Module 2: SLP

[Name of the institute]

Module 2: SLP

Consideration of the Company

The organization that is selected for the purpose of assignment is Toyota. This paper discusses the implementation of Six Sigma in one of the projects at Toyota and its results. Discussion of one quality project that you know and what makes this program succeed

In order to improve the production process Toyota took the initiative to imply Six Sigma process. One of the projects on which Toyota implied Six Sigma system is the production of its renowned product Lexus. Implementation of Six Sigma in the production of Lexus has improved the quality and also provided other advantages to the organization.

Why Six Sima Implemented in Production of Lexus

The process of Six Sigma is all about improvement of quality. Lexus has utilized this process of Six Sigma in order to bring improvement in the internal operation and to improve the performance of suppliers. Following are the othere main reasosn because of which Toyota decided to imply Six Sigma process in the production of Lexus (Cimba.it, 2013).

To increase the quality of product

To incarese the speed with which they market or deliver the product

To incarese the value of the product in terms of cost, design and services

Besides these production and product related reasons that are other factors that compel the management of Toyota to adopt Six Sigma process in the production of Lexus. One of the important factors is of competition. The competitors of Toyota such as Cadillac and Mercedes were successful in rentaining loyal customers. The retention rate of BMW and Mereceds were 43 and 42 percent. To deal with this inetention competition Toyota studied the main reason behind this high rate rentention and found out that it's the quality of product. So, Toyota decided to launch Lexus with high quality and zero defects and errors (Keki, 2002).

Implementation of Six Sigma System in Lexus Production

The following part analyzes the implementation of Six Sigma in the production of Lexus. Step by step implementation of Six Sigma during the production of Lexus.

Define

The first step in the Six Sigma is defined. In this step, the problem area such as down time, cost or inventory related issues are identified. When Toyota decided to undertake the production process of Lexus then at that time Toyota analyzes various aspects and issues that other brands were facing. The total car owner cycle was studied by the team of Lexus from shopping, driving, buying and servicing to trade in for the sake of optimizing the value for customer (Keki, 2002).

Measure

Each step of the production process is measured. The evaluation is done with regard to the rate of flow, level of inventory, cycle time, and rate of defect. This step was used for Lexus because of unchanging philosophy of customers first. Customers provide feedback to the management. In the eyes of manager these feedbacks are of immense importance. Through these feedbacks that they get the management decides whether there are amendments to make in the process or not. It is through these ...