Question

Explain lean enterprise management, total quality management (TQM), and Six Sigma.

Answer 1

Answer is as follows :

Lean Enterprise Management :

Lean enterprise is the production and management philosophy that considers any part of the enterprise which does not directly add value to the final product to be superfluous.

Lean enterprise focuses on value creation and the elimination of waste and non-essential processes.

According to Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James Womack and Daniel T. Jones, lean enterprise is characterized by five main principles as per the lean manufacturing ethos:

• Value: This pertains to how end customers value a certain product or service as it relates to their wants or needs.
• Value stream: An understanding of the full arc of the life cycle of a product or service (from aquasition of raw material to end of prodeuct making)
• Flow: If any part of the value stream is stagnant it is considered wasteful for not providing customer value.
• Pull: This is the directive that nothing should be produced until it is demanded or ordered by the customer.
• Perfection: This is the ethos that all causes of sub-par quality should be eliminated from the manufacturing process.

Total Quality Management :

Total Quality Management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with their training.

Total quality management aims to hold all parties involved in the production process accountable for the overall quality of the final product or service.

TQM is a structured approach to overall organizational management. The focus of the process is to improve the quality of an organization's outputs, including goods and services, through continual improvement of internal practices.

The standards set as part of the TQM approach can reflect both internal priorities and any industry standards currently in place.

TQM Priniciples :

Six Sigma :

Six Sigma is an approach to data-driven management that seeks to improve quality by measuring how many defects there are in a process and systematically eliminating them until there are as close to zero defects as possible.

It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods.

Lean management and Six Sigma are two concepts which share similar methodolgies and tools. but they are two different programs. Lean management is focused on eliminating waste and ensuring efficiency while Six Sigma's focus is on eliminating defects and reducing variability.

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