Six Sigma Presentation on Yellow beltions

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1. Implementing Six Sigma at Electric Equipment Company Submitted by - Group 15 Name Roll No Harpal Singh Kalsi Manoj Singh Rathore Shivi Suhane EPGP-14D-091

2. INTRODUCTION This case study showcases how Six Sigma and the DMAIC improvement methodology were implemented in a commercial environment. The project took place in a 15-person office in Hanover, MD that sold electrical equipment and supplies. In January 1998, the district manager Rob Sullivan volunteered the office to become a Six Sigma beta site, with the goal of achieving Six Sigma performance by the end of December 1998. The project was focused on driving orders growth using Six Sigma methodologies, and it was the first time this approach was used in a commercial sales office. The mission to become a Six Sigma office drove improvement projects for two key customer CTQs, mapped step-by-step to the DMAIC methodology. The project leadership team included Rob Sullivan as the district manager, Tim Richards as the Black Belt, Wilma Taylor as the Small Project Specialist, and Harry Dorman as the Systems Enginee r.

3. Six Sigma DMAIC Improve I mplementing and testing the solutions Define I dentifying the problem and setting the project goal Analyze A nalyzing the data and identifying solutions Measure C ollecting data and identifying the root causes of the problem Control M onitoring and controlling the process to sustain the improvement s 6σ

4. OVERVIEW OF THE ELECTRIC EQUIPMENT COMPANY AND THE PROJECT The Hanover office sold electrical equipment and supplies, but was facing challenges such as declining orders and increasing competition. The Six Sigma beta site program was applied to the office in order to increase performance using Six Sigma methodologies. The project goal was to achieve Six Sigma performance by the end of the year and drive orders growth using the Six Sigma process. The DMAIC methodology was applied to improve two key customer CTQs (Critical to Quality) in the office. The Define phase involved identifying the problem and setting the project goal. The Measure phase involved collecting data and identifying the root causes of the problem. The Analyze phase involved analyzing the data and identifying solutions. The Improve phase involved implementing and testing the solutions. The Control phase involved monitoring and controlling the process to sustain the improvements.

5. Define Phase - Problem Statement and Goal Setting Launch Team: A project team of 15 members was formed, including a Black Belt and Green Belts. Project Charter: Problem statement:"Voice of the Customer data indicates that in order to promote growth with our customers, we need to improve our process capability in the areas of call response time and on-time field submittals." Scope : To drive growth for the eight beta site customers by 10% above their targeted growth for the year. The team will target improvement efforts on two CTQs: call response time and on-time field submittals. A project plan was developed to outline the key milestones and timelines for the project. Problem statement for order accuracy was "Orders are shipped with incorrect items or quantities, leading to increased returns and dissatisfied customers" and for on-time delivery was "Orders are not delivered on time, leading to dissatisfied customers and lost business." Goal: “to achieve Six Sigma performance by the end of the end of December 1998 for both CTQ-call response time and on-time field submittals” The team used process mapping techniques to identify and understand the current state of the order fulfillment process. Gather the Voice of the Customer: Personal Interviews, Surveys.

6. Measure Phase - Data Collection & Analysis Document the process: Documented the existing process for fulfilling customer orders. To visualize the steps involved in the process, from order placement to delivery Process map Flowchart Collected data on order accuracy and on-time delivery through customer interviews, internal audits . They analyzed this data to determine the current state of the process and identify areas for improvement by brainstorming on Y’s for the CTQ’s . The data analysis revealed that the main causes of the problems were incorrect data entry, incorrect product labeling, and insufficient employee training. Capability analysis: The team performed a capability analysis to assess the process's ability to meet customer requirement. Performed Complete Measurement System Analysis (MSA) analyzed the data with help from their Black Belt, Tim Richards using Minitab. Narrow project focus: Based on the data analysis, the team narrowed their project focus to two critical-to-quality (CTQ) measures: order accuracy and on-time delivery. Find how frequent is the problem: The team analyzed the data to determine the frequency of order errors and late deliveries. They used Pareto charts to identify the most common causes of these issues. Define performance metrics: The team defined performance metrics for order accuracy and on-time delivery, such as the percentage of orders delivered on time and the percentage of orders with errors.

7. Process Map for Call response time CTQ:

8. SIPOC for Wilma’s Team (On-time field submittals CTQ) On-time field submittals CTQ

9. Analyze Phase - Root Cause Analysis and Solution Identification . The team used various tools such as fishbone diagrams and Pareto charts to identify the root causes of the problems. The root causes were found to be incorrect data entry, incorrect product labeling, and insufficient employee training. The team identified several solutions to address these root causes, such as improving the data entry process, implementing a labeling verification system, and providing more comprehensive employee training. List Vital Few Xs Finalize List of Vital Few Xs Quantified Financial Opportunity Refine Financial Benefits Estimate Costs Associated with Improved Process Identify Intangible Benefits

10. Improve Phase - Solution Implementation & Testing Identify Improvement Strategy Experiment to Determine Solution Piloted Solution Plan the Pilot Run the Pilot and Collect Data Analyze the Results of the Pilot

11. Control Phase - Process Monitoring & Improvement Sustain Solution - D eveloped control plans to monitor the process and ensure that the improvements were sustained. Develop Control Plan Implement Solution Confirm Solution Project Documentation Finalize Financial Results Complete Documentation Package Update Project Database Translation Opportunities Identify Similar Processes Communicate Translation Opportunities E stablished regular performance reviews and audits to identify any issues and implement further improvements. Monitored the process over time to ensure that the improved process was sustainable.

12. Results and Conclusion The Hanover office achieved Six Sigma performance for both CTQs by the end of the year. The team was able to increase order accuracy to 99.9997% and on-time delivery to 99.9994%. The improvements resulted in increased customer satisfaction, reduced returns, and increased orders and revenue for the office. The success of the project demonstrated the effectiveness of Six Sigma and the DMAIC methodology in a commercial environment. Importance of data analysis and the need for a team approach to problem-solving.

13. Tools Used Fishbone diagram (Ishikawa diagram): to determine the various sources of the problems they were experiencing. Pareto chart: To prioritise the critical-to-quality (CTQ) criteria discovered from the consumer survey using a Pareto graphic. CAP Includes/Excludes exercise: to assist define the scope of their improvement activities and classify CTQs based on whether they were fully within their control, partially under their control, or completely out of their control. Statistical Process Control (SPC) charts: to monitor and control the performance of a process over time and spot any indications that indicate a process is out of control. Process maps: to graphically illustrate the process steps and identify improvement opportunities. Root Cause Analysis (RCA): the methodical investigation of the sources of issues and the development of effective remedies. FMEA (Failure Mode and Effects Analysis): to identify potential failures and their impact on the process, as well as to create mitigation methods. Brainstorming :To develop ideas and solutions for the highlighted issues and opportunities through brainstorming.