Model of the port performance metrics in ports by integration six sigma and system dynamics

2018 ◽  
Vol 35 (1) ◽  
pp. 82-108 ◽  
Author(s):  
Asep Ridwan ◽  
Bernd Noche

Purpose The purpose of this paper is to design a model of the port performance metrics for improving the quality in ports by integration of six sigma and system dynamics (SD) approach. Design/methodology/approach The port performance is measured by the sigma value (SV), the process capability indices (PCIs), and the cost of poor quality (COPQ) as the performance metrics. A port is a complex system that requires SD as an appropriate tool to simulate the model dynamically. The performance metrics focus on measuring the port performance in the entire flow of material in the cargo handling process. Findings With this model, the changing of the SV, the PCIs, and the COPQ can be identified and analyzed the results to improve the performance in ports. These metrics are utilized to eliminate “waste” in the cargo handling process at ports. This waste consists of lost and damaged cargo, equipment and transporter breakdown, and equipment and transporter delay time. The port performance metrics model can assess the causal relationships in ports as a complex system. Originality/value Studies on integration between the six sigma model and SD in ports are few and relatively limited. The port’s performance can be measured directly using the SV, the PCIs, and the COPQ in the simulation. The port performance metrics model will give the decision makers to make some scenarios to contribute for the optimization of performance in ports.

Author(s):  
Chittaranjan Sahay ◽  
Suhash Ghosh ◽  
Pradeep Kumar Bheemarthi

This work describes a strategy to reduce the cost associated with poor quality, by reducing the parts per million defects by Defining, Measuring, Analyzing, Implementing and Controlling (DMAIC) the production process. The method uses a combination of principles of Six Sigma applications, Lean Manufacturing and Shanin Strategy. The process has been used in analyzing the manufacturing lines of a brake lever at a Connecticut automotive components manufacturing company for reducing the cost associated with the production of nonconforming parts. The analysis was carried out with the help of the data collected on nonconformance parts and the application of phase change rules from DMAIC (+). Data analysis was carried out on statistical process control softwares, MINITAB and SPC XL 2000. Although, the problem of tight bushing existed on only one line of the brake lever assembly, this problem solving approach has solved the tight bushing problems on all assembly and alternates lines in a time- and cost-effective way.


2002 ◽  
Vol 3 (2) ◽  
pp. 159-182 ◽  
Author(s):  
Lou Magritzer ◽  
Jichao Xu

2015 ◽  
Vol 32 (2) ◽  
pp. 144-155 ◽  
Author(s):  
Andrea Chiarini

Purpose – The purpose of this paper is to investigate whether there are differences in terms of the effect of the ISO 9001 non-conformity process on the cost of poor quality in different sectors. In particular, to investigate the effect on six sectors of companies which manufacture their products mainly through machines and plant (i.e. capital-intensive companies). An additional aim is to understand what the reasons for these differences are and why ISO 9001 has limitations in reducing the different categories of costs of poor quality. Design/methodology/approach – The paper is based on a questionnaire administered to a sample of 42 companies divided into six different sectors: chemical, pharmaceutical, mechanical, food, ceramic and steel. Respondents were asked to give a percentage score for the contribution the ISO 9001 non-conformity process makes to the reduction in total cost of poor quality and to its categories: scrap, rework, machine stoppage, re-inspections, rejected products and recall cost. A one-way Anova test was applied to the means of the percentage scores to determine whether there are differences between the means of the total cost of poor quality and its categories. Qualitative comments and suggestions from the companies provided information that helped explain the reasons for such differences. Findings – The results of the research show that there is no difference within and between the sectors in the means of the total cost of poor quality and scrap cost, whereas there are significant differences in the means of the other costs of poor quality between the six sectors. The ISO 9001 non-conformity process has limitations in reducing the costs of poor quality and suggestions concerning the limitations of ISO 9001 in the Research and Development process emerge. Research limitations/implications – The generalizability of the research findings is limited because of the use of just six sectors of capital-intensive companies. Further research about differences in different sectors is needed. Practical implications – The implications of this research are useful for consultants and managers who want to understand what the limitations of the ISO 9001 non-conformity process are on the cost of poor quality in the six sectors. The findings clearly show how, together with ISO 9001, they should take into account other improvement processes such as periodic maintenance and revamping. Originality/value – The paper discusses in a quantitative way and for the first time the effects of the ISO 9001 non-conformity process on the cost of poor quality.


Significance However, the MTBPS relies even more heavily on getting powerful public-sector unions to agree to unprecedented wage freezes over the next three years, putting its credibility in doubt at a time when Pretoria urgently needs to win back the confidence of investors. Impacts The risk is rising that the country could be forced to go to the IMF for a full structural adjustment programme within a couple of years. Funds for South African Airways (SAA)'s rescue will not cover the cost of creating a new carrier, which depends on strategic investment. The spending cuts could weigh further on poor-quality delivery of public services and may also dampen an economic recovery.


2020 ◽  
Vol 18 (1) ◽  
pp. 106-121
Author(s):  
Rubel Ahammed ◽  
Md. Zahid Hasan

Purpose Success and business reputation depend upon the quality of products where product quality depends upon the capability of a process, yield value and sigma score, etc. Poor quality of ceiling fan and mass rejection from quality check resulted in an alarming amount of cost for rework. As a result, the fulfillment of the production target was getting difficult day by day. The main purpose of this research is to identify the crucial causes for humming noise of ceiling fans and control it to a tolerable level so that maximum quality can be achieved. Design/methodology/approach The poor quality of ceiling fans was determined from the Pareto analysis of the define, measure, analyze, improve and control model which was humming noise during running and further actions were undertaken regarding the reduction of the humming noise. Project charter was formed before initiating the measure phase to study the suppliers, inputs, processes, outputs and customers diagram with process parameters and existing noise data were collected from random samples to determine the rolled throughput yield (94.95% existing) and existing sigma score which value of 3.14 and also the poor value (1.05) of process potential index implied that the process condition was below standard (<1.33) and need to be improved badly. Then root causes analysis and relationship diagram was prepared to identify the possible causes and with the design of experiments and correlation analysis, it was clear that the air gap between the stator and rotor was the main culprit behind the humming noise. Findings The minimum value of air gap was determined from boxplot analysis which was 0.2 mm–0.225 mm and the corresponding mean, the minimum and maximum value of sound level in dB (37.5–40.3 dB) for 0.225 mm air gap with the watt consumption (83 w) from the hypothesis test for the corresponding air gap. Finally, the updated sigma score and process capability analysis were performed with control charts to show the comparison after applying the DMAIC-six sigma methodology. The final sigma score was 5.1 which indicates a significant improvement of the process with the capability of saving US$23,438/year caused by the poor quality of ceiling fans. Practical implications Only quantitative values of the causes behind the humming noise were possible to identify. Other trivial many causes elimination might improve the sigma score closer to 6.00. The final sigma score that was achieved from this research was sustainable. Originality/value A structural approach with proper data analysis and application of various tools to detect the actual cause behind the humming noise of ceiling fans with numerical value has not been found in any literature. This research study can be a valuable asset for ceiling fan mass producers.


2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omneya Kandil ◽  
Rasha Abd El Aziz

Purpose There is a great deal of concern among the Egyptian economy that small- and medium-sized enterprises’ (SMEs’) potentials are not fully used although they dominate it and contribute to its success. The question is what challenges are preventing those SMEs from performing efficiently. This research aims to focus on examining the issues regarding the supply chain of Egyptian SMEs, exploring the areas that need improvement and assessing the impact of technology in enhancing their performance and whether they afford applying it. Design/methodology/approach In this research, semi-structured interviews were conducted at 14 Egyptian SMEs. Then, the business process at six of the fourteen SMEs was observed. After that, a representative sampling was applied and a company was chosen as a representative case company. Moreover, the selected company’s documents were analyzed to capture the full image of the current supply chain performance in Egyptian SMEs. Finally, the Six Sigma DMAIC approach was used to assess the effectiveness of the current supply chain and identify the problems faced and how to deal with these deficiencies. Findings The current process of the supply chain was analyzed and the result shows the obstacles and constrains facing SMEs in Egypt. Despite the clear benefits of radio frequency identification (RFID) technology, Egyptian SMEs still do not use it to solve their problems due to its high cost and their low budgets. However, the investigation concludes that SMEs in particular can benefit from the RFID technology and will be able to pay back the cost of the system applied after a certain period of time that is measured by calculating the breakeven point of having the RFID system against the current situation. As a result, improvements were realized and recommended for the organization. Originality/value This research develops a model that suits SMEs in the Egyptian market. The use of a case study approach with a quality measurement tool, namely, the Six Sigma DMAIC approach, especially after surveying several SMEs, and observing the business process at some of them, makes this a thorough investigation which proves that even SMEs can use the RFID technology despite its high cost that hinders its utilization. Thus, this research helps decision-makers in Egyptian SMEs make better informed decisions and guides them to when will they be able to pay back the cost of the system applied.


2017 ◽  
Vol 25 (1) ◽  
pp. 91-108 ◽  
Author(s):  
Paul G. LeMahieu ◽  
Lee E. Nordstrum ◽  
Elizabeth A. Cudney

Purpose This paper is one of seven in this volume that aims to elaborate different approaches to quality improvement in education. It delineates a methodology called Six Sigma. Design/methodology/approach The paper presents the origins, theoretical foundations, core principles and a case study demonstrating an application of Six Sigma in a school-community partnership in Milwaukee, Wisconsin. Findings The core principles underlying the approach are decreasing variability or unreliability in organizational work processes, eliminate waste or activity that does not add value to desired outcomes, identify defects and decrease their incidence, reduce the cost of work processes, and improve beneficiary/client satisfaction levels. The steps in this statistics-dependent method are design, measure, analyze, improve and control. Originality/value Few theoretical treatments and demonstration cases are currently available on commonly used models of quality improvement that might have potential value in improving education systems internationally. This paper fills this gap by elucidating one promising approach. The paper also derives value as it permits a comparison of the Six Sigma approach with other quality improvement approaches treated in this volume.


2016 ◽  
Vol 23 (7) ◽  
pp. 1983-2003 ◽  
Author(s):  
Dotun Adebanjo ◽  
Premaratne Samaranayake ◽  
Fereshteh Mafakheri ◽  
Tritos Laosirihongthong

Purpose With increasing choice from a range of programs, improvement project selection within broader supply chain context and resource constraints has become a major research challenge. The purpose of this paper is to investigate the different criteria for selecting Six-Sigma (SS) projects based on previous studies. The study is supported by two grounded theories: resource-based view and institutional norms. The criteria include: first, business drivers for improvement and the common performance metrics deployed; second, the organization’s stakeholders needs; and third, process owner’s needs. Design/methodology/approach To determine the relative importance of influencing factors, opinions were collected from 30 experienced practitioners including SS champions/master black-belts, company directors, consultants, and process owners through a series of interviews in small, medium, and large organizations including multi-national organizations. The evaluation of criteria is based on analytical hierarchy process. Findings The results show that impact on customer, financial impacts, and impact on operational goals are the most significant factors in selecting SS improvement project. Originality/value This study is a first attempt to determine the relative weight among SS project selection criteria, which help the practitioner to allocate their limited resources in implementing SS project.


2013 ◽  
Vol 4 (2) ◽  
pp. 141-170 ◽  
Author(s):  
Ayon Chakraborty ◽  
Tan Kay Chuan

PurposeSince its introduction by Motorola in the 1980s, Six Sigma and its philosophy have found widespread application in many manufacturing and service industries. It is felt that there is a need to take stock of the spread of Six Sigma implementation in service organisations. The purpose of this paper is to investigate five main themes which have emerged from literature and to draw on those themes to reflect on wider applicability of Six Sigma in services.Design/methodology/approachThe study involves two exploratory questionnaire surveys. The small‐scale survey is conducted in service organizations in Singapore. The large‐scale survey was web‐based and involved service organisations throughout the world. The objective is to explore and understand the issues highlighted by the service organisations during Six Sigma implementation.FindingsThe findings confirm the inclusion of critical success factors, critical‐to‐quality characteristics, and set of tools and techniques as observed from the literature. In the case of key performance indicators (KPIs), there are different interpretations about them in the literature and also by industry practitioners. Some literature explains KPIs as performance metrics whereas some feel they are key process input or output variables, which is similar to interpretations by practitioners of Six Sigma. The responses of “not relevant” and “unknown to us” as reasons for not implementing Six Sigma show the need for understanding specific requirements of service organizations.Research limitations/implicationsThe limited responses from the authors' surveys restrict the possibility of generalising the findings. Therefore, more extensive survey is required. The three‐phase approach with mixed method used in the overall study has been shown to be useful.Originality/valueAlthough much theoretical description is available about Six Sigma, there has been limited rigorous academic research on it. This gap is far more pronounced about Six Sigma implementation in service organizations, where the theory is not yet mature. Identifying this need, the paper contributes, by empirical research through surveys, to understand the issues involving Six Sigma implementation in service organizations.


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