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Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565

World Conference on Technology, Innovation and Entrepreneurship

Six Sigma Implementations in Supply Chain: An Application for an

Automotive Subsidiary Industry in Bursa in Turkey.
Hikmet Erbiyika*, Muhsine Sarua
a
Yalova University Dept of Industrial Engineering, Yalova, 77100, Turkey

Abstract

The six sigma methodology have an important place for developing and reducing the actions which do not have inner process in
supply chain in the firms. The aim of six sigma is defining, analyzing, correcting and improving the variables, which affect the
quality of supply chain process in order to decrease the number of defects and the failures and to propose the improvement
means for the processes. In this study general structure of six sigma is explained with regard to 'how to define the complex
problems which are encountered in the supply chain' along with the relevant knowledge and comments for statistical methods
that are utilized in measurement and analysis of supply chain.
© 2015
© 2015Published
The Authors. Published
by Elsevier by Elsevier
Ltd. This Ltd.
is an open access article under the CC BY-NC-ND license
Peer-review under responsibility of Istanbul University.
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Istanbul Univeristy.
Keywords: 6 Sigma, Supply Chain, Statistical Methods

1. Introduction

The companies have to analyze , monitor and make improvements of their existing status in order to comply with the
market competition and stay in the market under the ever changing world competition and market conditions.

* Corresponding author. Tel.: +90-532 2950082; fax: +90-226-8112655

E-mail address: hkerbiyik@gmail.com

1877-0428 © 2015 Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Istanbul Univeristy.
doi:10.1016/j.sbspro.2015.06.447
 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565 2557

In this regard the six sigma is a methodology that enables the firms to review their existing status and guide them in
making improvements by analyzing their status via statistical methods.

2. Definition of SIX SIGMA

In recent years one of the outstanding issues with regard to quality is six sigma. . (Tekin M, 2013, p.459).Six
sigma can be defined as the process quality management that leads us to excellent quality level via coninual
improvement of processes. (Tekin M,2013,p.459). Six sigma is also a quality management model that ensures the
elimination of mistakes by focusing on the mistakes in processes. (Tekin M,2013,p.459). According to six sigma
approach while the sigma level increases the quality level also increases accordingly. The base of the six sigma is
related to statistics. The sigma (ı) is the symbol of standard deviation. Standard deviation is a measurement unit for
statistical dispersion and spreading.
V X P /z
Six sigma is a customer focused improvement strategy. Six sigma is used as a methodology in order to reduce
the mistakes level to 3.4 mistakes per million in product design, production , delivery, and management processes.
Six sigma focuses to obtain the same result every time and utilizes the well defined problem solving approach via
statistical tools.


Figure1: Percentage distribution of 6 Sigma (AkÕn B.,’1996)

Six sigma approach is focused into 3 topics , defined below;

• Increasing Customer Satisfaction.

• To reduce cycle times.
• To reduce failures.
Six sigma is performance level that is equivalent of making only 3.4 mistakes per million possibility or interactions

Table1 :Counts of failure per millione in levels of Various Sigma

Sigma(į) Failure counts in millione product
2 308537
3 660807
3.5 22750
4 6210
4.5 1350
5 233
5.5 32
6 3.4
(Tekin M. 2013)
2558 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565

Table2: Value DPMO of Sigma Levels

Capability of Ppm(Parts per Meaning

Process million)

1,5 į 500000 % 50 Products are thrown away to garbage

2 į 308537 Aproximately % 31 products are thrown away to garbage

3 į 66807 66807 flying per million are faulty

4 į 6210 66210 per million surgical operation are done wrongly

5 į 233 Numbers of news per million are given wrongly

6 į 3,4 3,4 hours cutting off electrics in a million hours

(Tekin M. , 2013)

Key of elements of Six Sigma

• Customer Focus
• Data
• Attaining the objectives
• Basing on team
• Attendance of all staff
• Clear definitions and understanding the roles of whole team members
• Devolopment of personnel.
2.1. In Six Sigma Approach of DMAIC (Define, Measure, Analysis, Improve, Control)

Define: In the first step of six sigma studies , What is source of problems causing to failure? What are the relations
between cause and effect of problem? By searching the answers for above questions the relevant problem is
defined.

The aim of this stage to define the objective and scope of the problem. The important points that have tobe taken
into account;

• The suitability of the selected project to your capability and opportunity

• Creating a higher quality level and the high probability of cost reduction.
• Defining problems clearly and as much possible as numerical
Measure: In this stage relevant information that defines the existing status by all means is gathered . Unless valid
and true measurements are made , it is not possible to define the existing performance and effects of the realized
improvement of the processes. The most critical factor in this stage, true definition that what items to be measured.
In the measurement stage, measurement work of the failures that causes the problem is made. In terms of the
measurement work , number and ratio of failures are defined and possible consequences are evaluated.

Analysis: Kinds of defects and volüme of defects are revealed as numerically. If we may respond that when , where
and how the defects are emerged , then we presume that we have the sufficient information for the concerned
development issue. In the analysis stage the causes of defects that yields to poor quality are investigated and relevat
factors examined in details.
 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565 2559

Improve : This stages is the one that the defects are eliminated or their effects will be mitigated. In the improvement
stage, necessary works are done in order to eliminate the causes of defects that yields to poor quality.

Control: In the last stage, control work is made. Control work is made to eliminate the causes of defects that yields
to poor quality and to maintain the continuity in process improvement. Additionally , control works are so important
to realize that verifies the compliance of planned and realized quality objectives.

Control stage is the most important satge in six sigma methodology. In this stage;

• The reduced defects in the first four stages are defined.

• It is decided that how the defects will be kept under control.
• Even the least successes are ensured to be lasting with the aid of six sigma's powerful tools.
Measure
x Whatisthekeybeingunitof
measurementforthiswork
x 7stheunitofmeasurementreliable
andlogical?
x Haveourfirmsufficientdata?
x WhatisThebasiccost?
x Howwillourfirmmeasureproject’s
process?
x Howwillourfirmdeterminesucess
ofproject?

Analys
Define x Analisingcurrentstatebyusing
x Planningwork currentstatemap
x Planningcustomer x 7scurrentstateasgoodas
x CurrentStateMap processwhichwillimplement?
x Whowillhelpfordoing
amenfment?
x Whichsourceswererequired?
x WhatarehandicapsWhichfirm
facestoface?
x WorkingFMEA(Failuremode
effectAnalys)

Control 7mprove
x Howwillfirmcontrolriskand x WhatareFailuredirectionsof
changesofquality,cost, works?
oppotunityduringprojects? x Whatareactivityforfollfiling
x Whatarethetypesof aimsofprojects?
documentsrequiredconceive? x Howcanfirmattendsubproject?
x Howfrequencyandwhowill
firmsenddocument?
x Howwillfirmguatantee
fullfillingaimsofproject?
x Howwillfirmcontinue
obtainedsuccess?

Figure 2. DMAIC implementation stages in 6 sigma methodology. ( Pyzek T., 2003, )

Table3:Statistical Methods Used during implementation of DMAIC (Cudney E.A.,Rodney K., 2011,’), (Dogu E., Firuzan A.R., 2008,)

The most important statistical methods used for implementation of six sigma in supply chain are shown at the Table 3.
2560 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565

Define Measure Analize ømprove Control

xProject graphic x Process Maps x Cause effect x QFD x Standart
xStakeholders Analysis • Current state maps Diyagram x Work Plan work
Hikmet Erbiyik
xSupplier-input-Process- x and of Saru Procedia
Muhsine
Voice /
x - Social and Behavioral
FMEA(Failure x Sciences 00 (2015)x000–000
Cost/Benefit Capability5of
output-customer customer(VOC) mode effect Analiysis process
(SøPOC) analyse) x Future State x FMEA
xProject Plan x Quality cost x Corelation Maps x Education
xResponsibility Matrix Analysis x DOE (Design plans
xBasic Rules x Histogram x Regression of experiment) x Statistical
xCTS(Critical x Pareto Analysis x SMED (Single process control
satisfaction tree) x Proses capability x potesTest Minute x-r,x-s,Õmr,
xKBF tree x Disperse x ANOVA Exchange of c,u,,cusum)
x DPMO x Kikare test Die) x øpk(x-r,x-s,Õmr,
x Normal distiribution x Tukey test c,u,,cusum)
And calculation x T test
x Sigma level x F test
x Pareto Analysis x Proprtion testi(p)
x Histogram x Standart
x Scatter Diyagram deviation
x Proses Capasity x Z testi
x Process statistics Reliability
x Bencmarking interval
x MSA
x Fish Bone

DetermineData
Type
IͲMR
Graphs n=1

Örneklem 7sTypeofData
nч10 Quantitative
hacmin? Countable?

UGraphs

Qualitative
n>10 Proportion

Arethedefects
Aredatasfailureunits?
Kusurlar number?
Aredatasdefects?
Prooportion?

Number
Unit((Failure)

CGraphs(nis
stable)

Arethefailureunits
pGraph s Proportion number?
Proportion?

Number

npgraphs(nisstable)

Figure3: Implementation fields of control chart in six sigma methodology.

(IúÕ÷Õçok Erkan, Mart 2005,)

2.2. Supply Chain Management and Six Sigma- Supply Chain Management is an integrated system that ensures to
deliver the customer the most appropriate product, in right time, in right place, during the supply chain with the most
least cost and maintaining the proper flow of materials, raw materials and product. Six sigma is an important
methodology in definition of defects , definition of the most suitable time and relevant suppliers in supply chain
management.

Basic Functions of the Supply Chain

• Purchasing

• Demand and Order Management

 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565 2561

• Planning
• Inventory (stock) Management
• Warehouse Management
• Delivery
Basic Causes of Distruption in Supply Chain Flow
• Suppliers' late delivery of materials.
• Excessive Waiting Time for Semi-finished products in Process.
• Insufficient stock levels in warehouse
• Failure in Prediction of demands
• Improper Delivery to the Customer.
• Distruptions that Originated from Delivery Firms
• Orders were not Given to Logistic Companies in Right Time

Design Parts Assembly Distribution Dealer End

User

Supplier Share

Figure 4: The Automotive Supplier Share (The Information Flows and Supporting Technology in
the Automotive Supply Chain: a Suppliers Focus Sebastiaan X. Koperberg)

3. Statistical Implementation in Subsidiary of Automotive Industry. An automotive industry subsidiary

company in Bursa Area has been investigated as a Case Study Company in this study.

3.1. Evaluation of Customers Complaints,-The causes of complaints coming from customers are classified in basic
and sub-groups by using fish bone diagram.

Sending
Deficientorfalse
orderknowledge
Onwaybill Deficientorfalse
Sending
(shippingpaper) label
deficient
Knowlegde
Damageofshipment Timing
Shipment
notdoneintime Asn
Failureofpacking
Sendingfalseorde ficient
Rawproduct orauxilat yproduct Complainfrom
Customer
(OE1)
Notdeliverin
Timedetermining

Failureof
Material
Damageduring
Shipment

Not Deliveringintime
Determiniendourfirm

Figure 5: Fish Bone Diagram of customer complaints towards supply chain implementations in an Automotive Subsidiary
2562 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565

Industry.(Erbiyik&Saru,Minitab16)

3.2. Evaluation of Supplier ,

Supplier origined defect types are classified that effect the supply flow of the products to the customers.

Table4: Kind of Failures Related to Materials that are Coming from Suppliers in an Automotive Subsidiary

Industry

Defect Type Code

Missing Seal 01
Missing Injection 02
Excessive Seal 03
Broken Clip 04
Missing Clip 05
Broken Seal 06
Missing Part 07
Excessive PA 08
Mix Parts 09
Crushed 10
Bent 11
Burr 12
(Erbiyik&Saru,Minitab16)

3.3. Classifying the Delivery Defect Types

Supply Chain Defects that are Coming from Suppliers are Usually Delivery Defects in the Case Study Company.
While classifying the defect types, sum of defects in a six month period has been collected and investigated and
relevant pareto analysis completed. In the Graph 3., percentage weight of % 80’ the defects have to be given priority
for corrective action. Packaging defects and missing or false label from Case Study company has to be given priority
for corrective and improvement action. These are the kind of defects that are not originated from production and are
not due to product defects but they effect the supply chain process. Those defect types originate either from
customer or Case Study company.

P a r e t o C h a r t o f K in d s o f D e f e c t s
1 0 0
2 0 0 0 0 0
PPM(Parts Per Million)

8 0
1 5 0 0 0 0
Percent

6 0

1 0 0 0 0 0
4 0

5 0 0 0 0 2 0

0 0
K in d s o f D e f e c t s
PA rt
s al ip j. al rt
s al er
Se Cl øn Se Pa Se th
iv e Pa n g g O
ss ix en ke s in s iv
e
in g in
c e M ok Br
o s is
is s i s s
Ex Br ce M M M
Ex
P P M ( P a r t s P e r M illio n ) 9 0 4 3 94 6 4 8 22 9 6 8 81 1 0 5 7 9 1 9 4 8 8 1 2 8 5 9 9 6 2 2 0 6 2 4 5
P e rc e n t 4 1 ,7 2 1 ,4 1 3 ,7 5 ,1 4 ,2 4 ,1 4 ,0 2 ,9 2 ,9
Cu m % 4 1 ,7 6 3 ,2 7 6 ,9 8 2 ,0 8 6 ,2 9 0 ,3 9 4 ,2 9 7 ,11 0 0 ,0

Graph1: Pareto Analysis of Defect Types that Originate from supplier in an automotive subsidiary industry,(Erbiyik&Saru,Minitab16)

Defects that consist of the % 80 of the whole defect weights is our prime concern. Priority in corrective and
improvement action to be given to these defects. According to above pareto analysis excessive PA, mix parts,
broken seal, broken clip have to be given priority for improvement and corrective actions.
 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565 2563

P i e C h a r t o f K i n d s o f D e f e c ts
C a te g o r y
B en t M issin gM issin
S ea lg ø n j . M issin g S e a l
0,4% 2,9%
4,2% E x c essiv e S e a l M issin g ø n j .
M ix P ar ts 4,1% E x c e ssiv e S ea l
21,4% B r o k e n C lip B r o k e n C lip
5,1% M issin g C lip
M issin g C lip B r o k e n S ea l
2,5%
M issin g P a r ts
E x c e ssiv e P A
M ix P a r ts
B en t
B r o k en S eal
13,7%

M issin g P a r ts
4,0%

E x c e ssiv e P A
41,7%

Graph2: Pie Charts of Defect Types that Come from Supplier in an automotive subsidiary industry,(Erbiyik&Saru,Minitab16)
Numbers of complaint in 6 month

P a r e to C h a r t o f K in d s o f D e f e c ts
18
16 100
14
80

Percent
12
10 60
8
6 40
4 20
2
0 0
K in d s o f D e f e c t s g el n ) b il
l
nt e ts
in la b As in g y se t im n
ng d wa
e
gi l se in g l oa or
t in um
ck
a
fa Ti
m
ed
in sp ed do
c
ge in
Pa or nc d an m g
of la le tr er in
re
g a
ow in
de
t is s
s in nb kn ia l m
ilu Mi
s
, u r g g
Fa et ls e te p in in
fa ma ip nd
,w se Sh Se
ts or al
ur g f N ot
, b ss
in or
o rn Mi in
g
(t is s
e nt M
m
ip
sh
of
ge
ma
Da

N u m b e r s o f c o m p la in t in 6 m o n t h 10 3 2 1 0 0 0 0

Graph3: Pareto Analysis of Customers complaints Which Originate from Deliveries in an Automotive Subsidiary Company
(Erbiyik&Saru,Minitab16)

3.4. Cost Evaluation

Poor Quality Cost of Defects-

In this case study of supply chain management, some of the defect types that come from suppliers are defined as;
defected, late delivery, logistic failures, product delivery, from customer; incomplete order placement, failure in
customer provided logistic company. Quality Cost of Defects is studied with regard to above defined defect types.
Priority has to be given for Corrective and Improvement Actions in Case Study company for Sticky and Final
Products and Raw Materials. Sticky, Final Products, and Raw materials are the elements which are the most crucial
ones that cause to increase quality cost . In this study , defined loss of raw materials originate from supplier
company. Poor quality cost for final products, usually originate from Case study company, these are cited as
packaging defects or improper stacking and loading defect of the products as shown on the above given graphs.
2564 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565

P a r e to C h a r t o f K in d s o f P r o d u c ts

Cost of Products in a year

30000000
100
25000000
20000000 80

Percent
15000000 60

10000000 40
5000000 20
0 0
K in d s o f P r o d u c ts y ) al n
nt
s
sa
)
ic k fi r
m ri t io e n
St at
e
je
c
on fra
by M øn p ,
ed Co
m ik a
et er
pl
om am
s(
c
u g(
ct Sl
o du
Pr
C o s t o f P r o d u c ts in a y e a r 6 8 9 9 6 8 46 4 8 9 5 7 5 6 0 5 3 3 3 14 3 1 4 1 6 31 5 0 2 8 1 8 1 2 8 3 5 8 9
Perce nt 2 6 ,0 2 4 ,4 2 2 ,8 1 6 ,3 5 ,7 4 ,8
Cum % 2 6 ,0 5 0 ,4 7 3 ,2 8 9 ,5 9 5 ,2 1 0 0 ,0

Graph4: Pareto Analysis Implemented on Cost of Poor Quality Products in an Automotive Subsidiary Industry (Erbiyik&Saru,Minitab16)

P ie C h a r t o f K ind s o f P r o d u c ts
C a te g o r y
C o m p o n e n ts C o m p o n e n ts
ø n j e c tio n 1 5 02 8 1 8 ; 5 ,7 %
M a te r ia l
4 3 1 4 1 63 ; 1 6 ,3 %
S tic k y
S lu g ( a m e r ik a , fr a n sa )
P r o d u c ts( c o m p le te d b y fir m )
M a te r ia l
6 05 3 3 3 1; 22 ,8 % ø n j e c tio n

m p le te d b y fir m )
6 48 9 5 7 5; 24 ,4%

S tic k y
S lu g ( a m e r ik a , fr a n sa ) 6 8 99 6 8 4 ; 2 6,0 %
1 28 3 5 8 9; 4,8 %

Graph5: Pie Charts of Poor Quality Costs of Product Types in an Automotive Subsidiary Industry,(Erbiyik&Saru,Minitab16)

Conclusion

The existing field work is done in an automotive subsidiary company to produce automotive industry products in
Bursa region. The firm has set up ISO TS 16949 Quality Management System in Automotive Industry. They
sustain the existing system of quality management succesfully. One of the tools that the company utilize to comply
with the continual improvement of the quality management system is implementing six sigma methodology. Six
sigma methodology is in progress in all departments of the company by regular trainings and team meetings.
When Six sigma methodology is implemented in a company, the types and scope of the statistical implementations
have to be improved and widened as defined in Table 3. In general while implementing Six-Sigma methodology in
Supply Chain Management effectively in a company, basic statistical tools have to be employed. With regard to
result of the statistical assessments, the required corrective and/or improvement actions have to be encouraged and
embraced to the relevant company. In addition to this fact, any realized new implementation has to be monitored and
evaluated with regard to compliance with the company's owned 6-Sigma implementation procedure and right and
proper route has to be followed up, measured and verified by suitable statistical control and analysis methods.In this
study, the utilized data have been obtained from detailed review and investigation of company's previous production
activity records, and relevant assessments has been made. Within the six-sigma implementation scope, the relevant
potential and real defects have been observed and analized via statistical methods and real causes of the defects have
been found, classified, reduced and sequenced in order of priority. The defined basic causesof defects have been
rated with fish-bone diagram, histograms and pie-diagrams. Finally, as per the found basic causes relevant pareto
diagrams have been constructed and relevant corrective and/or improvement actions recommended for initiation by
the company as per priority rating. Six sigma methodology was introduced and acquired. With the scope of this
 Hikmet Erbiyik and Muhsine Saru / Procedia - Social and Behavioral Sciences 195 (2015) 2556 – 2565 2565

study 6-Sigma methodology in supply chain management have been introduced and embraced to company and
initial stage of six-sigma infra structure has been constructed in the company.
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The Information Flows and Supporting Technology in the Automotive Supply Chain: a Suppliers FocusSebastiaan X. Koperberg,
s.x.koperberg@student.utwente.nl