined methodology for a self-directed investor so that adverse decision-making behaviors are avoided. Classical financial theories assume that individuals maximize expected utility by arriving at financial decisions in a rational manner. But, over time, investor performance has lagged behind corresponding market performance. Despite these results and research on their causes, investors continue to repeat systematic mistakes leading to suboptimal financial outcomes. Design/methodology/approach – Consumption maps are developed based on behavioral finance research that shows why investors make predictable and costly errors in their decision making. The authors show that the contemporary methodologies within LSS, used successfully in the manufacturing and service sectors, can be used to enforce rationality in investing. Findings – The approach proposed herein provides a new framework that researchers shou...

Probability modeling applied to CAD systems for mammography.

A practical model based on basic probability theory is developed to evaluate the operational and financial performance of mammography systems. The model is intended to be used by decision makers to evaluate overall sensitivity, overall specificity, positive and negative predictive values, and expected cost. As an illustration, computer aided detection (CAD) systems that support a radiologists diagnosis are compared with standard mammography to determine conditions that would support their use. The models input parameters include the operational performance of mammography (with and without CAD), the age of the patient, the cost of administering the mammogram and the expected costs associated with false positive and false negative outcomes. Sensitivity analyses are presented that show the CAD system projecting financial benefit over ranges of uncertainty associated with each model parameter.

Minimum Cost 100% Inspection Systems with Inspection Error

A field failure in certain products has the potential to cause human suffering and/or loss of life. To the manufacturer, these failures will result in a significant external failure cost. In this paper, cost minimization models are developed to determine an optimal inspection system for multiple 100% attribute inspections with inspection error. An example involving the visual inspection of a braze joint in a cardiac biopsy device is presented to illustrate the use of the models. A key result is that a system requiring an item to pass every inspection in order to be shipped to a customer is not always the best alternative. Examples illustrating the sensitivity of the model results to key cost and operational parameters are shown.