Lean Management for Racer Industries - Research Proposal Example

Investigation to lean management for Racer Industries Executive Summary Racer Industries is a company that deals with manufacturingproducts in general. It has two major plants Located in North and south parts of Kentucky City. Being one of the manufacturing industries, Racer industry industries make use of six sigma operations tool to enhance its business at large. This report however, shows how the North and South Companies have managed to institute six sigma operations in their business to ensure that efficiency portrays at large. This is a three years report that generates differences between the northern and southern racer industries in implementation of six sigma operations. There is a need of implementing six sigma operations at large in north and therefore this report will provide conclusive report based on the three bar graphs provided below. The two bar graphs shows a difference exhibiting between the southern and northern efficiency forms of business transaction and the entire implementation of six sigma operations from these two distinctive racer industries. From the report we find that the total efficiency of six sigma operation in north racer industry is 1.523 while in south is 2.180. From the mere findings we realized that there is a great difference in terms of material efficiency in both southern and northern racer industries with a margin of 0.7. The material efficiency of the northern regions is 2.835 while in south regions is 5.413. Moreover, we have high labor efficiency in northern regions of racer industries amounting to 3.930 while low labor efficiency is south of about 3.912. This however, translates to an average sales differing within this two regions with a margin of 231273. The northern regions has a total average sales of 283223 and southern part exhibits an average sales of about 514496, translating to a huge difference as far as six sigma operations strategies is concerned. Table of Contents Title Page………………………………………………………………………………………….1 Executive Summary……………………………………………………………………….............2 Introduction ……………………….……………………………………………...........................4 Problem Statement………………………………………………………………...........................5 Procedures…………………………………………………………………………………………5 Findings……………………………………………………...…………………………………….5 Conclusions and Recommendations……..……………………………...….……………………..8 References……………………………………………………………………………………..…10 Appendix………………………………………………………..…………………………….,…11 Introduction Six sigma operations is an aspect that is administered as far as the issue of multiple industries is concerned. Race industry consists of over sixty multiple small businesses that enhance comprehensive set of tools and strategies in processing output that oversee the variability and minimization of defects within the operations management of Racer industry. Racer industry has two major small industries, located in Northern and Southern part of Kentucky City. The management of Racer Industries has played a vital role in implementing lean six sigma operations in its business aspects (Keller & Pyzdek, 2009). For any business administer strategic success and operational driver’s norms within its operation flow, a critical link should be established to represent core science and lean operation. This enhances collaborative and lean environment and this is possible when six sigma operations strategy is implemented within an organization. Six sigma operations tools enable managers to drive there motivational spirit towards efficiency through availing efficient business strategies and process that overlooks any defect within an organization and its operational activities (Schonberger, 2007). The Six sigma method operations have three distinctive key components that lead to efficiency whenever they are deployed within an organization. Strong leadership is one of the key components of six sigma method since; it encourages a leader to oversee the processes involved in his line of due and be able to rectify and improve them in time. Through the help of six sigma method, a leader is able to realize flaws within his management roles and eliminate the defect on time with a virtue of transparency which exhibits reshaping an organization into the right direction. Problem Statement The role of this report is to investigate the impact of six sigma operation within northern and southern Racer industries. Procedures A random sample of 30 north and south Racer industries was taken and the following information were gathered in regards to the impact of six sigma operations on both south and northern racer industries and how the technology has changed management system and its operations services. Both two racer industries are well equipped having all the resources to transact there business efficiently. The two racer industries have been in business for quite some time and the data collected contains the real forms of six sigma operations implementations and how the system is being deployed and manipulated within this two areas. Moreover, the procedures availed was to compare the level of sales, labor cost, and materials cost on both northern and southern racer industries. Findings The bar graphs for total efficiency, material efficiency and labor efficiency of the north and south regions have been shown below. In figure 1, the total effecieincy of the two regions as per the implementation of six sigma operations is 1.523 for north and 2.180 for south. This exihibits a difference effeciency margin of 0.7 as far as north and south racer industries are concerned. These two regions exhibited a tight competition with northern region indicating a lower total efficiency level compared to southern racer industries which indicated higher total efficiency level. In fig 2, is a bar graph showing the the difference that exists within this two regions in terms of effeciency in the productions of the materials.The effeciency of the materials in north amount to 2.835 and that of south is 5.413. According to the Northern bar graph, this region has indicated a low material effeciency as compared to southern regions which has high level of material effeciency. However, There is a huge difference within the two regions as far as the material effecieicny is concerned. The southern region has a high effeciency index compared to the northern part with a margin of 2.578. Meanwhile, fig.3 portrays the existing labor effecieincy within the south and north regions of racer industries with a margin difference of 0.018. In terms of labor eefieciency the northern racer industries has indicated a 3.930 labour effecieincy as compared to that one of south which has indicated a 3.912 labor effeciency. We have ascertained that the labor effeciency is high in northern region compared to sourthern regions and this creates a hinderance in business transaction as far as the northern region is concerned. However, the two regions have indicated a huge difference in their sales report. According to the data provided in the figure 4, we find that the north region has indicated low sales turnout of 283223 while the southern region of racer industries indicating a turnout of 514496 higher than the one realised in the northern regions. This translates to a high difference margin of 231273. The level of sales average in southern region is high and this makes the region to do well in business as compared to the northern region. Conclusions and Recommendations In conclusion, for any business administer strategic success and operational driver’s norms within its operation flow, a critical link should be established to represent core science and lean operation. This enhances collaborative and lean environment and this is possible when six sigma operations strategy is implemented within an organization. The report shows that the total efficiency of six sigma operation in north racer industry is 1.523 while in south is 2.180. From the mere findings we find that there is a great difference in terms of material efficiency in both southern and northern racer industries with a margin of 0.7. The material efficiency of the northern regions is 2.835 while in south regions is 5.413. Moreover, we have high labor efficiency in northern regions of racer industries amounting to 3.930 while low labor efficiency is south of about 3.912. This however, translates to an average sales differing within this two regions with a margin of 231273. The northern regions has a total average sales of 283223 and southern part exhibits an average sales of about 514496, translating to a huge difference as far as six sigma operations strategies is concerned. For better implementation of six sigma operation, the Northern racer industries should ensure that both materials, labor and sales within this region is implemented further and manipulated so that the total efficiency rise as to that of north. References Cavanagh, R. & Pande, P. (2001).The Six Sigma Way Team Fieldbook: An Implementation Guide for Process Improvement Teams [Paperback]. USA: McGraw-Hill. Jones, M & Morgan, J. (2012).Lean Six Sigma For Dummies [Paperback]. New Jersey: For Dummies. Keller, P. & Pyzdek, T. (2009).The Six Sigma Handbook, Third Edition [Hardcover]. USA: McGraw-Hill Professional. Schonberger, R. (2007).Best Practices in Lean Six Sigma Process Improvement [Hardcover]. United Kingdom: Wiley. Appendix Random sample of 60 Racer industries from north and south regions for a period of three years they have been in service (30 from each region). Location Total efficiency Material efficiency Labor efficiency Sales Average N=North North=1.523 North=2.835 North=3.930 North=283223 S=South South=2.180 South=5.413 South=3.912 South=514496 Location Sales Labor Cost Material Cost Labor Eff. Material Eff. Total Eff. N 180535 100412 166474 1.798 1.084 0.676 N 212976 155221 137578 1.372 1.548 0.727 N 112111 135775 141540 0.826 0.792 0.404 N 235465 134995 99117 1.744 2.376 1.006 N 80454 100647 122043 0.799 0.659 0.361 N 115464 120599 122206 0.957 0.945 0.476 N 97854 124131 110310 0.788 0.887 0.417 N 385666 101203 114213 3.811 3.377 1.790 N 275878 84025 111418 3.283 2.476 1.412 N 111444 50474 108805 2.208 1.024 0.700 N 484795 112458 112813 4.311 4.297 2.152 N 479564 57452 111253 8.347 4.311 2.843 N 100100 101259 130248 0.989 0.769 0.432 N 296469 100135 110723 2.961 2.678 1.406 N 330451 76970 99999 4.293 3.305 1.867 N 410897 74796 107558 5.494 3.820 2.253 N 349067 74783 143561 4.668 2.431 1.599 N 245548 70570 99144 3.479 2.477 1.447 N 309313 68251 164565 4.532 1.880 1.329 N 220154 66629 118452 3.304 1.859 1.190 N 309870 66246 154897 4.678 2.000 1.401 N 389883 63599 100211 6.130 3.891 2.380 N 331002 59314 135264 5.581 2.447 1.701 N 264359 57029 98999 4.636 2.670 1.694 N 298840 41080 16878 7.275 17.706 5.156 N 274573 41846 112111 6.562 2.449 1.783 N 270677 40708 158970 6.649 1.703 1.356 N 257331 39831 99999 6.461 2.573 1.840 N 242931 157837 132132 1.539 1.839 0.838 N 823033 97840 172774 8.412 4.764 3.041 S 315787 169512 126402 1.863 2.498 1.067 S 500121 199990 102216 2.501 4.893 1.655 S 478535 141234 102019 3.388 4.691 1.967 S 587645 111121 122458 5.288 4.799 2.516 S 462545 97652 103625 4.737 4.464 2.298 S 577446 190655 96878 3.029 5.961 2.008 S 570922 189478 110259 3.013 5.178 1.905 S 550360 97857 108973 5.624 5.050 2.661 S 539704 98755 405978 5.465 1.329 1.069 S 517335 187343 98203 2.761 5.268 1.812 S 510674 117858 94587 4.333 5.399 2.404 S 503046 166714 98783 3.017 5.092 1.895 S 499491 168495 95736 2.964 5.217 1.890 S 498288 157848 101687 3.157 4.900 1.920 S 579573 187200 97752 3.096 5.929 2.034 S 472768 118454 97392 3.991 4.854 2.190 S 565778 115714 88771 4.889 6.373 2.767 S 584685 98598 89257 5.930 6.551 3.112 S 488951 197360 89217 2.477 5.480 1.706 S 320479 94162 81552 3.403 3.930 1.824 S 414349 109418 89787 3.787 4.615 2.080 S 407607 92858 87467 4.390 4.660 2.260 S 604278 100723 78065 5.999 7.741 3.380 S 489654 177863 72059 2.753 6.795 1.959 S 458217 163067 74860 2.810 6.121 1.926 S 498840 182453 59209 2.734 8.425 2.064 S 374310 60500 76898 6.187 4.868 2.724 S 455745 107356 85461 4.245 5.333 2.364 S 689751 146244 100000 4.716 6.898 2.801 S 917985 190406 101203 4.821 9.071 3.148 Read More