AUTHOR QUERIES

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2010; Pyzdek and Magnusson et al., 2003; Eckes, 2001; Magnusson et al., 2003; Roy
Andersson, 2006; Snee, 2005; Robert J. Vokurka, 2000; Paul Grizzell, 2006; Samuel,
2010Same, 2016 ;Shahin, 2010; Paul Grizzell, 2006; Png, 2015; Asmah, 2011; Gazperzs, 2011;
Hasan, 2013; Puspitasari and Martanto, 2014; Sumberg (2005); Badri et al., 2006; Goldstein &
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01 Chapter

02 Development of Integrated Lean

03 Six Sigma-Baldrige Framework for
04 Manufacturing Waste
05 Minimization: A Case of NAS
06 Foods Plc
07 Kassu Jilcha and Selamawit Gebreyohanis

08 Abstract

09 The aim of this study objective is to develop an integrated constant quality

10 improvement model so as to minimize unwanted biscuit processing industry
11 wastes. The method used was lean- six- sigma elements to define measure and
12 improve unwanted process company wastes. In other word, Baldrige with six-sigma
13 were created to define, measure and improve management perspectives. The tasks
14 were integrated using both quantitative and qualitative analyzing tools
15 implementing mixed strategies. The result was improved by using FMEA analysis
16 was carried out at each stage of the existing process used to determine the failure of
17 the process and to analyses and improve the production quality. The SPSS software
18 was also used. In the finding section, the correlation and regression analysis has
19 shown that there is strong relationship between each variance. There are different
20 wastes that identified in six sigma (DMAIC) on NAS food Plc as a result; the value
21 of waste ratio indicated is 36.7%. This show non-lean of the food industry is prac-
22 ticed. The defect of the company also calculated and defect per million are 67,308.
23 This shows that the biscuit production has a production capability with a failure of
24 67,308 every 1000,000 productions it high failure rate. The contribution of the
25 paper has indicated that there are limited studies were conducted so far to imple-
26 ment waste minimization tools like six-sigma, lean and MBNQA framework
27 approach integration for food processing industry.

28 Keywords: waste, lean, DAMIC, CQI, MBNQA

29 1. Introduction

30 Companies are more competitive in current globalization and every detail is

31 important for the business that wants to improve its competiveness. Since it is not a
32 surprise, the best continuous improvement strategies that could be developed for
33 manufacturing industries provide to improve efficiency and effectiveness of whole
34 systems. Though, automating production and improving process efficiency are two
35 major objectives of the food industry worldwide. Since, implementing advanced
36 continues an improvement strategy in the modern manufacturing provides to

1
 Lean Manufacturing

01 improve the performance of the process, reduce waste and ensure on time delivery
02 of the sectors [30]. Because of the continuous improvement is a management
03 philosophy that approaches to tackle the challenge of product and increase process
04 improvement [9]. Thus, from numerous tools firms were invested to implement
05 lean, six-sigma, TQM and JIT strategies in their business process so as to enhance
06 performance and compete at global levels, [39]. Though the lean principle provides
07 to identifying and eliminating non value add (wastes) through continuous
08 improvement tools, flowing the product at the pull of the customer in pursuit of
09 perfection [35]. Since due to comprise on quality development, process focus,
10 continuous improvement and value stream management and worker empowerment
11 future several companies invest in the implementation lean principles [39]. While
12 six sigma is a really effective tool for systematically attacking the highest priority
13 production and support functional problems within an organization [35]. Hence, six
14 sigma is statistical measure of defect rate within a system and the practice requires
15 the knowledge of basic and advanced statistical tools so as to reduce defects and
16 variations within a work process in firm. But the main limitations are six sigma not
17 effective for every problem reduction in the firms (Liang, 2014). Baldrige national
18 quality award (MBNQA) for helping excellence ever, improving value to market-
19 place success, improvement of overall organizational effectiveness and capabilities,
20 organizational and personal learning. Though from the above observe that a single
21 improvement tools lacks to coherence to tackle the whole problems of the
22 manufacturing firms. Single tools have good potential to tackle specific problems.
23 Even though, an integrated continuous improvement strategies and methods have
24 great power to improve the performance and the competitiveness of the firms [5].
25 As long as fewer studies were investigate to implements the integration of lean with
26 six sigma, lean with TQM strategies in the firm so as to improve the performance
27 and global Competitiveness [35]. Therefore integrating three or more continuous
28 improvement strategies provides to enhance, quality of products, optimum product
29 cost, timely delivery of products,the flexibility of their internal business process,
30 reduction of wastes and customer satisfactions, [39]. Thus, this study aims to
31 develop an integrated frame work from lean, six sigma and the Malcolm Baldrige
32 Criteria so as to improve the production performance, reduce waste and improve
33 competitiveness of,NAS Foods Plc.

34 2. Problem statements

35 Nowadays food industry makes a significant contribution to national economy

36 in many developing countries. Here in Ethiopia the economy depend on agricultural
37 and which accounts 43.2% of gross domestic product (GDP) [46]. Also there is less
38 contribution in an improvement of biscuit industry analyzed and waste minimiza-
39 tion. There is different waste that are identified in six sigma (DMAIC) on NAS food
40 Plc. Currently the company only uses 30% of its capacity and produce 3000 carton
41 per day via 349 workers but it can produce 10,000 cartons with 1000 workers. As a
42 result the value of waste ratio is 36.7%, this show non lean and can be categorized as
43 a traditional company (George, 2002). The defect of the company also calculated
44 and defect per million are 67,308. This shows that the biscuit production of has a
45 production capability with a failure of 67,308 every 1000,000 productions or
46 equivalent to 6.73% loss and this indicates the production process still has a high
47 failure rate. The other problem here is there are limited studies were conducted so
48 far to implement waste minimization tools like six sigma, lean and MBNQA
49 approach on Ethiopian food processing industries [47].

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

01 3. Objective

02 The main objective of this study is to develop an integrated continuous quality

03 improvement model so as to minimize waste of biscuit manufacturing.

04 • To identify the gaps and strength of previous researches on related to

05 continuous improvement strategies to minimize waste.

06 • To investigate the challenges and potentials of integrating continuous

07 improvement strategies in the context of biscuit manufacturing.

08 • To develop an integrated continuous quality improvement models to reducing

09 waste and enhancing competitiveness of NAS food Plc.

10 4. Literature review

11 The purpose of this literature review is to provide a background on challenges of

12 waste, waste controlling mechanism and applicability of waste controlling strategies
13 across a variety of industries. Since this understanding will help determine which
14 waste controlling strategies and principles are appropriate for implementation
15 within the food manufacturing industry, and detail topics discuss in this section are
16 for history of waste minimization in manufacturing industry, lean manufacturing
17 philosophy, six sigma and Malcolm Baldrige National Quality Award (MBNQA)
18 principle, tools and technique in manufacturing industries as whole as well as a
19 detailed summary of the literature concerning improvement and competitiveness
20 problem of Ethiopian food processing industry. Though the principal sources of this
21 information included company reports, published literature in textbooks and
22 journals were incorporated.

23 4.1 Wastes in the food processing sector

24 Food loss should mean the decrease in edible food mass throughout the food
25 chain. Food losses take place in production, postharvest and processing stages in the
26 food supply chains. Since a division is to be made whether the loss of resources
27 happens in the early stages of the food supply chains (FSC) or the resource was
28 wasted by the action of the retail sector or consumers. Though in the first case, the
29 problems can call about food losses, while in the latter case about food waste. The
30 food losses can be avoided by a correct action, e.g. by maintaining the cold supply
31 chain or ensuring correct storage conditions for products. Since the food loss also
32 occurs if the product that was originally intended for human consumption is recov-
33 ered in the form of feed, fertilizer or energy [22, 38]. Besides the waste and food
34 waste is more comprehensive and it includes all resources that are lost in the
35 different sectors of the food supply chain, and will include also those parts that were
36 originally not intended for human consumption.

37 4.2 Waste minimization strategies and mechanisms

38 The waste is an important issue that should be treated in such a way that the
39 benefits achieved from that will be in both environmental and social aspects. As in
40 manufacturing industries, waste management is key issues to greater opportunities
41 for waste recovery and diversion of waste from landfill, and services suitable to

3
 Lean Manufacturing

01 businesses. Though according to [22] shows that waste management is favoring

02 reuse and recycling before land filling, with the main idea of environmental sus-
03 tainable society.

04 4.3 Continuous improvement strategies

05 Quality is becoming an increasingly important subject in organizations. It is

06 central matter to develop a sustained resource management technique. Therefore,
07 logistics emerges as an activity that allows the achievement of a prodigious effi-
08 ciency and economic welfares and in long term it is to obtain competitive advan-
09 tages of the country. However, organizations have improvement choices with time
10 depending up on the way they track to meet their strategic and operational objec-
11 tives, they can watch to its economic welfares. Science raises continuous improve-
12 ment as the competence of frequent processes and schemes and is closely integrated
13 with means of waste elimination. The customers focus programs such as total
14 quality management, supply chain management, just-in-time and kaizen also need
15 to be understood how to assess quality of products and systems through use of a
16 variety of quality control tools. It is also important to understand how to interpret
17 findings and how to correct problems. There are countless specific tools and tech-
18 niques that help the industry process improvement and enhancement. Any organi-
19 zation needs to focus on quality of products, optimum product cost, timely delivery
20 of products and the flexibility of their internal business process to adjust to quick
21 fluctuations. Consequently, continuous and constant improvement tools like
22 Kaizen, Six Sigma, ISO-9000, Lean thinking, TQM, SCM and JIT system are not
23 new to the present situation of industrialization for achieving the above concepts.
24 This method is not only limited to any particular industry but also to large potential
25 benefit. It has a widespread application throughout the whole industries. Many
26 industries have adopted it and others are going to implement for their endurance in
27 the fast competition at each stage in each area.

28 4.4 The concepts of lean manufacturing

29 Historically the lean production system is the world famous production system
30 developed and practiced by Toyota Company for a long time [11, 47]. Though the
31 basic ideas behind the lean manufacturing system are waste elimination, cost
32 reduction and employee empowerment. Since this concepts leads to maximize
33 customer value while minimizing all the wastes that come with that significance.
34 Nevertheless, lean processes can make jobs highly repetitive while eliminating
35 critical rest time for employees [15]. Lean is a philosophy that aims to maintain
36 smooth production flow by continuously identifying and eliminating waste
37 resulting in increasing value of activities in the production process [27].

38 4.5 Waste reduction and waste removal

39 Through Lean Main goal of lean thinking is to reduce and remove waste. Since
40 lean strategy is a potential tool to minimize and then remove waste so as to achieve
41 sustainable development of manufacturing firms. Even though, the lean strategy
42 reduction is one of the main functions of Lean Manufacturing implementation plan
43 [27]. Since all the form of waste i.e. overproduction, defect, transportation, work in
44 progress inventory, over processing, waiting and motion are reduced with Lean
AQ02 45 manufacturing implementation (Figure 1).

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

Figure 1.
The seven wastes that controlled quality.

01 4.6 Roles of six- sigma on improvement

02 Numerous companies use Six Sigma practice to achieve competitiveness of their

03 business. Six sigma methodologies are cast-off to improve the excellence of the
04 product and process dramatically. Sigma, σ, is a letter employed from the Greek
05 alphabet to measure the process variability and the sigma level measured to deter-
06 mine the performance of the business processes (Pyzdek, 2003). The six sigma
07 methodology was introduced by Motorola (1980) and resulted in the accomplish-
08 ment of business quality in Motorola. According to the study by Snee (2010) states
09 that six sigma concept was constructed by Bill Smith, then an engineer at Motorola
10 who wins the 1988 Baldrige National Quality Award. The deployment of six sigma
11 concept is led by Allied-Signal and General Electric (GE). Six-sigma is described as
12 an improvement programmer for reducing variation. It focuses on continuous and
13 breakthrough improvements. In research the two major improvement methodolo-
14 gies in six- sigma has been considered. These are already existing processes and new
15 processes. The first methodology used to improve an existing process and can be
16 divided into five phases (Pyzdek and Magnusson et al., 2003). These are:

17 • Define: which process that needs improvement. Define the most suitable team
18 members to work with the improvement. Define the customers of the process,
19 their needs and requirements, and create a map of the process that should be
20 improved.

21 • Measure: Identify the key factors that have the most influence on the process,
22 and decide upon how to measure them.

23 • Analyze: Analyze the factors that need improvements.

5
 Lean Manufacturing

01 • Improve: Design and implement the most effective solution. Cost–benefit

02 analyses should be used to identify the best solution.

03 • Control: Verify if the implementation was successful and ensure that the
04 improvement sustains over time. As well the second methodology is often used
05 when the existing processes do not satisfy the customers or are not able to
06 achieve strategic business objectives, see (Eckes, 2001). This methodology can
07 also be divided into five phases; define measure, analyze, design, verify,
08 according to (Magnusson et al., 2003). In summary, the two different
09 methodologies have obvious similarities (Roy Andersson, 2006).Table 1
10 indicates the integration of the tools.

Define Measure Analyze Improve Control

Lean Value Process Mapping Cause and Effect FMEA Production Standard
tools Mapping Matrix Bottleneck Smoothing Work
Project Analysis Kaizen 5S Poka-
Charter Events Yoke

Table 1.
Integration of lean tools in the DMAIC framework (Snee, 2005; [39]).

Program Six Sigma Lean thinking MBNQA

Theory Reduce variation Remove waste Quality awareness

Application • Define • Identify value Visionary Leadership,

and Principles • Measure • Identify value stream. Customer-Driven,
• Analyze • Flow. Excellence, Organizational
• Improve. • Pull, Perfection. and Personal Learning,
• Control Valuing Employees
&Partners, Agility, Focus
on the Future, and analysis
and knowledge transfer
and organization
performance

Focus Problem focused Flow focused Quality focused

Criticisms System interaction not Statistical or system Unfairness, superficiality

considered. Processes analysis not valued and publicity the inherent
improved independently. value of the continuously
improving award program
far outweighs its
limitations.

Tools Flow chart, control chart, 5S,VSM Questioner, ABC

graphical chart

Type of • Emphasis processes & • Emphasis on process. • Emphasis on structure

Continuous outcomes • Simplifies and outcomes.
Quality • Greatest for processes overcomplicated • Best for practice-wide
Improvement plagued by wide processes and considers problem assessment and
(CQI) variability —logging of interdependencies. goal setting.
Initiative pharmaceuticals, • Best for known • A broad, holistic
standardizing referral problems with known approach to CQI
processes, etc. system change solution. initiated at strategic
• a heavily quantitative • Integrated throughout times.
approach to CQI the organization. • Ideal for practices that
• Ideal for large complex want to establish a new
health care

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

Program Six Sigma Lean thinking MBNQA

• Adapted for targeted organizations and CQI system or overhaul

changes to specific practice networks that an existing one.
processes. want to standardize
• Combined with Lean operations across
when the focus is on multiple units
efficiency and quality.
• Ideal for practices that
want to rigorously
quantify improvements
in safety, quality, and
cost effectiveness

Table 2.
Comparison of improvement programs [21, 36].

01 4.7 Malcolm Baldrige national quality award

02 The initiative taken to improve quality management practices and the competi-
03 tiveness of U.S. firms was signed by President Ronald Reagan on Malcolm Baldrige
04 National Quality Improvement Act in 1987. The Malcolm Baldrige National Quality
05 Award (MBNQA) was created to promote quality awareness, identify the require-
06 ments for quality excellence and share information about successful quality strategies
07 and benefits (Robert J. Vokurka, 2000). The Baldrige core values and concepts
08 includes visionary leadership management for innovation, customer-driven, excel-
09 lence, management by fact, organizational and personal learning, social responsibility,
10 valuing employees and partners, focus on results and creating value, agility systems
11 perspective and focus on the future are the common values. (Paul Grizzell, 2006).
12 Table 2 indicates the comparison of the different programs and tools. It indi-
13 cates the difference and similarities the tools have so that they lead to develop the
14 ingrate once. Figure 2 indicates the summery of literature review with the major
15 areas considered during the study.

16 4.8 Literature gap

17 To get enough information about the topic raised so many literatures are
18 reviewed from different sources, among these journal articles, reports, and
19 unpublished master thesis is the main one. During literature survey recent

Figure 2.
Summary of the literature review (authors).

7
 Lean Manufacturing

01 documents concerning waste minimization tool lean, six sigma and Malcolm
02 baldrige quality award are collected from different sources then each document
03 critically examined in order to filter gaps below.

04 • (Roy Andersson, 2006; [2, 18]; Samuel, 2010; [36]; Same, 2016;Shahin, 2010;
05 [44, 47] this papers integration lean six sigma with different tools but not
06 integration awards or quality perspective.

07 • Paul Grizzell (2006) and Png (2015) these papers see the alignment and
08 reviewed of Lean Six sigma and Baldrige but not integrate all and not much has
09 been found in Ethiopian context.

10 • The organizations are not able to reap out the benefits of Lean Six sigma,
11 Baldrige and other advance tools practices due to lack of awareness.

12 • Integrated Lean, Six sigma and Baldrige approach in Ethiopia Industries is not
13 explored and not much has been found in food industry.

14 5. Research methodology

15 This study was conducted based on both secondary and primary data collected
16 from the primary sources and ordinary data. Preliminary literature review and
17 existing company condition was scanned to formulate the problems and objectives
18 of the study. The data collection process considered defines measure and analyses
19 the data sources. The process set improvement model and then control the research
20 process. The research draws the conclusion of the resulting analysis with.
21 As shown in Figure 3, the research process start at problem formulation and
22 arrives at conclusion and recommendation. The study has been conducted by con-
23 sidering preliminary literature review to develop objectives and problem statement.
24 The study was conducted by considering literature review from different know

Figure 3.
A methodology framework.

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

01 sources and databases. The literature was reviewed from databases like Scopus
02 indexed, web of science listed journals, PUBMED, MEDIN, research gates and DOJ
03 indexed journals. After analyzing and screening literatures, the study found gaps
04 from literature that helped to know the research focus area. Based on the literature
05 review method of data collection and sources were identified. The data was col-
06 lected through questionnaires, interviews, and field observation. Data sources were
07 used from primary data which was collected by physical field observation, inter-
08 views, questioners and company reports from NAS Foods Plc. Responsible and
09 targeted groups were considered under survey on this study. Interview of top
10 managers were made containing 14 interview questions and answer by 1 manage-
11 ment and 2 supervisor of the NAS Foods Plc. during the field visiting.
12 Questioners for employees also conducted to collect data from employees by
13 using questioner to find detail of the problems that NAS Foods Plc. currently facing.
14 The other data source was secondary data which was used to meet the research
15 objectives, reviewing the existing research work of 48 journals, government
16 reports, some reference books & paper related to lean thinking, six sigma, Malcolm
17 Baldrige national quality award programs, strategies, role impacts on manufactur-
18 ing and food processing industries. The key challenges, potentials and strategies to
19 integrating continuous improvement tolls also considered. The Early search results
20 show that a total of 400 article reports and thesis were found from various text-
21 books, academic and professional journals. Then read and sort for relevance to the
22 continuous improvement and waste minimization strategy and tools and for their
23 integration. The article would be assessed of methodology, method of measurement
24 and finding results. Finally 48 article, reports and thesis selected are important and
25 related to this study. The research methodology used the continuous quality
26 improvement tool integration to reach its conclusion (Refer to Figure 3).

27 6. Result and discussion

28 6.1 Quantitative result

29 6.1.1 Bivariate correlation analysis

30 Correlation analysis is used to quantify the association between two continuous

31 variables (between an independent and a dependent variable or between two inde-
32 pendent variables. Pearson (r) correlation is the most widely used correlation sta-
33 tistic to measure the degree of the relationship between linearly related variables.
34 The correlation value r = 1 indicated that strong negative correlation existence,
35 r = 0.5 negative correlation, r = 0 with no correlation, r = +0.5 with strong
36 correlation and r = +1 is the strong positive correlation (Figure 4).
37 This study showed the respondent result from questioner and it has 4 sections
38 and 25 questions so in order to see the correlations of all indicators it is preferable to
39 make analysis using SPSS. Based on the above principle the study develop the
40 relationships between the waste measurement variance as we see in the next table
41 (5.5) in the SPSS output Pearson correlation r (value of statistical test) should close
42 to +1 and the sig (2-tailed) or p-value is less than 0.05 for strong relation. As we see
43 the table below there is strong relation in each relation.

44 6.1.2 Analysis of awareness of waste measurement

45 Waste measures are included seven perspectives in lean typical. In this study it
46 identified each because waste issue is different from process angle and to see further
47 correlation between each viewpoint. Waste minimization is the basic for any

9
 Lean Manufacturing

Figure 4.
Pareto diagrams of seven wastes)

01 organization, in this study waste minimization of NAS food plc. The awareness of
02 each respondent comprised (Table 3).
03 When it has been seen the relationship of each variable in waste perspective
04 have strong relation with significance level of 0.01 and the causal Pearson Correla-
05 tion of variable of excessive transport vs. inappropriate process their value is 0. 579
06 which show moderate positive relationship and the highest Pearson correlation in
07 waste perspective is between unnecessary inventories vs. waiting their value is
08 0.920 it mean that waiting in NAS food is highest factor in unnecessary inventory
09 analysis. There is also highest Pearson correlation that the value is greater than 0.9
10 between inappropriate processing vs. over production and inappropriate process vs.
11 Defect.

12 6.2 Analysis of Malcolm criteria measurement

13 Malcolm measures are included seven criteria in management perspective. In

14 this study it identified each because Excellence issue is diverse from management
15 angle and to see further correlation between each viewpoint. Quality improvement
16 is the basic for any organization (Table 4).
17 When we see the above relationship of each variables in management perspec-
18 tive, they have strong relation with significance level of 0.01 and the causal Pearson

Factors Excessive Unnecessary Unnecessary Inappropriate Overproduction Waiting Defect

transport inventory motion processing time

Excessive 1 0.749** 0.662** 0.579** 0.696** 0.630** 0.680**

transport

Unnecessary 1 0.898** 0.692** 0.661** 0.920** 0.779**

inventory

Unnecessary 1 0.882** 0.814** 0.899** 0.848**

motion

Inappropriate 1 0.906** 0.762** 0.903**

processing

Overproduction 1 0.659** 0.894**

Waiting time 1 0.828**

Defect 1

**Correlation is significant at 0.01 level with Person (2-tailed) and list wise N = 100.

Table 3.
Bivariate correlation in between waste measurement parameter.

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

Malcom Leadership Strategic Customer Information Human Process Business

Criteria style planning and market and data resource management result
measurements strength improvement focus analysis focus capability
management efficiency

Leadership 1 0.896** 0.960** 0.845** 0.855** 0.926** 0.929**

style strength

Strategic 1 0.922** 0.820** 0.921** 0.861** 0.884**

planning
improvement

Customer and 1 0.877** 0.882** 0.927** 0.958**

market focus
management

Information 1 0.856** 0.843** 0.904**

and data
analysis
efficiency

Human 1 0.837** 0.881**

resource focus

Process 1 0.923**
management

Business result 1
capability

**Correlation is significant at 0.01 level with Person (2-tailed) and list wise N = 100.

Table 4.
Bivariate correlation in between Malcolm criteria measurement.

01 Correlation of most variable has a strong positive relation and their value is greater
02 than 0.9 whereas the leadership vs. customer and market their value is 0.960 and it
03 has highest value than the others which shows strong positive relationship.

04 6.3 Analysis of waste minimization tools measurement

05 Waste minimization tools measures are included six perspectives in this study. It
06 identified each because waste issue is different from process angle and to see further
07 correlation between each viewpoint. Waste minimization is the basic for any orga-
08 nization; the company does not adopt any particular standardized approach to
09 larger improvement projects (Table 5).
10 When we see the above relationship, each variables in waste minimization tool
11 perspective have strong relation with significance level at 0.01 and 0.05 whereas the
12 causal Pearson Correlation of JIT vs. Six- sigma their value is 0.370 which show
13 negative relationship and the highest Pearson correlation in waste minimization tool
14 perspective is between lean vs. JIT its value is 0.920 which mean that JIT in NAS
15 food is highest factor in Lean analysis.

16 6.4 Analysis of competitiveness measurement

17 Competitiveness measurements are included five perspectives that help evalua-

18 tion and decision making within organizations that occupy in waste issue. It identi-
19 fied the correlation between quality, price, time, customer satisfaction and
20 environmental views (Table 6).
21 When we see the above relationship of each variables in competitiveness mea-
22 surement perspective they have strong relation with significance level of 0.01 and
23 the causal Pearson Correlation of most variable has a strong positive relation and
24 their value is greater than 0.9 whereas the time vs. customer satisfaction and

11
 Lean Manufacturing

Factors Lean Just in time TQM Kaizen Work Study Six sigma

Lean 1 0.960** 0.042 0.858* 0.866** 0.335**

Just in time 1 0.0.34 0.858* 0.833** 0.37**

TQM 1 0.114** 0.244* 0.717**

Kaizen 1 0.868** 0.141

Work Study 1 019

Six sigma 1
*
Correlation is significant at 0.05 level with Person (2-tailed) and list wise N = 100.
**
Correlation is significant at 0.01 level.

Table 5.
Bivariate correlation in between waste minimization tools.

Do the following price affect quality affect Time affect the Customer Environment
factors affect competitiveness the competitiveness satisfaction affect affect the
biscuit product competitiveness the competitiveness
competitiveness

price affect 1 0.898** 0.869** 0.803** 0.833**

competitiveness

quality affect the 1 0.914** 0.895** 0.912**

competitiveness

Time affect the 1 0.934** 0.940**

competitiveness

Customer 1 0.913**
satisfaction affect
the
competitiveness

Environment 1
affect the
competitiveness

**Correlation is significant at 0.01 level with Person (2-tailed) and list wise N = 100.

Table 6.
Bivariate correlation in between competitiveness measurement.

01 environment their value is 0.934 & 0.940 respectively and it has highest value than
02 the others which shows strong positive relationship it mean that time affect the
03 competitiveness of biscuit product in NAS food is highest factor in customer satis-
04 faction and environment analysis.

05 6.5 Analysis on waste level using the 7 lean wastes

06 There are certain techniques obtained from previous studies to analyses the
07 seven lean wastes. Among them, the following stages were used.

08 • Defining Stage: The biscuit production process and determination of VA/NVA

09 activities of NAS manufactures varies biscuits’ production lines. The
10 production process of line is run fulltime. According to many studies biscuit
11 production and design revealed that the biscuit production process covers the
12 stages of raw material preparation, mixing, forming or molding, baking by
13 oven, cooling and packing [3] (Asmah, 2011). Each process has a certain design

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 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

01 and layout in order to obtain quality, process capability and good capacity in
02 order to meet the needs of consumers.

03 • Measure Stage: it a Waste Identification stage. During the field observation,

04 the biscuit production process in NAS factory, there were several waste of
05 resources identified i.e. non-standard process, fail on the ground,Crimean
06 machine waste area, Rapper wastage, Packaging scrap product drops, error
07 metal detector detection, broken, oval, overweight or small products,
08 imperfect shape, non-standard water content, malfunction process, and engine
09 breakdown. According to [45] Toyota identifies seven types of waste and they
10 include 1. Overproduction, 2.waiting time, 3. Unnecessary transportation, 4.
11 Excessive or erroneous processing, 5. Excessive inventory, 6. Unnecessary
12 movement and 7. Defective product.to identifies the observed. The results of
13 this identification were illustrated by a value stream mapping diagram, to
14 determine the actual condition of the observed objects in several indicators,
15 including value added and non-value added time. The value of Process Cycle
16 Efficiency (PCE) was calculated to determine the value of Lean application
17 level at NAS. Measuring stage is the process of measuring and identification of
18 waste occurring at every stage of production process. The occurrence of each
19 waste was measured and classified using the approach of 7-waste classification
20 and finally calculated by Pareto analysis.

21 Analysis on the mapping process of the whole series of biscuit production is

22 illustrated by some activities that are classified as non-value-added activities and
23 some value-added activities (Tables 7 and 8). Based on the time measure of the VA
24 and NVA activities, the value of Process Cycle Efficiency (PCE) of 49.64% was
25 obtained. The value of PCE is the result of division between Value Added Time and
26 Total Cycle Time.
27 A company can be considered Lean if the ratio of value-to-waste ratio has
28 reached a minimum of 30%; therefore, if the company is not lean and can be

Activity Time(minute)

Preparation of flour material 5.0

Preparation of oil material 4.5

Preparation of packaging material 3.05

Weighing of other materials 11

Mixing process 20

Cutting & forming process 6

Baking process 4.5

Cooling process 5

Stacking process 7.8

Cream mixing process 10

Packing process 7.03

Cartoons process 4.8

Total 78.88

Table 7.
The value added process in the biscuit manufacturing for 3 month.

13
 Lean Manufacturing

Activity Time(Minute)

Lay time-dough 50.0

QC product check 30.0

Total 80.0

Table 8.
Non value added process in the biscuit manufacturing for 3 month.

01 categorized as a traditional company (George, 2002). Because of the value of waste

02 ratio is 36.7%.

03 • Analysis Stage: the definition and analysis of this stage is given as

04 Determination of Critical to Quality (CTQ) and CPM value Critical to Quality.
05 CTQ is a standardized or critical measure at every stage of production
06 processes in order to produce quality products that meet the consumers’
07 expectation in accordance with the capabilities of process technology available.
08 Gazperzs (2011) suggests that the characteristics of quality that will satisfy
09 customers should first be identified. Here, the quality characteristics
10 considered as critical should be classified and controlled. Each quality
11 characteristic that has been classified should be determined to see whether it
12 can be controlled through material, machines, work processes, and others
13 control. CTQ standardization helps us to set up a maximum tolerance limit and
14 a minimum tolerance limit. The values of USL and LSL are determining the
15 process variation for each classified quality characteristic. They can also be
16 used as signposts for product and process developments. According to the
17 study by Hasan (2013) stated that range of USL and LSL values is determined
18 by the value of  n sigma, and the Six-sigma approach (DMAIC method) is
19 used as a reference in order to decrease waste or loss (Table 9).

20 As shown in Figure 5, the research found the values of six sigma calculation and
21 enter the number defect observed is 5.25, enter the size of the sample are 78 and the
22 defects per million (DPMO) of 67,308, and sigma of 3. This shows that the biscuit
23 production of has a production capability with a failure of 67,308 every 1000,000
24 productions, or equivalent to 6.73% loss, and this indicates the production process
25 still has a high failure rate. Also the research calculate DPOM, percentage of defect,
26 percentage of yield, process sigma by process sigma calculator with inserting the
27 number of defect observed and opportunities then automatically it calculate give
28 result as we see above in the picture.

29 • Improvement Stages: this is the place where determination of FMEA is to be

30 conducted and analyzed. A number of improvement steps were established at
31 each stage of the existing processes from the preparation of raw materials,
32 mixing, forming, baking, cooling, stacking and packing. Then, this stage
33 tabulation was carried out on FMEA analysis. The FMEA method was used to
34 determine the failure of the process and to analyze and improve the production
35 quality [3](Puspitasari and Martanto, 2014) (Table 10).

36 6.6 Qualitative result

37 Analysis on Baldrige model with six sigma methodology they state that “Baldrige
38 provides the framework, Six Sigma the methodology.”

14
 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

Process stage Critical to Measurement LSL Target USL

quality (CTQ)

Preparation of raw materials Process 1 Kg 6 6.5 7.1

Process 2 Kg 10 10.5 11.3

Process 3 Kg 12 12.5 13.2

Mixing Process 4 Kg 31.5 32 32.7

Process 5 Kg 199.5 200 200.8

Process 6 Kg 89.5 90 90.7

Forming Process 7 Gr 19.5 20 20.7

Process 8 Gr 17.5 18 18.8

Oven Process 9 Mm 49.5 50 50.6

Process 10 Mm 44.5 45 45.7

Process 11 % 2.5 3 3.8

Process 12 PH 8.5 9 9.7

Cooling Process 13 Wt. 39.5 40 40.6

Process 14 Wt. 9.5 10 10.6

Stacking Process 15 Gr 29.5 30 30.6

Process 16 Mm 34.5 35 35.8

Packing Process 17 Gr 139.5 140 140.7

Process 18 Gr 29.5 30 30.8

Factors PPM - Cpk Calculator

Parts per million above USL 150

Parts per million below LSL 50

Total PPM 100

Zupper 5.12

Zlower 6.25

Z (Sigma) 5.22

Cp 1.74

Cpk 1.71

Table 9.
CTQ of biscuit production process in one line in NAS food plc.

01 The experience of Motorola with Six Sigma helped the company to won the
02 Baldrige award in 1988. According to Sumberg (2005); Parast [30] the Six Sigma
03 quality laid the foundation for Motorola to be the first company to win the Baldrige
04 award. Such a link between the Six Sigma methodology and the Baldrige model
05 exists in practice.
06 The MBNQA framework has extended its application beyond businesses.
07 According to the studies, it has specific guides for Education and Health Care
08 organizations (Badri et al., 2006; Goldstein & Schweikhart, 2002). MBNQA seven
09 categories are Leadership, Strategic Planning, Customer and Market Focus, Mea-
10 surement, Analysis and Knowledge Management; Human Resource Focus; Process
11 Management; and Business Results [39]. Leadership shows how upper management
12 chiefs the organization and organization community. The strategic planning is also

15
 Lean Manufacturing

Figure 5.
Control chart for UCL and LCL.

01 the organization establishment of plans to implement strategic directions. Customer

02 and Market Focus is the organization that builds and maintains strong, lasting
03 relationships within customers. Measurement, Analysis and Knowledge Manage-
04 ment are also the organizations use of data to support key processes and manage
05 performance while human resource focus is outlining of the importance of human
06 resources. Process Management uses powerful tools like Continuous improvement
07 program, Zero Defect, and Re-engineering. Continuous improvement recognizes
08 that, even when no errors occur, there are opportunities to improve the design of
09 the process or product. All the time, the competitors are seeking to gain an advan-
10 tage by making their products better. If the companies do not seek to improve, it
11 will get left behind. Company should expect to receive no complaints from cus-
12 tomers. This goes beyond the idea of keeping complaints to a minimum. It indicates
13 that the company should adopt a new approach, perhaps checking that each cus-
14 tomer is satisfied with his purchase [12]. Finally, business results is an indication of
15 the organization improve in terms of customer satisfaction, finances, human
16 resources, supplier and partner performance, operations, governance and social
17 responsibility and how the organization compares to its competitors.

18 6.7 Proposed continuous quality improvement model

19 The integration lean, six sigma and Baldrige model understand separately and
20 define similarity and dissimilarity in each alignment some criteria are considered
21 based on the literature review. These include: focus on work condition in addition to
22 process, easily understandable and having proper metrics; addressing the possible
23 root cause of continuous quality improvement problems; being continuous
24 improvement tool; having clearly defined improvement goal; flexibility to apply
25 from operation to firm level and involving all, including top management to low.

26 6.8 Feature of the proposed model

27 6.8.1 Applying six sigma in the lean philosophy

28 It is true that there is established link between Six Sigma methodology and the
29 lean manufacturing with in the previous studies. The proposed integrative six sigma
30 and lean manufacturing is based on the following basic pillar principles. These
31 principles are:

32 • The Six-Sigma methodology is linked with the lean. It becomes part of the Lean
33 six sigma (LSS) for achieving waste and defect reduction techniques.

16
17
Processes Steps/ Failure mode Failure Effects SEV Causes of failure mode OCC Current DET RPN
Biscuit Inputs control
making

Material Material Wrong ingredient Inconsistent quality 10 Substandard material supplied by supplier 5 Undetectable 10 500
preparation weighing
No electricity power Damaged dough 8 Main Distributor Panel Trip 6 No monitoring 10 480

Blocking wheat at hopper Line stop 7 Damaged Filter 6 No monitoring 10 420

Mixing Mixing Different usage of water Unstable dough and waste 6 Differences in methods by operators 10 Controlling only after 6 360
Process between shifts mixing is finished

Frequently error censor Down time and safety 6 Unstable socket pad 10 Alarm system of mixer is on 5 300
issue

Forming Forming Product Tailing Product jam 10 Uneven surface of blades 10 Checklist of forming 6 600
Process
Product Tailing Product Jam 10 Loose molder Teflon 10 Visual control 5 500

Oven Process Baking Irregular thickness of Unbalanced thickness of 10 Uneven weight among rows 10 Check list of intense 5 500
DOI: http://dx.doi.org/10.5772/intechopen.95279

Process biscuit biscuits monitoring

Product Jam One side of Wire mesh is 10 One side of Wire mesh is loose 10 Visual control 7 700
loose

Cooling Cooler Product is More rejected products 10 Scrap was taken accidentally 10 Only Visual 5 500
process Excess Calm

Stacking Sandwich Thin or thick biscuits packing machine often 10 Cream texture is different since the icing 10 No control/ monitor 10 1000
process starts or stops weight is different

Mixing Unbalanced Cream Waste/ thin or thick 10 Inaccurate balance or weighing scale 10 Inappropriate display 8 800
cream

Packing Product Broken Products Dead machine, quality 10 No sorting tool of sandwich since taken 10 Visual 10 1000
Process packaging potential accidentally to packing

Poor packaging Inconsistent quality 10 Substandard material supplied by supplier 6 No control 10 600
material
Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…

Table 10.
Improvement process 5) control stage: Plan to continue measuring the success of the updated process is usually created and any documentation, process or training material is updated.
 Lean Manufacturing

01 • The lean self-assessment includes the assessment of each seven waste in the
02 six-sigma (DMAIC).

03 • The proposed model for the integrative lean Six-Sigma is capable of addressing
04 the core values of the lean. Areas such as overproduction, waiting time,
05 unnecessary transportation, excessive or erroneous processing, excessive
06 inventory, unnecessary movement and defect can be addressed by Six Sigma
07 methodology.

08 6.8.2 Applying Six Sigma in the Baldrige Model

09 It has been established a link between six sigma methodology and the Baldrige
10 model in similar fashion as six-sigma with leans. The proposed integrative six sigma
11 and Baldrige model given in Figure 6 is based on the following principles.

12 • The Six-Sigma methodology is linked with the Baldrige model. It becomes part
13 of the Baldrige model which is considered as a single unit for achieving
14 performance excellence. This performance analysis requirement is set by the
15 top management. After the establishment of Baldrige model goals, Six Sigma
16 methodologies are used to increase the processes and meet quality purposes.

17 • Six-Sigma projects can be applied to all types of the projects, processes, and
18 products. Based on this application, the selection, administration, and control
19 mechanisms were directed by the top management used in this proposed
20 model.

21 • The proposed model for the integrative six-sigma-Baldrige Quality in Figure 6

22 is capable of addressing the core values of the Baldrige model. Areas like
23 leadership competencies, strategic development and deployment, and human

Figure 6.
Integrated lean-six sigma model.

18
 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

01 resource management can be addressed by six-sigma methodology which is a

02 powerful tool.

03 6.8.3 Applying six sigma in the Baldrige model and lean

04 We established a link between six sigma methodology and the Baldrige model
05 also six -sigma and lean. The proposed integrative lean Six Sigma and Baldrige
06 model is based on the following principles:
07 When lean, six sigma integrated with Baldrige model. In fact, it becomes part of
08 Baldrige model for achieving excellence. Such a performance requirement is set by
09 the top management. Afterward aligned with the requirement of the Baldrige
10 model, lean and six sigma methodologies become used for improve the process and
11 meet quality objective.
12 The Baldrige self-assessment includes both the assessment of each seven catego-
13 ries in the Baldrige model as well as the efficiency and effectiveness of the six sigma
14 projects. Such an approach toward six sigma and lean projects ensures that the
15 company is gaining benefit from implementing the lean- six sigma methodologies.
16 The proposed models for the integration of lean, six sigma with Baldrige is
17 capable of addressing the core value of the Baldrige model and identify the seven
18 waste of lean. Area such as leadership competencies, strategic development and
19 human resource management can be address by six sigma methodology whereas for
20 the integrative lean Six Sigma identifies such area overproduction, waiting time,
21 unnecessary transportation, excessive or erroneous processing, excessive inventory,
22 unnecessary movement and defect can be addressed by Six Sigma (DMAIC)
23 methodology.

24 7. Conclusion

25 The conclusion of this research is that the waste minimization at NAS food Plc.
26 as production process applying the lean process. In such cases, the standard DMAIC
27 cycle may provide structure and ensure that each step is improve thoroughly,
28 thereby helping the success of the project. Lean can contribute to these projects by
29 staking out the direction; that is, indicating where to start, for example through the
30 use of value stream mapping where the process is reviewed in order to find waste.
31 Analysis on the mapping process of the whole series of biscuit production is illus-
32 trated by some activities that are classified as non-value-added activities and some
33 value-added activities.
34 In this paper both qualitative and quantitative analysis are applied and the result
35 of qualitative by using (DMAIC) based on the time measure of the VA and NVA
36 activities, the value of Process Cycle Efficiency (PCE) of 49.64% was obtained. And
37 the research found the value of waste ratio is 36.7%, this show non lean in the
38 company and the values of six sigma calculation and insert the number defect
39 observed is 5.25, the size of the sample are 78 and the result defects per million
40 (DPMO) is 67,308 and sigma of 3. This shows that the biscuit production of has a
41 production capability with a failure of 67,308 every 1000,000 productions, or
42 equivalent to 6.73% loss, and this indicates the production process still has a high
43 failure rate. And improve by using FMEA analysis was carried out each stage of the
44 existing process used to determine the failure of the process and to analyze and
45 improve the production quality and the result of highest RPN on Stacking and
46 packaging process so they should take action for waste minimization and

19
 Lean Manufacturing

01 continuous quality improvement. In addition, Organizations try to implement the

02 Baldrige model as a means for achieving excellence. The seven categories within the
03 Baldrige model is integrated and related with the purpose of addressing quality
04 challenges so that companies can be competitive in the dynamic business environ-
05 ment.
06 In quantitative analysis used SPSS software and the Correlation and regression
07 analysis is used to quantify the association between two continuous variables
08 (between an independent and a dependent variable or between two independent
09 variables). The result of this shown relationship of each variables in waste mea-
10 surement perspective they have strong relation with significance level of 0.01 and
11 the causal Pearson Correlation of most variable has a strong positive relation and
12 their value is greater than 0.8, likewise The good regression results of equation is
13 selected in each section which is explained R2 value about 0.9 or 90% with statisti-
14 cally significant (P < 0.01) level.
15 However, In this paper, relying on a review of the national and international
16 literature, 25 key indicators was selected based on the correlation having strong ‘r’
17 value under four improvement perspectives were identified to assess measurement
18 system of the organization. The Lean Six Sigma & Baldrige application studied here
19 does not point toward one well-defined Lean Six Sigma approach; the company
20 does not adopt any particular standardized approach to larger improvement pro-
21 jects. Instead, the company supports the integration at this level by ensuring that
22 their improvement specialists are widely trained in Lean, Six Sigma and Baldrige
23 model.

24 8. Recommendation

25 Further research is required for biscuit manufacturing in terms of waste mini-

26 mization at each process stage using this DMAIC methodology. This study needs to
27 be continued in terms of FMEA usage along with the development selection model
28 for waste minimization and improving the production process. Instead, the com-
29 pany supports the integration at this level by ensuring that their improvement
30 specialists are widely trained in Lean, Six Sigma and Baldrige model.
31 Similar research also should be conducted in order to provide added value in the
32 fields of food or agriculture with the application of lean six-sigma and Baldrige
33 model.

34 Conflict of interest

35 The authors declare no conflict of interest.

20
 Development of Integrated Lean Six Sigma-Baldrige Framework for Manufacturing Waste…
DOI: http://dx.doi.org/10.5772/intechopen.95279

01 Author details

02 Kassu Jilcha* and Selamawit Gebreyohanis

03 School of Mechanical and Industrial Engineering, Addis Ababa Institute of
04 Technology, Addis Ababa University, Addis Ababa, Ethiopia

05 *Address all correspondence to: [email protected]

06 © 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms
07 of the Creative Commons Attribution License (http://creativecommons.org/licenses/
08 by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,
09 provided the original work is properly cited.

21
 Lean Manufacturing

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