Operational Management and Business Analytics

The report provides an analysis of the challenges posed by six sigma and the manner in which these challenges help in shifting the focus towards a more sustainable development within an organisation. One of the effective implementations that has been discussed in the report is the objectives that six sigma possess so that it can help in the development of organisations. The synergy that exists between lean management and six sigma provide organisations with opportunities for improvement.

Running head: OPERATIONAL MANAGEMENT AND BUSINESS ANALYTICS
Operational Management and Business Analytics
Name of Student
Name of University
Author Note

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OPERATIONAL MANAGEMENT AND BUSINESS ANALYTICS
Executive Summary
The report provides an analysis of the challenges posed by six sigma and the manner in which
these challenges help in shifting the focus towards a more sustainable development within an
organisation. One of the effective implementations that has been discussed in the report is the
objectives that six sigma possess so that it can help in the development of organisations. The
synergy that exists between lean management and six sigma provide organisations with
opportunities for improvement. However, one of the essential requirements that need to be
kept in mind by the organisations is the fact that development of financial capabilities is
required for the effective application of six sigma in an organisation.

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Table of Contents
Task A........................................................................................................................................3
Introduction................................................................................................................................3
Improvement objectives of the six sigma...................................................................................3
Synergies between lean management and six sigma..................................................................5
Benefits of six sigma..................................................................................................................7
Challenges of six sigma.............................................................................................................9
Support provided to the greener operations and supply chain.................................................10
Task B......................................................................................................................................12
Winemaker problem.................................................................................................................12
Optimum Production Plan....................................................................................................12
Sensitivity analysis report.....................................................................................................12
Change in the production plan..............................................................................................12
Choice of wine produced by the wine maker.......................................................................13
Conclusion/Recommendation..................................................................................................13
Reference..................................................................................................................................14

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Task A
Introduction
Lean management is a systematic method for the disposal of waste that exists within
the manufacturing system of an organisation. According to Cucoranu, Parwani and
Pantanowitz (2014), one of the advantages that the lean manufacturing provides organisations
is its ability to assist in the manufacturing system without jeopardising productivity in an
organisation. The report focuses on the challenges that are faced by the lean six sigma
application so that support can be provided in shifting towards a more sustainable and greener
operation in the organisation. Trzeciak et al. (2018) is of the opinion that the six sigma is a set
of techniques and tools that helps in improving the production process in an organisation. The
report applies this process so that a sustainable development can place in the organisations.
At the same time, the report focuses on the ways to improve six sigma and establishes a link
between lean management and six sigma.
Improvement objectives of the six sigma
As stated by Furterer (2016) the application of six sigma in an organisation provides
for establishing objectives of an organisation and at the same time ensure that enormous
changes does not take place. The objectives of six sigma include:
Shift process average: The average shifting process from one manufacturing style to
another can be carried on by the application of the six sigma process. The shift process can
help organisations to continue with the flow of work and at the same time ensure that quality
of the products is maintained.

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Reduce process variation: Another objective of six sigma is the ability to reduce the
process variation. As observed by Albliwi, Antony and Lim (2015) the manufacturing
process particularly if the production is large tends to fluctuate and thereby the quality of the
products is hampered. The application of six sigma provides organisations with an
opportunity to improve the manufacturing process and ensure that the variation among the
products is reduced to negligible.
Identify suitable operating conditions: In order to continue with the manufacturing
process it is necessary that organisations provide employees with good working conditions.
Hence, a suitable operating condition is needed to ensure that the manufacturing process is
not hampered. As observed by Antony (2014) suitable operating conditions help in
maintaining the consistency in the manufacturing process and at the same time ensure that the
application of six sigma can help in the improvement of the process.
Robust products and process: Strengthening of the process of production ultimately
leads to a strong and positive outcome. The application of six sigma helps manufacturing
industries to strengthen its product base by strengthening the process required for its
manufacture (Antony, Rodgers & Gijo, 2016). Thereby quality of the products can be
maintained and organisations can improve the production process so that sustainability within
the environment can be maintained.
Therefore, it can be said that the application of six sigma in the lean management of
an organisations helps in its growth and at the same time ensure that the process applied for
the manufacturing provides sustainability in the environment. The objectives of the six sigma
technique can be made equal to the objectives of an organisation and therefore,
manufacturing companies tend to apply the method for improving the method. Hence, having

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determined the objectives an analysis can be made that establishes the synergies between the
lean management as well as the six sigma process in an organisation.
Synergies between lean management and six sigma
Kovach et al. (2017) is of the opinion that the synergy between the lean management
and six sigma can help in identifying the effects it has on an organisation. The application of
both the methods has a combined effect on an organisation that can be summarised by the
summation of the separate effects provided by the two concepts. Therefore, an analysis of the
synergy can be done that can help in understanding the concept in a proper manner.
Lean Six sigma
Establish methodology for the improvement
of the products
Consists of a policy deployment
methodology
Focus on the value stream of the customers Measures the requirements of the customers
Focus on current situation for project base
implementation
Apply cross functional management project,
management skills and discovery
Collect necessary documents related to the
product and production data
Collects data by analysing tools and
processes for mapping and flowchart
Calculate the capacity of the process so that a
standard of work can be created
Apply various data collection tools and
techniques for understanding its implications
Conduct tests so that improvement can be
made
Conduct team skills and project management
techniques with statistical method
Reduce the production cycle times and
prevent any equipment failure
Apply seven management tools and seven
quality control tools
Table: Synergy between lean management and six sigma
(Source: Created by author)

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The table helps in the analysis of the synergy that exists between the lean
management and the six sigma strategy used by an organisation. It has been seen that the
establishment of methodology is done by the application of lean management so that the
improvement can be made in the manufacturing process. At the same time, the deployment of
policy for the development of a proper method can help in the development of the methods
required for manufacturing.
It has also been seen that the application of six sigma helps in identification of the
requirements of the customers. As stated by Kumar et al. (2016) customer value stream and
the requirements of the cross-functional management can help can help in discovery of the
knowledge related to manufacturing of products so that management skills and theories can
be applied in the organisations.
As stated by Jacobs, Swink and Linderman (2015) production and its data required for
providing quality-manufacturing techniques in an organisation can be laid out so that a flow
in the time process can be analysed. In the case of the application of six sigma process
mapping and flow chart can be used to collect data. In this regard, it can be said that various
tools and techniques are used that can help in the application of data and at the same time
ensure that effective calculation can take place. The application of techniques such as SPC
data collection, Cause and Effect and FEMA can help in the application of the data collected
in an organisation.
As observed by Evans and Lindsay (2014) testing of the quality management and its
hypothesis can be made by the application of the lean management technique. The tests are
made to confirm the improvement of the products and at the same time ensure that the tests
provide results that are helpful for the manufacturing of the products. It has been seen form
the analysis of the table that team skills as well as project management techniques are done

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by the application of statistical analysis that can help in building the products and analysing
the potential success rate of the products.
Therefore, it can be said that the synergy of the application of both the lean
management and six sigma can help in an effective development of management system and
at the same time ensure that the objectives of an organisation is achieved. Keeping the results
of the analysis, benefits and challenges of six sigma can be analysed that can help in
maintaining a greener operation in the supply chain.
Benefits of six sigma
Cherrafi et al. (2016) is of the opinion that the application of six sigma can help in the
help an organisation to gain benefits in manufacturing of its products. One of the benefits that
are provided by the application is that a uniform process is maintained. The output of the
process can help establishing a proper manufacturing process that can be used for gaining an
advantage in the market. This can provide organisations with an opportunity to increase its
production method and at the same time ensure that organisations can understand the value of
increasing the production function.
Often it has been seen that consistency in the production is not maintained mainly due
to excess number of products. In this regard, the application of the six sigma method can help
organisations to take control of the defects and ensure that quality of the products are
maintained by keeping in mind the number of defects that it needs to management. As
observed by Akpolat (2017) the effective application of the six sigma process can help in the
reduction of the defects and at the same time reduce the cost of manufacturing.
This ultimately leads to the reduction of the cost of the final products so that
productivity of an organisation improves. The focus can be only one product at a time and the

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development of a standard work procedure can help reducing the production cycle that is
required for the manufacturing of a particular product. Albliwi et al. (2014) is of the opinion
that it is necessary for organisations to ensure that the application of the six sigma leads to the
development of an organisation and help in maintaining a proper standard that can be applied
for the development of the workplace. Hence, the application of the six sigma can lead to the
benefits with which organisations can improve in the competitive business market.
Apart from this cultural change in an organisation can be maintained by the effective
application of the six sigma. Often it has been seen that the application of new tools or
techniques can provide organisations with adverse change so that it can be effective in the
business market. However, with the application of the six sigma technique it can be helpful
for organisations to maintain its culture and make changes that are required for its existence
(Conger, 2015). This can provide organisations with an opportunity to impress the customers
and maintain customer satisfaction. As stated earlier, measuring the requirements of the
customers is one of the important elements of six sigma approach.
Six sigma can also help in the growth of market share of an organisation. This is
because with an increase in the quality of products and its reduction in the defects
organisations can gain an advantage in the market over its competitors. According to
Drohomeretski et al. (2017) the increase in the market share can help in the growth of the
organisations and at the same time ensure that product and service development takes place
that can help organisations in gaining necessary benefits in an organisation.
Hence, it can be said that the benefits of the application of six sigma is pivotal for the
success of organisations. This can provide the organisations with an opportunity to improve
its reputation as well as the market strategies so that it can remain competitive in the market.

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However, the challenges that are faced from the application of the six sigma can prevent
organisations from being successful.
Challenges of six sigma
Timans et al. (2016) is of the opinion that challenges exist whiles applying six sigma
in an organisation. One of the major challenges that are faced by the application of six sigma
in an organisation is that of its implementation. It has been seen that the applicaton of six
sigma can be challenging and adopting the method require organisations to spend a vast
amount fortune in terms of technology as well as resources. Moreover, the challenges posed
by employees in an organisation also provide threat for the application of six sigma in the
organisations.
Apart from these interactions between the systems is not considered as the process
applied for the application of six sigma can be improved independently. It is necessary for
organisations to ensure that application of a proper process is required for the implementation
of six sigma in an organisation. As stated by Swain, Cao and Gardner (2018) it is necessary
for organisations to understand the application of the resources so that a process can be
applied that can help in the improvement of the six sigma. The independent application of the
process can provide organisations with an opportunity to develop the contents that are
required for the sustainability within a department or organisation.
At the same time six sigma is slow and lacks the tools that are required for improving
the business in an organisation. The lack of specific tools can be a problem for organisations
as the application of the method can bring about changes. Therefore, it is necessary that six
sigma be implemented only after gaining proper tools that are required for the effective
management of organisations. However, as stated by Raja et al. (2016) the applicaton of
FEMA, cause and effect, SPC data collection may have a negative impact on the

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development of an organisation as the data collected by these methods are slow and require
constant monitoring.
Laureani and Antony (2017) is of the opinion that six sigma can have long duration of
projects thereby reducing the time of trying to implement other projects in the business. This
can hinder the progress of an organisation as focus needs to be provided on one topic and
therefore, expansion of opportunities in the market cannot take place. This can cause
problems for an organisation in terms of financial improvement as it seen earlier that
application of six sigma can be costly. Hence, it is important that every organisation gain
proper business opportunities in the market.
Support provided to the greener operations and supply chain
Antony (2015) is of the opinion that in the modern world, it is required that every
organisation maintain a greener and sustainable business opportunity in the business. This
can provide a helpful assistance for the environment and at the same time ensure that society
demands are fulfilled so that supply chain management can be made in a smoother manner.
One of the aspects that need to be kept in mind is the fact that greener operations and supply
chain management can help in providing organisations with the necessary changes and
success in the business.
At the same time, it is also necessary that the challenges that are imposed by the six
sigma approach be taken into consideration so that it can help in providing effective
application in the business unit. The satisfaction of the customers needs to be kept in mind so
that organisations can benefit from the application of sustainability in the organisations. In
this regard, an evaluation of the challenges made for the production of effective
manufacturing unit can be taken into consideration (Goetsch & Davis, 2014). One of the

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challenges that are presented in the implementation of six sigma is the fact that it is a slow
process.
As seen from the analysis, the process of six sigma is slow and provides organisations
with the disadvantage of working in more than one project at a time. Hence, it is necessary
that the focus be shifted more towards the development of sustainability so that organisations
can develop existence in the society. Hence, it can be said that sustainability development in
an organisation is one of the important management strategies and the manner in which
organisations can implement the strategy depends upon the application of resources and
techniques for its development.
Hence, as observed by Fullerton, Kennedy and Widener (2014) it is necessary that
organisations that can perform only one project with the assistance of six sigma focus on the
development of sustainability and the improvement of the supply chain. Hence, the support
provided by this particular challenge can be justified as it provides organisations with an
opportunity to improve its functions and provide the effective growth of greener operations in
the market. Keeping this in mind it can be said that the improvement in the system interaction
process can help in adapting to the changes that are required to be implemented in an
organisation.
Martínez-Jurado and Moyano-Fuentes (2014) is of the opinion that people issues
within the lean management and six sigma may pose challenges, as employees may be
reluctant to accept the changes in an organisation. Hence, a proper motivational skill is
required so that employees are provided with the necessary incentive to manage the
application of six sigma and improve the sustainability in an organisation. Along with this,
the supply chain management in an organisation can be made available by considering the
statistical analysis of the effectiveness of lean management and its impact on an organisation.

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Hence, it can be said that the effective application of lean management in an
organisation along with the adoption of six sigma can help in the development as well as
reduce the impact of the challenges of manufacturing. The challenges of the process can
benefit the development and shift towards greener operations as it provides organisations
with an ability to improve the base of the operations. Therefore, it is necessary that certain
changes are made so that organisations can maintain the required solutions necessary for the
effective implementation of greener management and improve its supply chain.
Task B
Winemaker problem
Optimum Production Plan
As per the data analysis in [WinmakerSolution.xlsx:Task B (a)] In optimum production plan
1206.9 litres Table wine and 862 litres Dessert Wine will be produced. Along with that 1000
hours of Labour, 448.3 hours of bottling and 2000 Kg of grapes will be used. The optimum
profit will be $11551
Sensitivity analysis report
As per the data analysis in [WinmakerSolution.xlsx:Task B (b)] if $1000 has to be invested
in either $2/hours for labour and bottling or $2/Kg Grapes purchasing, the best option would
be the investing in Grapes purchasing because it will provide (13965-12026)= $1939
additional profit over the other options of investing.

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Change in the production plan
As per the data analysis in [WinmakerSolution.xlsx:Task B (c)] considering the demand for
both wines are 600 litres for table wine and 600 litres for dessert wine 600 hours of Labour,
300 hours of bottling and 1380 Kg of grapes will be used. The profit will be $7800
Choice of wine produced by the wine maker
As per the data analysis in [WinmakerSolution.xlsx:Task B (d)] considering the tripled
market demand (1800), producing the Table wine will be beneficial because it will make the
profit of $10666, where producing only Desert wine will make the profit of $9000
Conclusion/Recommendation
After the completion of the analysis, it can be said that it is important that
organisations develop a systematic approach for the implementation of six sigma. One of the
approaches is the effective conservation of financial capabilities so that six sigma process can
be used. At the same time, it is also necessary that the challenges posed while implementing
six sigma as an opportunity for improving future prospects. For example, development of a
sustainable progress within the environment can help in the effective progress of a society.
Therefore, it can be conclude that an effective six sigma and lean management
strategy can help in the development of an organisation and its manufacturing process. The
objectives of a six sigma process can help in improving the manufacturing process and at the
same time ensure other activities of an organisation also improve. The benefits of six sigma
can create a cause and effect relationship and it is necessary that proper activities be
undertaken so that organisations can develop its sources in the market. Supply chain
management can help in improving the distribution strategy, which in turn can be effective
for the development of six sigma in an organisation.

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