Personal Perspective Paper

Running head: EXPERIENCE WITH DECISION-MAKING MODELS

Experience with Decision-Making Models

Ermias Araya

University of Phoenix

March 06 2007

Experience with Decision-Making Models

Six-sigma and Lean Manufacturing decision-making models are widely used in the Automotive Industry. These models are used to solve production problems and benefit manufacturing plants to become more competitive in today's global market. Even though these decision-making models are equally important, the Lean-Manufacturing model has a wider area of use because of its simplicity.

Wikipedia defined Six-Sigma as, "a system of practices originally developed by Motorola to systematically improve processes by eliminating defects." The five steps commonly used in this model are define, measure, analyze, improve, and control. For example, a machine or process may be targeted for a Six-Sigma project when there is a higher complexity to the problem and statistical analysis is needed to understand and ensure process improvement. This model has proven to be costly and takes a long time to solve.

The Lean-manufacturing model is used when the goal is to reduce any non-value adding activity in a business. Wikipedia defined 'Lean Manufacturing as, "a management philosophy focusing on reduction of the seven wastes to improve overall customer value." In this case, the seven wastes are inventory, motion, over-production, transportation, waiting time, processing, and defective product. Most problems tackled using the Lean-Manufacturing model can be solved with reasonable time and effort but require a culture change and team involvement.

The implementation of the