cost of poor quality case study

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Implementation of Six Sigma to Reduce Cost of Quality: A Case Study of Automobile Sector

In the era of cut-throat competition, especially in automobile sector, success of an organization resides in its ability to respond quickly to the needs of its customers. These customer needs must be attended with minimum manufacturing costs, minimum lead time to launch the product in market, and delivering better performance than the existing competitors in the market. Six Sigma is a powerful methodology which ultimately helps in cost reduction. Because of defect prevention and improved product and processes, it leads to increase in profitability and market share. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV (Andersson et al., TQM Mag 18:282-296, 2006). By adopting Design For Six Sigma methodology in the design stage itself leads to launch of a product with maximum quality performance, with tighter tolerances, and with reduced or no defects. This paper considers cost of poor quality as the loss imparted to society from the time the product is shipped, and deals with the applications and benefits of Six Sigma methodology and its positive impact on cost of poor quality. A case study is presented, which enabled application of six sigma methodology in wider range of manufacturing activities. This paper is of value to the researcher in the field of quality management, as well as professionals in the manufacturing industry, wherever the quality improvement is an issue. Quality costs or Cost of Quality is a means to quantify the total cost of quality-related efforts and deficiencies (Banuelas and Antony,

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This article discusses the successful implementation of Six Sigma methodology in a high precision and critical process in the manufacture of automotive products. The Six Sigma define–measure–analyse–improve–control approach resulted in a reduction of tolerance-related problems and improved the first pass yield from 85% to 99.4%. Data were collected on all possible causes and regression analysis, hypothesis testing, Taguchi methods, classification and regression tree, etc. were used to analyse the data and draw conclusions. Implementation of Six Sigma methodology had a significant financial impact on the profitability of the company. An approximate saving of US$70,000 per annum was reported, which is in addition to the customer-facing benefits of improved quality on returns and sales. The project also had the benefit of allowing the company to learn useful messages that will guide future Six Sigma activities.

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Six sigma is a methodology to solve problems before the design team begins actual development and works to demystify the design process. It also works to link the highest quality and the lowest production costs or services. This method is applied to all stages of production or service and not only to the final product, which contributes to the development production processes and reduce mistakes that can reduce production defects. This research aims to improve production quality by increasing sigma level up to six sigma to one company inside the country after identifying the sigma level is depended from to this company. The actual cost indicator has been employed since balancing quality costs is very important in controlling on these costs and trying to reduce or eliminate them. The production indicator has been used because reducing defects in production to a minimum helps to improve quality, reduce of poor quality costs and achieve customer satisfaction. The application of this methodology has a significant impact to increase financial savings and reduce number of defects during technological path to manufacture variety products on the same path and thus reduce failure costs. Statistical equations and techniques were employed to control the production processes by determining the sigma level adopted in the company and observing the effect of adjusting sigma level on the production quality. The integration results of methodology phases showed that the product(P1) achieved the highest level of quality as it has the largest level of Sigma (3.45), and the application of advanced levels of sigma in the company contributes to reduce the number of defects, and poor quality costs to a minimum.

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https://www.ijert.org/implementation-of-six-sigma-and-other-cost-reduction-techniques-for-improving-quality-in-selected-manufacturing-industries https://www.ijert.org/implementation-of-six-sigma-and-other-cost-reduction-techniques-for-improving-quality-in-selected-manufacturing-industries In the manufacturing industries the major concern is to optimize the quality of product and production cost. This problem can be reduced by using various techniques. The Six Sigma technique is mostly used to enhance the quality of product, reduce cost and process improvement for the manufacturing industries. This paper identifies the different quality and cost reduction techniques used in selected industries and also find out various processes which reduces source of variation and improves quality and productivity, results increase in customer satisfaction.

ABSTRACT Purpose: of this paper: In the paper is presented a Six Sigma project, undertaken within company for production automotive parts, which deals with identification and reduction of production cost in the deburring process for gravity die-castings and improvement of quality level of produced parts. Design/methodology/approach: The objectives are achieved by application of Six Sigma approach to quality improvement project in automotive industry. The applied Six Sigma approach includes team works through several phases: Define, Measure, Analyze, Improve, and Control (DMAIC). Findings: Systematic application of Six Sigma DMAIC tools and methodology within an automotive parts production results with several achievements such are reduction of tools expenses, cost of poor quality and labours expenses. It was shown that Six sigma is an effective way to find out where are the greatest process needs and which are the softest points of the process. Also, Six sigma provide measurable indicators and adequate data for analytical analysis. Research implications: The possibility of application of several Six Sigma tools such are thought process mapping, Pareto diagrams, process mapping, cause and effect matrix, and analysis of variation and capability studies. Practical implications: Improvements through reduced Production time, Control time, Material and Internal scrap have been yield significant financial. Furthermore, this pilot project enabled introduction of Six Sigma methodology in wider range of manufacturer activities. Originality/value: The paper researches the possibility of Six Sigma application within manufacturing process. This paper is of the value to researcher in the field of quality management and quality improvement, as well as to professionals in the manufacturing industry, wherever the quality improvement is an issue.

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Product quality is generally accepted as being crucial in today’s industrial business. The traditional aspects of product quality are connected to product design (translating customer demands into attractive features and technical specifications) and to the design and specification of high performance production processes with low defect rates. Quality management is the general expression for all actions leading to quality. Quality management is focused on improving customer satisfaction through continuous improvement of processes including the removal of uncertain activities, and continuous improvement of the quality of processes, products and services. The quality management includes four key processes, such as quality planning, quality assurance, quality control and quality costs. The main accent in this paper will be on quality control and the application of one of the quality control tools in order to improve it. Six Sigma is different from other quality improvement concepts in...

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Indian automotive ancillary units are one of the swift growing within the small and mid-sized group of industries which are influential contributors to the complete production of auto components. With the ascent in interrogation of growing customers and presuming for resplendent quality of their product, some of giant Indian organizations are inspiring their suppliers to employ Six Sigma in order to improve the quality of their process and products for embellishing competitive advantage. This paper focus on a case of provoked mid-sized auto ancillary unit consisting of 350-400 employee and employed Six Sigma (SS) methodologies to elevate towards the dream of SS quality level. The methodology is executed on one of product assembly for trimming down defects level which are critical to customers and its implementation has had a significant financial hit on the bottom-line of the enterprise.

Every organisation aims at profit maximization and growth. Growth and profits are directly related to the level of satisfaction that is imparted by the product or the services to the customers. Customer wants value for money. He wants the best quality in the given cost. So how does an organisation achieve this quality? Quality is a subjective constraint. Every customer has a different taste of quality. So, it is the job of the organisation to provide everything in terms of quality that every customer demand. So, from where does this quality start? It starts from the moment the manufacturer purchases the raw material from the supplier. This quality is percolated in the product through right set of processes, activities with the use of right resources in terms of human and technology and ultimately right quality is achieved by reduction in defect in the product. Lesser is the tolerance limit for defect, better is the quality. This concept drives the organisation towards the concept of...

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The contribution is aimed at improving the process of production of certain products by applying the Six Sigma methodology. It is a practical application of this methodology in an industrial company in solving a specific issue. Six Sigma uses the DMAIC logic cycle, which was also applied to the project. The aim of the project was to eliminate the process of calibrating parts after hardening, which were marked as nonconforming products. By applying the DMAIC logic cycle, improvements were made that shortened the production process and time to deliver production orders to the customer, reduce production costs, and retain a significant customer.

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Analysis of Poor Quality Cost in Auto Industry: A Case Study

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• First Online: 02 March 2023
• Cite this conference paper

• Umesh Bhushi 12 ,
• Lokpriya Gaikwad 13 &
• Vivek Sunnapwar 14  

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

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Due to high competition and globalization in the current market, there is tremendous pressure on production to reduce the costs of the parts without compromising quality. After manufacturing the parts if it gets rejected, we have to bear the most costly than the raw material used. Continuous quality improvement is a key factor for competitiveness. By correctly applying quality tools, it is possible to find out the root cause of the quality problem to enhance productivity and quality. In this paper, the case study method is used to analyze the poor quality cost in the auto part manufacturing industry by using different tools and techniques to find the root causes and to improve the existing process that delivers quality products.

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Acknowledgements

The authors thank the manufacturing firm’s management and supportive staff members who directly and indirectly helped to carried research work. Extraordinary much gratitude goes to the editors of this journal and reviewers for their valuable remarks and ideas that improve the composition.

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Faculty of Engineering, Higher College of Technology, Abhu Dhabi, UAE

Umesh Bhushi

SIES Graduate School of Technology, Navi Mumbai, India

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Lokmanya Tilak College of Engineering, Navi Mumbai, India

Vivek Sunnapwar

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Bhushi, U., Gaikwad, L., Sunnapwar, V. (2023). Analysis of Poor Quality Cost in Auto Industry: A Case Study. In: Vasudevan, H., Kottur, V.K.N., Raina, A.A. (eds) Proceedings of International Conference on Intelligent Manufacturing and Automation. Lecture Notes in Mechanical Engineering. Springer, Singapore. https://doi.org/10.1007/978-981-19-7971-2_1

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DOI : https://doi.org/10.1007/978-981-19-7971-2_1

Published : 02 March 2023

Publisher Name : Springer, Singapore

Print ISBN : 978-981-19-7970-5

Online ISBN : 978-981-19-7971-2

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