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
Lean Six Sigma (LSS) is a methodology that integrates
two strategies used for continuous improvement by
organizations: lean manufacturing and Six Sigma.
LSS helps to optimize processes by focusing on reduc-
ing waste and defects and improving quality. This
paper presents a study on the implementation of LSS
in a small furniture company. A company diagnosis
was done to identify manufacturing process problems
and opportunities for improvement. Also, a Six Sigma
design, measure, analyze, improve, control (DMAIC)
approach was used to quantify opportunities, show
evidence for improvement, and show potential
benefits to be gained. Results show that with the appli-
cation of LSS there is potential for the firm to reduce
defects by 25 percent, reduce waste by 13 percent,
and increase sales productivity by approximately
14 percent in the first year. These findings suggest
that LSS strategy implementation could be useful for
small wood furniture companies. The key challenges
to applying LSS methodology in the case firm were
associated with a poor quality management system,
lack of formality, lack of procedures, and quality
records. We propose a training program emphasizing
theoretical knowledge for managers and employees as
the first step to implementing LSS.
Key words: continuous improvement, DMAIC, innova-
tion, process mapping, quality, wood furniture
6 QMJ VOL. 24, NO. 3/© 2017, ASQ
© 2017, ASQ
INTRODUCTION
Wood manufacturers have been pressured to adopt new
manufacturing practices and management approaches
to reduce production costs and delivery times, and
increase quality to remain competitive in an increas-
ingly globalized market (Czabke, Hansen, and Doolen
2008). For the wood products industry, continuous
improvement fosters an ongoing effort to enhance
quality and productivity (Pirraglia, Saloni, and van
Dyk 2009). Over the last decade, Lean Six Sigma (LSS)
has been adopted by many companies in the restruc-
turing of their manufacturing processes based on
monitoring of production yields and reducing costs and
cycle times (George 2010; Anderson and Kovach 2014;
Ismail et al. 2013).
LSS is a strategy for improving business per-
formance that combines two methodologies:
lean manufacturing and Six Sigma. Lean man-
ufacturing, or lean, is a systematic approach to
identifying and eliminating waste through con-
tinuous improvement. Six Sigma is an improvement
methodology used for reducing variation, defects,
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
 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company
(DMAIC) approach (De Koning et al. 2008; George
2002; Pepper and Spedding 2010). The integration
of lean and Six Sigma has not only been defended in
theory, but there are also many practical examples
that illustrate its efficient integration and positive
results (Andersson, Eriksson, and Torstensson 2006;
De  Koning, Does, and Bisgaard 2008; Furterer and
Elshennawy 2005; Kumar et al. 2006; Mader 2008;
Salah et al 2010; Smith 2003; Snee 2010).
Several studies promote the integrated use of an LSS
approach, but each has a different view as to the correct
use of the tools to implement continuous improvement
projects (Anderson and Kovach 2014; De Koning et al.
2008; Furterer and Elshennawy 2005; George 2002;
Kumar et al. 2006; Pepper and Spedding 2010). In the
beginning, LSS was mainly applied in private indus-
try, particularly in large manufacturing companies
(Furterer and Elshennawy 2005); however, in recent
years it has been used in a variety of industries includ-
ing agriculture, business services, manufacturing,
healthcare, and others (Anderson and Kovach 2014).
While increasing, the use of LSS in furniture and wood-
based products manufacturing has not yet been well
documented, and its implementation has been slow
(Czabke, Hansen, and Doolen 2008). Generally, this
slow implementation is due to the complexity of the
operations performed in this sector, the different vari-
ables to record, the lack of interest in modernizing
production processes, and the cultural reluctance to
change working structures in this industry (Pirraglia,
Saloni, and van Dyk 2009).
Regarding small furniture producers, there are few
examples of implementing LSS tools in the develop-
ment of continuous improvement projects. In general,
it has been a challenge to adapt the strategy and meth-
odologies to the context of these companies. Lack of
awareness and financial capacity, obstacles in the
process, and the absence of a standard framework for
implementation have led to poor implementation of
systems (Thomas, Barton, and Chuke-Okafor 2009).
Some studies show that the application of LSS in
small businesses can be beneficial for organizations
because of the positive economic results and ben-
efits, such as better quality control. Furthermore, the
application of LSS helps to quantify the bottlenecks
and potential benefits through the visualization of the
manufacturing line (Jeyaraman and Teo 2010; Kumar
et al. 2006; Thomas and Barton 2011; Thomas, Barton,
and Chuke-Okafor 2009).
This paper presents a case study of LSS implemen-
tation in a small furniture company. The case firm is
part of a community organization located in western
Mexico. It has annual revenues of $600,000, more than
60 employees, and a product line of custom-made din-
ing furniture manufactured from solid pine wood. The
furniture is sold via wholesalers and retailers in Mexico
and the United States. The company has an annual
production capacity of approximately 4,500  units.
Employees work on a piecework system, six days per
week, to meet customer demand. The company faces
problems related to final product quality, which is
reflected in financial returns and constant complaints
from wholesalers about the presence of defects. Due to
these problems, company managers requested support
from an external team led by the authors of this paper
to identify opportunities for improvement.
METHODOLOGY
Since the company chose not to implement the recom-
mendations of the diagnosis, a variation of the Six
Sigma DMAIC approach had to be used. First, the case
study describes a diagnosis of the furniture company
located in Mexico throughout the visualization of its
production line. Next, it illustrates a variation of the
Six Sigma DMAIC approach based on the results of the
diagnosis. In the DMAIC approach, the improve and
control phases were not implemented, since these were
beyond the authors’ control. Nevertheless, the DMAIC
approach that is proposed represents a data-driven
improvement framework that addresses the main issues
and obtains the evidence needed for improvement in
wood-based products industries. The methods pro-
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
(2009), as well as statistics and quality tools of lean
and Six Sigma integrated concepts, were used to design
the approach (see Figure 1).
The company selection was made because of the
need for improvement identified by the managers
and the company’s desire to be a pioneer in the
development of improvement programs. The software
STATGRAPHICS Centurion XVII was used for the data
analysis. The phases and activities of the approach
are described next.
surveys, and assessment quality formats created for
the study. Flow mapping followed the methodology of
value stream mapping (VSM) proposed by Rother et al.
(1999) and used by Grewal (2008), Thomas, Barton,
and Chuke-Okafor (2009), and Miller et al. (2010) in
lean implementation.
The activities and production times of a product
family of dining chairs were quantified to build the
value chain map and process flow diagram, as well as
to quantify the process efficiency and takt time (total
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
type of defects, raw material waste, and returns due to
poor quality were registered using check sheets. Check
sheets were also used to quantify the quality issues
costs. The authors did a cost analysis to identify the
main quality issues using a Pareto chart. Finally, the
number of defects per million opportunities (DPMO)
was quantified to yield the number of expected defects
in a million opportunities of error (Smith 2003). The
authors collected the data for the diagnosis over a
period of five weeks.
Define
The first step of the DMAIC approach is to define
the problem to be addressed through a value flow
map and analysis of quality of the process. However,
the lack of standard procedures, quality record sys-
tems, awareness, and technical resources in the case
firm led the authors to modify this phase in their
approach. The quality metrics and value flow map
were used as diagnostic tools to define variables to
be measured, establish the baseline, and perform an
in-depth analysis of the case company. The authors
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
phase. It allowed them to choose the main quality
problem based on cost and identify how a reduction
in reworking defects in both parts and furniture could
result in savings for the company. In addition, met-
rics for assessing improvements and benefits were
defined in this phase.
Measure
The aim of this phase is to quantify and better under-
stand the main quality problems to be addressed, and
to design a system for measuring quality and process
variation. The analysis and validation of the system
were performed through a repeatability and reproduc-
ibility (R&R) study using analysis of variance (ANOVA)
(Hoffa and Laux 2007). The variability in dimensions,
moisture content, and average defects were the vari-
ables analyzed in the R&R study. Also, the percentage
of variation due to R&R was used in the evaluation
of the measuring system. For the evaluation of the
system, the authors established four categories: excel-
lent (less than 10 percent), good or acceptable (10 to
20 percent), marginal and almost unacceptable (20 to
30 percent), and unacceptable and must be corrected
(more than 30 per­cent). This measurement system
was useful for determining the baseline of the quality
assessment metrics based on the current and expected
state of the process.
Analyze
The root causes of the problems addressed were iden-
tified in the analysis phase. First, a cause and effect
analysis was performed to identify potential causes. The
authors performed a brainstorming session with a mul-
tidisciplinary team formed for the project to identify the
potential causes of the main problems. The causes were
classified using a cause and effect diagram and then
studied through a fractional factorial experiment.
Improve
The best operating condition of the process was deter-
mined in this phase through a fractional experiment
with four factors and three response variables. The
results of 2k-1 design were analyses with ANOVA and
its associated tools. An alternative based on the opti-
mal conditions identified was proposed to improve the
process. The results from the proposed changes were
assessed to show how things might improve.
Control
The design and implementation of a program to main-
tain improvements was proposed to control the process,
where it was documented, and how it was planned to
ensure these changes to the process would be sustained,
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 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)
  Takt production process (Future state) 26 minutes
through standardization and statistical process control
(SPC). The authors conducted an improvement pro-
gram based on the SPC to sustain the improvements
that were achieved.
cess improvement and an alternative that reduces the
generation of dead times and activities that do not add
value. To achieve this, it is necessary to redesign the
production process using lean principles.
Table 1 also presents different metrics to mea-
sure the efficiency of the process. The efficiency of
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),

To identify the main problems, current state, and needs
for improvement within the company, the authors
mapped the production processes (Grewal 2008; Rother
et al. 1999; Thomas, Barton, and Chuke-Okafor 2009).
Also, production flow rate, process cycle efficiency, and
for a process to be considered lean, the efficiency of
the process cycle should be higher than 25 percent.
In addition, the takt time was equal to 305 minutes.
This means that based on the current operating con-
ditions, the company manufactures a chair every
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
Quality issues costs (US$ thousands)
times. These values indicate that the
company has a manufacturing process
with a discontinuous flow, long cycle
times, and low efficiency and produc-
tivity. This shows the cost reductions
that could be achieved by applying the
LSS methodology.
Quality Analysis
A quality analysis of the manufactur-
ing process was conducted to identify
the main quality issues. In this regard, issues such as
the lack of a quality record system, high variation in
furniture parts and characteristics of raw materials,
and high presence of defects in the process leading to
rework were detected. Additionally, 8 percent of prod-
ucts were returned by customers because of quality
problems, resulting in a 10 percent increase in pro-
duction cost by reworking with regard to sales. This
was identified as the main cause of customer dissat-
isfaction and constitutes a risk regarding customer
loyalty. Finally, a rate of waste generation from raw
materials higher than 51 percent was identified, rep-
resenting potential losses equal to $49,000 per year
over percent of raw goods. Therefore, quality issues
represent a risk for the company not just with respect
to customer loyalty, but also with respect to signifi-
cant economic losses.
To identify the most significant quality issues in
terms of cost, a cost analysis using a Pareto chart was
conducted. Figure 2 describes the evidence and “vital
few” quality issues identified during the analysis. The
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
per year (25 percent of total losses), followed by raw
material waste (24 percent), cost of defect inspection
24
100%
94.5% 97.4%
20
82.4%
16 67.8%
12 48.4%
8
24.7%
4
©2017, ASQ
Reworking Raw Defect Furniture Downtime Variation Overtime
of defects material inspection returns in parts payment
waste
(19 percent), and furniture returns because of defects
(14 percent) (see Figure 2). These data allowed the
authors to focus on furniture defects as the main issue
to address for achieving a positive impact in the com-
pany. In addition, the authors identified a high number
of defects per million opportunities (DPMO), a ratio
of nearly 216,000. These results demonstrate a signifi-
cant opportunity for improvement by aspiring to reach
Six Sigma levels in the case company process.
Conducting the general diagnosis of the produc-
tion process in the furniture company by applying
statistical and lean manufacturing tools represents an
important step leading to the development of improve-
ment activities because it helps identify and quantify
the main quality issues and bottlenecks. The diagnosis
also suggests alternative solutions for improvement
and proposes projects that could help to modernize the
manufacturing line and innovate processes. Based on
these results, a DMAIC project was developed to obtain
evidence needed for improvement.
DMAIC PROJECT RESULTS
As a result of the authors’ diagnosis, the issue of furniture
defects was prioritized as the main issue to address for
pursuing continuous improvement in the company.
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 Applying Lean Six Sigma in the Wood Furniture Industry: A Case Study in a Small Company
The DMAIC project was applied following the principles
described by George (2002) and Watson and DeYong
(2010), in which the general objectives and activities
of each stage of the DMAIC methodology are detailed.
Furthermore, approaches proposed by Kumar et al.
(2006) and Thomas et al. (2009) were followed. Next, the
authors explain the results of each phase of the project.
Define
The presence of defects in both parts and furniture was
identified as the main reason for inefficiencies in the
process. The number of defects per part was established
as the key metric of the project. The results obtained at
this phase showed economic losses of almost $82,000
per year, mainly due to the costs generated by rework-
ing returned furniture. At this phase of the project,
a multidisciplinary team was formed. After careful
consideration, the team proposed a project framework
based on the baseline results that combines alternatives
to reduce defects and wastes, and identify improvement
opportunities in the production line.
Measure
In the second phase, data of the key metric established
for the project—the number of defects per parts—
were recorded and quantified using check sheets and
control charts. For the measure of defects in both parts
and furniture, quality checkpoints based on the critical
points of the manufacturing line were established for
the visual analysis of defects. The number of defects per
unit and variability were calculated using control charts.
In addition, a quality analysis of the number of defects
was carried out to calculate DPMO. Also, Six Sigma mea-
sures, such as defects per unit (DPU or average number
of defects per unit of product), defect per opportunities
(DPO percent or number of defects in a sample divided
by the total number of defect opportunities), and the
level of quality sigma (a process that produces defect
levels below 3.4 DPMO), were calculated.
Additionally, a system for measuring quality and
process variation was developed through an R&R study
12 QMJ VOL. 24, NO. 3/© 2017, ASQ
using ANOVA. The R&R study is an experimental anal-
ysis developed to determine what percentage of the
total variance of data is due to measurement error. It
quantifies the magnitude of the error in relation to
product variability (Hoffa and Laux 2007). The sources
of variability to evaluate in an R&R study are variabil-
ity attributable to the product (wood parts), measuring
instrument (repeatability), and workers (reproducibil-
ity) (Burdick et al. 2005).
The R&R study was performed using different
kinds of wood parts from the manufacturing line.
Dimensions and moisture content of the wood parts
were measured by three workers. Also, three R&R tests
were run for a better representation of the process.
The results were useful for evaluating the level of vari-
ability in the manufacturing line and for quantifying
the percentage of measurement error with respect to
dimensions (width and thickness) and moisture con-
tent of the wooden pieces. These variables were related
to the number of defects in the furniture, the key metric
of the project. In the data analysis, the percentage
variations, according to the metric sigma R&R, were
2, 5, and 11 percent for the dimensions in width, thick-
ness, and moisture content, respectively. These values
show that measurement error was small relative to
total variation. In addition, the measuring system
proved to be suitable for related variables because the
variation was less than 10 percent. It also highlighted
some important issues of the manufacturing process,
such as the lack of standard procedures and quality
records (see Table 2). The results of an R&R study are
an appropriate way to validate these kinds of measur-
ing systems and continue with the following phases of
the improvement project. The validation of the measur-
ing system allowed for establishing the baseline, quality
characteristics, and level of performance of the process
regarding the metrics calculated.
Analyze
In this phase the authors identified possible causes
of defects in the furniture. Figure 3 shows the cause
 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
address the root causes of the quality problems. The
determination of the best conditions was carried out
according to the main effects identified as signifi-
cant in the ANOVA. The results show that the use of
the first grade of wood, a better type of cut, a better
moisture content, and well-trained workers should
reduce defects by 25 percent and wastes by 13 percent
with regard the average calculated in the baseline
diagnosis. This change in the type of wood not only
would allow the company to achieve the benefits
listed, but it would also improve production time,
delivery time, reworking, customer trust, and so on.
The change in type and quality of raw material does
not imply major modifications in the manufacturing
line and in the operation of the company, since it has
easy access to supplies of first quality wood. Changing
the type of wood from third class to first grade was
of the DMAIC project was not realized. The
authors did illustrate an improvement pro-
gram based on the alternative identified. The program
used SPC and control charts to monitor and control
the process metrics. The control charts were proposed
to be used for monitoring, controlling, and analyz-
ing the variation of the process over time. Because
the variability in dimensions, moisture content, and
defects in raw material were the main quality issues in
the process, the authors quantified their variability to
assess how it would look in a process under statistical
control. In this phase, the authors describe the quan-
tification of the moisture content in the wood parts for
the manufacturing process statistical control. A contact
hygrometer Lignomat USA (Mini-Scanner L) was used
to determine moisture content randomly in the manu-
facturing line. Moisture content, temperature, and
relative humidity were registered daily, and data were
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
subgroup was analyzed to observe variations and deter-
mine the control limits of the manufacturing process.
Figure 4 describes the x-bar chart that was used
to measure the variability of moisture content in the
wood parts, which considers the critical points of
the quality characteristics registered in the statisti-
cal analysis of the process. The x-bar chart describes
how the measured values remained within the con-
trol limits and close to the central line. Though
the x-bar chart shows a highly variable process, all
points representing the moisture control measures
are within the control limits. Also, there are long runs
(consecutive measurements) of points on both sides
of the center line. The above shows a regular trend
and a process under control to its moisture content.
However, the point outside of the upper limit in the
R chart is a sample that variability still should be
reduced for this process (see Figure 5). Therefore,
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-
native to predict process performance in the future
and keep it in a state of statistical control.
CHALLENGES IN IMPLEMENTING
THE LSS METHODOLOGY
According to Kumar et al. (2006), it is very impor-
tant to discuss the main challenges found in any
improvement program because they represent valu-
able lessons learned from previous projects that should
be addressed before the beginning of a new plan.
Convincing the furniture company of the importance
of conducting a continuous improvement program
in its facilities was one of the first opportunities seized
upon in this study. Due to their lack of familiarity
with LSS, the manager and employees were hesitant
to introduce LSS tools in the process. Generally, this
resistance is considered natural, because employ-
ees might think implementing process improvement
tools will jeopardize their job security (Kumar et al.
2006). Thomas, Barton, and Chuke-Okafor (2009)
argue that the lack of awareness, technical resources,
and financial capacity in small companies are the
main opportunities in implementation of improve-
ment strategies. Therefore, training programs and
acquisition of theoretical knowledge by managers and
employees should be the first step in development of
this kind of project. This training can provide them
with a perspective on the potential benefits of using
quality tools.
The most important obstacle the authors faced was
the informality of the processes in the manufacturing
line and the lack of procedures and quality records
that could provide evidence of process performance.
It was the first indication that the company was far
from having a quality management system defined
and documented. This presented a problem for data
collection and baseline definition. Another challenge
was convincing senior management of the current
issues and improvement needs. This was due to a lack
of awareness regarding multiple quality issues, as well
as the cost and lack of resources needed to implement
the changes required to improve the process. These
obstacles have been found in other research in the
implementation of LSS or integration of ISO 9001 and
LSS in small-sized firms (Shah and Shrivastava 2013;
Timans et al. 2012; Timans et al. 2016). For example,
in their article on the topic, Timans et al. (2012) stated
that the lack of work plans, resources, communication,
and management involvement were the main barriers
to achieving quality management systems that could
provide the basis for guaranteeing product quality and
promoting continuous improvement.
Given that these employees work on a piecework
system (payment for pieces), an improvement in the
process quality would mean an improvement in the
employees’ skills, performance, and payment condi-
tions. By improving workers’ pay, changing from a
piece-rate pay to pay for performance, performance
evaluation should improve (Rehman and Ali 2013).
Companies can encourage employees to contribute to
their quality improvement programs and increase the
quality of their products.
CONCLUSION
Experience in a wide variety of industry sectors has
shown that implementing LSS strategy is an effec-
tive way to identify and quantify the main issues
present in a production process to increase quality,
productivity, and corporate profitability. Despite
this, there are limited examples of LSS implemen-
tation in small companies, especially in the wood
products sector. Additionally, it has been a chal-
lenge for small companies to adapt the LSS strategy
to their working conditions, organizational struc-
ture, and financial capacity.
Although the implementation of LSS strategies in
the wood industry has not been well documented in
the literature, the authors’ research suggests that LSS
could be employed in small companies and in the
wood industry with positive economic results and ben-
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
Therefore, the lack of awareness, technical resources,
and possible changes needed in the organizational
structure should not be a deterrent for the application
of this innovation strategy in small companies in the
wood industry.
With regard to the case study on the implementa-
tion of LSS in solid wood furniture, the results from
the diagnosis highlight improvement opportunities
in its production line due to the number of activities
that do not add value in the manufacturing process.
Additionally, with respect to the quality issues, the
authors’ case study provides a general overview of the
current state of the company and its production line.
Furthermore, it helps quantify the bottlenecks and
potential benefits through a visualization of the manu-
facturing line, the use of value stream mapping, and
an analysis of cost of poor quality.
During the DMAIC project implementation, some
alternative solutions were found that were presented
to the company as a break from traditional assump-
tions regarding manufacturing of wood furniture.
In this regard, the team established that changes in
wood quality and methods of operation would con-
tribute to reducing defects and waste of wood, and
gain improved profitability. In the implementation
of the LSS strategy, organizational culture, infor-
mality of the process, absence of procedures, lack of
quality records, lack of awareness, lack of technical
resources, and limited financial capacity for use of
quality tools were the main opportunities in imple-
mentation of the improvement program. Finally,
based on this case study, the authors suggest that
implementation of an LSS strategy in a wood furni-
ture company could represent a major positive step in
the development of better manufacturing practices.
ACKNOWLEDGMENT
The authors would like to thank the furniture company documented
in this case study for allowing them to conduct the research, and
the German Academic Exchange Service (DAAD) for the financial
support of the primary author. Also, they would like to thank Eric
Hansen from Oregon State University for his thoughtful feedback
and suggestions during the development of this article.
18 QMJ VOL. 24, NO. 3/© 2017, ASQ
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BIOGRAPHIES
José Erlin Guerrero Martinez is a doctoral student of wood
science and engineering in the Forestry College at Oregon
State University. He is currently employed at a Colombian hold-
ing named Grupo Argos S.A. as a projects coordinator. He
received his master’s degree in science of forest products from the
University of Guadalajara. His research interests include quality
control in wood products manufacturing, forest products innova-
tion, business management, and marketing. He can be reached
by email at: Jose.guerrero@oregonstate.edu.
Scott Leavengood is associate professor of wood science and
engineering and director of the Oregon Wood Innovation Center
at Oregon State University. His primary job duties are providing
technical assistance to entrepreneurs and existing wood products
manufacturers. He teaches courses on quality control in the forest
industry and has authored a publication series on quality control
in wood products manufacturing.
Humberto Gutiérrez-Pulido is full professor of statistics and qual-
ity in the University Center for Exact Sciences and Engineering at
University of Guadalajara, México. His primary research interests
are in statistical applications and methods of quality engineering.
His research has been published in several international journals
including Journal of Quality Technology, IEEE Transactions on
Reliability, Revista Colombiana de Estadística, and Journal of
Biotechnology. He is also the author of three books on quality,
statistical control, and design of experiments.
Francisco Javier Fuentes Talavera is a professor in the Wood,
Cellulose, and Paper Department, University Center for Exact
Sciences and Engineering, University of Guadalajara. His pri-
mary research areas are wood properties and uses, wood drying
process, and technology of fiber and particleboards. He has pub-
lished several papers in peer-reviewed journals.
José Antonio Silva Guzman is a professor and head of the
department in the Department of Wood Cellulose and Paper,
University Center of Exact Sciences and Engineering, University
of Guadalajara. His primary research areas are wood properties
and uses, quality control of wood products, and biocomposites.
He had published several papers in peer-reviewed journals. He is
the author of three books and several wood chapters.
www.asq.org 19
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