Six Sigma for improving cash flow deficit: a case study in the food can manufacturing industry

2020 ◽  
Vol 11 (6) ◽  
pp. 1119-1140 ◽  
Author(s):  
Maria-Victòria Sánchez-Rebull ◽  
Ramon Ferrer-Rullan ◽  
Ana-Beatriz Hernández-Lara ◽  
Angels Niñerola
Keyword(s):  
Cash Flow ◽  
Six Sigma ◽  
Bargaining Power ◽  
Qualitative Methodology ◽  
Manufacturing Industry ◽  
Case Study Research ◽  
Control Process ◽  
Content Type ◽  
Six Sigma Methodology

Purpose Cash flow deficit situations and working capital control are major challenges for many companies, especially those whose suppliers and clients have strong bargaining power. This study aims to describe the application of the Six Sigma methodology for solving these problems in a large German food can manufacturing company. Design/methodology/approach This paper follows the qualitative methodology of case study research. During different define, measure, analyse, improve and control process phases, the problem and critical aspects are identified to improve the quality of the payment process and improvements are suggested and implemented. Findings The results provide evidence of how Six Sigma can be useful in administrative–financial processes that are carried out within a company. This result is particularly interesting because it is about processes that have not applied Six Sigma methodology. For the company studied, this methodology has balanced its cash flow and this meant large amounts of savings, especially in bank interest to avoid having to ask for bank credits. Originality/value This case can be extrapolated to other companies, regardless of the company size, that present similar symptoms of cash deficit, especially if their bargaining power with suppliers and customers is low.

Application of Six Sigma to minimize the defects in glass manufacturing industry

2019 ◽  
Vol 16 (4) ◽  
pp. 594-624 ◽  
Author(s):  
Narottam Yadav ◽  
Kaliyan Mathiyazhagan ◽  
Krishna Kumar
Keyword(s):  
Six Sigma ◽  
Manufacturing Industry ◽  
Poor Performance ◽  
Service Industries ◽  
Practical Implementation ◽  
Content Type ◽  
Six Sigma Methodology ◽  
Tools And Techniques ◽  
And Control

PurposeThe purpose of this paper is to improve the yield of a particular model of a car windshield, as the organization faces losses due to poor performance and rejection.Design/methodology/approachThe Six Sigma DMAIC (define, measure, analyze, improve and control) methodology is used to reduce variation and defects in the process. It is a methodology based on data-driven and fact-based analysis to find out the root cause of the problem with the help of statistical analysis. A worst performing model is selected as a case study through the scoping tree. The preprocess, printing, bending and layup process defects are reduced by analyzing the potential causes and hypothesis testing.FindingsThis paper describes Six Sigma methodology in a glass manufacturing industry in India for automotive applications. The overall yield of a car windshield achieved 93.57 percent against the historical yield of 88.4 percent, resulting in saving 50 lacs per annum. Due to no rework or repairing in the glass, low first-time yield causes major losses. Process improvement through focused cross-functional team reduces variation in the process. Six Sigma improves profitability and reduces defects in the automotive glass manufacturing process.Research limitations/implicationsThis case study is applied in automotive glass manufacturing industries. For service and healthcare industries, a similar type of study can be performed. Further research on the common type of processor industry would be valuable.Practical implicationsThe case study can be used as a problem-solving methodology in manufacturing and service industries. The tools and techniques can be used in other manufacturing processes also. This paper is useful for industries, researchers and academics for understanding Six Sigma methodology and its practical implementation.Originality/valueThis case study is an attempt to solve automobile glass manufacturing problems through DMAIC approach. The paper is a real case study showing benefits of Six Sigma implementation in the manufacturing industry and saving an annual cost of 50 lacs due to rejections in the process.

Reducing failure rate at high voltage (HV) testing of insulator using Six Sigma methodology

2018 ◽  
Vol 67 (5) ◽  
pp. 791-808 ◽  
Author(s):  
Darshak A. Desai ◽  
Aurangzeb Javed Ahmed Shaikh
Keyword(s):  
Failure Rate ◽  
High Voltage ◽  
Six Sigma ◽  
Manufacturing Industry ◽  
Small Scale ◽  
Case Study Methodology ◽  
Content Type ◽  
Sigma Level ◽  
Ceramic Manufacturing

PurposeThis paper, a case study, aims to illustrate the application of Six Sigma in a small-scale ceramic manufacturing industry. The purpose of this paper is to demonstrate the empirical application of DMAIC methodology to reduce failure rate at high voltage (HV) testing of one of the most critical products, insulator.Design/methodology/approachThe case study is based on primary data collected from a real-life situation prevailing in the industry. The case study methodology adopted here is at one small-scale unit wherein the authors have applied DMAIC methodology and observed and recorded the improvement results, especially, reduction in failure rate at HV testing of insulator and, thus, increase in Sigma level.FindingsThe results found after implementation of the solutions are very significant. The rejection percentage has been reduced from 0.5 to 0.1 percent and consequently the Sigma level has been improved from 4.4 to 5.0.Research limitations/implicationsThis success story can be a guiding roadmap for other such industries to successfully implement Six Sigma to improve quality, productivity and profitability.Practical implicationsThis case study will serve as one of the resource bases for the industries which have till not implemented Six Sigma and benefited from the same.Social implicationsImproved quality and productivity leads to better economy. This case will help industries to serve the society with better economy with improved quality and productivity.Originality/valueThough ceramic industries in India are having enormous potential for growth, majority of them, especially, small and medium industries are either not aware of or not implementing Six Sigma to reap its multidimensional benefits of improving quality, productivity and profitability. This study highlights the benefits reaped by small-scale ceramic manufacturing industry opening up the avenues for its application at other such organizations.

Six Sigma methodology for reducing defects in manufacturing industry - a case study

2017 ◽  
Vol 15 (4) ◽  
pp. 397
Author(s):  
Deepinder Singh ◽  
Virender Singh ◽  
Harwinder Singh ◽  
Jagdeep Singh
Keyword(s):  
Six Sigma ◽  
Manufacturing Industry ◽  
Six Sigma Methodology

Competitive advantage through Six Sigma in sand casting industry to improve overall first-pass yield: a case study of SSE

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mihir Solanki ◽  
Darshak Desai
Keyword(s):  
Six Sigma ◽  
Sand Casting ◽  
Small Scale ◽  
Productivity Improvement ◽  
Content Type ◽  
Foundry Industry ◽  
Road Map ◽  
First Pass ◽  
Six Sigma Methodology

Purpose The purpose of this paper is to illustrate how Six Sigma methodology has been applied in a small-scale foundry industry to improve the overall first-pass material yield and quality, with a view to the product and the process. Design/methodology/approach The researchers have reported this paper based on a case study carried out in industry using the Six Sigma Define, Measure, Analyze, Improve and Control (DMAIC) and its application in improving the manufacturing process of a foundry shop. Findings Identified root causes are validated and countermeasures are implemented for improvement. As a result of this case study, the overall first-pass yield of the sand casting process is improved to 78.88% from the previous yield of 67%. For product-specific case, yield is improved by 18% through the improved gating system design. Sigma level of the process is improved to 3.08 from baseline 2.21. Key lessons learned from this case study are mentioned in the current study. Research limitations/implications This case study provides a standard road map and motivates small-scale foundry industries to implement Six Sigma methodology for productivity improvement, especially in jobbing foundry. The presented paper is based on a single case study, and the results are limited to the company only. Also, one of the reasons for low process yield is slag creation, which is not covered here, as it is a concern of the material quality supplied by the vendor. However, the approach of this paper is generic for learning perspective. Practical implications This case study provides a standard road map and motivates small-scale foundry industries to implement Six Sigma methodology for productivity improvement, especially in jobbing foundry. Through the effective application of Six Sigma quality initiative, how a quantum jump in financial aspect could be gain, has been demonstrated. Originality/value This research study showcases step-by-step implementation of Six Sigma-DMAIC methodology at a small-scale foundry industry. This paper could serve as a unique roadmap for practitioners and academicians to improve the material productivity of the foundry industry both ways, product and process.

scholarly journals STUDY OF FEASIBILITY OF SIX SIGMA IMPLEMENTATION IN A MANUFACTURING INDUSTRY : A CASE STUDY

2014 ◽  
pp. 296-300
Author(s):  
MEHDIUZ ZAMAN ◽  
SUJIT KUMAR PATTANAYAK ◽  
ARUN CHANDRA PAUL
Keyword(s):  
Six Sigma ◽  
Capital Investment ◽  
Manufacturing Industry ◽  
Study Data ◽  
Quality Level ◽  
Control Approach ◽  
Sigma Level ◽  
Six Sigma Methodology ◽  
Welding Electrode

This paper discusses the implementation of Six-sigma methodology in reducing rejection in a welding electrode manufacturing industry. The Six-sigma DMAIC (define– measure – analyse –improve – control) approach has been used to achieve this result. This paper explains the step-by-step approach of Six-sigma implementation in this manufacturing process for improving quality level. This resulted in reduction of rejection, and thus, reduced the Defect Per Million Output (DPMO) from 28356.96 to 1666.67. This had resulted in increasing the sigma level from 3.41 to 4.43, without any huge capital investment. During this study, data were collected on all possible causes and was analysed and thereby conclusions were made. Implementation of Six-sigma methodology has resulted in large financial savings for the industry.

scholarly journals Empirical study of measuring supply chain performance

2015 ◽  
Vol 22 (2) ◽  
pp. 290-308 ◽  
Author(s):  
Ilkka Sillanpää
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Manufacturing Industry ◽  
Case Study Research ◽  
Future Research ◽  
Order Book ◽  
Content Type ◽  
Measurement Framework ◽  
Efficiency And Effectiveness

Purpose – Supply chain (SC) performance measurement – the process of qualifying the efficiency and effectiveness of the SC. The purpose of this paper is to create a SC measurement framework for manufacturing industry, define which data should be measured and verify the measurement framework in the case company’s SC. Design/methodology/approach – There is a review of the current understanding of supply chain management and literature related to SC performance measurement and the study creates a framework for SC measurement. This research is qualitative case study research. Findings – This study presents the main theoretical framework of SC performance measurement. The key elements for the measurement framework were defined as time, profitability, order book analysis and managerial analysis. The measurement framework is tested by measuring case SC performance. Research limitations/implications – In the study, a performance measurement framework was created for the needs of manufacturing industry. Suggestions for future research are multiple case study in different manufacturing industry areas and positivistic-based SC performance research. Practical implications – The measurement framework in this study offers guidelines for measuring the SC in manufacturing industry but the measurement framework could be used in different areas of industry as well. Originality/value – The SC performance measurement framework is tested and a valid framework for SC performance measurement in manufacturing industry.

Six Sigma methodology for reducing defects in manufacturing industry - a case study

2017 ◽  
Vol 15 (4) ◽  
pp. 397
Author(s):  
Jagdeep Singh ◽  
Harwinder Singh ◽  
Deepinder Singh ◽  
Virender Singh
Keyword(s):  
Six Sigma ◽  
Manufacturing Industry ◽  
Six Sigma Methodology

Six Sigma improvement project in a concrete block plant

2016 ◽  
Vol 16 (4) ◽  
pp. 526-544 ◽  
Author(s):  
Salvador Noriega Morales ◽  
Adán Valles Ch. ◽  
Vianey Torres-Argüelles ◽  
Erwin Martínez G. ◽  
Andrés Hernández G.
Keyword(s):  
Customer Service ◽  
Six Sigma ◽  
Control Process ◽  
Concrete Block ◽  
Service Level ◽  
Improvement Project ◽  
Content Type ◽  
Customer Service Level ◽  
Concrete Blocks ◽  
Six Sigma Methodology

Purpose This paper aims to describe the application of several Six Sigma tools to explain the improvement changes needed in a company that manufactures concrete blocks. The paper explains the methodology and the tools of the Six Sigma system, their use in the project, the application of the DMAIC (Define, Measure, Analyse, Improve and Control) process for the identification and definition of the problems, the related performance variables and the results obtained. Design/methodology/approach The paper reports the research made to improve the production of concrete blocks, specifically, the application of the DMAIC process, which is part of the Six Sigma methodologies; DMAIC stands for Definition of the problem, Measurement of the performance, Analysis using specific statistical methods and tools, Improvement the factors that cause the problem and Control the processes to ensure that the problem will not occur again. Each of those steps is explained in detail in the paper, which also presents the application of other improvement techniques. Findings The results show the adaptability and relevance of Six Sigma for the improvement of production operations. It is clearly demonstrated that it leads to benefits such as the elimination of machine downtime, reduction of scrap from 18 to 2 per cent and the improvements made in plant layout and production facilities to increase the productivity. Research limitations/implications In improvement projects, the differential between the initial and final conditions varies, depending on the magnitude of the problems or potential opportunities. Although this paper describes only the application of Six Sigma, the methodology has a wide potential application in most manufacturing industries. Practical implications With the Six Sigma and DMAIC tools’ application and the improvement process, the agility obtained is driving a more mechanized perspective of production operations. The customer service level was increased, through fast deliveries of complete orders. This project shows that the application of the Six Sigma methodology is feasible and produces attractive financial and operational results in this segment of the construction industry. Originality/value The companies dedicated to the production of concrete blocks commonly reproduce the systems and standards of the industry, which are commonly designed around civil engineering and technical issues. Thus, the application of improvement tools is exceptional in manufacturing environments. Although this paper is just one application of the methodology, it explains in detail the DMAIC use for companies that are committed to the development of new competencies to increase their competitiveness.

Application of Six Sigma methodology in a small-scale foundry industry

2014 ◽  
Vol 5 (2) ◽  
pp. 193-211 ◽  
Author(s):  
E.V. Gijo ◽  
Shreeranga Bhat ◽  
N.A. Jnanesh
Keyword(s):  
Six Sigma ◽  
Single Case ◽  
Leaf Spring ◽  
Small Scale ◽  
Content Type ◽  
Foundry Industry ◽  
Small Scale Industry ◽  
Six Sigma Methodology ◽  
Finance Department

Purpose – The purpose of this article is to illustrate how the Six Sigma methodology was applied to a small-scale foundry industry to reduce the rejections and rework in one of its processes. Design/methodology/approach – The research reported in this paper is based on a case study carried out in an industry using the Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) approach and its application in improving the leaf spring manufacturing process of a foundry shop. Findings – The root causes for the problem of rejection and rework were identified through data-based analysis at different stages in the project. The process parameters were optimized and measures for sustainability of the results were incorporated in the process. As a result of this study, the overall rejection was reduced from 48.33 to 0.79 per cent, which was a remarkable achievement for this small-scale industry. This was leading to improvement in on-time delivery to the customer. The finance department of the company estimated the annualized savings due to the reduction in rejection and was to the tune of USD8,000 per year. Research limitations/implications – The paper is based on a single case study executed in a company, and hence, there is limitation in generalizing the specific results from the study. However, the approach adopted and the learning from this study can be generalized. Originality/value – This article illustrates the step-by-step application of Six Sigma DMAIC methodology in a small-scale foundry industry to solve an age-old problem in the organization. Thus, this article will be helpful for those professionals who are interested in implementing Six Sigma to such industries.

Application of Lean Six Sigma methodology in the registration process of a hospital

2014 ◽  
Vol 63 (5) ◽  
pp. 613-643 ◽  
Author(s):  
Shreeranga Bhat ◽  
E.V. Gijo ◽  
N.A. Jnanesh
Keyword(s):  
Six Sigma ◽  
Single Case ◽  
Lean Six Sigma ◽  
Healthcare Sector ◽  
College Hospital ◽  
Content Type ◽  
Control Approach ◽  
Registration Process ◽  
Six Sigma Methodology

Purpose – The purpose of this paper is to study the scope of Lean Six Sigma (LSS) strategy and to explore its successful deployment in the Indian healthcare sector. Design/methodology/approach – The research reported in this paper is based on a case study carried out using the LSS DMAIC (Define-Measure-Analyze-Control) approach and its application in improving the registration process in the Health Information Department (HID) of a Medical College hospital in India. Findings – The study describes improvements in the HID through the power of LSS. Cycle time of the process was reduced from three to 1.5 minutes and the SD was reduced to 21.2 from 61 seconds. The project has shown a 94 per cent reduction in patients’ average waiting time. The study also reported a 91 per cent reduction in queue length and 48 per cent reduction in percentage of scheduled utilization of staff for the process. Research limitations/implications – The paper is based on a single case study executed in a hospital and hence there is limitation in generalizing the specific results from the study. But the approach adopted and the learning from this study can be generalized. The study is of use to healthcare practitioners seeking to implement or develop LSS further in their organizations. Originality/value – Although LSS being extremely successful in the last two decades, the application of LSS to the healthcare industry in general and HID in particular has been limited. This study illustrates how its application can improve the performance of the process and thus productivity in the department.

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