Process Improvement & Six Sigma TERM PROJECT

-Group 7

Six Sigma as a strategy is different from other

conventional improvement programs in its focus on establishing relationships among business Y, customer Y, process Y, and inputs (Xs). We strongly believe that these important linkages should form the backbone for all Six Sigma projects

Orissa Cable Industries, Jagatpur

A Case Study

Introduction to the Firm

Orissa Cable Industries was established in

the Year 1985 by Dudhoria family It is one of the renowned suppliers of cables to all over Orissa The manufacturing capacity of this unit is around 5000 mts per day of all different sizes of cables ranging from 1sq mm to 50 sq mm Around 100 people are employed in the whole production and distribution unit

Problem
Orissa Cable Industries recognized that their

cable harness shops delivery performance was the output of internal processes. It was also observed that their lost sales was increasing at an increased pace. Hence, the demand was more than the production though they had ample capacity to produce

Requirement
Path required to be adopted is :

Improve work processes to delight customers and, thereby, achieve business goals.

Relationship between internal processes and business goals

 In the recognize and define phase, we identified which

processes/products to improve by considering business Y (measure of business goals) and customer Y (measures of customer satisfaction). In the measure phase, we translated the customer Y into individual process Ys (quality measures of the process output that describe the physical state of the output and are clearly linked to the customer Ys). In the analyze, improve, and control phases, we dealt with Xs. What are the causes of the undesirable condition of the process Ys? How can we counteract those causes? How can we keep these solutions in place over time to maintain the gains?

By controlling the Xs, Orissa Cable Industries maintained the improved performance in the process Ys, which in turn improved business performance.

Define Phase Identify whats important to the customer and scope the
project

There were many customers who were not satisfied with their delivery performance. This situation not only had a major effect on business performance but also resulted in loss of customer goodwilla huge intangible. There was a need for improvement and hence investigate and improve shortages in cable supplies.

Define Phase Cont

Analysis of past performance portrayed a grim picture. It was observed that there was a wide gap between customer demand and Orissa Cable Industries delivery performance, causing loss of sales and customer dissatisfaction.

Fig. 3

 Figure 3 show that the company lagged behind %

variance in FPDN (Finished Product Dispatch Note) to the customer. In other words, even with having the capacity to produce, Orissa Cable Industries was producing far fewer cables than the customer was requesting, resulting in significant losses to the company. This troublesome situation also forced our customer to buy cables from another vendor. We found that mostly there were 2 types of cables which were in demand: The specification was: 1.5sq mm Flat Submersible cable (Copper) 4sq mm Armored aluminium cable for Electric motors So, we decided to focus on these two products. Hence, the scope of our project was defined.

Measure Phase:
Establish a measurement system and quantify current performance
The team realized that it would be difficult to

address all of the issues (generic and specific) that would come up during the course of the project. Clear demarcation of starting and ending project boundaries helped us to maintain focus. In the define phase we looked at the customer Y, i.e., the % monthly variance in FPDN.

Measure Phase Cont.

In the measure phase, we attempted to

quantify the current performance of the units: Completed a high-level as is process map. Prepared dashboards to monitor daily production quantity against planned production for each of the three harnesses (Process Ys) that went into making a set for the two types of cables. Initiated day-to-day monitoring for Process Ys. Began noting high-level causes (when actual production was less than planned production) on the individual dashboards.

Sample Dashboard

Fig. 4

Figure 4 shows a sample dashboard for one of the Process Ys. These dashboards helped us to look critically at daily performance and thus formed an essential platform for discussions.

Analyze Phase:
Discover and verify the causes (Xs) of the undesirable performance in the Ys
As daily monitoring progressed, we started

forming insights into different causes. We developed a comprehensive system to quantify the reasons for sales lost and conducted a detailed Pareto analysis of the high-level Xs (fig. 5) to focus on specific causes. We quickly realized that attacking each of the Xs in itself was a mini Six Sigma project.

Control Phase:
Put a plan in place to make sure problems stay fixed and sustain the gains

We wrote detailed control plans to hold on to

their gains. We suggested a new detailed standard operating procedure (SOP) enforced a control mechanism for ensuring availability of the required number of cables at any given point of time in Orissa Cable Industries. The importance of the control phase cannot be over-emphasized. Without proper controls in place, any improved process can easily slide back to its previous performance levels.

Control Phase Cont.

We even noticed a quality problem with a

vendor-supplied part that led to material shortages on the shop floor. As a result, % FPDN exceeded target levels for the months of May and June 2007. We suggested them to keep a track on the supplies provided by the vendor; hence this would put the project back on track. We even asked them to carry on with this project and keep monitoring the dashboard and follow the control and corrective action plan meticulously to tackle any unexpected issues.

Suggestions
They must first improve on their distribution

network The transporters should be made aware of the criticality of transportation The delay should be avoided and extra transport vehicles needs to be ordered Proper mechanism of order receipt and transfer of this information to the production unit should be automatic (computerized) and quick

Suggestions Cont
As soon as the Reorder point is reached order for

materials and spares should be made Suppliers with proper track record of timely delivery should be given the order Idle time of the machine and the labour should be recorded and action should be taken if they cross their limits

Thank You

Vandana Bohra (u106117) Rohit Mathur (u106096)