Kena Proposal Final
Kena Proposal Final
Research Proposal on
i
Approval Sheet of Research Proposal
Ambo University
As members of the Board of Examining committee of the Final Master’s Proposal open defense,
we certify that we have read and evaluated the proposal prepared by Kena Malaku entitled
Efficiency Improvement in Carbonated Beverage Production Line Using Lean Six Sigma
Approach “and recommend that the Proposal be accepted as fulfilling the proposal requirement
for the Degree of Master of Science in Industrial Engineering.
______________________ ________________
ii
ACKNOWLEDGMENT
First of all, I would like to say thanks to God Almighty to make me powerful and patient during my
research proposal work and I would like to acknowledge the following personnel for their support
and assistance with this proposal.
This work would not have been possible without continual support of my advisor Dr. Tariku
Tamiru. I would like to express my heart full gratitude for his encouragement, guidance,
supervision and useful suggestions throughout this work. In addition, I am especially indebted to
Mr. Nagasa Fayyisa, head of the department of Industrial Engineering who has been supportive of
my career goals and who worked actively to provide me with the protected academic time to pursue
those goals.
I would also like to thank Dr. Ajit Pal Singh (Assistant Professor) as my teacher and mentor, he has
taught me more than I could ever give him credit for here. He has shown me, by his example, what
a good person should be. Finally, I would like to thank my parents, whose love and guidance are
with me in whatever I pursue.
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CONTENTS
Acknowledgment ............................................................................................................................... iii
Contents ..............................................................................................................................................iv
CHAPTER ONE .................................................................................................................................. 1
Introduction .......................................................................................................................................... 1
1.1. Background and Justification ................................................................................................ 1
1.2. Statement of Problem ............................................................................................................ 3
1.3. The research questions .......................................................................................................... 3
1.4. Significance of the Study ...................................................................................................... 4
1.5. Objective ............................................................................................................................... 4
1.5.1. Specific Objective .......................................................................................................... 4
1.6. Scope of the Study................................................................................................................. 4
CHAPTER TWO ................................................................................................................................. 5
Literature Review................................................................................................................................. 5
2.1. Introduction ........................................................................................................................... 5
2.2. Concept of Efficiency Improvement and productivity .......................................................... 5
2.3. Lean Concept and Strategies ................................................................................................. 6
2.3.1. Lean tools and principles ............................................................................................... 6
2.4. Six Sigma Methodology ........................................................................................................ 9
2.5. Concept of Lean Six Sigma ................................................................................................. 10
2.5.1. Lean Six Sigma in process industries .......................................................................... 11
2.6. Summary of the literature .................................................................................................... 12
CHAPTER THREE ........................................................................................................................... 15
RESEARCH METHODOLOGY....................................................................................................... 15
3.1. Introduction ......................................................................................................................... 15
3.2. Background of case company ............................................................................................. 15
3.3. Data Sources ........................................................................................................................ 16
3.3.1. Primary Data source ..................................................................................................... 16
3.3.2. Secondary Data source ................................................................................................. 16
3.4. Sampling techniques ........................................................................................................... 17
iv
3.4.1. Sample size selection ................................................................................................... 17
3.5. Data Analysis ...................................................................................................................... 18
3.6. Research Approach ............................................................................................................. 19
CHAPTER FOUR .............................................................................................................................. 21
BUDGET PLAN ................................................................................................................................ 21
CHAPTER FIVE ............................................................................................................................... 22
WORK PLAN .................................................................................................................................... 22
REFERENCE ..................................................................................................................................... 23
v
CHAPTER ONE
INTRODUCTION
1
According to lean methodology, there are eight different non-value-added wastes. Those
includes: overproduction, waiting, unnecessary transport, over processing, excess inventory,
unnecessary movement, defects and unused employee creativity (Leksic, Stefanic, & Veza,
2020). Elimination of these wastes is achieved through the implementation of lean methodology.
Lean manufacturing method is a philosophy and a long-term strategy of a company’s
management Lean uses different tools to value add on product. (Khan, Ali, & Sajid, 2022) It can
be expressed as doing more with less waste through the efficient use of resources available.
Therefore, lean manufacturing tools are the important methods that support employers and
managers to sustain the company’s competitiveness through eliminating wastes.
The Six Sigma philosophy introduced in the early 1980s as a scientific methodology in the third
industrial revolution by Motorola Company (U-Dominic, 2021). The study was carried out on
Deming’s research on quality control centered on process variation by one of the strategic
managers of the company. Lean Six sigma is a combination of Lean Manufacturing and Six
Sigma methodologies. Lean Six Sigma (LSS) concept is the integration of two quality
management concepts which are Lean Manufacturing and Six Sigma where by it attempts to
increase the scope and size of improvements achieved by either concept alone (Ajmera et al.,
2017). Both lean and six sigma become more powerful and eliminate the problems related to
each approach by applying respective tools and techniques of both Lean manufacturing and six
sigma.
Developing an organized Lean Six Sigma concept is addressing both Lean and Six Sigma
contrasting their respective strengths and weaknesses. (Sandner, Sieber, Tellermann, & Walthes,
2020). This hybrid approach is important, to have robust technique to improve process
efficiency.
The main concept to be developed in this paper is hybrid frame work from both lean and six
sigma and implement on case Company. Checking and adoption of framework through
integrating specific Lean and Six Sigma tools in a stepwise manner to improve line efficiency is
final goal. Generally integration of the Lean and the Six Sigma methodologies can achieve
dramatic improvements in cost, quality, customer service and time by focusing on process
improvement (Kumar, Antony, Singh, Tiwari, & Perry, 2006). Six Sigma can be Process
Improvement which focused on problem solving, aimed at eliminating the vital few root causes
2
and which uses DMAIC (Define, Measure, Analyze, Improve, Control) roadmap and process
redesign DMADV (Define, Measure, Analyze, Design, and Verify). Since the case company is
automated company and currently did not need redesign, we use DMAIC road map. DMAIC
focused on reducing variation and improving process yield by following a problem-solving
approach using statistical tools while lean concerned with eliminating waste and improving flow
by following the Lean principles and a defined approach to implement each of these principles.
As a result, many companies have either a Lean or Six Sigma program in place. But, using either
one of them alone has its own limitation. So, hybrid frame work can cover these limitation/cons.
3
3. How to develop framework that integrate lean and six sigma methodology for
process efficiency improvement?
1.5. Objective
The general objectives of the study are to improve production line efficiency of Ambo Mineral Water
share Company, RGB (returnable glass bottle) production line using integration of lean six sigma
(LSS)
4
CHAPTER TWO
LITERATURE REVIEW
2.1. Introduction
In this chapter different article, books, reports and relevant materials reviewed to obtain better
understanding of the area under study and identify alternative ways of how the topic has been
previously addressed. The content of the chapter addresses key principles and concepts of lean
and six sigma and its application in manufacturing area and how their integration applied on
manufacturing industries to improve efficiency with global competition. Finally, the literatures
gap has identified and considered as motivation for this study.
Optimal efficiency can be achieved by eliminating or reducing waste from the production
process as much as possible. In turn, one can produce optimal products with the least amount of
resources. Previously, in order to eliminate wastes from production process and improve process
variation a number of tools was developed. Lean and Six sigma approaches are among these
tools. Lean Six Sigma (LSS) concept is the integration of two (Ajmera et al., 2017) quality
management concepts which are Lean Manufacturing and Six Sigma methodology whereby it
attempts to increase the scope and size of production improvements achieved by either of the
5
concept. So, in this section different papers and articles related to production efficiency
improvement using integration of lean and six sigma will be reviewed.
a) 5s
The 5S is essential steps to set in motion and bring about a flourishing lean culture, as well as
one of the most widely adopted method from the lean manufacturing toolbox (Filip & Marascu-
6
Klein, 2015). It is considered a basic lean concept, as it establishes the operational stability
required for making and sustaining continuous improvements.
5S is a cleaning tool that encourages cleaner manufacturing in a systematic way. It not only
brightens the production floor, but it also helps to clean up the entire process by reducing
waste(Shahriar, Parvez, Islam, & Talapatra, 2022). This system includes five fundamental
guidelines those starts with S Letter (five S’s) that help improve workplace efficiency. The five
S’s are Sort, Set, Shine, Standardize, and Sustain (Filip & Marascu-Klein, 2015). In practice, 5S
makes workplaces more efficient and effective by: Removing unneeded items from each work
area (Sort), Customizing each unique work area to maximize efficiency (Set), Cleaning each
work area after every shift to help find and eliminate issues before they become major problems
(Shine), Documenting improvements so they can be more easily applied in other work areas
(Standardize), Making sure each step is repeated to ensure continuous improvement (Sustain).
The OEE was first introduced by Nakajima (1988) in the context of total productivity
maintenance (TPM) and is directed towards equipment/machines (Tsarouhas, 2013). As stated in
Nachiappan and Anantharaman (2006), OEE measurement is an effective way of analyzing the
efficiency of machine in the manufacturing system. It is usually formulated as a function of
number of mutually exclusive components. OEE is a framework for measuring productivity loss
for a given manufacturing process. There are three categories of loss in Calculation of OEE.
Availability (e.g., downtime), Performance (e.g., slow cycles), Quality (e.g., rejects)
Different researcher defines VSM in different ways. VSM is a language of symbol and is used as
a technique for analyzing material and information flow (Jasti & Sharma, 2014). It can be used
within the factory in a particular production family as well as beyond the boundaries of the
organization. The aim of the process VSM is to visualize the process and to identify major
process steps, as well as the flow of information. As the research of H. Singh and Singh (2013)
describe Value stream mapping aids in the development of a “current state map” which shows a
7
visual representation of how the company is currently operating; it records process information
and information flow which can be used to identify key wastes, problems and opportunities.
Among the several tools of Lean Manufacturing, VSM (Value Stream Mapping) can be the main
since it provides a holistic view of manufacturing processes and has been one of the most used in
the universe of applications of lean thinking in industrial and service companies (Rahani & al-
Ashraf, 2012). Value Stream mapping is a technique developed from Lean manufacturing.
Organizations use it to create a visual guide of all the components necessary to deliver a product
or service with the goal of analyzing and optimizing the entire process. It is used in a variety of
industries, including manufacturing, finance and healthcare. This principle takes all the people,
processes, information and inventory necessary, and displays them in a flow chart in order to get
an overview of the business.
As of Baluch, Abdullah, and Mohtar (2012), TPM made to employ maintenance engineers in a
manufacturing organization to execute maintenance activity to restore the working of machines
that failed to work. Total Productive Maintenance TPM is the process of using machines,
equipment, and operator knowledge to improve equipment reliability and reduce operating costs.
TPM is a complex, long term process which must be sold to the workforce as a legitimate
improvement methodology. For TPM to succeed in any industry, both management and the
workforce must address issues strategically while operating in an environment of trust and
organization (Baluch et al., 2012).
As Ilie and Ciocoiu (2010) describes, a fishbone diagram or Ishikawa Diagram is a visualization
tool for categorizing and describing the potential causes of a problem. It is an important lean
tool that can be used in excel to help brainstorm, identify potential causes, and sort ideas into
useful categories. Typically used for root cause analysis, a fishbone diagram combines the
practice of brainstorming with a type of mind map template.
8
Failure Modes and Effects Analysis (FMEA) is a systematic, proactive method for evaluating a
process to identify where and how it might fail and to assess the relative impact of different
failures in order to identify the parts of the process that are most in need of change. Sharma and
Srivastava (2018) states Most current FMEA methods use the risk priority number (RPN) value
to evaluate the risk of failure.
However different lean tools exist, in this work the researcher will going to use Value Stream
Mapping (VSM), Fish bone Diagram (cause and Effect), Failure Mode and Effect Analysis
(FMEA), Pareto analysis, Histogram, Root cause analysis (5 Why), Total productive
Maintenance, Kaizen, 5s and Statistical process Control chart in different phases of DMAIC Sis
Sigma Method.
As Erdil, Aktas, and Arani (2018) states, Six Sigma is regarded as a project-oriented approach
that facilitates the quality improvement of processes and products. Considering that the Define,
Measure, Analyze, Improve, and Control (DMAIC) methodology, which is one of Six Sigma's
well-known approaches, contributes significantly to process improvement projects (Gholami et
al., 2021). The central concept of Six-Sigma is that product and process quality can be improved
dramatically by understanding the relationships between the inputs to a product or process and
the metrics that define the quality level of the product or process (Mehrjerdi, 2011). Critical to
9
these relationships is the concept of “voice of the customer”. In other words, quality can only be
defined by the customer who will ultimately receive the outputs or benefits of a product or
process.
Lean Six Sigma concept can be one of the known administrative techniques since it is based on
understanding the facts and data, concerning the management accurately and increasing
productivity. As Omoush (2020), indicate that lean Six Sigma is an administrative philosophy
based on focusing on eliminating of the defects through improving the production process
depending on knowledge, facts, data and the analysis to improve quality and achieving the
required goals. As stated by Ajmera et al. (2017), Lean Six Sigma (LSS) concept is the
integration of two quality management concepts which are Lean Manufacturing and Six Sigma
10
where by it attempts to increase the scope and size of improvements achieved by either concept
alone. In GÖRANSSON AND TUNOVIC (2012) Research, Lean Six Sigma is a fact-based,
data-driven philosophy of improvement that values defect prevention over defect detection. It
drives customer satisfaction and bottom-line results by reducing variation, waste, and cycle time,
while promoting the use of work standardization and flow, thereby creating a competitive
advantage. It applies anywhere variation and waste exist, and every employee should be
involved.
11
Figure 2.1 Conceptual frame work for Integration of lean Six Sigma.
12
2016) reducing tools like 5S & employees with production time
production time SMED arranging the work reduction &
&satisfying area by 5S & workers
employees reduce the satisfaction
production time by
SMED
(Adikorley, Lean Six Sigma A qualitative Change over time Findings of this
Rothenberg, applications in approach of reduction & case study is
& Guillory, the textile descriptive study on Contamination of specific cannot
2017) industry LSS tool reduced be generalized.
(Pereira, Lean six sigma Used PDCA/DMAIC, With the The research
Silva, approach to with lean tools such implementation of revealed that
Domingues, improve the as Continuous Lean Six Sigma since the molds
& Sá, 2019) production Improvement, Value tools as obtained a are at Project
process in the Stream Mapping, improvement unique it is
mold industry: a Pareto analysis and about 20% of difficult to
case study Overall Equipment global OEE. analyze.
Effectiveness.
(Murmura, Lean Six Sigma Used lean Six Sigma Generation of an
Bravi, for the with qualitative data automatic system
Musso, & improvement of approach and deep for sending supply
Mosciszko, company case study (used pull orders, coming
2021) processes: the type production cell) directly from the
Schnell S.p.A. production line
Case study
(Same, Development Use lean & Six Proposed
2016) lean six-sigma Sigma based on conceptual lean
conceptual DMAIC approach six-sigma
implementation implementation
model for model &LSS
manufacturing implementation 26
13
organization LSS tools
Patel, Critical review of Dwell on the A few of the most It doesn’t include
literature on lean
A.S. and Pa evolution of the Lean common critical some of the
six sigma
tel, methodology Philosophy and Six success and failure studies due to the
K.M. (2021 Sigma methodology factors were inaccessibility
), individually and the identified from the and selection
emergence of Lean articles studied criteria followed
Six Sigma during the study. for the study.
methodology.
14
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Introduction
This chapter presents the methods and tools which will be used to collect and analyze data for
the research to achieve the objective of the study, which is to improve production line
efficiency of Ambo Mineral Water share Company, RGB (returnable glass bottle) production
line using integration of lean six sigma (LSS). In addition to this the chapter also discusses the
description of the study area (i.e., background of the case company). Both qualitative and
quantitative data collection and analysis methods will be used. Data will be collected by
interview, direct observations and questionnaire. The analysis of the data will be done by
hybrid approach (i.e., tools of lean like failure mode and effect analysis, value stream
mapping, fish bone diagram, pareto analysis, root cause analysis, kaizen, 5s, Total productive
maintenance, control chart and Six Sigma, DMAIC).
A research methodology encompasses the way in which you intend to carry out your research
(Adeodu et al., 2021). This process includes how you plan to tackle things like data collection
methods, different statistical analysis, physical observations, and more. The analysis tool used
in this paper illustrates how lean six sigma (LSS) is used to improve the existing production
line efficiency in carbonated beverage industries with focus on productivity and
manufacturing wastes. The study considered a real-time problem of different wastes which
results in low line efficiency.
15
The PET production line is latest and equipped with modern technological equipment for a good
control of the quality of the beverages. However current RGB production line counts about a
decade and it needs some improvement on product variation and defects.
16
3.4. Sampling techniques
In analysis of data, sampling is the practice of analyzing a subset of all data taken from source in
order to uncover the meaningful information in the larger data set. It is a technique in which
different consecutive observations are made through out a single or groups of workers, machines,
or processes. In this study, sampling is the most significant part and will be taken from
production lines (machines) and workers' population. As explained in Kothari (2020),
performing a census study in a large population will involve a high amount of resource usages.
So sampling is necessary parts of research. Generally, sampling classified into based on their
condition. These are probability sampling (random) and non-probability sampling. In the case
company of this study (i,e., beverage production line), there are a large number of the workers
assigned in different positions. Therefore, a non-probability sampling technique (a method of
selecting individuals from a population using a subjective (purposive) method will be used. This
type of sampling will be help full to select candidates from the given population according to
their specific task/position, knowledge, and work experience. So, it enables the researcher to
gather a lot of information from experience the workers have developed as per their specific
position. Since clear information will be gained, it is a popular method used by researchers due
to the fact that it is extremely time and cost-effective when compared to other sampling
methods.
of precision. This formula was used to calculate the sample sizes in the following table. N = 263,
A 95% confidence level and e = 5%, So
263
n= = 158 So that required sample size will be 158.
1+263(𝑒)2
17
3.5. Data Analysis
Existing data condition will be derived from interviews, observations and company’s records.
After primary and secondary data are collected, the data will be analyzed and evaluated
qualitatively and quantitatively using SPSS, Minitab, Excel spreadsheet and Lean Six Sigma
tools and principles. As described on the introduction part, Six Sigma’s DMAIC framework is
used along with lean tools for production line efficiency improvement. Different five stage of Six
Sigma DMAIC is applied with different lean tools for data analysis.
Collected data and other relevant information using available scientific methods will be modeled
using E-draw Max software and Microsoft word Shapes. These data will be analyzed for the sake
of knowing percentage of the extent of the rejected or defected product to determine quality level
of product in the company using statistical quality control tools such as pareto analysis, fish bone
diagram, cause and effect diagrams, DMAIC Approach and different related lean tools. In this
work the researcher will use the following tools.
18
Define • Value Stream Mapping (VSM)
• Fish bone Diagram(cause and Effect)
• Failure Mode and Effect Analysis (FMEA)
Improvement
• Total productive Maintenance
• Kaizen
• 5s
Quantitative research is an approach for testing objective theories by examining the relationship
among variables. A statistical procedure is made to interpret and analyze the numbered collected
data. The final written report has a set structure consisting of introduction, literature, and theory,
19
methods, results, and discussion. Therefore, a research framework has been drafted which can
clearly show the steps from research problem definitions to the final parts of the conclusion and
recommendation. In the figure below, the general flows of research operations and activities are
organized and described successively. Researcher used both primary and secondary sources.
Start
Identifying
Research Problems,
Title selection
questions and
defining
Different Literature
Endnote Library
review related to Title Approval
formation
LSS
Deciding research
Objectives
Improvement modeling
Implementation
20
CHAPTER FOUR
BUDGET PLAN
Table 4.1 Research budget
No. Budget Types Daily Total
Frequency
rate in cost in
of activity Justification
ETB ETB
1 Personnel: allowance for data 10 200 2000
collectors
2 Consumable supplies like Papers, 1 7000 7000
pens, Laptop
3 Cost of projected-related travel 15 40 600
4 Communications: postage, telephone, 1 500 500
and charges associated with research
5 Publication: the cost incurred of 1 11,000 11000
preparing and publishing the results
of the research.
6 Other direct costs: costs of all items 1 5000 5000
that do not fit into any of the above
direct costs.
Total 23,740 26,100
21
CHAPTER FIVE
WORK PLAN
22
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