Operation Management: Strategic Tools and Sector Improvement

This report provides a comprehensive overview of operation management, focusing on the strategic application of Lean and Six Sigma methodologies for quality improvement and process optimization. It explores the use of these tools within both the service and manufacturing sectors, highlighting their impact on supply chain operations and overall business efficiency. The report analyzes specific case studies, including the implementation of Six Sigma at Volkswagen and Lean practices at Samsung, illustrating how these strategies drive improvements in product quality, reduce waste, and enhance customer satisfaction. Furthermore, the report delves into the changes and adaptations of these techniques within the manufacturing sector, emphasizing their role in reducing pollution and improving overall operational performance. The report concludes by summarizing the key findings and emphasizing the importance of strategic management tools in achieving operational excellence across various industries.

Running head: OPERATION MANAGEMENT
Operation Management
Name of the Student
Name of the University
Author Note:

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Table of Contents
Introduction.............................................................................................................2
Discussion...............................................................................................................2
Strategic Tool like Lean and Six Sigma for Quality management......................2
Strategic improvement in service sector for supply and sector operation..........4
Volkswagen Six Sigma....................................................................................4
Lean for Samsung...........................................................................................6
Change of these techniques in manufacturing sector........................................7
Conclusion..............................................................................................................8
References............................................................................................................10

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Introduction
The present trends in operation management are considered to be important for
some of the winning organization (Stanton et al. 2014). Management of operation is all
about managing different processing of product along with distribution of services.
Process in different operation management is inclusive of different products,
development, products and lastly distribution. Operation tends to manage various things
like quality control, purchase, storage, and even logistics. Strategic management can be
considered to be as the combination of both decision and action (Antony 2014). It
mainly helps in analyzing long range of performance of employers. Samsung
Electronics is considered to be a world leader in the domain of digital media and digital
based technologies. In the current society, Samsung comes up with greatest value for
this brand (Albliwi et al. 2014). Some of the manufacturing goods of Samsung are
computers, Laptop, washing machines and lastly mobile devices.
In the coming pages of the report, an idea has been provided regarding various
strategic tool like lean and six sigmas for quality management. After that strategic
improvement in service sector for both supply and sector operation has been provided.
The last section of the report mainly deals with the techniques in the whole
manufacturing sector.
Discussion
Strategic Tool like Lean and Six Sigma for Quality management
Lean can be considered to approach which is needed for reducing or even
eliminating activities which do not add value to a given process (Pyzdek and Keller
2014). It mainly focuses on removal of some waste materials in step by step method
and only adding up steps. Samsung makes use of lean methods so that they can
ensure high quality of products and satisfaction for customers. Lean in project is mainly
used for carrying out large number of steps like
 Reducing the overall cycle time for processing
 Improving the product and service delivery time

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 Reducing the level of inventory
 Optimizing the resources for some key improvements.
Six- Sigma can be considered to be a data-driven methodology for problem-
solving. It mainly emphasizes on variations in processes and satisfaction to customers
(Yaduvanshi and Sharma 2017). There has been continuous development along with
low defect for which the goal is understood. There are mainly five stages in this
particular framework like defining, measures, analyses, improving and lastly control.
Fig 1: DMAIC Roadmap
(Source: Kanigolla et al. 2014)
Six Sigma theory has been developed by an American organization named
Motorola in the year 1986. This particular method is used in various industrial and
business domains. It is mainly needed for identifying and removing main cause of error
which is mainly due to quality of business processed (Kanigolla et al. 2014). It comes up
with collection of steps which is needed for improving the overall quality of processes. It
is mainly needed for finding some employees with some specialized quality and
expertise in this particular domain. It is needed for reducing the product and business
and experts in this domain. It is mainly needed for reducing product and business
variation which comes up with the objective to match will products and services (Zokaei,

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Manikas and Lovins 2017). Six Sigma theory mainly comes up various financial
objectives like reduction of overall cost and improving the cost reduction and
improvement of profit.
The term six sigma can be defined as set of process in which the whole
production is considered to defect-free (Zhou et al. 2016). It has mainly originated from
the terminology with the manufacturing industry. Sigma rating at Volkswagen focuses
on statistic modeling and overall manufacturing process. In the beginning, Motorola
aims to six sigmas which are needed for manufacturing method. It has ultimately
become nickname for management and technology based activities. As there is high-
value demand on the quality, six sigma tends to comes into picture. There is high loss in
overall production and various kind of errors are also reported. It is considered like a
quality management tool which is needed for setting up a particular industry method in
some of the high sectors (Strong 2018). It can also make use of some general methods
so that overall method can be easily optimized. Six Sigma is considered to be a well-
known method which is needed for overcoming large number of issues. It is very much
important for understanding that product and services is under measureable quantity
and can be easily measured in proper way. The factors tend to affect the overall quality
which can be identified or even controlled in proper way.
Strategic improvement in service sector for supply and sector
operation
Volkswagen Six Sigma
Volkswagen makes use of Six Sigma so that they can easily improve the
organization in both ways that is externally and internally. Internal moral will be
ultimately improved and various employees can become more invested and proud of
their work and ideas (Box 2014). There is large number of ideas and suggestion which
can be easily incorporated for improving the overall quality improvement method.
Building new lines of communication can easily help in solving issues and can drive out
fear culture of fear. It will ultimately help in having many mindful discussions. Along with
this, it will help in quality innovation and improvement (Fernandez Garces 2018).

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Building a cross-function will ultimately them the organization in building cross function
teams which will help in adding certain measures of accountability for both the staff and
upper management of Volkswagen. It will ultimately make them impossible for hiding an
issue.
Fig 2: Volkswagen
(Source: Andrzejczak, Karlowski and Paslawski 2017)
A reduction in overall inventory can easily become mindful with overall quality
processes. By the help of this particular methodology, the overall quality processes will
improve the quality of the vehicle produced in United States. If large number of US-
based employees are brought then the overall quality and production will be improved
(Barrett et al. 2015). Then the manufactured vehicle will mainly suite the US-based
consumers. The main notion of Volkswagen is to provide quality product which is
properly geared to different American consumers. It has ultimately made them have to
easily learn from their past mistakes. It will help them in increasing their overall sales in
United States which will give Volkswagen to hit the selling of 800,000 vehicles.
Lean for Samsung
Lean is considered to be method which tends to provide organization with certain
number of equipment’s which is needed for improving the capacity of their business
procedure. It mainly highlights to increase the performance and decrease in overall
process variation. It will ultimately help to improve the overall profit, moral of employee

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along with high quality of services. Lean quality is considered to be a normal process
which is needed for controlling (Andrzejczak, Karlowski and Paslawski 2017). There is
large number of problems encountered in Samsung which can affect the variation of
products. Samsung tends to manufacture products which have high defect, high quality
of cost. Apart from all these, there was insufficient information in regards quality and
productivity. Samsung aims to manufacture products which can over large number of
issues along with elimination of waste for process innovation. It has ultimately lead to in
turn demand for a firm strategy for complete change by applying Lean (Jamali and Khan
2018). The whole agreement was made on 3.4 million contracts which will help the
organization in different aspect of lean.
Fig 3: Samsung
(Source: Albliwi et al. 2014)
Samsung Electronics of Seoul, Korea which is considered to be fundamental
approach for this product. The whole process development was done by making of lean
which is a tool for innovation, quality, and lastly efficiency. SEC was founded in the year
1969 and sold the first product like a TV receiver (Pyzdek and Keller 2014). Samsung
makes use of certain number of tools and techniques like total quality control, total
process management and lastly product data management. Apart from this, Samsung
focuses certain areas like Enterprise management, Supply management, and CRM. Six
Sigma focus upgrading the present innovation and SEC competition position in the
whole market. There is large number of financial benefits which are being offered by
lean which is inclusive of saving cost and increase profit from sales (Yaduvanshi and

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Sharma 2017). Strategic objective of SEC (Samsung Electronics Co.) focusing on
going borderless that is global brand in-house word for achieving some product and
services.
Change of these techniques in manufacturing sector
Basic function of Six Sigma is all about improving the overall design process in
whole manufacturing domain. It has been mainly designed for quality control for large
number of manufacturing organization (Kanigolla et al. 2014). The main goal of
manufacturing industry is all about improving the quality control needed for improving
the manufacturing process. It will ultimately help them in eliminating large number of
issues Six Sigma methodology is needed for removing the various kind of defect
causing elements along with reducing the changes in the business. It tends to improve
the quality of output which is needed for improving manufacturing process. Six Sigma
methodology in the whole manufacturing industry can easily help various organization in
reducing pollution. Application of Six Sigma in the manufacturing domain will ultimately
help in reducing overall pollution (Zokaei, Manikas and Lovins 2017). Apart from this, it
can help in reducing the cost of production in increasing profit along satisfaction level.
There are different organization which makes use of Six Sigma for improvement
in the whole manufacturing industry (Zhou et al. 2016). It mainly focuses on quantifying
and understanding any kind of financial returns in the whole project. All these features
can easily help the organization in defining their responsibilities and roles of each and
every one. It will help each and every individual with the given team for improving the
overall manufacturing process in various manufacturing organization (Andrzejczak,
Karlowski and Paslawski 2017). The main goal of Six Sigma is all about ensuring the
fact that manufacturing process has finally achieved the goal along with minimum
amount of defects. In general, there is occurrence of more than 3.4 defects per million
which is the ultimate goal of the system.
Conclusion
From the above pages, it can be stated that this report is all about strategic tool
like lean and six sigmas. These two tools are considered to be root in overall quality

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management. After that relevance of these two approaches for providing strategic
improvement in service domain has been discussed in details. It can be used for
improvement in service sector and supply chain by providing an example from
Volkswagen and Samsung. In the last section of the report, an analysis has been done
with respect to changing techniques in the whole manufacturing domain. Volkswagen is
considered to be as one of the automakers which makes use of six sigma methodology.
As a fortune 500 organization, Volkswagen is considered to be as the leading producer
of various motor vehicles.

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References
Albliwi, S., Antony, J., Abdul Halim Lim, S. and van der Wiele, T., 2014. Critical failure
factors of Lean Six Sigma: a systematic literature review. International Journal of
Quality & Reliability Management, 31(9), pp.1012-1030.
Andrzejczak, K., Karlowski, A. and Paslawski, J.O., 2017. Flexible management for
concrete curing at low temperature based on learning from cases. In ISARC.
Proceedings of the International Symposium on Automation and Robotics in
Construction (Vol. 34). Vilnius Gediminas Technical University, Department of
Construction Economics & Property.
Antony, J., 2014. Readiness factors for the Lean Six Sigma journey in the higher
education sector. International Journal of Productivity and Performance
Management, 63(2), pp.257-264.
Barrett, S.R., Speth, R.L., Eastham, S.D., Dedoussi, I.C., Ashok, A., Malina, R. and
Keith, D.W., 2015. Impact of the Volkswagen emissions control defeat device on US
public health. Environmental Research Letters, 10(11), p.114005.
Box, T., 2014. Small firm strategy in turbulent times. Academy of Strategic Management
Journal, 10(1).
Fernandez Garces, P., 2018. Tesla Motors and Lean Manufacturing.
Jamali, M. and Khan, R., 2018. THE IMPACT OF CONSUMER INTERACTION ON
SOCIAL MEDIA ON BRAND AWARENESS AND PURCHASE INTENTION! CASE
STUDY OF SAMSUNG. Journal of Marketing, 114.
Kanigolla, D., A. Cudney, E., M. Corns, S. and Samaranayake, V.A., 2014. Enhancing
engineering education using project-based learning for Lean and Six
Sigma. International Journal of Lean Six Sigma, 5(1), pp.45-61.
Pyzdek, T. and Keller, P.A., 2014. The six sigma handbook(Vol. 4). New York, NY:
McGraw-Hill Education.

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Stanton, P., Gough, R., Ballardie, R., Bartram, T., Bamber, G.J. and Sohal, A., 2014.
Implementing lean management/Six Sigma in hospitals: beyond empowerment or work
intensification?. The International Journal of Human Resource Management, 25(21),
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Strong, A.M., 2018. Lean Six Sigma's Impact on Firm Innovation Performance.
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Challenges and Opportunities—‘Nirvana for Operational Efficiency in Hospitals in a
Resource Limited Settings’. Journal of Health Management, 19(2), pp.203-213.
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