Applying Lean Six Sigma in the

Wood Furniture Industry:

A Case Study in a Small Company
J. E. GUERRERO AND S. LEAVENGOOD, OREGON STATE UNIVERSITY
H. GUTIÉRREZ-PULIDO, F. J. FUENTES-TALAVERA,
AND J. A. SILVA-GUZMÁN, UNIVERSIDAD DE GUADALAJARA
© 2017, ASQ

Lean Six Sigma (LSS) is a methodology that integrates

two strategies used for continuous improvement by INTRODUCTION
organizations: lean manufacturing and Six Sigma. Wood manufacturers have been pressured to adopt new
LSS helps to optimize processes by focusing on reduc- manufacturing practices and management approaches
ing waste and defects and improving quality. This to reduce production costs and delivery times, and
paper presents a study on the implementation of LSS
increase quality to remain competitive in an increas-
in a small furniture company. A company diagnosis
was done to identify manufacturing process problems ingly globalized market (Czabke, Hansen, and Doolen
and opportunities for improvement. Also, a Six Sigma 2008). For the wood products industry, continuous
design, measure, analyze, improve, control (DMAIC) improvement fosters an ongoing effort to enhance
approach was used to quantify opportunities, show quality and productivity (Pirraglia, Saloni, and van
evidence for improvement, and show potential Dyk 2009). Over the last decade, Lean Six Sigma (LSS)
benefits to be gained. Results show that with the appli-
has been adopted by many companies in the restruc-
cation of LSS there is potential for the firm to reduce
turing of their manufacturing processes based on
defects by 25 percent, reduce waste by 13 percent,
and increase sales productivity by approximately monitoring of production yields and reducing costs and
14 percent in the first year. These findings suggest cycle times (George 2010; Anderson and Kovach 2014;
that LSS strategy implementation could be useful for Ismail et al. 2013).
small wood furniture companies. The key challenges LSS is a strategy for improving business per-
to applying LSS methodology in the case firm were formance that combines two methodologies:
associated with a poor quality management system,
lean manufacturing and Six Sigma. Lean man-
lack of formality, lack of procedures, and quality
records. We propose a training program emphasizing ufacturing, or lean, is a systematic approach to
theoretical knowledge for managers and employees as identifying and eliminating waste through con-
the first step to implementing LSS. tinuous improvement. Six Sigma is an improvement
Key words: continuous improvement, DMAIC, innova- methodology used for reducing variation, defects,
tion, process mapping, quality, wood furniture waste, and economic losses, and increasing pro-
cess quality (Andersson, Eriksson, and Torstensson
2006). Combined, these methods focus on increasing
quality, reducing variation, and reducing waste in
an organization (Furterer and Elshennawy 2005).
LSS development is based on different principles,
tools, and methodologies, particularly in the struc-
tured define, measure, analyze, improve, control

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 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

(DMAIC) approach (De Koning et al. 2008; George because of the positive economic results and ben-
2002; Pepper and Spedding 2010). The integration efits, such as better quality control. Furthermore, the
of lean and Six Sigma has not only been defended in application of LSS helps to quantify the bottlenecks
theory, but there are also many practical examples and potential benefits through the visualization of the
that illustrate its efficient integration and positive manufacturing line (Jeyaraman and Teo 2010; Kumar
results (Andersson, Eriksson, and Torstensson 2006; et al. 2006; Thomas and Barton 2011; Thomas, Barton,
De  Koning, Does, and Bisgaard 2008; Furterer and and Chuke-Okafor 2009).
Elshennawy 2005; Kumar et al. 2006; Mader 2008; This paper presents a case study of LSS implemen-
Salah et al 2010; Smith 2003; Snee 2010). tation in a small furniture company. The case firm is
Several studies promote the integrated use of an LSS part of a community organization located in western
approach, but each has a different view as to the correct Mexico. It has annual revenues of $600,000, more than
use of the tools to implement continuous improvement 60 employees, and a product line of custom-made din-
projects (Anderson and Kovach 2014; De Koning et al. ing furniture manufactured from solid pine wood. The
2008; Furterer and Elshennawy 2005; George 2002; furniture is sold via wholesalers and retailers in Mexico
Kumar et al. 2006; Pepper and Spedding 2010). In the and the United States. The company has an annual
beginning, LSS was mainly applied in private indus- production capacity of approximately 4,500  units.
try, particularly in large manufacturing companies Employees work on a piecework system, six days per
(Furterer and Elshennawy 2005); however, in recent week, to meet customer demand. The company faces
years it has been used in a variety of industries includ- problems related to final product quality, which is
ing agriculture, business services, manufacturing, reflected in financial returns and constant complaints
healthcare, and others (Anderson and Kovach 2014). from wholesalers about the presence of defects. Due to
While increasing, the use of LSS in furniture and wood- these problems, company managers requested support
based products manufacturing has not yet been well from an external team led by the authors of this paper
documented, and its implementation has been slow to identify opportunities for improvement.
(Czabke, Hansen, and Doolen 2008). Generally, this
slow implementation is due to the complexity of the
operations performed in this sector, the different vari- METHODOLOGY
ables to record, the lack of interest in modernizing Since the company chose not to implement the recom-
production processes, and the cultural reluctance to mendations of the diagnosis, a variation of the Six
change working structures in this industry (Pirraglia, Sigma DMAIC approach had to be used. First, the case
Saloni, and van Dyk 2009). study describes a diagnosis of the furniture company
Regarding small furniture producers, there are few located in Mexico throughout the visualization of its
examples of implementing LSS tools in the develop- production line. Next, it illustrates a variation of the
ment of continuous improvement projects. In general, Six Sigma DMAIC approach based on the results of the
it has been a challenge to adapt the strategy and meth- diagnosis. In the DMAIC approach, the improve and
odologies to the context of these companies. Lack of control phases were not implemented, since these were
awareness and financial capacity, obstacles in the beyond the authors’ control. Nevertheless, the DMAIC
process, and the absence of a standard framework for approach that is proposed represents a data-driven
implementation have led to poor implementation of improvement framework that addresses the main issues
systems (Thomas, Barton, and Chuke-Okafor 2009). and obtains the evidence needed for improvement in
Some studies show that the application of LSS in wood-based products industries. The methods pro-
small businesses can be beneficial for organizations posed by Furterer and Elshennawy (2005), Kumar

www.asq.org 7
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

Figure 1 Flowchart DMAIC methodology for implementation of LSS in the furniture company.
Define
1. Characterization
2. Process mapping – VSM
3. Diagnosis
4. Projects formulation
Measure
Control 5. Repeatability and
Define reproducibility (R&R) study
11. Designing improvement
programs 6. Process baseline
12. Statistical process
control (SPC) Control Measure

DMAIC cycle
Lean Six Sigma

Analyze
7. Identification of potential
causes (the “x’s”)
Improve Improve Analyze – Brainstorming
9. Process optimization – Cause and effect diagram

©2017, ASQ
10. Identifiying 8. Identification of
improvement alternative root causes (”x’s” vital)

et al. (2006), and Thomas, Burton, and Chuke-Okafor surveys, and assessment quality formats created for
(2009), as well as statistics and quality tools of lean the study. Flow mapping followed the methodology of
and Six Sigma integrated concepts, were used to design value stream mapping (VSM) proposed by Rother et al.
the approach (see Figure 1). (1999) and used by Grewal (2008), Thomas, Barton,
The company selection was made because of the and Chuke-Okafor (2009), and Miller et al. (2010) in
need for improvement identified by the managers lean implementation.
and the company’s desire to be a pioneer in the The activities and production times of a product
development of improvement programs. The software family of dining chairs were quantified to build the
STATGRAPHICS Centurion XVII was used for the data value chain map and process flow diagram, as well as
analysis. The phases and activities of the approach to quantify the process efficiency and takt time (total
are described next. cycle time in which a product should be produced to
meet customer demand) metrics. These lean manufac-

DMAIC PROJECT turing metrics were calculated using Equations 1 and 2

(Ismail et al. 2013; George 2003; Grewal 2008).

Diagnostic Process cycle efficiency(PCE) =

Value-added time
Total cycle time
The aim of the diagnostic phase is to identify the (Equation 1)
main problems and needs for improvement in the
manufacturing process. A characterization of the man-  Available work time
Takt time =
ufacturing line using a value flow map and analysis of Customer demand rate
quality was carried out for diagnosis of the production (Equation 2)
process. In the characterization, the consumption, For the quality analysis, an assessment of the man-
waste of raw material, furniture monthly production, ufacturing line through the quantification of sources
and customer claims were collected through interviews, of variability in raw material, furniture parts, and

8 QMJ VOL. 24, NO. 3/© 2017, ASQ

 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

finished products was developed. Also, the number and (Hoffa and Laux 2007). The variability in dimensions,
type of defects, raw material waste, and returns due to moisture content, and average defects were the vari-
poor quality were registered using check sheets. Check ables analyzed in the R&R study. Also, the percentage
sheets were also used to quantify the quality issues of variation due to R&R was used in the evaluation
costs. The authors did a cost analysis to identify the of the measuring system. For the evaluation of the
main quality issues using a Pareto chart. Finally, the system, the authors established four categories: excel-
number of defects per million opportunities (DPMO) lent (less than 10 percent), good or acceptable (10 to
was quantified to yield the number of expected defects 20 percent), marginal and almost unacceptable (20 to
in a million opportunities of error (Smith 2003). The 30 percent), and unacceptable and must be corrected
authors collected the data for the diagnosis over a (more than 30 per­cent). This measurement system
period of five weeks. was useful for determining the baseline of the quality
assessment metrics based on the current and expected

Define state of the process.

The first step of the DMAIC approach is to define

the problem to be addressed through a value flow Analyze
map and analysis of quality of the process. However, The root causes of the problems addressed were iden-
the lack of standard procedures, quality record sys- tified in the analysis phase. First, a cause and effect
tems, awareness, and technical resources in the case analysis was performed to identify potential causes. The
firm led the authors to modify this phase in their authors performed a brainstorming session with a mul-
approach. The quality metrics and value flow map tidisciplinary team formed for the project to identify the
were used as diagnostic tools to define variables to potential causes of the main problems. The causes were
be measured, establish the baseline, and perform an classified using a cause and effect diagram and then
in-depth analysis of the case company. The authors studied through a fractional factorial experiment.
quantified the issues in the diagnostic with a Pareto
diagram and formed a multidisciplinary team to
choose the problem to be addressed in the define
Improve
phase. It allowed them to choose the main quality The best operating condition of the process was deter-
problem based on cost and identify how a reduction mined in this phase through a fractional experiment
in reworking defects in both parts and furniture could with four factors and three response variables. The
result in savings for the company. In addition, met- results of 2k-1 design were analyses with ANOVA and
rics for assessing improvements and benefits were its associated tools. An alternative based on the opti-
defined in this phase. mal conditions identified was proposed to improve the
process. The results from the proposed changes were

Measure assessed to show how things might improve.

The aim of this phase is to quantify and better under-

stand the main quality problems to be addressed, and Control
to design a system for measuring quality and process The design and implementation of a program to main-
variation. The analysis and validation of the system tain improvements was proposed to control the process,
were performed through a repeatability and reproduc- where it was documented, and how it was planned to
ibility (R&R) study using analysis of variance (ANOVA) ensure these changes to the process would be sustained,

www.asq.org 9
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

the takt time were calculated. A summary of results is

Table 1 Value stream analysis of the process
in the case company shown in Table 1.
The classification of activities was developed fol-
Characteristics of the production
process Values lowing the principles of muda (everything that does
Product family
not add value to a process or service) in a production
system (Ohno 1988). Table 1 shows that from a total
Dining chair manufacturing 120 chairs
of 611 activities identified throughout the produc-
Production cycle activities
tion process, only 59 added value. In the remaining
  Activities that add value 59 activities
activities, 64 were identified as muda type 1 (these
  Muda type 1 64 activities
do not add value but are considered necessary), while
  Muda type 2 488 activities 488 were muda type 2. Muda type 2 activities are
  Total activities 611 activities unnecessary, do not add value, and should therefore
Cycle times be eliminated.
  Time in minutes 36,623 minutes The activities identified for elimination included
  Time in hours 610 hours unnecessary transportation, provisional storage, wait-
  Time in days 25 days
ing or dead times, calibration of machines, cutting
tests, and inspections of assembly and finished prod-
  Real-time production 3,087 minutes
uct. Womack and Jones (1996), who documented
  Time muda type 1 2,237 minutes
and described the principles of the Toyota Production
  Time muda type 2 31,209 minutes
System (TPS) and were the first to use the term lean
  Total time muda 33,446 minutes
thinking, describe a similar process and emphasize the
Process efficiency large amount of temporary storage as the main activity
 Process cycle efficiency (It should be 8.5% that does not add value to the process flow.
> 25% to be lean)
The removal of the activities considered as muda,
Takt time
after applying lean tools, is one of the purposes of pro-
305 minutes
©2017, ASQ

  Takt time production cycle (Current status) cess improvement and an alternative that reduces the
  Takt production process (Future state) 26 minutes generation of dead times and activities that do not add
value. To achieve this, it is necessary to redesign the
through standardization and statistical process control production process using lean principles.
(SPC). The authors conducted an improvement pro- Table 1 also presents different metrics to mea-
gram based on the SPC to sustain the improvements sure the efficiency of the process. The efficiency of
that were achieved. the process cycle was equal to 8.5 percent, which
means that in the manufacture of furniture, just

FINDINGS AND DISCUSSION

8.5 percent of the time is adding value. The remain-
ing time is full of activities that do not add value,

Company Diagnosis including dead times. According to George (2002),

for a process to be considered lean, the efficiency of
To identify the main problems, current state, and needs the process cycle should be higher than 25 percent.
for improvement within the company, the authors In addition, the takt time was equal to 305 minutes.
mapped the production processes (Grewal 2008; Rother This means that based on the current operating con-
et al. 1999; Thomas, Barton, and Chuke-Okafor 2009). ditions, the company manufactures a chair every
Also, production flow rate, process cycle efficiency, and 305 minutes. However, if nonvalue-added activities

10 QMJ VOL. 24, NO. 3/© 2017, ASQ

 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

are removed, manufacturing a chair

would take only 26 minutes, achiev- Figure 2 Pareto chart for the poor quality cost in the furniture
manufacturing per year.
ing a dramatic increase in productive
capacity and a reduction in delivery 24

Quality issues costs (US$ thousands)

100%
times. These values indicate that the 94.5% 97.4%
20
company has a manufacturing process 82.4%

with a discontinuous flow, long cycle 16 67.8%

times, and low efficiency and produc- 12 48.4%

tivity. This shows the cost reductions
8
that could be achieved by applying the 24.7%

LSS methodology. 4

Quality Analysis

©2017, ASQ
Reworking Raw Defect Furniture Downtime Variation Overtime
of defects material inspection returns in parts payment
waste
A quality analysis of the manufactur-
ing process was conducted to identify
the main quality issues. In this regard, issues such as (19 percent), and furniture returns because of defects
the lack of a quality record system, high variation in (14 percent) (see Figure 2). These data allowed the
furniture parts and characteristics of raw materials, authors to focus on furniture defects as the main issue
and high presence of defects in the process leading to to address for achieving a positive impact in the com-
rework were detected. Additionally, 8 percent of prod- pany. In addition, the authors identified a high number
ucts were returned by customers because of quality of defects per million opportunities (DPMO), a ratio
problems, resulting in a 10 percent increase in pro- of nearly 216,000. These results demonstrate a signifi-
duction cost by reworking with regard to sales. This cant opportunity for improvement by aspiring to reach
was identified as the main cause of customer dissat- Six Sigma levels in the case company process.
isfaction and constitutes a risk regarding customer Conducting the general diagnosis of the produc-
loyalty. Finally, a rate of waste generation from raw tion process in the furniture company by applying
materials higher than 51 percent was identified, rep- statistical and lean manufacturing tools represents an
resenting potential losses equal to $49,000 per year important step leading to the development of improve-
over percent of raw goods. Therefore, quality issues ment activities because it helps identify and quantify
represent a risk for the company not just with respect the main quality issues and bottlenecks. The diagnosis
to customer loyalty, but also with respect to signifi- also suggests alternative solutions for improvement
cant economic losses. and proposes projects that could help to modernize the
To identify the most significant quality issues in manufacturing line and innovate processes. Based on
terms of cost, a cost analysis using a Pareto chart was these results, a DMAIC project was developed to obtain
conducted. Figure 2 describes the evidence and “vital evidence needed for improvement.
few” quality issues identified during the analysis. The

DMAIC PROJECT RESULTS

Pareto diagram shows how reworking defects in both
parts and furniture was the most significant cost prob-
lem. Reworking costs accounted for more than $50,000 As a result of the authors’ diagnosis, the issue of furniture
per year (25 percent of total losses), followed by raw defects was prioritized as the main issue to address for
material waste (24 percent), cost of defect inspection pursuing continuous improvement in the company.

www.asq.org 11
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

The DMAIC project was applied following the principles using ANOVA. The R&R study is an experimental anal-
described by George (2002) and Watson and DeYong ysis developed to determine what percentage of the
(2010), in which the general objectives and activities total variance of data is due to measurement error. It
of each stage of the DMAIC methodology are detailed. quantifies the magnitude of the error in relation to
Furthermore, approaches proposed by Kumar et al. product variability (Hoffa and Laux 2007). The sources
(2006) and Thomas et al. (2009) were followed. Next, the of variability to evaluate in an R&R study are variabil-
authors explain the results of each phase of the project. ity attributable to the product (wood parts), measuring
instrument (repeatability), and workers (reproducibil-
Define ity) (Burdick et al. 2005).
The R&R study was performed using different
The presence of defects in both parts and furniture was
kinds of wood parts from the manufacturing line.
identified as the main reason for inefficiencies in the
Dimensions and moisture content of the wood parts
process. The number of defects per part was established
were measured by three workers. Also, three R&R tests
as the key metric of the project. The results obtained at
were run for a better representation of the process.
this phase showed economic losses of almost $82,000
The results were useful for evaluating the level of vari-
per year, mainly due to the costs generated by rework-
ability in the manufacturing line and for quantifying
ing returned furniture. At this phase of the project,
the percentage of measurement error with respect to
a multidisciplinary team was formed. After careful
dimensions (width and thickness) and moisture con-
consideration, the team proposed a project framework
based on the baseline results that combines alternatives tent of the wooden pieces. These variables were related
to reduce defects and wastes, and identify improvement to the number of defects in the furniture, the key metric
opportunities in the production line. of the project. In the data analysis, the percentage
variations, according to the metric sigma R&R, were

Measure 2, 5, and 11 percent for the dimensions in width, thick-

ness, and moisture content, respectively. These values
In the second phase, data of the key metric established show that measurement error was small relative to
for the project—the number of defects per parts— total variation. In addition, the measuring system
were recorded and quantified using check sheets and proved to be suitable for related variables because the
control charts. For the measure of defects in both parts variation was less than 10 percent. It also highlighted
and furniture, quality checkpoints based on the critical some important issues of the manufacturing process,
points of the manufacturing line were established for such as the lack of standard procedures and quality
the visual analysis of defects. The number of defects per records (see Table 2). The results of an R&R study are
unit and variability were calculated using control charts. an appropriate way to validate these kinds of measur-
In addition, a quality analysis of the number of defects ing systems and continue with the following phases of
was carried out to calculate DPMO. Also, Six Sigma mea- the improvement project. The validation of the measur-
sures, such as defects per unit (DPU or average number ing system allowed for establishing the baseline, quality
of defects per unit of product), defect per opportunities characteristics, and level of performance of the process
(DPO percent or number of defects in a sample divided regarding the metrics calculated.
by the total number of defect opportunities), and the

Analyze
level of quality sigma (a process that produces defect
levels below 3.4 DPMO), were calculated.
Additionally, a system for measuring quality and In this phase the authors identified possible causes
process variation was developed through an R&R study of defects in the furniture. Figure 3 shows the cause

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 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

and effect diagram elaborated to highlight the factors

Table 2 Baseline furniture production process
that might be responsible for defects. According to the
Baseline furniture
production process problems identified in the diagnosis and this analysis
(quality metrics) Actual Expected of the process, the team emphasized wood quality and
Process cycle efficiency 8.5% > 25% methods of operation as the main causes of defects.
Takt time 305 minutes < 30 minutes Therefore, the type of wood (high- and low-level timber
Waste of raw materials 51% < 10% type), type of cuts for wood (high- and low-level type
Finished product returns 8% 0% of cut), moisture content (high and low moisture con-
Variability in dimensions 5% < 3%
tent), and the worker (well-trained or not well-trained)
(Stotal) were selected from the cause and effect diagram as the
Variability in moisture content 11% < 3% main causes to be evaluated. For analyzing, a frac-
(CV%)
tional factorial design of experiments 2k-1 was run to
Average defects in the 4.4 defects
process evaluate and validate the causes. The individual effects
Defects per unit (DPU) 3 defects
and interaction of the factors identified were assessed
Defect per opportunities 22 defects
for three variables: the presence of defects (Y1), percent-
(DPO%) age of wood waste (Y2), and profitability in dollars (Y3).
Level of quality sigma (Zc) 2.3 sigma 6 sigma Variables Y2 and Y3 were measured to compare diagnos-
Defects per million 215,931 < 3.4 tic data and to quantify the economic differences with
©2017, ASQ

opportunities (DPMO) DPMO

regard to using different wood qualities and operation
Poor quality costs $82,000
methods in the production line. Profitability (Y3) was

Figure 3 Cause and effect diagram for defects in furniture

Machinery Method Materials

Moisture content
Standardization
Corrective Wood
maintenance Lack of awareness
Knots and/or defects
Damaged Discontinuous process
Type or class

Uncalibrated Wood quality

Not documented
equipment
Using by Types of cuts
different workers
Wood species
Defects in
furniture
Different point
of views Different standards
Differences in
operating criteria Moisture content
of wood
Imprecision Drying times
Lack of awareness in parts
Furniture drying times

Training needs Variability in

dimensions Changing conditions
©2017, ASQ

Workers Measurement Environment

www.asq.org 13
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

determined by calculating the cost of raw material, modes of timber. Using the type of wood of first class
waste, and total production costs. These values were (low-level timber type), the manufacturing process
subtracted from the total value in dollars of furniture presented the lowest number of defects and waste,
manufactured by each experimental test. Finally, in the and the highest profitability compared to using the
experimental design the authors ran eight combinations type of wood of third class (high-level timber type). In
or tests, and wood bundles were used as experimental the other factors there were no important differences
material. The results are shown in Table 3. between levels. The estimated main effects and two-
The proposed experimental design was applied to way interaction were analyzed with a Pareto chart and
the production of a dining chair because it is the type a normal probability plot. From this and the ANOVA,
of furniture most produced in the company. Thus, it it was discovered that the main effects are dominant.
was the best way to reflect the reality of the process. The results in Table 5 illustrate that the four potential
The type of wood (first or third timber type), type of causes evaluated were statistically significant. Type of
cut (radial or tangential), moisture content (≤10 per- wood was significant at a p = 0.05 level, and the other
cent or ≥11 percent), and the worker (B = well-trained three were significant at a p = 0.10 level. According to
or A = not well-trained workers) were the factors con- R2 values, the four effects explain 89 to 97 percent of
sidered for the experimental design as the main causes the observed variability. Using a better wood quality as
to be evaluated (see Table 3). The authors hypothesize the raw material should have a significant influence
a positive impact on the use of first-class timber type, in the reduction of defects and wastes and an increase
a better type of cut for wood, a better moisture con- in profitability.
tent, and well-trained workers in the reduction of

Improve
defects and waste, and an increase in the profitability
in the manufacturing process. Table 4 shows that
there are differences in the values reported for the The aim of this phase was to determine the best oper-
three variables assessed regarding the low and high ating condition of the process to find alternatives to

Table 3 Analysis experimental design of the wood furniture production process.

Performance of the production process by dining chairs to be produced
C: Moisture content

profitability (US$)
Wood waste cost

Process total cost

Total value (US$)

Labor cost ($*h.)
B: Type of wood

Total cost ($/BF)

Labor cost (US$)

Unit value (US$)

A: Types of cuts

Cost R.W (US$)

Total cost R.W
QTY. R.W (BF)

Working time

Dining chairs

Y3: Process
Y1: Defects
D: Worker

Y2: Wood
(US$/BF)

waste
(hours)
($/BF)

(US$)
Tests

BF (%)
1 Radial First (≤10%) A 8 29 1.10 31.9 12 41.0 13.2 45.1 7.3 1.0 7.3 52.4 3.5 25 87.5 35
2 Tangential Third (≥11%) B 34 29 0.70 20.3 15 51.2 10.5 30.8 7.5 1.0 7.5 38.3 2 25 50 12
3 Radial Third (≤10%) B 28 29 0.70 20.3 16 54.6 11.2 31.5 5.5 1.0 5.5 37.0 1.5 25 37.5 1.0
4 Tangential Third (≤10%) A 50 29 0.70 20.3 18 61.4 12.6 32.9 4.8 1.0 4.8 37.0 1.5 25 37.5 0.3
5 Tangential Third (≤10%) B 12 29 1.10 31.9 12 41.0 13.2 45.1 4.5 1.0 4.5 49.6 3.5 25 87.5 38
6 Tangential First (≥11%) A 14 29 1.10 31.9 12 41.0 13.2 45.1 4.3 1.0 4.3 49.4 3.5 25 87.5 38
7 Radial Third (≥11%) A 27 29 0.70 20.3 16 54.6 11.2 31.5 7.2 1.0 7.2 38.7 1.5 25 37.5 −1
8 Radial First (≥11%) B 7 29 1.10 31.9 11 37.5 12.1 44.0 4.2 1.0 4.2 48.2 3.5 25 87.5 40
Totals 180 234 209 112 47.8 97.2 306.0 45.3 45.3 351.3
©2017, ASQ

R.W = Raw material (solid wood)

BF = Board foot

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 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

Table 4 Experimental design 24-1 and values for Y1, Y2 y Y3.

A: Types B: Type C: Moisture Y2: Wood Y3: Profitability
Tests Code of cuts of wood content D: Worker Y1: Defects waste (%) (USD $)
1 (1) −1 −1 −1 −1 8 41 39
2 Ad 1 −1 −1 1 12 41 42
3 Bd −1 1 −1 1 28 55 1
4 Ab 1 1 −1 −1 50 61 1
5 Cd −1 −1 1 1 7 38 43
6 Ac 1 −1 1 −1 14 41 42

©2017, ASQ
7 Bc −1 1 1 −1 27 55 −1
8 Abcd 1 1 1 1 34 51 14

Table 5 ANOVA experimental design 24-1 recommended to improve the process and
increase company profitability.
Experimental variable

Control
Sources of Y 3:
variation Y 1: Y2: Wood Profitability Significance
(factors) Defects waste (%) (USD $) of the factors
The goal of this phase was to implement
A: T ypes of cuts for Y N N Y
wood and sustain the newly achieved improve-
B: Type of wood Y Y Y Y ments. Implementation of the DMAIC
C: Moisture content N Y N Y
project required time and resources. For
D: Worker N Y N Y
this study, the case company delayed
adoption due to the cost of adopting LSS
R (%)
2
89 97 95
©2017, ASQ

principles. Therefore, the control portion

Y = Factors statistically significant
N = Factors statistically no significant
of the DMAIC project was not realized. The
authors did illustrate an improvement pro-
address the root causes of the quality problems. The gram based on the alternative identified. The program
determination of the best conditions was carried out used SPC and control charts to monitor and control
according to the main effects identified as signifi- the process metrics. The control charts were proposed
cant in the ANOVA. The results show that the use of to be used for monitoring, controlling, and analyz-
the first grade of wood, a better type of cut, a better ing the variation of the process over time. Because
moisture content, and well-trained workers should the variability in dimensions, moisture content, and
reduce defects by 25 percent and wastes by 13 percent defects in raw material were the main quality issues in
with regard the average calculated in the baseline the process, the authors quantified their variability to
diagnosis. This change in the type of wood not only assess how it would look in a process under statistical
would allow the company to achieve the benefits control. In this phase, the authors describe the quan-
listed, but it would also improve production time, tification of the moisture content in the wood parts for
delivery time, reworking, customer trust, and so on. the manufacturing process statistical control. A contact
The change in type and quality of raw material does hygrometer Lignomat USA (Mini-Scanner L) was used
not imply major modifications in the manufacturing to determine moisture content randomly in the manu-
line and in the operation of the company, since it has facturing line. Moisture content, temperature, and
easy access to supplies of first quality wood. Changing relative humidity were registered daily, and data were
the type of wood from third class to first grade was entered in check sheets, designed for SPC. An x-bar

www.asq.org 15
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

Figure 4 X-bar chart for monitoring of moisture content variability

13 UCL = 11.7
CTR = 8.70
LCL = 5.65
Moisture content (percent)

11

©2017, ASQ
0 20 40 60 80 100 120 140
Measurements

Figure 5 R chart for monitoring of moisture content variability

16
UCL = 15.7
CTR = 8.60
R chart moisture content (percent)

LCL = 1.50
12

©2017, ASQ

0
0 20 40 60 80 100 120 140
Measurements

chart was used for the analysis of the moisture. Also, a the x-bar chart shows a highly variable process, all
subgroup was analyzed to observe variations and deter- points representing the moisture control measures
mine the control limits of the manufacturing process. are within the control limits. Also, there are long runs
Figure 4 describes the x-bar chart that was used (consecutive measurements) of points on both sides
to measure the variability of moisture content in the of the center line. The above shows a regular trend
wood parts, which considers the critical points of and a process under control to its moisture content.
the quality characteristics registered in the statisti- However, the point outside of the upper limit in the
cal analysis of the process. The x-bar chart describes R chart is a sample that variability still should be
how the measured values remained within the con- reduced for this process (see Figure 5). Therefore,
trol limits and close to the central line. Though monitoring the process variables using methods such

16 QMJ VOL. 24, NO. 3/© 2017, ASQ

 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

as SPC and control charts might be a suitable alter- as the cost and lack of resources needed to implement
native to predict process performance in the future the changes required to improve the process. These
and keep it in a state of statistical control. obstacles have been found in other research in the
implementation of LSS or integration of ISO 9001 and

CHALLENGES IN IMPLEMENTING LSS in small-sized firms (Shah and Shrivastava 2013;

Timans et al. 2012; Timans et al. 2016). For example,
THE LSS METHODOLOGY in their article on the topic, Timans et al. (2012) stated
According to Kumar et al. (2006), it is very impor- that the lack of work plans, resources, communication,
tant to discuss the main challenges found in any and management involvement were the main barriers
improvement program because they represent valu- to achieving quality management systems that could
able lessons learned from previous projects that should provide the basis for guaranteeing product quality and
be addressed before the beginning of a new plan. promoting continuous improvement.
Convincing the furniture company of the importance Given that these employees work on a piecework
of conducting a continuous improvement program system (payment for pieces), an improvement in the
in its facilities was one of the first opportunities seized process quality would mean an improvement in the
upon in this study. Due to their lack of familiarity employees’ skills, performance, and payment condi-
with LSS, the manager and employees were hesitant tions. By improving workers’ pay, changing from a
to introduce LSS tools in the process. Generally, this piece-rate pay to pay for performance, performance
resistance is considered natural, because employ- evaluation should improve (Rehman and Ali 2013).
ees might think implementing process improvement Companies can encourage employees to contribute to
tools will jeopardize their job security (Kumar et al. their quality improvement programs and increase the
2006). Thomas, Barton, and Chuke-Okafor (2009) quality of their products.
argue that the lack of awareness, technical resources,
and financial capacity in small companies are the
main opportunities in implementation of improve- CONCLUSION
ment strategies. Therefore, training programs and Experience in a wide variety of industry sectors has
acquisition of theoretical knowledge by managers and shown that implementing LSS strategy is an effec-
employees should be the first step in development of tive way to identify and quantify the main issues
this kind of project. This training can provide them present in a production process to increase quality,
with a perspective on the potential benefits of using productivity, and corporate profitability. Despite
quality tools. this, there are limited examples of LSS implemen-
The most important obstacle the authors faced was tation in small companies, especially in the wood
the informality of the processes in the manufacturing products sector. Additionally, it has been a chal-
line and the lack of procedures and quality records lenge for small companies to adapt the LSS strategy
that could provide evidence of process performance. to their working conditions, organizational struc-
It was the first indication that the company was far ture, and financial capacity.
from having a quality management system defined Although the implementation of LSS strategies in
and documented. This presented a problem for data the wood industry has not been well documented in
collection and baseline definition. Another challenge the literature, the authors’ research suggests that LSS
was convincing senior management of the current could be employed in small companies and in the
issues and improvement needs. This was due to a lack wood industry with positive economic results and ben-
of awareness regarding multiple quality issues, as well efits such as better quality control for the organization.

www.asq.org 17
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company

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Pirraglia, A., D. Saloni, and H. van Dyk. 2009. Status of lean José Erlin Guerrero Martinez is a doctoral student of wood
manufacturing implementation on secondary wood industries. science and engineering in the Forestry College at Oregon
BioResources 4, no. 4:1341–1358. State University. He is currently employed at a Colombian hold-
ing named Grupo Argos S.A. as a projects coordinator. He
Rehman, R., and M. A. Ali. 2013. Is pay for performance the
received his master’s degree in science of forest products from the
best incentive for employees? Journal of Emerging Trends in
University of Guadalajara. His research interests include quality
Economics and Management Sciences 4, no. 6: 512-514.
control in wood products manufacturing, forest products innova-
Rother, M., J. Shook, J. Womack, and D. Jones. 1999. Learning tion, business management, and marketing. He can be reached
to see: Value stream mapping to add value and eliminate muda. by email at: Jose.guerrero@oregonstate.edu.
Brookline, MA: Lean Enterprise Institute.
Scott Leavengood is associate professor of wood science and
Salah, S., A. Rahim, and J. A. Carretero. 2010. The integration engineering and director of the Oregon Wood Innovation Center
of Six Sigma and lean management. International Journal of Lean at Oregon State University. His primary job duties are providing
Six Sigma 1, no. 3:249–274. technical assistance to entrepreneurs and existing wood products
manufacturers. He teaches courses on quality control in the forest
Shah, P., and R. Shrivastava. 2013. Identification of perfor-
industry and has authored a publication series on quality control
mance measures of Lean Six Sigma in small- and medium-sized
in wood products manufacturing.
enterprises: A pilot study. International Journal of Six Sigma and
Competitive Advantage 8, no. 1:1–21. Humberto Gutiérrez-Pulido is full professor of statistics and qual-
ity in the University Center for Exact Sciences and Engineering at
Smith, B. 2003. Lean and Six Sigma – A one-two punch. Quality
University of Guadalajara, México. His primary research interests
Progress 36, no. 4:37–41.
are in statistical applications and methods of quality engineering.
Snee, R. D. 2010. Lean Six Sigma – Getting better all the time. His research has been published in several international journals
International Journal of Lean Six Sigma 1, no. 1:9–29. including Journal of Quality Technology, IEEE Transactions on
Reliability, Revista Colombiana de Estadística, and Journal of
Timans, W., K. Ahaus, R. van Solingen, M. Kumar, and
Biotechnology. He is also the author of three books on quality,
J.  Antony. 2016. Implementation of continuous improvement
statistical control, and design of experiments.
based on Lean Six Sigma in small- and medium-sized enter-
prises. Total Quality Management & Business Excellence 27, Francisco Javier Fuentes Talavera is a professor in the Wood,
no. 3–4:309–324. Cellulose, and Paper Department, University Center for Exact
Sciences and Engineering, University of Guadalajara. His pri-
Timans, W., J. Antony, K. Ahaus, and R. van Solingen. 2012.
mary research areas are wood properties and uses, wood drying
Implementation of Lean Six Sigma in small- and medium-sized
process, and technology of fiber and particleboards. He has pub-
manufacturing enterprises in the Netherlands. Journal of the
lished several papers in peer-reviewed journals.
Operational Research Society 63, no. 3:339–353.
José Antonio Silva Guzman is a professor and head of the
Thomas, A., and R. Barton. 2011. Using the quick scan audit
department in the Department of Wood Cellulose and Paper,
methodology (QSAM) as a precursor towards successful Lean Six
University Center of Exact Sciences and Engineering, University
Sigma implementation. International Journal of Lean Six Sigma 2,
of Guadalajara. His primary research areas are wood properties
no. 1:41–54.
and uses, quality control of wood products, and biocomposites.
Thomas, A., R. Barton, and C. Chuke-Okafor. 2009. Applying He had published several papers in peer-reviewed journals. He is
Lean Six Sigma in a small engineering company – A model for the author of three books and several wood chapters.

www.asq.org 19
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