Cost-reduction and quality improvement using DMAIC in the SMEs

Cost-reduction and quality improvement using DMAIC in the SMEs PurposeThe purpose of this paper is to achieve cost reduction and quality improvement in SME by implementing define, measure, analyze, improve and control (DMAIC) stages of Six Sigma.Design/methodology/approachThe application of DMAIC stages of Six Sigma was carried out in an SME. The cause of the wear out of the guide wheel was discerned in the define stage. In the measure stage, details from the field gathered and sigma level was determined. Using the paired comparison test and FMEA, various causes of the wear out of wheel was analyzed. The alternate material as a solution obtained was compared with present material in the improvement stage. The alternate material was implemented and ensured with proper documents, process change sheet and adoption.FindingsWith the application of easy to use tools a cost reduction of INR10,98,096 per annum and the quality improved from 2.9 to 4.4 sigma.Originality/valueEasy tools were attempted in DMAIC model vs multiple and complex tools usage in large-sized organizations, which was not that much wide spread in SMEs. The study was carried out by changing the raw material of the outer layer of the guide wheel, by applying DMAIC model. A better grade rubber was used for solving the higher wear of the outer layer of the guide wheel. Significant cost reduction and quality improvement can be obtained in SMES by DMAIC model which leads to better brand image. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Productivity and Performance Management Emerald Publishing

Cost-reduction and quality improvement using DMAIC in the SMEs

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1741-0401
DOI
10.1108/IJPPM-10-2018-0360
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to achieve cost reduction and quality improvement in SME by implementing define, measure, analyze, improve and control (DMAIC) stages of Six Sigma.Design/methodology/approachThe application of DMAIC stages of Six Sigma was carried out in an SME. The cause of the wear out of the guide wheel was discerned in the define stage. In the measure stage, details from the field gathered and sigma level was determined. Using the paired comparison test and FMEA, various causes of the wear out of wheel was analyzed. The alternate material as a solution obtained was compared with present material in the improvement stage. The alternate material was implemented and ensured with proper documents, process change sheet and adoption.FindingsWith the application of easy to use tools a cost reduction of INR10,98,096 per annum and the quality improved from 2.9 to 4.4 sigma.Originality/valueEasy tools were attempted in DMAIC model vs multiple and complex tools usage in large-sized organizations, which was not that much wide spread in SMEs. The study was carried out by changing the raw material of the outer layer of the guide wheel, by applying DMAIC model. A better grade rubber was used for solving the higher wear of the outer layer of the guide wheel. Significant cost reduction and quality improvement can be obtained in SMES by DMAIC model which leads to better brand image.

Journal

International Journal of Productivity and Performance ManagementEmerald Publishing

Published: Nov 11, 2019

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