Module 2: SLP

[Name of the institute]

Module 2: SLP

Introduction

The organizations which are selected for the purpose of the assignment are Toyota, Xerox, Ford Motors, and Cleveland Brothers (Caterpillar). This paper discusses the implementation of Six Sigma in one of the projects at these companies and the results derived of the implementation of Six Sigma. Discussion

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.

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.

Definition

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 is 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 feedbacks of customers they measure and evaluate the effectiveness of the operation of production that is in place (Open ISES Project, 2011).

Analyze

When the gathered information was analyzed certain issues were revealed related to the production process. These issues involved: increased number of defects per hundred cars, availability of poor and sub standard parts high cost of inventory (Keki, 2002).

Improve

In order to bring improvement in the overall production process and to make it defect free measures were taken by the management of Lexus (Keki, 2002).

Control

When the process is improved the next step is to standardize the process. For instance, to sustain practice of maintaining lowest defect rate the process of failure -analyze defection rates is taught to the dealers. Teams of service consultants were formed and these teams are sent to dealers who underperform on service profitability. Moreover, the service personnel are provided rigorous training. The management of Lexus prepares more service personnel in one month as compared to the service personnel prepared by the Cadillac in eighteen months (Keki, 2002).

Management issues resolved by the implementation of Six Sigma in the Production Process of Lexus

A number of improvements have been brought ...