Applying Lean Six Sigma to Siam Sponge Foam Essay

Nowadays, concern research is the critical tool to assist any houses to develop the strategic direction for the company that would wish to cognize how to put to death their organisation to make their end efficaciously among high fight in the concern universe. By the manner, the force per unit area of economic recession is the chief impact to planetary concern. Any degree of endeavors must concern their concern scheme to be survival in serious economic crisis. Harmonizing to ain research worker ‘s interesting subject, this research focuses on operation direction of Siam Sponge Foam Company who is Thai gum elastic innersoles manufacturer in Thailand. Their chief natural stuffs are latex, chemical and rough oil which is fluctuated monetary value based on monetary value of planetary market. Trend of those stuffs ‘ monetary value tend to be increasing which affect negatively to manufacturer itself and its clients due to the higher cost of production. There are 2 possible ways to assist the company who is the manufacturer to bear the higher cost of production. First increasing the monetary value that charges from clients but it is the tough manner to make that causes by company relies on the purchasing of clients so they have to keep their clients and market portion. Second, Control the cost of production by alteration the strategic direction internally. Similarly, concentration on how to minimise cost in the production processes which emphasizes on cut downing wastes rate every bit much as possible that occurred during production procedures. So, therefore topic research focal point on

“ How to minimise the wastes of Siam Sponge Foam Company? ”

The result of this survey can steer the director to do the right determination and implement the effectual direction to cut down its wastes rate of production.

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The intent of the survey

The intent of the research is to analyze how effectivity of Lean Six sigma which can be applied to the instance survey of Siam Sponge Foam in the facet of minimising wastes rate and bettering quality direction in order to calculate out the best solution to the trough how to manage the jobs in the term of offering the optional solutions.

Undertaking aim

To analyze the appropriate direction to minimise the wastes based on Lean Six Sigma.

The Scope of this survey

The research focuses on the undermentioned lists:

Describing approximately of the company production procedures.

Analyzing the cause of happening high wastes rate.

Understanding what Lean Six Sigma is.

Supplying the suited direction to work out the jobs.


Time and resource restriction to roll up the information.

Unrevealing confidential information about techniques of production procedures.

Research on a particular industry which might has different jobs in fabricating procedure.


Company background

Siam Sponge Foam Company is the little concern in footwear industry in Thailand. It was founded in twelvemonth 1995. Mr. Prasit Rungrojboonyakul is a concern instigator and place in Executive Manager. There are 7 stockholders who invest in this concern. Siam Sponge Foam produces the high quality gum elastic innersoles which are the chief portion of places. For illustration full socks, half innersole, arch cookies, sheet and so on. Company ‘s Vision: To be the leader of the best quality innersoles. They are categorized as Business to concern ; the merchandises are required farther procedures to be composed as a leather places, athletics places, gym shoes and Student places and etc. The fabrication topographic point is located in 28/3 Moo1 Bang Rakum District Nakornchaisri, Nakornpathom Province. Tel: 034-206121-2 Facsimile: 034-206123. Electronic mail: siamspongefoam @

Office: 1213/308 Town in town small town Wangthonglang District Bangkok Tel: 02- 5593254 Facsimile: 02-5593253

The brief description how to fabricate the innersoles ( Production Processes )

The get downing measure is blending the expression which is consisted of the different sum of latex and some chemical depends on the merchandise types and specification. This is the most of import procedure that operated by chemical staffs, that is considered as confidential technique which is defined as a cardinal success factor of the company. Modeling on the assemble line and steaming them in the boiler. Following, sprinkling the H2O to the heat casts to chill down in order to pick them up from the cast manually by employees, seting them to the spin machines to acquire rid of the H2O from the innersoles, drying them in the warmer. The innersoles are closed on the fabrics by particular type of gum. Then cut them by cutting machines, this phase requires adept accomplishment to implement because it has high chance to happen merchandises harm. Those are all the phases of production and after that send them to boxing section.

Identification the cause of merchandises desertion: wastes

Raw stuff

Latex is the sensitive stuff that is difficult to command its quality during in production procedures because clip of blending and temperature are the sensitive factors that chiefly impact its effectivity. A making of latex can be varied on the temperature ; it means high grade of heat environing causes it is deform. Happening the trouble for modeling procedure.

Large figure of labour forces involved in production procedures

As notice from the images, all phases involved workers so that is the significant job to command their work behaviour. Naturally, workers who operate manually in production procedures can non execute their undertakings systematically and standard when comparison to proceeded by machines.

Inefficient of Training plan

New recruited workers are non given developing plenty. They do non understand the existent action or clear cognition to work on their maps. Some undertakings are required the adept workers to run for case, blending expression, Molding, Closing the innersoles on the fabrics, cutting clothed innersoles. Above phases have high chance to arouse faulty merchandise.

Application of SIX SIGMA theoretical account to minimise wastes

Six Sigma is used at many organisations merely means a step of quality that strives for close flawlessness. Six Sigma is a disciplined, data-driven attack and methodological analysis for extinguishing defects ( driving toward six standard divergences between the mean and the nearest specification bound ) in any procedure — from fabricating to transactional and from merchandise to service. The statistical representation of Six Sigma describes quantitatively how a procedure is executing. To accomplish Six Sigma, a procedure must non bring forth more than 3.4 defects per million chances. A Six Sigma defect is defined as anything outside of client specifications. A Six Sigma chance is so the entire measure of opportunities for a defect. It is besides used to specify a doctrine of betterment focused on cut downing defects and supplying client satisfaction. In add-on, Six Sigma is the incorporate procedure of benchmarking, productiveness betterment, strategic deployment and statistical techniques which benefit all degree of workers understand every bit good as the common end and company ‘s aims. Six sigma is decidedly non a get-rich-quick strategy ; it is strategic method that can assist the organisation create existent and permanent betterment in public presentation that leads to increase client satisfaction and an improved underside line. It besides helps workers turn into effectual and knowing directors holding ability to understand the concern signifier a cost, quality, and bringing point of position as understand the function of betterment from a pratical position.

Literature reappraisals:

Article: Thin Six Sigma Cuts Waste, Tackles Tough Manufacturing Problems

Analysis of the article

Many fabricating companies faced the same jobs of waste or scarp, make overing is most happened in their instances. The lone Lean direction could work out the job of velocity of procedures by cut downing wastes. For the advanced attack to undertake the job that related to quality, preciseness and procedure fluctuation, Lean Six Sigma is the effectual tool to cut down the cost of production proved by the old instances survey of many organisations for case, Motorola Company. Lean Six Sigma is the most suited method which is designed to achieve both velocity and truth. Furthermore, it can turn to the concealed costs of quality issues, long clip rhythm times, hastening cost, downtime, overtime and lost gross revenues which are the internal jobs that needed to revise.

However, pure Six Sigma itself is the method that invented by the complicated statistics, it is difficult to utilize practically. So, implementing Thin Six Sigma can work through the whole procedure with less degree of statistics and be really fruitful diminishing the mistakes and errors. Thin Six Sigma besides aids makers trade with cultural alteration issues like opposition to alter. The Thin side of Lean Six Sigma gets workers involved early because they can see the waste. Then you can acquire into the fluctuation issues as critical issue. It helps if you work together as an organisation. Peoples see jobs and decide them. It gives them a scheme and the assurance to make that efficaciously. Thin Six Sigma utilizes Thin Culture substructure and tools to prosecute and authorise employees, ensuing in sustained uninterrupted betterment. Implementing Thin Six Sigma begins by measuring the current province of the concern. Thin Six Sigma can be adapted to the front office every bit good as the store floor – anyplace waste and mistakes occur. The current province is assessed utilizing Value Stream Mapping, a Thin tool that specifies non-value added activities in a procedure. The Value Stream Map shows where the constrictions are ; so you can utilize waste-cutting Lean tools to assail low-hanging fruit and Six Sigma analytical tools to concentrate deeper and happen the root causes of tougher jobs.

In fact, analysis ever non depends on statistic but analysing the measuring can better the by utilizing existent informations. The cardinal point of this method is to happen the right combination attack that suit effectual for the state of affairs. Leting makers to custom-make and scale their Thin Six Sigma work in order to maximise benefit.

The Conclusion of benefits from utilizing Lean Six Sigma is following:

Increased outputs

Shorter rhythm times

Reduced costs

Better quality

Less waste

Satisfied clients and employees

Six Sigma is direction that emphasized on cut downing the mistake or faulty merchandises, worsening the job of remaking and redacting on the merchandises ‘ error. Vitally, steering the workers to run their undertakings successfully based on the company ‘s aim. The apprehension of five stairss can be described following: Six Sigma procedure is comparatively straightforward. But need a good apprehension and analysis and usage of “ variables ” that are required. Controling the procedures of betterment is sustained.

Principle of Six Sigma: DMAIC which consists of five stairss:

Specifying the job

Measuring current public presentation

Analyzing the job to find the root cause of the hapless public presentation

Bettering the state of affairs by turn toing the root cause

Calciferol: Define is the manner to aim procedures that need betterment. For case, how to cover efficaciously with fabricating provider may be seen that the method used in the present. Lose a batch of clip. Cost high Quality non every bit good as hope. And consumers feel confident this may be a disadvantage to rivals, clients pay less to derive clip and non work out good as expected.

Meter: Measure is the manner to get down for issues that affect the procedure. To be conducted in a variable measured at Such as the extent of the first will be sent to gauge the equipment provider.

A: Analyze the decision is that the variables are complete and good, so the appropriate parametric quantities to analyse the relationship in ground

I: Improve is the method to happen ways to better procedures. It is needed to be mensurable. Supplying assorted options for the best solution.

Degree centigrades: Control is really of import measure. It is frequently a job in many organisations. When jobs are being reduced. It has chance to go on the bing jobs. Therefore, commanding must happen to guarantee that the value of divergence from the mark has been for good removed. The demand to make the right criterion. And preparation must be conducted. And broadcast on a regular basis. They must be confident that the manner to “ have ” information and feedback from operations to be used on a regular basis to better procedures in the hereafter.

Relevant Research:


The integrating of thin direction and Six Sigma

Edward D. Arnheiter and John Maleyeff

Lally School of Management & A ; Technology, Rensselaer Polytechnic Institute,

Hartford, Connecticut, USA.

Analysis of old research

This research point out the effectivity of integrating of thin direction and Six Sigma which can better internally root cause, Six Sigma entirely can explicate in the facet of decrease of waste in the scope of acceptable rate of merchandise desertion, quality betterment which is related to TQM attack, acknowledgment of duty belongs to all employees to minimise wastes and to bring forth efficaciously, focal point on employee preparation, all procedure betterment is invented and concerned in order to supply the most client satisfaction and company profitableness. On the other manus, thin direction focuses on take downing stock list, shortening rhythm of fabrication which is ab initio used by Toyota production system. Furthermore research provided the statistical illustration how effectivity of both theoretical accounts combination can achieve the satisfaction of both client position point and manufacturer point of view.

SWOT analysis

SWOT analysis is the tool to measure the value based direction in the organisation or undertaking, assisting directors or enterpriser to find strength and failing of internal facet of concern, happening chances, menaces which are the external impact that influence the company.


Product Quality which means high lastingness, tear resistant, retains its structural unity under high force per unit area.

Lower production cost which advantages from lower labour cost due to the location of production is located in metropolitan country.

Superior Know-how in production procedure. Expertness in latex and relevant chemicals field.

Fiscal stableness. Higher liquidness and trusting image about finance which can back up concern dealing.

Larger domestic market portion refer to ability to capture the chief domestic footwear fabrication ; SCS, Gold metropolis, Nun-yang, Walker and Etc.


Extensive labours demand in production procedures, it is hard to command workers public presentation.

Scarcity of skilled employees. For illustration, Marketing Staff, Engineering.


Leaving bing Competitive houses

Technology development


Global rivals who can take down cost of production who are Chinese and Vietnamese rivals and etc.

Fluctuated stuff monetary values those are latex monetary value, chemical monetary value and rough oil monetary value.

Economic force per unit area, planetary economic crisis affects shriveling the demand for merchandises and buying power.

Analysis of SWOT of Siam Sponge Foam

Harmonizing to SWOT analysis shows that the company perceived the high rate of waste as a important job that should be resolved every bit much as possible. High waste rate reflects the higher cost of production. Then higher production cost has both unwanted consequence to company itself and its clients severally because of worsening in their profitableness. Furthermore, wastes can be referred as a suction cost that gone everlastingly without bring forthing the extra end product.

In the instance of Siam Sponge Foam Company supplies the gum elastic as the chief stuff to bring forth the assorted types of innersoles and many sorts of chemical are required as the mixed-components For illustration ZINC OXIDE, ZMBT ; the most of import significant to excite the heat in steaming procedures, rough oil is needed in works ‘s operation. Those are the bosom of supplies that are unstable monetary value, tendency to increasing monetary value and unmanageable monetary values which depend on the planetary market monetary value. Therefore, the grounds why the director should command and concentrate on production procedure and minimise wastes earnestly.

Design/methodology/approach – Comparative survey of Six Sigma and thin direction usingcavailable literature, critical analysis, and cognition and professional experience of the writers.


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