Analysis of Production Methodologies for Process-Based Management

Author Name(s): Anton N. Karamyshev, Marija S. Kazaeva, Ekaterina V. Abrosimova, Ilnur I. Makhmutov, Dmitrij F. Fedorov
Author Email: antonkar2005@yandex.ru

Abstract

There exist two methodologies for process-based management the subject of study of which are production processes: Lean Manufacturing and Six Sigma. Lean Manufacturing is one of the most widely spread methodologies of process-based management, which methods and practices determine in many respects the competitiveness of the world’s leading companies. Lean Manufacturing methodology orients the company to the maximum customer satisfaction by eliminating all types of losses and focusing on key business processes. Particularly interesting are the principles of methodology (value to consumer, definition and optimization of the value creation flow, organization of flow, product sell out, perfection), which must be observed in making managerial decisions. Six Sigma methodology focuses the attention on production operations of the main business processes in order to improve the quality of products and minimize the reject level. These goals are achieved through stabilization of the technological operations results based on the specific management principles, as well as on mathematical and statistical methods. The article covers the principles and basic methods of such methodologies as Lean Manufacturing (Kanban, Kaizen, 5S, SMED, Poka-Yoke, Andon, Total Productive Maintenance) and Six Sigma (methods of generating ideas and structuring information, methods of data collection, methods of analysing information and business processes, methods for implementing management decisions), the identification of their advantages and disadvantages, as well as the application features.

Introduction

There exist two methodologies for process-based management the subject of study of which are production processes: Lean Manufacturing and Six Sigma.

Lean Manufacturing is based on the concept of value to consumer (i.e. characteristics of a marketable product or service). The concept of this methodology involves division of all types of business activities into directly creating value to consumer (i.e. forming characteristics of a marketable product or service) and all others. The processes forming value to consumer must draw increased attention of senior managers and ordinary personnel. The costs for processes that do not create value to consumer are to be minimized [1]. Lean production methodology appeared in Taiichi Ohno in Postwar Japan in the 50s of the 20th century [2]. The result of applying the principles of lean manufacturing is the unique Toyota Production System, which allowed Toyota Motors Corporation, a machine-building corporation from Japan, to become the world’s most expensive automotive company in 2015 [3].
Significant contribution to development of this methodology was made by Shigeo Shingo, Japanese engineer, who proposed a method of rapid machine change over [4].

Within the Six Sigma methodology the attention is focused on improving the quality of technological operations in production processes and minimizing the number of defects in marketable products. Analysis and modification of production processes are carried out by special working groups [8,9]. Six Sigma methodology was developed in the 1980s by a Motorola employee, Bill Smith, and became widely known and widely spread after its implementation in General Electric Company. The name of the methodology was derived from the letter σ (sigma), which is used in statistics to denote the standard deviation [2.11].

Conclusion

Six Sigma methodology complements perfectly the process management methodology Lean Manufacturing. For this reason, a combined system of the process-based management of production processes “Lean Plus Six Sigma” is often found in the scientific literature.

References

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  2. Liker, J.K. (2004). The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer, New York: McGraw-Hill.
  3. Shingo, Sh. (1987). The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement. Taylor & Francis.
  4. Womack, J., Jones D.; Roos D. (1990). The Machine That Changed the World.
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  8. Karamyshev, A.N., Makhmutov, I.I., Utyaganov, R.F. (2015). Problems of Institutionalization of the Process-Based Management in Industrial Enterprises. International Business Management. №9(6).
  9. Makhmutov, I.I., Isavnin, A.G., ., Karamyshev, A.N., Sych, S.A. (2016). Classification approach in determination of knowledge in context of organization. Academy of Strategic Management Journal. Volume 15. Special Issue.
  10. Makhmutov, I.I., Murtazin, I.A., Isavnin, A.G., Karamyshev, A.N. (2017). The essence and types of outsourcing. International Journal of Economic Perspectives. Volume 11. Issue 3.
  11. Makhmutov, I.I., Murtazin, I.A., Isavnin, A.G., Karamyshev, A.N. (2017). Methods and models of outsourcing. International Journal of Economic Perspectives. Volume 11. Issue 3.

 

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