six sigma-waste reduction

8/3/2019 Six Sigma-waste Reduction

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Methodology created and pioneered byMotorola in the 1980s

Allows businesses to identify and eliminatedefects to improvement productivity in supplychain business process

Concentration is on outputs critical to customers Clear financial return


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Primary objective

Reduce variation

Improve performance

Reducing quality costs

Six sigma focuses on reducing variation

Variation creates waste and errors


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Six sigma methodology is about getting nearquality perfection 3.4 defects per million opportunities

Two methods to alleviate variation: DMAIC Model

Used when existing products and processes are notperforming adequately

DESS Model

Used when introducing new products, designs and servicesand coping with inherited limitation of DMAIC model


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Define Problem Identification

Example: Increased process waste

Measure Problem is measured and data is collected.

Critical quality metrics are used to measure process

Analyze Process capability

Inventory turns etc.


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Improve

Implementing potential solutions

comparing the inputs to output of a process.

Control

Monitor process Improvement


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Under Six Sigma methodology waste defined asanything unnecessary to produce a product or service

Supply chain is a series of processes; Six-Sigma metrics

calculate each individual entity in chain is performing

Types of Six Sigma metrics dpo (defects per opportunity)

dpu (defects per unit) z-value or the sigma value

throughput yield

rolled throughput yield (most useful in supply chain


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Thilmany Papers


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This Wisconsin paper firm implemented thesix-sigma methodology and attained excellentresults

The firm was losing a lot of work-in-progressdue to losses at different machines in its papermaking process


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The wasteful machines were identified, andusing the DMAIC methodology, the firm wasable to fix and control losses at these machines

Waste generated in the manufacturing processwas reduced and the firm was able to reduceits cost of goods sold greatly


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Dow Chemical

Company


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The company had been experiencing reducedproductivity due to wastage in its plants inTexas and Louisiana

The company had 5 production facilities inTexas and 1 in Louisiana in which itimplemented the Six-sigma methodology


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There were different operations in all thesefacilities, but the results were pleasing in all ofthem

The company was able to achieve pinpoint theparticular loss points in the processes of allfacilities and deploy improvement and controlmeasures with good outcomes


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six sigma-waste reduction

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