New trends in technology and globalization have been changing marketplaces, forcing business to adapt to the trends to remain competitive. This technology can be beneficial in increasing the efficiency and quality of production and reduce costs. One of the advantages of technology in manufacturing has been lean manufacturing, which refers to the introduction of changes, and improvements that can eliminate any wastes and activities that do not add value to a company. Lean manufacturing requires identifying customer needs to create a workflow, maximize customer value and minimize wastes.
Six Sigma model is a management methodology that allows companies to use data in eliminating wastes in any process. Implementing the method offers several benefits to a company such as improving customer loyalty, time management, strategic planning and supply chain management ( Goldsby & Martichenko, 2005). Lean six sigma principle can be used to streamline, enhance and optimize every aspect of an organization. The method is disciplined and data-driven to eliminate defects in any process and ensure efficiency as well as cost reduction. This paper discusses the application of six sigma model and lean manufacturing in a grocery store as well as using the Pareto chart in project management.
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How Six Sigma could be used in a grocery store
While the six sigma model was created for the manufacturing industry, it can be applied to numerous other industries including the service sector to create better product and customer satisfaction. The methodology can be used in a grocery market as a systematic business strategy and quality initiative to improve logistical measures ( Dora et al., 2014) . A grocery store experiencing challenges in meeting customer expectations of reduced lead times and greater accuracy in delivering time estimates can apply six sigma approaches to improve efficiency, reduce wastes and enhance customer satisfaction.
Six Sigma principles offer retailers a way to improve processes and customer satisfaction by looking at an individual process in depth. The process seems to understand why a process creates defects and how to avoid them ( Goldsby & Martichenko, 2005) . Retail often involves a series of interlocking operations bringing a product from suppliers to the customer. Running a retail store requires ongoing duties such as stocking, merchandising, marketing and managing a large number of employees. In most cases, the costs that retailers incur regarding in-store operations account for a large portion of expenses. Implementing six sigma approaches can optimize this function and impact cost management.
Quality control is a primary focus when implementing lean practices in a grocery store since poor quality management can result in many wastes. Grocery stores deal with perishable products that can quickly turn into waste during storage or delivery process. Fresh products can also quickly lose their freshness, in the process affecting customer satisfaction. Six Sigma principles can be applied to improve performances for grocery stores and enhance customer satisfaction ( Dora et al., 2014) . Grocery stores dealing with online transactions can implement six sigma strategies to minimize the wastes and to improve the quality of products. For example, customers dealing with online grocery transactions utilize smaller and frequent deliveries other than bulk products to reduce waste and create more value for money.
A grocery store can use the process to identify and eliminate wastes along the entire supply chain and improve operations. Detecting and reducing waste is one of the main barriers of lean practices and the main focus of six sigma concept ( Goldsby & Martichenko, 2005) . Residues in grocery stores can be found in various areas of the supply chain which can affect customer satisfaction. These wastes can reduce the provision of quality products and can carry significant costs. However, these wastes can be prevented using the six sigma approach by focusing on addressing the problem
The six sigma approach can be applied in grocery stores to reduce wastes and improve customer satisfaction by delivering products on time and ensuring there is enough supply to fulfill demand. It focuses on eliminating defects such as excess wait time and refine supply chain processes, thus reducing costs and time wastage that can affect customer satisfaction ( Dora et al., 2014). For example, the store can identify factors creating delays from suppliers to the market, which can be in the form of delayed payment or poor communication channels. By dealing with this factor, the store then ensures supplies reach the market on time, and customers get the products they need without delay. Lean management can be affected by high demand for products with low amount creating dissatisfaction issues ( Dora et al., 2014) . The approach can be used to identify the cause of delay in the supply of products and implement a solution to the problem. The system will allow a grocery store to ensure supplies to arrive more often thus reducing delay that can affect demand for the product. This will increase the efficiency in selling products to customers and satisfy their needs while reducing the waiting line.
Several steps can be used to increase efficiency and reduce costs in a grocery store using DMAIC. This is a problem solving tool for managing projects and reduce quality lapses. The first step is to define the problem within the organization using data to identify poorly performing areas within the business ( Dora et al., 2014) . The second step involves measuring the problem by tying down the process under consideration. This entails using tools such as process mapping and flowcharting to develop a baseline for the targeted problem. After that, the organization has to identify the probable cause of the problem by targeting the when, where and why of the problem ( Goldsby & Martichenko, 2005) . The fourth step after identifying the problem is to implement and verify the solution by identifying critical factors causing failure in the process and design a corrective process to generate the desired level of improvement. The improvement can then be monitored to ensure it succeeds in achieving the goal ( Dora et al., 2014) . The company can then control the solution through maintenance by implementing process control tools. This allows the organization to monitor the process on an ongoing basis.
Six sigma approaches can improve supply chain management in the grocery store by minimizing the waste of motion and transportation within the grocery store. Customers may spend time moving through the store looking for products in the store and moving from one store to other creating wastes. A grocery store can implement lean six sigma model to identify the source of this waste and implement a solution. ( Goldsby & Martichenko, 2005) For example, it can arrange similar products on one shelf and related products on a corresponding tray to minimize the waste of motion and improve efficiency. This can also help increase customer satisfaction for the grocery store.
The method can also be used to reduce the waste of waiting by creating quick self-checkout lines especially for customers who have few items to purchase. A high percentage of customer buying decisions are made inside the grocery store, and sometimes this can affect the efficiency of purchasing. A grocery store can use six sigma approaches to identify this problem and create a solution such as a visual model of product placement to lead customers into making impulsive buying decisions ( Goldsby & Martichenko, 2005) . It can also make it easy for buyers to choose from available substitute merchandise whenever their first choice is out of stock. Using a planogram can allow for merchandising the right product at the right place and time, leading to sale as well as removing unnecessary activities.
At the same time, the methodology can be used to reduce the waste of overproduction by evaluating the needs of customers and their preference. It can help a retail store to measure the products of business against data gathered from customers. For example, determining what customers need in the grocery store and their expectations can help a company to identify the supplies required each day and avoid creating wastes, especially with the perishability of groceries ( Goldsby & Martichenko, 2005) .
In conclusion, grocery stores can apply to lean six sigma methodology to deliver a great retail experience to customers by providing safe and clean stores along with first-to-market products and exceptional customer experience. Implementing the model can bring about real and sustainable improvements by reducing wastes an increasing efficiency while building a more satisfied customer base. Implementing an embedded lean six sigma model for grocery stores can help them to improve output quality through streamlining processes relating to responsiveness. An online grocery store can apply the laws of market, flexibility, focus, velocity, and complexity to streamline operations and improve output quality.
How a Pareto chart could be used in cost reduction
A project manager is often involved in the processes of planning, organizing and leading team members by executing decisions, with the efficiency of these decisions determining the success of a manager. The decision making starts after identifying the problem and seeking for an appropriate solution. The best way to solve a problem is to consider the root cause and factors causing the symptoms before coming up with alternative solutions to the problem ( Ziarati, 2006) . One of the tools that can help in project management to reduce costs is the use of a Pareto chart which focuses on analyzing the source of a problem. A Pareto chart is a tool in six sigma model that is part of quality control derived from historical data to come up with the most appropriate action to address an impacting causal factor ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . It can be used to streamline the operation by applying the necessary step to identify the
The Pareto principle can be used as a six sigma tool to teach teams first to address problems that impact customers and profitability. The policy is used to rank components regarding costs and focus on engineering effort on a relatively small percentage of elements to create a significant impact on the cause of problem and expense ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . The principle is based on the relationship between inputs and outputs that are unbalanced and can help a project manager to make an efficient decision by focusing on critical activities. Six Sigma project teams using the Pareto principle have to understand that most problems arise from a small number of causes. It states that a majority of usage or impact comes from a small percentage of users, which can help keep everyone focused on important issues and ensure they are addressed ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . In this regard, applying the Pareto principle helps to focus on the small priority areas to solve the problem, which can then be involved in the whole project.
When building a huge boat, a Pareto chart can be used to reduce costs especially when it requires the participation of lots of different people and equipment. The Pareto principle defines an optimal situation as one where it is impossible to improve the utility of one without diminishing the service of another thing ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . The law can be applied in the field of quality management by controlling functions to resolve problems of poor quality. It introduces the concept of vital few and trivial many, explaining how a small number of causes can be responsible for a large percentage of effects.
The Pareto chart can be used to obtain a better level of quality by addressing fundamental causes and remedies which will assure the whole process operates in an efficient manner while reducing the costs. Pareto analysis entails looking for the most common contributing cause to a situation using Pareto chart ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . It focuses on selecting data into categories and establishes the number of times each type occurs. As such, it allows for the most significant problems to be corrected, by first taking a limited number of activities that produce substantial effects.
The Pareto chart allows for decision making on how to reduce costs by fixing on the most critical problems and deciding to prioritize them. It will enable prioritizing individual changes that will most improve the situation. The essence of this principle is to encourage reforms and ensure continuous improvement ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . When creating a huge boat, the Pareto chart can be used by following some steps. The first step is to identify and list problems that need to be resolved. Where possible, the project manager talks to team members and clients to get their input on the issue and register them in an appropriate order. This can help highlight weaknesses in the project planning and coming up with the proper solution.
The second step is to identify the causal factor of every problem by using elements such as brainstorming and root cause analysis. Several causal factors can be established and ranked in a hierarchical order based on their importance. The idea is to ensure nothing is left to chance as every cause is monitored ( Ziarati, 2006) . The third step is scoring each problem determining their significance depending on the problem that the project is trying to solve. The team considers which factors are more significant in creating the problem and needs an immediate solution.
The fourth problem is to group problems based on their causal factors, for example, problems caused by a similar factor are grouped. The project manager then adds up the scores for each group with the group with top scores taking up the highest priority and vice versa when making a decision. Lastly, the team then takes action to deal with the highest priority issue. This will allow reducing the costs and ensuring efficiency in production. In case there are more than three main rivers, the project manager can decide to work on all of them or choose on the most important one that can allow dealing with the problem ( Ziarati, 2006) .
When making a huge boat, a project manager can use the Pareto principle to focus on inputs that will have the most significant impact and provide an easy way to achieve efficiency in a project ( Grosfeld-Nir, Ronen & Kozlovsky, 2007) . For example, the project manager can look for one aspect of the project that is responsible for delivering 80 percent of the errors. Once such a causal factor has been identified and fixed, the project can then achieve outsized results with the lowest budget possible. Manufacturing is often an alternative perspective that deals with large volumes and small margins. In making a ship that requires lots of people and different types of equipment, a project manager have to consider various factors that can create wastes and focus on building a solution on the most priority factor within the project ( Ziarati, 2006) . Cost cutting is a major priority for all firms and has to look for appropriate measures to deal with tight budgets. A Pareto chart is an alternative approach that can be implemented to cut costs significantly.
Example of Pareto principle is when looking to reduce water usage in the city using lean six sigma tools. While reducing environmental problems can be complicated, the method can provide a structured way of focusing on the right things and spend time appropriately. The city can identify the top water users throughout 12 months and use the Pareto chart to reduce the list to the top two biggest users. The root cause and solutions for the two biggest water users can be applied to the others. In making improvements in the area, the steps entail defining the problem, in this case too much water being used by users. The next step is to gather data on water usage by residents, then use Pareto chart to prioritize the most significant areas. After determining the data, the next team is to decide the right variable such as neighborhood or dwelling type and how to approach the most prominent users in identifying improvement opportunities.
In conclusion, The Pareto analysis can allow a project manager to focus on doing the most critical issue rather than spreading the effort over many topics. Using a Pareto chart can help a project manager to organize plan and control projects by maximizing the potential and address each element of the project at the right time. A successful project is one that delivers the outcomes and meets targets while staying within financial budgets.
References
Dora, M., Van Goubergen, D., Kumar, M., Molnar, A., & Gellynck, X. (2014). Application of lean practices in small and medium-sized food enterprises. British Food Journal , 116 (1), 125-141.
Goldsby, T. J., & Martichenko, R. (2005). Lean six sigma logistics: Strategic development to operational success . J. Ross Publishing.
Grosfeld-Nir, A., Ronen, B., & Kozlovsky, N. (2007). The Pareto managerial principle: when does it apply?. International Journal of Production Research , 45 (10), 2317-2325.
Ziarati, R. (2006, February). Safety At Sea–Applying Pareto Analysis. In Proceedings of World Maritime Technology Conference (WMTC 06), Queen Elizabeth Conference Centre (Vol. 94).
