LeanSix Sigma:LeanSix Sigma is a concept model synergised by combining Lean Manufacturing and SixSigma models of organisation management. The objectives of Lean Six Sigma are to rapidlyimprove customer satisfaction and quality, increase process speed and reducecosts. It is typically applied in manufacturing using DMAIC (Define, Measure,Analyse, Improve and Control) phases to improve product manufacturingprocesses. (Chang, 2012) SixSigma:Thesix-sigma model was first conceptualised in the year 1986 by a reliabilityengineer in Motorola company, it was developed to compete with KAIZAN modelfollowed in japan companies. Six Sigma is a process improvement model designedto address four key initiatives: Quality, Productivity, Cost and Profitability.
More specifically, the process is a determined and intensive effort to: •find and eliminate causes of defects and errors•reduce cycle times and cost of operations •improve productivity •achieve higher asset utilization and •better meet customer expectations (Hess, 2015)LeanManufacturing:Theorigin of Lean manufacturing and waste reduction are derived from BenjaminFranklin through documented examples. The Lean process mainly concentrates onthe individual product and its value stream of the foundation of this vision,identifying value-added and non-value-added activities, as well as eliminatingall waste in the production process. Waste within the system may be categorizedin one of the following:•over-production •defects•unnecessary inventory •inappropriate processing •excessive transportation •waiting •unnecessary motion (Hess, 2015) In public sector currently, BrewDog isadopting the EFQM excellence and Lean six sigma models to their organisationunder the membership of Quality Scotland. Martin and James established BrewDogin the year 2007 in a small garage. BrewDog decided the best way to fix this undesirable predicamentwas to brew their own beer.
Consequently, in April 2007 BrewDog was born and laterdeveloped into a multinational brewery and pub chain based in Ellon, Scotland.Later the company grew up to a vast multinational brewery with equityshareholders of 55,000 by the year 2016. The BrewDog currently owns 50 branchesin 22 countries.
By this time BrewDog became the UK’s fastest selling beerbrand alternative to Scandinavia. The EFQM excellence model starts as thehumanist approach that situates the customer as the centre and ultimate reasonof action of an organisation. (Martin-Castillo, 2002). BrewDog is a Brewery and pub chain which makes theorganisation to mainly concentrate on the human relations. The customers andculture are the priority in the organisation. The organisation by adopting theEFQM excellence model can be able to understand cause-effect relationships andthe result outcomes.
The EFQM Leadership and people model the organisationenables the employees to become involved in the organisation’s growth bymaintaining the quality and culture. As a multinational organisation, theBrewDog has certain standards to maintain all over its branches. This can beattained by a common platform of organisational system. By adopting EFQM modelthe company can keep track of the results obtained in various branches all overthe world and can measure the improvement in performance which would be a majortool to develop a suitable strategy for future development. The performancemeasurement allows the company to introduce innovative ideas in policy andstrategy to sustain the development. The major trait of following the qualityScotland’s EFQM model is unitization of the brand culture all over the branchesof BrewDog, the quality of the beer is standardised in every branch satisfyingthe people. The resources required for the people working in the organisationcan be planned, organised and improved; people are recognised and empowered bythe organisation.
The EFQM excellence model acted as an assessment tool forBrewDog to appoint capable management system in their branches. As the EFQMexcellence model aided the company to achieve excellence, the Lean Six Sigmamodel supported the company in background by reducing cycle times, eliminatingdefects & errors, improving productivity and achieving higher effectutilization. The Lean Six Sigma model acts as a useful tool in the manufacturingarea of the BrewDog organisation. Waste control and higher production rate canbe achieved.
The company can keep track of the kegs brewed time spent on thebrewery and make required changes in the manufacturing area by reducing waste. Recommendations:For Quality Scotland tostay in the competition and improve its further membership in private sector,the company should be aware of the challenges of the EFQM and Lean Six Sigma. TheEuropean Foundation for Quality Management (EFQM) Excellence 2000 Model iswidely adopted by organisations as a means of Self-Assessment to enhanceperformance at all levels of an organisation. It has been argued that a majorstrength of the approach is an overall evaluation of activities andperformance; this has avoided the lack of focus, especially on strategicissues, of other, usually independent improvement tools which are used withinthe operational/ manufacturing areas of organisations.
(MacKerron, Knowledge Driven Manufacturing, 2002). Leaninitiative should not be viewed as something quick-fix as such attempts will bedoomed to fail and eventually will be labelled as another passing managementfad. Cautions that if, Lean is observed as a means of quickly cutting costs tomeet budget deficits, organisations fail to achieve the real benefits.
(Antony, Krishan, Cullen, & Kumar, 2012). As the companies inprivate sector are solely under the management of private individuals thebusiness excellence models can be used as a fraud for tax exemptions or toelevate the company status more than it is worth.