Session B6
#6079
Disclaimer — This paper partially fulfills a writing requirement for first year (freshman) engineering students at the University
of Pittsburgh Swanson School of Engineering. This paper is a student, not a professional, paper. This paper is based on
publicly available information and may not be provide complete analyses of all relevant data. If this paper is used for any
purpose other than these authors’ partial fulfillment of a writing requirement for first year (freshman) engineering students at
the University of Pittsburgh Swanson School of Engineering, the user does so at his or her own risk.
THE INTEGRATION OF LEAN SIX SIGMA TO INCREASE THE LEVEL OF
EFFICIENCY IN AUTOMOBILE SUPPLY CHAIN
Christopher Luther, cjl82@pitt.edu, Mena 4:00
Bryce Schloneger, bcs49@pitt.edu, Mena 6:00
Revised Proposal- Lean Six Sigma (LSS) is a managerial
practice that concatenates two different manufacturing
methods: Lean and Six Sigma. LSS is used to eliminate any
wastefulness in production, increasing efficiency in
manufacturing areas such as physical resources, time, effort,
and talent, while maintaining the quality of the product.
The practice of Lean alone is a method used for the
elimination of waste in manufacturing. Six Sigma is a datadriven approach and methodology for eliminating defects in
manufacturing. The implementation of both practices allows
for a business to maximize efficiency, as they essentially do
more (sales, faster manufacturing, more products) with less
(resources such as time and money).
This report will focus on the automobile supply chain, and
how the implementation of LSS can help optimize the industry.
The world-wide production of automobiles has been
increasing every year, with manufacturing in 2014 reporting
production of 89.75 million automobiles [1]. However, the
profits made in the industry are not necessarily “good.”
Automakers’ profit margin tends to stay within 1-2% [1]; this
report will show how LSS can make profits in the industry
much higher. This report will describe the implementation in
both national and international markets, focusing on both
manufacturing and transportation of the automobiles. This
report will also relate LSS to the supply chains for both gas
and electric automobiles, which allows us to describe LSS
being used in present-day and future scenarios.
LSS in the automobile industry is significant to individuals
in the industry, as well as other engineers, and to engineering
itself. The use of LSS in this supply chain will allow for more
efficient systems, thus creating more efficient workplaces,
which will eventually bring in more money for the industry.
The engineering profession itself, especially industrial
engineering, will also reap the benefits that LSS provides. As
LSS’ success becomes known, industrial engineers will begin
to implement LSS in other manufacturing processes.
LSS is a method used strictly to increase profits and
efficiency in a company. But, LSS has indirect benefits, such
as those related to ethics. LSS improves waste management,
and minimizes time and supplies needed to complete different
University of Pittsburgh, Swanson School of Engineering
2016/04/01
projects. This can indirectly affect the people working for the
company, as they no longer need to overwork on tedious tasks
that could create low morale and slow work habits.
The report will be conducted while consulting numerous
different sources. Articles, journals, and other reports will all
be used to help convey the benefits of LSS. These sources may
contain different subjects, as one could be about the future
supply chain of electronic vehicles, and other could be about
the recent market growth for automobiles. Different types of
data and statistics will also be incorporated. Using various
different forms of information to convey ideas, this report will
show the reader how LSS can help improve the automobile
supply chain. Implementing LSS in this industry will increase
productivity, thus making the industry more efficient.
REFERENCES
(2013). “Automotive and oil industry profits.” Rocky
Mountain Institute. (website). http://www.rmi.org/RFGraphAutomotive_and_oil_industry_profits
This website illustrates and explains how the oil and
automobile industry has been affected over the last thirty
years. It comes with a helpful line graph that shows the
profit, as a percent of revenue, which the car industry (both
domestic and foreign) have made, as well as the profits that
the oil companies have made during that time. The website
has information on the profit margins that car companies
are making on average.
(2015). “The Benefits of Using Lean Six Sigma.” Go Lean Six
Sigma. (website). https://goleansixsigma.com/the-benefitsof-using-lean-six-sigma/
This description of Lean Six Sigma was written to assist
the reader in fully understanding what LSS is and what it can
accomplish. This article gives the basis of LSS, allowing us
to further elaborate on its implementation. By using the main
points listed in this article, such as how LSS boosts efficiency
Christopher Luther
Bryce Schloneger
K. Schlack. (2010). “Lean Engineering.” Lean Engineering.
(website). http://www.leanengineering.com
This website is all about what lean engineering is and
how it affects both engineering and manufacturing. It
explains that lean engineering is used to increase the
amount of necessary engineering data per dollar invested by
the company. This explains why lean manufacturing is
incorporated with engineering and why it is important for
industrial engineers to have a thorough background in lean
manufacturing.
levels, we can delve deeper into LSS and its many uses and
benefits.
“Choosing a Topic.” University of Pittsburgh Library. (video)
http://pitt.libguides.com/c.php?g=12277&p=67826
The “Choosing a Topic” video helps to clarify how to
narrow down our topic so that we do not create too broad of
a topic. It also gave us good examples as to what a good
topic to write about was and what would not be acceptable.
This video gave us good sites to search for information and
sources for our paper as well.
W. Timans, J. Antony, K. Ahaus, R. van Solingen. (2012).
"Implementation of Lean Six Sigma in small- and mediumsized manufactruing enterprises in the Netherlands." The
Journal of the Operational Research Society. (online
journal).
This journal documents the use of LSS in Dutch
manufacturing and engineering companies. Although the
study had been conducted on Dutch industry, it is invaluable
to our research. In using this journal, we can see what LSS
has already accomplished in manufacturing, and adapt it to
the American automobile industry. By utilizing the results
small/medium sized companies found with LSS, we can
further discuss its development, and integration into larger
businesses.
I Cucoranu, A. Parwani, L. Pantanowitz. (2014). “Chapter 12:
Lean Six Sigma. Practical Informatics for Cytopathology.
Springer (Print book). Pp. 113-119.
Chapter 12 in Practical Informatics for Cytopathology
talks about how the Toyota Production System (TPS) involves
lean six sigma. It goes in depth as to how the processes of lean
manufacturing and six sigma influence the company’s
decision making. This source also lists and explains each of
the seven types of muda (waste) that lean manufacturing
corrects. This book explains the deming cycle, which is
underlies many of the lean operations as well as the six sigma
methodologies.
(2015). “Occupational Outlook Handbook: Industrial
Engineers.” Bureau of Labor Statistics. (website).
http://www.statista.com/statistics/262747/worldwideautomobile-production-since-2000/[C10]
Using statistics posted on this database allow the reader to
see the production of the automobile industry in recent years.
By using this information, we can observe the industry's
growth, thus meaning that the industry itself is succeeding,
Using this data will allow us to explain why implementing
LSS in this booming industry will only further boost
production.
B. Propfe, D. Kreyenberg, J. Wind, S. Schmid. (2013).
"Market penetration analysis of electric vehicles in the
German passenger car market towards 2030." SciVerse
ScienceDirect. (online article).
This article, which is a market study of the future market
for electric vehicles in Germany, details the numerous aspects
that will effect the future industry of electric vehicles. The
article uses VECTOR21, a simulation program, to analyze
different possible scenarios. For instance, using a
combination of VECTOR21 and current data, the authors
focus on external conditions that could control the market,
such as the prices of electric and hydrogen. In using this study,
we can predict how LSS should be used in the market of
electric vehicles. This will allow us to report on the use of
LSS in the future, not just present-day.
2