Friday, June 6, 2008

LEAN & Six-Sigma Tools for Newspapers

Today, the newspaper industry is looking for anything and everything to improve efficiency and reduce costs to survive. Unfortunately, the typical approach is cutting staff and quality of goods; not looking at improving processes within the newspaper. The multi-media transition for the newspaper industry is begging for process improvements to lead the industry change. The answer is outside the traditional newspaper operation - there are two very important quality tools that can optimize the transition and reduce costs: LEAN and Six-Sigma

What are they?
LEAN: Root out waste so you can accelerate production.
Six-Sigma: Near-perfection is possible . . . so aim for it.

LEAN focuses on speed and efficiency, reducing cycle time, and focus on customer needs to define product value. To achieve such acceleration, LEAN finds waste and plans how to eliminate it. I.e., define optimal manufacturing processes to minimize production time and implements changes to improve efficiency. Waste is defined as non-value-added work, and there are eight types: wasted human talent, defects, sitting inventory, overproduction, waiting time, motion, transportation and waste processing—the time required to handle the consequences of the types of waste. LEAN uses specific tools to analyze process flow and delay times for each activity along the way. The results amassed provide a means of quantifying and eliminating the costs woven into the business complexities.
Downside: LEAN will not bring a process under statistical control.

Six-Sigma is all about manufacturing accuracy through a data-driven, problem-solving method to eliminate product defects identified by customers in ways that are sustainable. It involves a comprehensive set of quality-improvement tools, within a framework or set of rules and guidelines that has already shown itself to be effective at problem solving. Six-Sigma has been used to stabilize manufacturing operations by eliminating defects, produce products with higher reliability, and get new products to market faster. Applying Six-Sigma methodology is a complex process, one that requires internal changes in infrastructure to create an environment for obtaining results that are sustainable over time. The well-known Six-Sigma production standard is for no more than 3.4 defects per million product units. It’s a high target, and companies that apply Six-Sigma techniques correctly are meeting it routinely.
Downside: By itself, Six-Sigma cannot effect dramatic improvements in process speed or reduce invested capital.

United, the two tools quantify and eliminate the cost of complexity. Combining the two methodologies, LEAN Six-Sigma Manufacturing sets up interactions that reinforce each other. Percentage gains in Return on Investment Capital (ROIC) come much faster if LEAN and Six-Sigma are implemented together. “Just speed” or “just quality” will not produce the balanced results that enable an organization to ratchet up quality to a level defined by customers within a set time period. Industry leaders, such as Toyota and Motorola, have used LEAN Six-Sigma tools successfully to focus on customer needs and propel them to leadership positions in their respective industries. At the core, LEAN Six-Sigma is a data-based structure for making reality based decisions and eliminating waste out of the processes required to deliver news to the reader.

LEAN Six-Sigma Manufacturing Within the Industry
Many trends in the industry embody LEAN Six-Sigma Manufacturing principles, whether intentionally or not:

LEAN
1. Outsource functions for efficiency, cost reduction and better customer service.
2. Reduce the geographic area where papers are distributed, thereby reducing circulation, newsprint and transportation expenses, and allowing more targeted focus on the stated needs of core audiences.
3. Using common operational systems and data bases to optimize communication between departments.

SIX-SIGMA
1. Participate in the International Color Quality Club program and qualify for the SNAP Certificate to tighten and test printing competencies.
2. Participate in the ABC Insert Verification Process, as the audit program already has demonstrated that the industry is nearing 98-percent accuracy, indicating careful control of insertion processes.
3. Use production run data to track production efficiency and identify sources of downtime.
4. Determine the organization’s carbon footprint.

LEAN + SIX-SIGMA
1. Employ ink presets so that both ink and time are saved, newsprint waste is reduced, and product quality rises.
2. Use ICC profiles and GCR in your photo editing process to optimize quality and consistency of color photos.

All these suggestions will ultimately make your operation more efficient and cost effective, but more importantly it will refocus your management team and staff to look for answers and improvements beyond just cost cutting.

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