Intervention
Six Sigma Projects

 

 

1. Auto Sector

S.No Project Title Project Details Results Achieved
1 To reduce the rejection and rework in Engine Assembly Line Team Led by Black Belt, reviewed all rejection and rework right from incoming component stage, assembly, testing & problems noted in road test. These problems were prioritized using Pareto Analysis. All the critical problems were analyzed in details using tools such as Design of Experiment, Comparative Methods, Correlation Regression. Solutions were identified and implemented both in-house and at suppliers end. Control Plans and SOP were modified and 15 numbers of Poka-Yoke were installed at different stages of assembly to prevent recurrence of these defects. The defect level could be brought down by 10 times and is now sustained for more than 10 months leading to a cost advantage of about 25 lacs on an annualized basis.
2 To improve the market share in a defined market segment. The team led by Black Belt reviewed the causes of low market share in a segment where a particular brand had been dominating for last 5 years. Reasons were validated by actual data collection, administration of a questionnaire to the prospective and lost customers and the dealers. Appropriate measures were then implemented and institutionalized. For the first time in last 5 years company could beat the market share of best competitor in last 2 quarters giving a potential of additional sale of about Rs. 5 crores. 
3 To improve the project management process of new product development The company was facing lot of delays in launch of new products. Reasons for this was lack of complete planning and subsequent changes in project scope. The black belt team worked on this and identified all weak links in the process which was validated by data on the past projects and application of tools such as Correlation and Regression / Comparative Methods  
4 To improve the product launch process to achieve target business volumes in the first year of launch. A black belt led team studied the reasons for inability to  achieve projected business target in the first year of new product launch. It was observed that success rate of various leaders is not uniform, although overall targets were somehow managed without a structured process. The team compared the successful vs. unsuccessful dealers and found out the parameters such as sales preparedness, service preparedness, technician training for servicing of the new model. Based on the validated causes a new structured process with specific controls were suggested by the team which was implemented for the next launch. A structured process has been defined for launch of new product with focus on the sales and service preparedness. Dealer to dealer variation could be reduced in the pilot launch.
5 To improve the supplier satisfaction The company recognized need to satisfy the needs of their key suppliers and a project was assigned to a black belt. This was a unique step in the automotive sector as no other company at present has a system to track the supplier satisfaction levels. The team prepared a detailed questionnaire covering all points of interface with the supplier e.g. pricing, new component development, scheduling etc. This questionnaire was administered to about 90 key suppliers which covered 60% of the component buying  in value terms. Weak areas were identified and a detailed action plan was identified and implemented.  A system of supplier satisfaction survey has been institutionalized. A quick dip-stick survey done with 30 suppliers has shown improvement on most of the parameters compared to the complete survey conducted earlier. 
6 To reduce the cycle time for supply of spares for overseas market. The company has launched the product in overseas market and one of the feedback from overseas customer is high cycle time for supply of spares which in turn leads to high cycle time of services. A team led by a black belt studied the whole process, identified steps not adding value, collected the data on time for major steps. Analyzed the data using tools such as Correlation Regression and Comparative Methods. Solutions were suggested and implemented in 1 pilot country. The cycle time for spare supply was reduced by 33% leading to better satisfaction of customers and dealers in the overseas market. The learning's of 1 pilot country are being extended now to all countries of sales.
7 Capacity enhancement in machine shop to meet assembly requirements The company faced frequent shortages in the assembly line for a particular component. The component was machined and processed in-house. Six Sigma team led by a black belt studied the whole process, identified the bottleneck operation, improved the maintenance practices by using fundamental principles of TPM and reduced the setup time using SMED concepts. The capacity has been enhanced by about 25% which will meet growing demand of the assembly line for next two years.
8 To reduce the attrition rate and improve employee satisfaction in one critical department The auto company has an in-house R&D, which had high level of employee attrition. This not only affected the work related to new product development, but also had high cost of recruiting and training the new people. The black belt team looked at the reasons by studying exit interviews, ESS done by Gallup and discussed with the people in the R&D Department. Major concerns were identified and validated using statistical tools. Recommendations were made and implemented. This had led to improvement in employee satisfaction scores and is giving a trend of reduction in attrition rates in the critical function.
9 To reduce eye and hand injuries The company faced repeated incidences of hand injuries in assembly operation and eye injuries in machining operations. A team led by a green belt has studied the whole process, collected the data on location and type of injuries used statistical tools such as Pareto Analysis and Chi-square test to validate the root causes. Recommendations have been made to make assembly operation virtually hammer free and protections have been made to reduce the instance of fly-off of foreign particles in the machine shop. There is a 50% reduction in the injuries leading to reduction in man-hour loss of production.
 

 

2. Engineering Sector

S.No Project Title Project Details Results Achieved
1 Reduce the breakdown time in paint line Equipment Breakdowns analyzed using pareto and accordingly opportunities for improvement were prioritized. Low Hanging fruits were identified using FMEA and quick actions were taken to improve the situation marginally. Further analysis showed that a major cause of breakdown was that sheets for painting were getting struck between the conveyor rollers. Breakdown time reduced to 12% from a previous average of 18%. A saving of Rs 10 Lacs achieved on annualized basis by eliminating process scrap generation.
2 Reduce the cost of consumables in the shop floor Suspect causes leading to over consumption were listed and using FMEA actions were taken to plug the “obvious deficiencies”. This led to some improvement on the current situation. A gauge repeatability and reproducibility study was done to study the variability of the measurement system. Causes were prioritized using Hypothesis testing and actions were taken to improve the situation. The mistake-proofing was done to hold the gains and finally gains realized were confirmed using test of hypothesis. Over-consumption beyond BOM reduced to 6%. This translates to a saving of Rs 25 lacs on annualized basis.
3 CONSISTENCY OF DRY FILM THICKNESS (DFT) IN POWDER COATING PROCESS  The team identified 20 probable causes using process-mapping tool during problem definition phase. The list of 20 probable causes was pruned down to four possible causes by using tools like PFMEA and Cause & effect matrix. In analysis phase a DOE was setup to study the extents of effects of each of the four possible causes on DFT. A properly designed experiment would also reveal if interaction between any of these four input variables has any significant effect on dry film thickness. A full factorial experiment was planned and conducted to identify significant contributors to the variation problem. product performance.   Thickness variation reduced from + 15 microns to + 10 microns. This consistency led to a tangible saving of Rs. 30 lacs
4 REDUCTION the NOISE LEVEL OF A home appliance The air flow system, which is the major contributor, was analyzed to reduce the noise level. The system map for the complete air flow was prepared and lab trials conducted to find out major contributors to the noise level. Design of experiments were planned and conducted in the lab on proto basis and it was found that fan blade angle and the orifice diameter are the prime factors and hence need to be optimized. The optimum levels were identified for these two factors.  The Company could reduce the noise level by 7 db, 3 db lower than the competitor without any major investment.
5 Improve product performance A study was conducted to benchmark product in question with similar models being offered by the competition. This study revealed that one of the products from competitor was performing by at least 15% on a key customer requirement. The three root causes were identified and were adjusted to provide de optimum product performance. The team substantiated the indicated gains during DOE by running a pilot lot. Product performance was made better than the competitor without any cost burden. This resulted in a competitive advantage in terms of higher customer satisfaction that may lead to higher sales and market share 
6 Reduction in visual defects at Pre-delivery Inspection (PDI) Defects are analyzed using Pareto chart and it is found that 50% of the defects are classified as dents. Suspect causes leading to dents are listed using Fishbone diagram and process mapping. Action is taken onto various causes after prioritizing them through FMEA and cause-effect matrix. Mistake-proofing was done to ensure that gains are not frittered away.  Number of defects at PDI reduced by 50%. This translates to a saving of Rs 30 lacs on annualized basis.
7 Component cost optimization for one sub assembly Existing design benchmarked against that offered by completion and analyzed. These alternatives evaluated using Pugh matrix and best alternative selected for further trials. Design further optimized by using DOE. Motor cost reduced by 6% with out compromising various performance parameters.
8 Improve the packaging quality while reducing the cost There are lot of product damages during the transit and cost of packaging was found to be higher than most competitors. DFSS concepts were used to capture the voice of customers, dealers and business. New Design was made to reduce the packaging cost and make the packaging more robust. Damages to the product could be reduced by 50% and the cost of packaging was reduced by Rs. 60 per unit leading to overall saving of Rs. 42 lacs on an annualized basis.
9 Introducing new feature in a home appliance Home appliance industry in India is highly competitive and the manufacturers have to bring in new product features to attract the potential customers. Different teams worked on understanding latent need to the customer and bringing in new features (customer delighter) in the established product range. One example was introduction of water dispensing system in a refrigerator. Most of these projects used DFSS concepts & tools in addition to DMAIC cycle of Six Sigma. The company could successfully bring out at least 4 new variants of the products using this concept giving them competitive edge in the market. 
10 Reducing no. of Service calls The Home appliance manufacturer had outsourced service process to several agencies. There were repeated no. of service requests leading to high service cost. Analysis of these service requests pointed that 40% of the service requests required simple explanations and / or adjustments. Most of these explanations and adjustments were already covered in the operation manual provided along with the appliance. The Six sigma team analyzed the reason of limited usage of the operational manual. Using a combination of DMAIC and DFSS concepts and tools, the team brought out a more user friendly and attractive looking operational manual with easy references to simple adjustments.  A user friendly and good looking operational manual was introduced. This immediately reduced the explanation / adjustment calls by 60% and overall reduction in service cost by Rs. 20 lacs on an annualized basis.
 

 

3. Telecom Sector

S.No Project Title Project Details Results Achieved
1 Improve uptime of the Network  The company signs SLA with its customer for ensuring at least 99.9% uptime of the network. However in certain areas this network uptime was of the order of 99.92%. Two teams lead by two different Green Belts studied the process and focused on both MTTR and MTBF. The root cause  was identified and validated by tools such as Pareto Analysis and Comparative Methods. Solutions were recommended and implemented. Controls were institutionalized such as weekly monitoring and audits to sustain the benefits. The uptime for the network could be improved to 99.92% and sustained over last 6 months leading to compliance to the SLA's with the client.
2 Improve percentage of calls matured  The telecom company receives lot of attempts by calling parties but a large %age of them do not mature into successful calls. Revenue to the company is only for the matured calls while telecom switch is used to even unsuccessful calls. Different teams were formed to review the low level of mature calls in different market segments like National calling, international calling - both incoming and outgoing calls. The teams which earlier perceived subscriber behaviour as the major reason found many other reasons which could be controlled by systematic action. The matured calls increased by 5% leading to additional revenue of about Rs. 70 lacs on an annualized basis. 
3 Strengthening customer relationship There was a general feedback from the customers that it takes a long time to resolve complaints related to billing, general information and technical queries. The team studied the process, identified non-value adding steps and improved the process also data base of the company was improved for prompt response and internal escalation matrix was formalized. This reduced the cycle time for 30-50% for various types of complaints / queries leading to higher customer satisfaction.
4 Complaint reduction & reducing resolution time for complaints The customer expects a very prompt resolution to their complaints. Based on benchmarking with the other competitors it was found that a resolution time of 24 hrs. is acceptable for retail customer and 4 hrs. for Corporate customers. Also company found a very large %age of customers having complaints on their service. Data was collected and analyzed for prioritizing the types of complaints and their causes.  Prompt action on these causes and effective controls have led to significant improvement.  These actions have led to reduction in complaints by 33% in a short period of 4 months. Also the %age of complaints resolved within industry norms of 4 hrs and 24 hrs. for corporate and retail customers has increased from initial level of 65% to 90% by the end of the project.
5 Improving the billing accuracy The company found that lot of delay in receipt of payment from customers was due to various types of defects and errors in the bills sent to the clients. Pareto Analysis was carried out to identify most frequently occurring defects in the bills. Actions such as standardizing the format for billing advice, preparation of checklist to ensure completeness of the billing details and periodic reviews between accounts and order fulfillment group have been implemented. 10 times reduction in billing has been achieved through this project leading to reduction in delays in payments from the customers.
6 Reduction in implementation of Projects related to leased circuits Implementation and provisioning of leased circuit had a cycle time which was perceived to be at least 25% higher than the most competitors. The project focused at reducing the cycle time by better planning, removing NVA's and ensuring timely availability of all equipments at customer's site. Cycle time was reduced by 30% leading to better opportunity for capturing new orders.
7 Reduction in project operating cost Company felt there is an opportunity to reduce the project operating cost. The six sigma team was formed to look at reasons for cost overruns/ escalations. The data was collected on past few projects and causes were identified. Suitable measures were then suggested to ensure low project operating cost. Cost reduction of about 10% per project was achieved leading to annualized saving of about Rs. 35 lacs.
8 Reduction in cycle time for receivables There was a delay in collection in almost two-third of the cases. The six sigma project team  reviewed the process and found root causes such as delay in invoicing, error in invoicing and lack of a formalized system for follow-up. Suitable measures have been initiated to counter these and suitable controls and review mechanisms established to ensure timely receipt of payment. The cases of delayed payment has been reduced by about 50% leading to saving of about of Rs. 5 lacs in addition to saving in unnecessary fire-fighting's. 
 

 

4. Chemical Sector

S.No Project Title Project Details Results Achieved
1 To control the prill size in a fertilizer plant The company in the business of urea making had complaints of lumps (big size prill) and fines (small size prill). The process modification followed an improvement in Measurement system to have consistency in size measurement; conducting full factorial experiments followed by response surface methodology to optimize the process parameters. Improved process capability to produce consistent quality of prill size; Lower customer complaints
2 Reduction in breakdown cost of rotating equipments Frequent breakdowns of rotating equipment were not only causing disturbance to production process but also leading to high cost and energy loss. A cross functional team of operations and maintenance worked on this problem. Attempts were reduced to reduce breakdown by reviewing and optimizing the process parameters using Design of experiments. This required challenging the parameters specified by OEM. Design of one critical component was also modified. Low energy loss led to a savings of Rs. 47 Lacs on an annualized basis.
3 To improve bag quality for a chemical company There were  repeated complaints related to quality of bags like stitching defects, printing defects, leakage from bags. Bags are supplied by a small manufacturer having manufacturing facility in a remote location. This project team took the challenge of improving and stabilizing the processes at the supplier end. Simple tools like standardizing the process with a good SOP and mistake-proofing for manual processes and complex tools like DOE for improving machine dominant processes were used in a combination effectively.  Bag quality has considerably improved. Printing defects and other visual defects reached levels of six sigma. Other defects like stitching have been reduced by 8 times. The project could bring confidence that six sigma is equally applicable to small business as well.
4 To optimize performance of cooling tower Approach is an index of the performance of cooling tower. This project used scientific tools like FMEA, and correlation & regression analysis to find the root cause for lower performance. Suitable measures were then taken which included review of fan blade angle, better maintenance of the louvers and improving uniformity of  water flow over the cross section. Approach could be reduced by 2 degree centigrade leading to an energy savings of Rs. 8 lacs.
5 To optimize DM plant operation This project aimed at optimizing the performance of Demineralized (DM) water plant by reducing the chemical consumption used in the plant and also reducing effluent generation. The project reviewed the process and identified major contributors for the problems using tools such as FMEA, comparative methods and multi-vari analysis. The chemical consumption and effluent generation could be optimized leading to an annualized savings of Rs. 12 Lacs.
6 To improve reliability of shut-down maintenance Two concerns from annual shut-down maintenance were not completing all the planned jobs and breakdown of the equipment after shut-down maintenance, and jobs done earlier had to be repeated. This project attempted to address these issues by reviewing and analyzing the data on these parameters and looked at similar issues in last 5 years. The processes and check-lists were modified accordingly. 100% compliance to planned jobs was demonstrated in next round of maintenance and repeat jobs were reduced by one-third.
7 To improve reliability of power distribution system  The project aimed at increasing MTBF and reducing MTTR thereby ensuring continued operation of the plant. The team studied the process, looked at the past data and practices and used tools such as chi-square tests, analysis of variance, FMEA, why-why analysis and found out major sources of failure and cycle time for repair / restoration. MTBF could be increased by 7 times while MTTR was reduced to one-sixth leading to energy savings of Rs. 42 Lacs per annum.
 

 

5. Banking Sector

S.No Project Title Project Details Results Achieved
1 Transit time reduction for collections The bank commits the customer guaranteed credit on the cheques processed. These cheques should be collected and processed as soon as possible. The project aimed at redesigning the process of cheque delivery to ensure timely deposit of the cheque. High customer satisfaction, reduction in client outstanding due to fast cheque realization and a tangible saving of Rs. 15 lacs.
2 Reduction of exceptions in suspense and deferred accounts Many entries in suspend and deferred accounts were not reconciled for a long period of time. The project identified key inputs leading to this delay using tools such as FMEA and Pareto Analysis. Solution devised included centralized tracking and automation of account proofing.  Customer satisfaction on correct reflection of the balances, fewer entries in suspend and deferred accounts and the cost saving of Rs. 5 lacs.
3 Optimizing the trade operations Project aimed at reviewing the whole international trading operation. The team looked at as-is process map, clocked the time for each activity, prioritized the elements requiring cycle time reduction. Solution included revised process with controls using low cost automation and elimination of few non value adding activities. The operations team could be reduced by 19 full time employees leading to a saving of Rs. 20 lacs.
4 To reduce the cycle time for merchant payment for credit card operations This project addressed the needs of all non-metros merchants for timely payment of the credit card sales made by merchant. Process was redesigned and effective controls were introduced with couriers and partner banks.  Cycle time could be reduced from an average of 5 days to 3 days leading to higher merchant satisfaction. This in long term will help in increasing the volumes of payments through the bank.
5 Improving the share registration and transfer process This project supported the need to handle quantum growth in share transfers and registration due to boom in share market, without extra manpower. The project team identified all points of bottlenecks and points of excessive rework. The team suggested a new process which included outsourcing of mundane activities, error proofing by simple low cost automation. The successful implementation of the revised process has enabled the processing team to handle 110% volume increase without any additional manpower. This translates to financial saving of Rs. 90 lacs on annualized basis.
6 Reduction in pricing errors in trade operation Erroneous pricing charged impacts the customers financial statement resulting in dissatisfaction. This problem also had a potential of revenue leakage for the bank. The team studied the types of errors and prioritized using Pareto Analysis and FMEA. Solutions were suggested and implemented.   Number of pricing errors could be reduced by 75% in a span of 6 months
7 Cycle time reduction in account opening for Corporate Clients It was taking 30% higher time for opening a new account for a Corporate client compared to the benchmark banks. The process was modified and format simplified to have faster turn around of the new accounts. Reduction of 25% was achieved in the cycle time for opening of new accounts.
8 Reduction in returns of Credit cards A large %age of new and re-newed credit cards despatched to the clients were getting returned due to various reasons. The team identified the causes and validated by data and application of relevant statistical tools. 30% reduction in returns was achieved leading to a saving of Rs. 12 lacs.
 

 

6. BPO-ITES Sector

S.No Project Title Project Details Results Achieved
1 To reduce the attrition at a call centre High attrition rate leads to high cost of recruitment and training in addition to less productivity of the new joinees. This team studied the data of exit interviews, satisfaction level of working employees and benchmarked the process being adopted by other call centres. Recommendations were made and implemented for better employee satisfaction and low attrition. Attrition could be reduced by 5% leading to a tangible saving of Rs. 35 lacs.
2 Improving the productivity of a call agent The project aimed at reducing the turn around time (TAT) for loading the cases and updating the caller on the enquiries. Process was reviewed to identify and eliminate NVAs and automate value adding activities. Actions were also initiated to reduce the error in information being provided to avoid repeat calls by the customer.   Cycle time reduction of 40% was achieved leading to a saving of Rs. 25 lacs.
3 Shortening the learning curves of the new joinees The project aimed at reducing cycle time of a new call agent being fully productive as per quality norms from present level of 6-9 months to 3 months. The project team looked at the process of induction process training and on-the-job working in the initial months of joining. Recommendations were made to strengthen both class room and on the job training. The cycle time could be reduced to 3-4 months from initial level of 6-9 months.
4 Improving the quality of data processing by the agent The BPO organization was not able to meet SLA's with the client organization leading to loss of revenue for time lost in rework. There was also a threat of loosing that process to a competitor BPO. The Six Sigma team reviewed the process, looked at the agent's skills and types of errors being made in the process leading to rework. Solution was suggested and implemented, particularly to strengthen the skill of agent. The processing quality was increased from 87% to 97% leading to additional revenue and savings and rework cost to the tune of Rs. 18 lacs.
5 Improving ability to handle product mix without affecting quality The project aimed at increasing the ability of the agents to handle different products within agreed SLA's of TAT and quality. The team analyzed the process of operation and training of the agents. Method of reviewing versatility of agents skill was introduced. Agents were able to handle multiple calls with same productivity and quality levels. The financial savings were estimated to be Rs. 10 lacs per annum.
6 Reduce errors related to case reviews by the agents The project team compared the error data of its own quality team with the data provided by the client quality team. This helped in having clearer and mutually acceptable quality levels. The process was studied to identify the causes of errors which were prioritized using Pareto Analysis. A new process was formulated and implemented to avoid the recurrence of frequently occurring errors. 25% reduction in error could be achieved in this project.
7 Reduce the cycle time for the entire process of handling maturity of an insurance policy Less than 20% of the cases were handled in claimed TAT leading to dissatisfaction of the customers. A team led by a black belt looked at the process end-to-end, right from initiation of maturity pack to release of payment. The scope included the BPO Operation India and client organization in Europe. Data was collected on cases processed in last 6 months to identify the reasons for delay. A revised process was defined with effective controls.  The number of cases processed within agreed TAT increased from initial level of < 20% to a new level of > 75%. This will lead to high level of customer satisfaction.
8 Reducing cost of operation through better productivity The project team reviewed the whole process of data handling and suggested ways to reduce NVAs, simplify / automate value adding steps, better assignment method using proper queuing tools. Productivity could be doubled in terms of the number of cases handled per agent per day and cost of operation could be reduced by 40%.
 

 

7. IT Sector

S.No Project Title Project Details Results Achieved
1 Report cycle time reduction This software developed for client application on major reports - compiling and downloading at various business locations across the globe takes 3 times the expected cycle time. The Black Belt led project team used a combination of DMAIC tools like Comparative Methods & Regression Analysis and DFSS tools like QFD and Pugh Matrix to modify the software bugs leading to high cycle time of downloading.  The downloading time was reduced from about 8 mins. to 1.5 mins. Leading to high level of customer satisfaction.
2 Improving the process of handover from Business Promotion team to Delivery team Commitment made to the customer were not always documented and hence there were problems at the User Acceptance Testing Stage (UAT). This project defined the matrix of quality of handover from the Business Promotion team to delivery team so that customer commitments can be honoured. Use of tools like QFD ensured that needs of end customer, business promotion team and the delivery team are suitably and adequately addressed in the handover process. A new process with user friendly templates having built-in alarm flagging has been introduced. Handover Index for each project can be tracked using this process. The team could demonstrate major improvement in handover index which will reduce unplanned activities by 50%.
3 Reducing the cycle time for bug correction The team reviewed the process of bug fixing using tools like Control Chart, FMEA, CE-Matrix and recommended and implemented the revised process. Cycle time could be reduced by about 35% leading to higher productivity of engineers. This translates into a financial savings of Rs. 50 lacs per annum.
4 Reduction of Software bugs in Quality Control Testing (QCT) During Final QCT most of the total bugs detected were unit level bugs which were the leaked defects from the unit testing stage. This led to rework in the previous development processes and delays in completion of development project. The Six Sigma Project team strengthened the upstream development and testing process so that number of errors at QCT Stage could be minimized.   Implementation of Revised process has led to substantial reduction in QCT bugs and a financial saving of about Rs. 70 lacs per annum.