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Lean Six Sigma of Maersk Line

1855 words (7 pages) Essay in Business

08/02/20 Business Reference this

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Introduction of company

Maersk Line-the world’s biggest sea carrier company, with over 325 workplaces in 125 nations. The company works over 599 plus vessels and is capable for making around 64,999 plus harbor calls a year. It has around 25,000 plus workers (counting seafarers) and conveyed incomes of around $26 billion. Maersk implement the approach of lean six sigma to achieve its current business goals. Lean six sigma is the key factor in the growth and success of achieving the company’s current scenarios. The implementation of lean six sigma center operational commerce forms utilizing BPM innovation over the worldwide benefit center and near workplaces. With the goal of standardization in work, minimize the dependence on email for good communication and collaboration and progressing the productivity of exceptionally huge enterprise.(MWD Advisors, 2011)

  1. Review of literature

In this paper critical study on history of lean six sigma, its necessity and benefits in Maersk Line Company will be discussed. Also focus will be given towards the quality strategies, tools, methodologies and techniques of lean six sigma to enhance the productivity of Maersk Line. Lean six sigma is a concept of structured, data driven methodology that is used to many aspects in improvement of business. (Beinhocker, 2006) With improve productivity with less waste such as to variations, operational stability, important characteristics to the client, capability of process, effective design to meet customer satisfaction and defect which means problems and issues to fulfill customers’ needs. (goSkills, 2019) Lean six sigma directly focused on the decision making rather that the opinions. Clearly defines as the deepness of productivity than the life time of productivity. (Isixsigma, 2019)

  1.   History and Background of Lean six sigma

Lean Six Sigma is a ceaseless improvement philosophy that concentrations upon the end of waste and the decrease of variety found inside procedures, regardless of whether that is manufacturing or value-based in nature. Within the 1930’s Walter Shewhart created a set of administration disciplines for handle control and persistent change. These disciplines were based upon Taylor’s standards of commerce workflows and a dependence on information. Shewhart’s work is the establishment for the building and administration disciplines of Quality Confirmation and Quality Control found in most of the organizations today. (6 Study Guide, 2015)

  • Lean

Spearheaded by Toyota, developed by henry ford in the mid of 20th century. Lean is a philosophy which helps to reduce non-value added exercises that will prompt the objective of decreased process durations.

  • Six Sigma

Developed by Motorola in the end of 1980’s by Bob galvin and made recognized by GE, Six Sigma could be a strategy to distinguish and decrease changeability and hence move forward by and large quality.

The combination of these two powerful process improvement methodologies allows Maersk Line to construct upon its existing capabilities. It combines the tools and standards of Lean and Six Sigma into one prevalent and effective methodology for improving Maersk organization’s operations.

 

Figure 1: Lean Six Sigma three main elements

These three components strengthen each other. An improvement process does not reach to its destination goal unless it consolidates the tools, procedures that arrange the activity of the strategy steps and there is a culture that requests on systematic data based approach to comprehending the issues. (goSkills, 2019)

  1. Usefulness of Lean Six Sigma

 

  • Mapping or flowcharting of processes

Process mapping is used by Six Sigma, which can be characterized as action of flowcharting to empower testament of a particular trade task. Documentation incorporates different viewpoints of commerce forms like representative parts and choice focuses in generally work execution required for assembly particular client needs. These flowcharts are regularly utilized towards making advancement proposal.

  • Elimination of variation and waste

Lean Six Sigma procedures can be utilized for reduction of waste and distinction in business activities. Waste is characterized as anything which basically doesn’t give any benefit in any service or production which is to be conveyed to client.

  • Reduced Defects

Utilizing Six Sigma methods, representatives are able to distinguish issue ranges as well as repeating issues that influence the generally quality desire of a benefit or item from a customer’s viewpoint

  • Room for continuous improvement

Final but not the slightest, employees prepared in Lean six sigma forms has the fundamental tools and abilities to find the issues that camps down generation or execution. This basically helps them to focus on the areas of improvement. Also it improves existing services and helps with advancement of modern tall quality items.  (Workzone, 2016)

There are mainly five phases of DMAIC which are mainly used in Lean six sigma methodology to enhance productivity in Maersk Line business: (Isixsigma, 2019)

DMAIC– This is a structural methodology to improve the productivity processes and to get the best results in a Maersk business. This is defined as an interconnected steps such as:

  • Define– In this case Maersk line has the quality characteristics which are analyzed to get the desired results according to the needs of the customer’s expectations.
  • Measure– Maersk basically uses this methodology to measure the basic factors like performance, product and services to determine the solutions are according to real performance.
  • Analyse- In this phase, a proper analyses is done to determine the sources of variation that creates issues. Basically root cause is identified, not only the symptoms to ensure customer needs.
  • Improve- In this phase basically improved solutions are created to get the desired result and relevant changes are taken to designs and then tested.
  • Control- Several control checks are implemented, all the supporting methods are updated to control the process, services and products in a very sustainable way to check if there is any degradation in performance.

Figure 2: DMAIC five phases of Lean Six Sigma

  1. Principles of Lean six sigma related to quality indicator of Maersk

The basic principles related to quality indicators that have been chosen with respect to Maersk are the following:

  • Stop abandons through expelling variation.
  • Always understand requirements of customer.
  • Understand how work should proceed.
  • Follow the smooth steps for work activities.
  • Minimize the wastage and focus on value.
  • Get buy-in from the team through collaboration
  • Make a systematic and logical plan for work (Procee.St, 2018)
  1. Quality Indicators of Lean six sigma

While interpreting principles of Lean six sigma we also talk of two quality indicators:

  • Leading indicators: A leading indicator shows the trend before the defect occurs. For example, you may be able to see a trend of six downward points. This is a leading indicator that the process will produce a defect outside the lower control limit.
  • Lagging indicator: A lagging indicator is an outlier that is already outside the upper or lower control limit. This is a lagging indicator that the defect has already occurred in the process.

The Six Sigma expertise uses the quantitative and subjective methods also some of the graphical and statistical tools are being used for the improvement are as follows:

  • DMAIC Approach Tools- To effectively measure, analyses and improve quality and productivity.
  • 5S – This 5S method is to arrange the workstation materials for better access. This basically reduces the waste generated by bad conditioned tools and work surroundings. 5S-Sort, Set in Order, Sustain, Standardize, shine.
  • Value Stream Mapping – This initially manages the flow of information in process and created to improve and upgrade the flow all over the organization. There are mainly following activities which helps in identifying quality issues: Value-enabling activities, Value-adding activities and Non-value adding activities
  • Regression Analysis– In this a proper analysis of statically processes and undertaken to understand the relation between the variables.
  • Pareto Chart– In this a basic layout of the issues and happenings are displayed in the form of graphical picture or charts.
  • FMEA– Quality of the process, items and services are improved with the help of this tool by identifying and sorting the issues before they actually occur.
  • Kaizen – This quality measurement tool helps to ensure the decrease in waste by collective experiences of employees.
  • Poka-Yoka (Mistake Proofing)-It’s a Japanese terms which specify mistake proof work. It helps the employees to find out and to solve the reasons of human mistakes in work and productivity.(Dear Systems, 2019)
  1. Productivity Improvement

Lean Six Sigma is a problem-solving process utilizing information that converts the “fortunate figure” problem-solving approach which is basically utilized in Maersk Line to upgrade the efficiency. This step by step concept of lean six sigma guides team and ensure that they are not following wrong approach. At last, the aim is to improve productivity and services according to customer’s needs. Maersk Line is declared as successful because it follows Lean six sigma implementation to reduce waste and variation, also enhanced client value and productivity in business. (goSkills, 2019)

References

  • MWD Advisors. (2011). Retrieved from file:///C:/Users/vicky/Downloads/mwd-case-study-maersk-1530197.pdf
  • 6 Study Guide. (2015). Retrieved from https://sixsigmastudyguide.com/history-of-lean/
  • Procee.St. (2018). Retrieved from https://www.process.st/six-sigma-principles/
  • Asq. (2019). Retrieved from https://asq.org/quality-resources/dmaic
  • Dear Systems. (2019). Retrieved from https://dearsystems.com/lean-six-sigma/
  • goSkills. (2019). Retrieved from https://www.goskills.com/Lean-Six-Sigma
  • Isixsigma. (2019). Retrieved from https://www.isixsigma.com/implementation/case-studies/project-examples-from-an-lss-deployment-for-cultural-transformation/
  • Isixsigma. (2019). Retrieved from https://www.isixsigma.com/new-to-six-sigma/dmaic/what-dmaic/
  • Beinhocker, E. D. (2006). Wainwright Case Study.
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