Lean Six Sigma at Nike Inc.

Running head: LEAN SIX SIGMA AT NIKE INC.
Lean Six Sigma at Nike Inc.
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LEAN SIX SIGMA AT NIKE INC.
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Table of Contents
Section A.........................................................................................................................................1
Introduction:....................................................................................................................................1
Part 1. Organization Background and Work Process:.....................................................................1
Part 1a. Background of Nike Inc. (subject organization):...............................................................1
Industry sector:............................................................................................................................2
Nature of business:......................................................................................................................2
Products and services:..................................................................................................................2
Types of customers served:.........................................................................................................3
Individual customers:...................................................................................................................3
Business customers:.....................................................................................................................3
Core department or division:.......................................................................................................4
Part 1b. Selected work or service process:......................................................................................5
Examination of performance or quality issues in the process:....................................................6
Top three issues identified:..........................................................................................................6
1. Fall in gross profit generation:.............................................................................................6
2. Fall in net profit generation:................................................................................................6
3. Fall in return on investments to investors:...........................................................................6
Part 2. Problem Statement, Define & Measure:..............................................................................6
Part 2a. Examination of a selected issue, defining the problem and impact Nike and its
customers:........................................................................................................................................6
Part 2b. SIPOC diagram to describe the subject work process:......................................................7
Part 2c. VOC and define the CTQ:..................................................................................................8
Part 2d. CTQ baseline performance and defining project objective which aims to improve the
CTQ:................................................................................................................................................9

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Part 3. Analyse:..............................................................................................................................10
Part 3a. Gemba walk:.....................................................................................................................10
Part 3b. Recommending a fishbone diagram to analyse the causes for the CTQ problem............11
Part 4. Improve and Control:.........................................................................................................12
Part 4a. Recommend three (3) improvement ideas to address the root causes:............................12
1. Streamlining of the product delivery process:.......................................................................12
2. Acquisition of logistics companies:.......................................................................................13
3. Training of employees:..........................................................................................................13
Part 4b. Development of a control plan:........................................................................................13
Part 5. Lean Six Sigma Deployment:............................................................................................13
Part 5a. The current organization structure, roles and approach adopted to drive continuous
improvements or solve performance and quality problems in Nike Inc:.......................................13
Part 5b. Provide brief description of the on-going or completed process improvement projects
and compare the benefit of these projects:....................................................................................14
Part 5c. Evaluate how Nike can start deploying or improving its Lean Six Sigma adoption to
become more effective in driving continuous improvements or solving performance and quality
problems........................................................................................................................................14
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

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Section A.
Introduction:
The multinational companies are facing continuous pressure to integrate environmental
sustainability with profitability. The multinational companies in other words, are under
continuous pressure to provide high quality products to customers at legitimate prices, bring
about changes in the operations so as to minimise their waste generation and give back
high returns to their investors on their investments. These pressure often present challenges
before their internal service processes. One of the approaches which these multinational
companies can adopt to counteract these challenges is adoption of lean six sigma. The aim of the
report would be delving into deployment of lean six sigma in a ‘subject organisation’ to
counteract the three challenges of meeting three challenges. The researcher would select a
service process in the subject organisation to explore three issues and then go on to analyse on
issue to introduce lean six sigma to counteract the selected issue. The subject organisation
selected would be Nike Inc. and the selected process would be marketing operations.
Part 1. Organization Background and Work Process:
Part 1a. Background of Nike Inc. (subject organization):
Nike Inc. is an American multinational company which manufactures and markets sports
goods including sports equipment, accessories, sportswear and services. The mission of Nike is
to bring about ‘groundbreaking’ innovation in the sports industry to create sustainable products.
The company envisions to boost its creativity in manufacturing sports goods by deploying a
diverse team of employees. The company also aims to create a positive impact in the global
community and establish itself as a socially responsible corporate citizen (About.nike.com.
2019). The leadership team of Nike Inc. operates under the leadership of Philip P. Emeritus and
Mark Parker, Chairman, President and CEO. The markets of Nike Inc. include Africa, America,
Asia Pacific, Europe and Middle East. As per the Forbes, Nike is the most expensive sports
brand in the world which an enviable brand value of $bn 15.9. Nike is the thirteenth most