APPLYING LEAN SIX SIGMA TO REDUCE PRODUCTION CYCLE TIME: AN EMPIRICAL STUDY IN THE TFT-LCD INDUSTRY

Lean Six Sigma has attracted considerable attention in recent years as a way to focus on both the quality and service improvement processes. The purpose of this paper is to present an application of the Lean Six Sigma methodology in the TFT-LCD industry in Taiwan. DMAIC (define, measure, analyze, improve, control) phases are utilized to increase the efficiency rate of the liquid crystal module (LCM) assembly process by 70% from the baseline figures to its entitlement. At the beginning of this project, the average efficiency rate was 82.33%. After the improvement actions were implemented over a six-month period, the average efficiency rate increased to 87.22%. This research provides an in-depth business analysis of using the Lean Six Sigma DMAIC method. Significant improvements were achieved based on the systematic application of the Lean Six Sigma system. This LSS program was the first time that the case company had undertaken a formal improvement project for productivity improvement, and thus the case company decided to continue implementing the same type of projects using this methodology. Some specific characteristics of the LSS project are discussed in detail.