Business Management Kaizen And Six Sigma

2407 words - 10 pages

Our team of consultants has adopted the "KAIZEN" and "SIX SIGMA" approaches in our observation and recommendations towards developing a more effective and efficient system for the operation of the organization.KAIZEN means continuing improvement in personal life, home life, and working life. It involves everyone - managers and workers alike.It is through Kaizen that the processes, which bring forth or sustain the product, are made more competitive. If customer satisfaction (the larger the better) and cost (the least the better) are chosen as the primary quality characteristics, then the focus of workplace Kaizen is to improve value, and hence competitive advantage. A measure must exist by which improvement can be quantified.Based on an ISO 9000 Series robust fundamental system, 6 Sigma means Kaizen (gradual progressiveness in improving).SIX SIGMA represents bothSystematic Improvement Process by Total Quality andQuantified Process Improvement MethodologyIt is an extension of the Total Quality Improvement Process. It contains the core values and concepts of the Malcolm Baldrige Total Quality Awards;Customer-Driven QualityStrong LeadershipContinuous ImprovementEmployee Participation (Teamwork)The BENEFITS of 6 Sigma techniques to improve product and process performance are:Improve Quality & Customer SatisfactionIncrease ProductivityIncrease PROFITS.Below are issues highlighted and our team's recommendations.
ISSUES

RECOMMENDATIONS

Re-structuring
Functional / Operational
Organization Structure

Out-sourcing of non-essential (support activities)
Consolidation of operational activities
Removal of redundant position / level
IT to enhance communication
Empowerment to succeed

Organization Climate
Rewards System
Performance Management System

Creation and maintenance of organization climate
Improvement Cycle

3) Training & Development

CREST Program
Awareness Program

4) Labour Management Relation

Events Calendar

ISSUE : OPERATIONAL / FUNCTIONAL RE-STRUCTURINGWhat is the effect/impact if the Engineering Services and Catering Operation is not provided within?There will be a non-significant loss in revenue from other airline related work including external engineering services, catering and charter operations (part of 24%, i.e. 100% less 76%), but there will be higher percentage of cost savings in the long run. (i.e. increase in labour cost; lower cost efficiency & others).Recommendations :1) To out-source these support activities because of the following reasons :it is a cost effectiveness trend in the present business environment;able to receive high quality services from external parties ( i.e. SATS kitchen is catering high quality food & beverages at competitive price).able to maintain cost efficiency i.e. minimum idle time and receive warranty service, (i.e. SIA Engineering).able to divert resources to other areas to enable better management of the organization to derive better returns.2) To carry out the following...

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