Quality Improvement of Automotive Supplier Process: Application of Six Sigma Methodology

• Activity Number: 79
• Type: Contributed
• Date/Time: Sunday, July 31, 2011 : 4:00 PM to 5:50 PM
• Sponsor: Section on Quality and Productivity
• Author(s): Gijo Edappattu Vijayan*+
• Companies: Indian Statistical Institute
• Keywords: Six Sigma ; Sigma level ; First pass yield ; Regression analysis ; Taguchi methods ; Beta correction

Abstract

This article discusses the successful implementation of Six Sigma DMAIC (Define-Measure-Analyse-Improve-Control) methodology in an automotive part manufacturing company. The Six Sigma approach resulted in reduction of process capability-related problems and improved the first pass yield from 94.86% to 99.48%. After studying the baseline performance of the process, a brainstorming session was conducted with all stakeholders of the process for identifying the potential causes of the problem. Data were collected on all the identified potential causes and statistical analyses like regression analysis, hypothesis testing, Taguchi methods, etc were performed for identifying the root causes. Solutions were identified and implemented for the validated root causes and results were observed. The Beta correction technique was introduced for monitoring the process in the control phase. Implementation of Six Sigma methodology had a significant financial impact on the profitability of the company. An approximate saving of US$87,000 per annum was reported, which is in addition to the customer-facing benefits of improved quality on returns and sales.