An educational institution offering market-relevant and unique specializations in Executive MBA, Graduate Diploma and Graduate Certificate programs

A gathering of professionals and experts who discuss on the latest trends and topics

An authentic source of information and inspiration

KATE is a freeware app, web-based available, granting digital access to training materials.

Online store for ISO and IEC standards, Toolkits, eBooks, etc.

  • / Resources

Six Sigma: A Case Study in Motorola

six sigma company case study

A Six Sigma Overview

Nowadays, organizations are constantly striving to understand and meet the customer’s expectations by focusing on the quality of the products offered. Luckily, there are many tools and techniques available which enable management to improve the quality of their products and services. Six Sigma has proven to be one of the most successful tools in this regard. 

Six Sigma is a methodology which uses specific principles and mechanisms that ensure excellence within the organization. The ultimate goal of this methodology is to create products or services with less than 3.4 defects per million products or services produced. Witnessing its benefits, many of world’s most famous and successful organizations have decided to implement and integrate Six Sigma principles in their business processes.

The Beginning of Six Sigma

A look back in history indicates that the implementation of Six Sigma principles was pioneered by Motorola Company in 1980s. Motorola has always been a high tech company, offering highly reliable products. However, by 1970, every business in which Motorola was engaged in, was already targeted by Japanese. 

During that time, Motorola, like many other American companies, was struggling to keep up with Japanese competition. Motorola’s customers were unhappy with the product defects and customer support. On the other hand, Japanese had already built an amazing quality standard that many American companies simply could not keep up with. As a result, dealing with severe financial pressure, Motorola had to take action. 

The top management summoned the Motorola engineers and sought to reduce the amount of errors in their products before they were even shipped out of their factories. They combined all the quality management practices known till that time and created a methodology that would be the baseline of Motorola’s quality improvement program. Bill Smith, an engineer and scientist at Motorola, developed a methodology that would reduce the amount of product defects. He created the original statistics and formulas initiated the implementation of Six Sigma methodology. Convinced in the huge success that this methodology would have, he presented the ideas to CEO Bob Galvin. Bob came to recognize this approach as the solution to their quality concerns. They followed the four phase Six Sigma methodology (measure, analyze, improve and control) and started their journey of documenting their key processes, aligning those processes to customer requirements, and installing measurement systems to continually monitor and improve these processes. 

As a result, Motorola’s performance improved instantly. However, even though they were doing well, the analysis revealed that Japanese were still way ahead of them.

Thus, to remain competitive, top management vowed to make improvements in their quality by tenfold over a five-year period. Initially, this seemed to be impossible, but by the end of 1985, everyone in Motorola had started working toward that goal. 

By the end of the five year period, every business in Motorola had reached their targeted scale of improvement. Motorola managers decided to fly to Japan to better evaluate how their competition was doing, and what they found out was mind-blowing. They saw that the Japanese companies were doing 2000 times better than them. This was due to the fact that Japanese had been using similar technologies for a longer period of time. 

The information unveiled in Japan changed the objectives of Motorola again. The executives became even more ambitious, and decided to set a tenfold target one more time, but deadline was set for a two year period now. Motorola goal for 1992 was to have 3.4 defects per million opportunities. 

After implementing Sig Sigma, Motorola realized how important the methodology had been in improving their processes. In fact, they have documented more than $16 billion in saving as a result of Six Sigma adoption. Therefore, they decided to make the methodology public for every company that wanted to adopt it in their processes. Since then, tens of thousands of companies around the world have been considering Six Sigma as a way of doing business. 

Bearing in mind the previous points, it can be concluded that Motorola implementation of Six Sigma has been a stepping stone in the modern times of quality improvement. We may wonder where will the Six Sigma journey lead us to. This path, however, will certainly be challenging while we seek perfection. But the highly satisfied customers, motivated employees, increased benefits, among many other reasons, lead to believe that the employment of Six Sigma as the best business support will never cease to exist.

Author:   Hana Tahiri is the Portfolio Marketing Manager for Quality Management System and Transportation, Telecom and Energy at PECB. She is responsible for continually conducting research and writing articles and marketing materials related to QMS and TTE. If you have any questions, please do not hesitate to contact her: [email protected] .

Latest Articles

Lean management: a comprehensive guide.

six sigma company case study

The Plan-Do-Check-Act (PDCA) Cycle: A Guide to Continuous Improvement

six sigma company case study

Understanding Six Sigma: A Comprehensive Guide to Quality Improvement

six sigma company case study

SUBSCRIBE TO OUR NEWSLETTER

Training & Certification

Examination

Certification

Terms, Conditions, and Policies | Privacy Statement

© 2023 Professional Evaluation and Certification Board. All rights reserved.

six sigma company case study

Henry Harvin Blog

Home > Learn More About Six Sigma Green Belt > Johnson & Johnson Six Sigma Process: A Six Sigma Case Study in 2023 [Updated]

Johnson & Johnson Six Sigma Process: A Six Sigma Case Study in 2023 [Updated]

six sigma company case study

Free Counselling :

Table of Contents

A Six Sigma case study written based on Johnson & Johnson’s six sigma process.Year after year, Six Sigma continues to be a cornerstone of the business world, opening the doors for rising experts to grasp the precepts that have just driven led so many to prosperity.

Six Sigma is currently an enormous ‘BRAND’ in the world of corporate turn of events. At times, the term “Six Sigma” applied to portray a proportion of a value adopted by a business association. Believe it or not, there is much more to Six Sigma than essentially the formless perception some may have of its standards.

Lean Six Sigma Green Belt Certification Training

45-min online masterclass with skill certification on completion

Kounal Gupta (CEO, Henry Harvin)

Access Expires in 24Hrs

Register Now for Free

Images

Find our Upcoming Batches of Six Sigma Green Belt Certificate :-

Johnson & johnsons

Six Sigma is to methods and instruments for process improvement by decreasing the defects; it means maintenance of the ideal quality in processes and final products. In this article, we will go through the introduction, features, foundation of Six Sigma, programs of six sigma, and a Six Sigma case study applications in Johnson & Johnson.

Learn Six sigma from the leaders

SIX SIGMA – More than only a cost reserve fund.

Introduction.

Six Sigma Process refers to a procedure in which the range between the mean of a procedure quality estimation and the closest determination limit is multiple times the standard deviation of the procedure.

The quality administration draws near, including Statistical Quality Control, Zero Defects, and Total Quality Management, have been key highlights for a long time, while Six Sigma is one of the more later quality improvement initiatives to pick up the popularity and acknowledgment.

Six Sigma is a long-term program. It won’t function well without full duty from upper administration.

Johnson Controls started their Six Sigma Process in October 1999. Six Sigma is polish worldwide through the association to improve manufacturing as well as business forms.

Johnson controls grasped six sigma in 2020 as another progression towards satisfying the mission. To surpass the client’s increasing desires. It is now a necessary part of constant quality improvement.

Johnson controls have sent Six Sigma Process World-wide and had prepared more than 2000 individuals in its methods. They have prepare to drive projects that “eliminate defects and mistakes, reduce waste, drive out excess cost, improve work productivity, and shorten work cycles – helping clients to get their products quicker”.

Johnson Controls Six Sigma program has developed to incorporate DFSS (Design for Six Sigma) just as a provider Six Sigma training program – the indications that Six Sigma is part of the DNA of an association.

Post Graduate Program in Content Writing

Ranks Amongst Top #5 Upskilling Courses of all time in 2021 by India Today

six sigma company case study

 Six Sigma puts the clients first and utilizations the realities and information to drive better arrangements. Six Sigma efforts target three primary zones:

  Foundation of Six Sigma Process

Johnson & Johnson’s Six Sigma case study ,the Process include:

Six sigma case study discusses Over 70% of continuous improvement venture investment funds picked up by utilizing ventures from different plants.

johnson and johnson brand

Johnson Controls Six Sigma case study is a worldwide differentiate innovation and modern leader serving clients in more than 150 nations.

Johnson Controls, Inc. (JCI) makes quality products, administrations, and answers to improve energy and operational efficiencies of structures, lead-destructive vehicle batteries and advanced batteries for hybrid and electric vehicles, and inside the system of vehicles.

Johnson Controls, Inc. (JCI) left on a huge initiative in mid-2000. At first, JCI utilized a Lotus Notes-based task tracking instrument, but in the end, outgrew its restricted capabilities.

JCI begins a thorough inquiry of different venture portfolio management software applications to recognize an instrument that would support a cross-divisional. Six Sigma initiative spreading its automotive, building, and battery divisions worldwide across 300+ plants and territories.

Best Practice Deployment

Utilizing PowerSteering, JCI fabricated two best-practice deployment activities through the Six Sigma Process. The first, called workstream inside, utilizing labels to distinguish best practice classifications inside the different business units.

The workstream groups hold ordinary meetings to deal with the deployment and track the activities using PowerSteering. Both the status and advantages we see all the time. The second, inside known as “push” strategy, is a “mass arrangement” of best practices over the venture through PowerSteering’s work age functionality.

Also Check Our Other Certification

Best Practice Sharing Process Flow In Six Sigma case study

JCI highly esteems continuously recording accepting practices over its undertaking with PowerSteering. Topic specialists involve a best practice audit board that screens best practice thoughts submitted from anyone over the organization.

The entries must incorporate proven outcome, enablers, implementation guidance, cost/advantage details, and the submitter’s contact data. The source of these thoughts incorporates CI initiatives from different plants or just best practice thoughts developed by different effective groups.

All thoughts are reject or approve. The best practice group evaluates all thoughts and buckets them in specific classes: dismissed, pull, or push. The “pull” thoughts are approve for groups around the world to audit and send by utilizing PowerSteering’s CI web engine (item/process/keyword).

The “push” class speaks the basic few thoughts selected for rollout by JCI’s leadership team.

One example of the utilization of the arrangement is identify with “supportability” best practices. Six prescribe procedures were recognize in specific plants to improve energy proficiency and reduce greenhouse gas emissions.

These key accepted procedures were sent utilizing Power Steering to over 250 plant locations around the world.

A corporate “best practice champion” followed and gave an account on the execution of the best procedures through Six Sigma Process which guarantee that all plants finished them and to measure funds and results accomplished.

Best Practice Lessons Learned From Six Sigma case study

With the assistance of PowerSteering’s Six Sigma programming, JCI keeps on depending on its demonstrated best practice workstream approach.

This methodology has been very effective not only because of PowerSteering but also because of the business group ownership. The “push” organization has been powerful as well thanks to high-level executive support and standard status following. PowerSteering is a key way to convey JCI’s accepted procedures.

Organized Innovation—How Johnson & Johnson Makes Six Sigma Process Work for the Organization

organized innovation

Six sigma case study shows a division of Johnson & Johnson, who examines how organized development can give you with the methods to channel your ideation procedure more productively and adequately, consequently leaving your organization with no decision but to innovate. You will find out systematic creative thinking, the organized innovation procedure, and how it can assist your organization to tap into the development based on an illogical strategy of starting with a hypothetical arrangement and working in reverse to discover the issues that that solution solves.

You will also know about the five formats—got from a particular arrangement of innovation designs—that how the organization has used them to think up with a way to innovatively enhance existing products, medical procedures, and organizational plan.

Figure out how Johnson & Johnson is utilizing Six Sigma Process, Lean and different methods to accomplish process excellence in its manufacturing operations.

Johnson & Johnson’s reaction to these difficulties was to build up a corporate “Procedure Excellence” program several years ago. The program was intend to give a systematic technique for estimating, examining, and improving all the organization’s business forms, continuously.

Its objective was to distinguish basic areas where improvement would make breakthrough results in market penetration and organizational speed, and diminish the cost of working together.

The program was designe to permit the organization to make non-stop improvements in cost and defect reductions and profitability and to use improve compliance as an upper hand.

As a developing number of pharmaceutical organizations are realizing, Six Sigma case study shows the use of the toolkits and approaches of the six Sigma Process and Lean can add huge worth.

Each is valuable, even when applied in isolation. However, they become even more powerful when coordinated. So, instead of applying these methods independently, Johnson & Johnson is utilizing dashboard measurements, Six Sigma, Lean, and Design Excellence, to address producing improvement.

Six Sigma delivers the need to diminish variability, Lean attempts to minimize waste and improve the progression of value to the client, while Design Excellence means to apply both these ideas, proactively, to structure and advancement forms.

This article will survey a portion of the key ideas and strategies included, examine how they have been coordinated and applied at J&J’s Pharmaceutical Sourcing Group Americas (PSGA), and some of the outcomes achieved so far.

Making progress with this integrated methodology requires the following:

First, let’s review some of the fundamental principles and tools associated with this integrated approach to process excellence.

Lean Manufacturing  means to take out waste and set up a total quality ethic, with quality at the source. It incorporates associations with clients and improving procedure dependability on the manufacturing floor. It intends to streamline, coordinate or automate processes whenever possible, and integrates continuous improvements.

Ancillary related ideas include:

Beat,  the possibility that there is a natural or preferred arrangement of manufacturing activities that will limit changeovers and arrangements.

Poka-yoke ,  principles of error deduction. The objective, for this situation, is to

These ideas should be implemented in process configuration, bringing about fewer complex procedures and methods that can tolerate mistakes without resulting in product defects.

Tools utilized include:

Worth Stream Mapping.  This arrangement of activities is basic for any continuous improvement plan. WSM looks at how any specific task is handled now, and how it may be taken care more productively in the future, and gives a structure for implementing enhancements.

The exercise allows teams to distinguish between activities that add value to operations or are necessary to deliver customer requirements and those that don’t add value, which can be eliminated.

It also allows teams to differentiate both of these categories from “sustaining activities,” which aren’t necessary to deliver customer requirements, but may be necessary to sustain the business, or can’t be eliminated due to constraints.

Sustaining activities are typically incorporated into the new process but maybe targeted for gradual elimination during continuous improvement. Several factors, including the time required for each activity, are collected and analyzed in the value stream.

The value stream has been employed for several operations and processes within our facilities. Typically, this involves mapping the whole process, including details of every stage and measurements of the time required to execute.

These exercises have led the teams to eliminate non-value-added activities, streamline others. This has been achieved by implementing optimized procedures for changeovers and investing in new equipment, to further improve efficiency.

Five Ss  – The five Ss represents for: Sort, Set all together, Shine, Schedule, and Score. 5S is a strategy that centers around sorting around the working environment, and the way that materials and hardware are set up in the working environment. It additionally normalizes work systems, reducing waste and opportunities for errors.

Six Sigma  – which most likely needs no definition, measures the level of changeability as the number of deviations per unit number of procedures, activities, or products.

It is an organizational way to deal with performance excellence which points, efficiency, to wipe out the variety by Defining, Measuring, Analyzing, Implementing, and Controlling procedures, abbreviated as DMAIC.

Inside Six Sigma projects, a variety of tools are utilized. These include:

Disappointment Mode and Effects Analysis (DMEA)  – A methodological gathering of exercises that is planned to recognize and access the possible disappointment of a product, piece of equipment, or process, and the effects that failure could have.

FMEA identifies existing and potential failures and their causes and effects, and organizes disappointment modes dependent on a “Risk Priority Number’ (RPN):

RPN = Occurrence x Severity x Detection.

DMEA encourages investigating endeavors, yet makes it simpler to create procedures for corrective activities.

Venture Charters.  To permit groups to execute these procedures excellence tools more successfully, “Venture Charters” are created for each procedure experiencing improvement.

These contracts express the issue, objective, and “business case” for the work, explaining clearly to senior management why working on this problem will have a positive impact on the bottom line.

The Charter also characterizes scope, projection, cost, and advantages. Once work has advanced, achievements are recorded in the Charter too.

Model 1: Improving the Equipment-Operator Interface

At two PSGA producing sites, we broke down procedures to see where seriousness could be improved, by diminishing the loss of deals and business focus resulting from the absence of procedure reliability.

We set up two cross-useful groups, one at each site, comprised of staff from manufacturing, specialized tasks, and quality assurance divisions.

The groups were set up to survey the main root causes of any likely quality issues at the office and recognize changes and arrangements that would be best effective in removing those root causes.

The groups would also develop data to validate the focus of current improvement ventures. Distinguish robust control methodologies to regulate improvements, and recognize new key tasks of a longer span.

Using the DMAIC approach, the group’s first assignment was to create measures dependent on voice of the Customer information, interviews with clients. As well as Critical to Quality measurements and “SIPOC” maps, summarizing up Inputs to the Process and Outputs to the Customer.

The groups at that point developed compliance and cost positioning system that took under consideration. It decreased the extension to one specific focus area for every site.

At that point, the groups investigated need areas to identify issues, separating value-added from non-value included activities. Multivariate investigation and separation and different strategies were use to recognize causes.

Devices included Pareto charts, cause and impact charts, and a solutions-prioritization network.

As a result of the examination, the groups found that, at one of the offices, huge improvements can accomplish by improving the administrator. Gear interface, equipment setup, and support systems, and by decreasing complexity in the work region, and improving administrator aptitude.

Because of the work, estimated quality improved drastically. One of the regions for as much as 75% in a time of 9 months.

Model 2: Improving Process Characterization.

Procedure Excellence approaches were additionally use to improve a solid tablet item. We were the main market supplier for this item, which had been create in the 1960s and there was limit improvement history available.

The targets of the task were to advance In-process testing and its relationship to final discharge testing results. Moreover, we need to diminish any potential variability and improve process capability.

There are various steps involve in the procedure such as Dry mixing, Starch glue manufacturing, Granulation, Drying, Milling, Blending, Compression

Again, we first set definitions using Voice of the Customer and CTQ data, as well as SIPOC maps.

Measurable Analysis and Design of Experiment

Six sigma case study the Standard information from 20 batches was produce for glue arrangement, granulation, and pressure since minimal historical data were accessible.

The group then analyzed the information through procedure examination, multivariate analysis, stratification. Other different methods Hypothesis testing utilizing regression, chi-square, t-Test.

Different strategies were use to check root causes. Structure of Experiments and reaction surface optimization was then use to evaluate connections between factors.

The information gathered during the venture’s estimation stage and analyzed in circumstances. Effect charts and priority frameworks gave variables to the Structure of Experiment studies.

Regression analysis and DOE information examination gave information that permitted the group to think about enhancements. These enhancements were piloted on a small scale, and plans are in progress to implement them on a large scale.

Six sigma case study covers the importance of the Six Sigma process, it helps the administration in different ways. For e.g., it is a total administration duty, theory of excellence, client focus, process improvement. The standard of measurement as opposed to gut feel.

It is making each zone of the organization ready to meet changing needs of the clients, markets, and advancements. With benefits for workers, clients, and investors.

As we as a whole know, Six Sigma has some loopholes also. As it is tedious, requires talented man-power and some critics. Additionally say that there is nothing new in Six Sigma.

But advantages offered by Six Sigma dominate all loopholes and make it a sufficient idea to improve the procedure.

So, after going through the Six Sigma case study of Johnson & Johnson. We can say that Six Sigma is a key to overhaul the business.

Recommended Reads

Recommended Programs

Ranked No.1 Six Sigma Certification in India | Aligned to IASSC Book of Knowledge | Combining Lean and DMAIC Methodology to Impart Key Skills | Gain Experience of 12+ Projects | Both Classroom and Live Online Options Available

Lean Six Sigma Black Belt Certification Training

Ranked No.1 Six Sigma Black Belt Certification in India | 9361+ Participants Trained | Aligned to IASSC Book of Knowledge (BOK) | Gain Advanced Expertise Over Lean and Six Sigma Methodology| Gain Experience of 12+ Projects | Both Classroom and Live Online Options Available

Lean Six Sigma Master Black Belt Certification

Step-in to a new designation of being Explicit Quality Professional | Get acknowledged as a Lean Six Sigma Evangelist | Connect to the rarest community of worldwide Black Belt specialists | Validate your professional skills in leading intricate projects | Execute Lean methodologies with perfection.

Recommended videos for you

Six Sigma Green Belt Training

Six Sigma Green Belt Training Tutorial

Certified Six Sigma Black Belt Course

Best Six Sigma Black Belt Training

Shilpa Bhardwaj

A hard-working, diligent, creative professional with 7 years of Human Resources experience, a traveling enthusiast, a mom, and a true friend who loves to write and share her experiences.

six sigma company case study

Top 15 Benefits of Training Employees in The Workplace

six sigma company case study

Top 15+ Medical Coding Courses in Delhi

Related posts.

six sigma company case study

10 Best Six Sigma Green Belt Certification Courses in Lucknow: 2023 [Updated]

six sigma company case study

Top 10 Six Sigma Green Belt Certification in Chandigarh : 2023 [Updated]

six sigma company case study

15 Best Six Sigma Green Belt Courses in Hyderabad: 2023 [Updated]

six sigma company case study

Top 10 Six Sigma Certification in Florida: 2023 [Updated]

six sigma company case study

Top 11 Six Sigma Certifications in New Jersey: 2023 [Updated]

six sigma company case study

Top 10 Six Sigma Certification in Nevada: 2023[Updated]

10 comments.

' src=

Thanks for sharing a valuable topic about johnson six in India. This Blog Really it is very helpful and interesting.

This post is very nice and informative and all the information regarding sigma and johnson is really helpful.

Thanks, I really found this blog very interesting. Your article is also very useful. Your article on sigma johnson very awesome and it contains amazing tips

Excellent Work It Helped Me A lot I Was Looking For the Best Johnson & Johnson Six Sigma Process: A Six Sigma Case Study From a Long Time Thank you Soo Much Sir.

This post is very nice and informative and all the information regarding Johnson & Johnson Six Sigma Process: A Six Sigma Case Study is really helpful.

Thanks, I really found this blog very interesting. Your article is also very useful. Your article on Johnson & Johnson Six Sigma Process: A Six Sigma Case Study very awesome and it contains amazing tips

Thanks for sharing such valuable information. It is very helpful for my career. I am getting very good quality course content related to my skills.

. I have read so many articles on the topic of the Johnston & Johnson Six Sigma Process: A Six Sigma Case Study but this article is truly a pleasant article, keep it up.

Thank you for sharing this great Johnson & Johnson Six Sigma Process: A Six Sigma Case Study and helpful to earn high-quality Skills. I Really appreciate your contribution to arranging good content and best faculty in your institute.

Thank you so much for such a great Johnson & Johnson Six Sigma Process: A Six Sigma Case Study. I am glad that i found your site and visit it. I really want to appreciate you and all the best for future posts.

Join the Discussion Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

six sigma company case study

Our Career Advisor will give you a call shortly

six sigma company case study

Just purchased a course

Type above and press Enter to search. Press Esc to cancel.

Lean Six Sigma Training Certification

Six Sigma Case Study: Ford Motors

May 19th, 2017

The Ford Motor Company is one of America’s, and the world’s, largest and most successful automakers. Named after its founder Henry Ford, the company is known for its innovative and dynamic approach to manufacturing. Henry Ford pioneered and employed such manufacturing concepts as standardization, assembly lines, which came to be known as Fordism. He also paid his workers a living wage, allowing them to purchase the very products they made. Products like his famous Model T.

Ford was a visionary man. He saw the necessity of breaking down complex tasks into simpler procedures, using specialized tools, and interchangeable parts. While Ford’s assembly line was a revolutionary achievement, his work grew from solidified ideas, with an eye for continuous improvement. Ford looked at established modes and broke them down into their core components, before building them back up again. He strove to take existing processes and always make them more functional, efficient, and effective. There were many advantages to Ford’s ideas. Namely, the significant decrease in costs of production, radically simplifying the labor process and reducing required the workforce.

Learn More About Lean Six Sigma Online Program

But how are Six Sigma and all its related approaches, like Lean and Kaizen , related to Ford? As you may know, Ford is a company known for its high quality. The company has pledged to utilize innovative products and use Total Quality Management to accomplish its goal of Quality Is Job 1 . JD Power and Associates ranked Ford as one of the leading high-quality automakers, but Ford has come a long way in the last few decades. Today we examine just how the Ford Motor Company used Six Sigma to transform its processes and achieve its success.

Why Was Six Sigma Necessary for Ford?

There are four core factors behind Ford’s Six Sigma initiative. These are:

Ford’s Approach to Six Sigma

The Ford Motor Company began using Six Sigma strategy in the late nineties. Their goal was to become a fully-fledged consumer products company and not just another automobile manufacturer. Additionally, they wished to enhance the quality of their products and to improve their customer satisfaction rates. Their approach towards achieving these goals they referred to as Consumer-driven Six Sigma. Furthermore, Ford was the world’s very first automaker company to implement Six Sigma methodology into their business operations on a large scale.

One of the most pressing problems facing Ford at the time was the 20,000 plus opportunities for defects that came with manufacturing cars. Despite the company’s prior history of quality control and innovation, some defects inevitably slipped through their fingers. Following this revelation, they achieved substantial improvements using Six Sigma. Their aim was to reduce their defect rate to only a single defect per every 14.8 vehicles, and they succeeded. Furthermore, this also satisfied their goal of enhancing customer satisfaction. In Six Sigma, even the smallest change can have a ripple effect, helping to change other processes and move towards continuous improvement.

Obstacles for Ford’s Six Sigma Initiative

Despite its success, there were several obstacles in the way of Ford’s Six Sigma implementation. These are:

Ford’s Six Sigma Successes

Ford’s use of Six Sigma methodology, while it did provide some road bumps, enabled them to eliminate more than $2.19 billion in waste over the last decade and a half. They solved this problem by applying Lean Six Sigma techniques , such as a data-driven problem-solving process, to devise solutions to waste issues. Moreover, the company’s methodologies for quality improvement and waste elimination saw a staggering impact on the company’s operations. Ford’s Consumer-driven Six Sigma has saved them over a billion dollars worldwide, helping complete almost 10,000 improvement projects since the early 2000s. Regarding customer satisfaction, Ford managed to increase their percentage by five points. We may go as far as to say that Six Sigma saved Ford from its deep-rooted problems. These issues include inadequate productivity, poor use of resources, low customer satisfaction, and environmental unfriendliness.

Contact us and find out how we can positively help you plan and change the culture and operations of your organization. We offer Six Sigma Green Belt and Six Sigma Black Belt training programs, as well as a Six Sigma Master Black Belt program.

SixSigma.us offers both Live Virtual classes as well as Online Self-Paced training. Most option includes access to the same great Master Black Belt instructors that teach our World Class in-person sessions. Sign-up today!

Virtual Classroom Training Programs Self-Paced Online Training Programs

SixSigma.us Accreditation & Affiliations

Monthly management tips.

" * " indicates required fields

six sigma company case study

Lean Six Sigma Project Examples | 17 Full Case Studies

Ready to begin your first Lean Six Sigma project? Looking for examples for inspiration or reference to get you started? Here are some project storyboards from different industries and from home. Remember, Lean Six Sigma can help you with more than just work!

Governments

Manufacturing

Lean Reviews: Stories from Our Customers

Over the past 2 years, over 2,000 learners (2,197 to be exact) have come to DCM to learn more about lean and get certified.  Read (and watch) their reviews to see how our courses have helped them achieve their career goals.

six sigma company case study

Inhouse Tailored Training for Your Team

We provide training programs that are developed by industry, for industry. Our range of programs can be delivered in a way that suits the needs of your business to offer your employees learning that is accessible and flexible.

We add value to your business by providing specialised, flexible and scalable training that meets your training needs. As your workforce grows and evolves, our globally certified and industry-validated learning solutions can assess, train and qualify your employees. For more information on how we can help please visit the in-house training page .

Membership, Stay Connected. Stay Relevant.

Completing a program is a point-in-time exercise that delivers huge value, but there is a next step to maintaining the currency of your skills in the ever-evolving professional world.

Membership is the next step .

A unique platform, membership is designed to ensure that you are in tune and up-to-date with the latest tools, trends and developments. Being a member provides just-in-time training and continuous professional development, and an exclusive and evolving content library informed by subject matter experts and industry leaders.

six sigma company case study

People who make learning a regular habit are more likely to achieve their goals. Sign up and we'll send you exclusive content.

Thanks for signing up. Here are some training courses for you to explore.

By clicking “Start Learning”, you agree to our terms and privacy policy .

Free Bitesize Courses

We have over 100 free courses available to explore, all created by expert trainers, packed full of practical exercises and real-world examples.

Make sure you Safeguard Your Training Investment . DCM offer courses accredited by:

six sigma company case study

Course Categories

six sigma company case study

*Add your email and we will send you the full course directory to review at a time that suits you.

six sigma company case study

Open Your Brochure

Just to let you know, we are offering €200 credit for the course when you become a member with DCM.

We are very proud of our advisory team in DCM Learning. If you have any questions at all please feel free to ask our team. They will be more than happy to help.

We value your privacy and we will only get in touch about upcoming courses or events that are available to members.

It's so simple... We'll send you the €200 credit and access to the exclusive members area with a full list of the free courses.

By clicking “Get Your Voucher”, you agree to our terms and privacy policy .

Six Sigma Study Guide

Six Sigma Study Guide

Study notes and guides for Six Sigma certification tests

Ted Hessing

Telecom Lean Six Sigma Case Study

Posted by Ted Hessing

Telecom manufacturing has undergone significant changes since the dot-com bubble burst, leading to competition from Asia. As a result, success now requires more effort, and the joint strategy of Lean Six Sigma is one way to survive. Here’s a Telecom Lean Six Sigma Case Study to bring this story to life.

Researchers from Jönköping University in Sweden conducted a study on the Swedish telecom manufacturing industry. They wanted to see if using Lean Six Sigma together could make the industry more flexible, robust, and cost-efficient.

The research analyzed a Six Sigma project in 2002 and followed its outcome longitudinally until 2014. The study focuses only on large companies with large resources and controls over supply chain operations.

This article explains how to use Six Sigma for a project in a Lean environment. The authors describe their implementation of this method in the following sections.

The Application of Lean Six Sigma In Telecom Manufacturing Case Study

The phone company works on a quality improvement project to make their products better and cheaper to meet customers’ wants.

Ericsson Group carried out the project in a production facility in Borås, Sweden. The researchers examined the assembly and testing procedures of the MINI-LINK manufacturing line. Push system focused on senior management collaborating with researchers to meet objectives.

The researchers talked to staff, observed, and reviewed documents to get information about their study processes. Finally, the team initiated and implemented the Lean Six Sigma methodology to achieve the project’s goal.

Telecom Lean Six Sigma Case Study 1

Lean focuses on improving customer value and achieving continuous improvement by taking small steps. This approach is suitable for a variety of manufacturing and distribution scenarios. Lean focuses on critical concepts like understanding customer value, value stream analysi s, flow, pull, and perfection.

The researchers used a process improvement method called DMAIC from Six Sigma, which has five phases to reach their goal.

The DMAIC cycle involves:

Telecom Lean Six Sigma Case Study by DMAIC Phase

Here is how this implementation of the DMAIC cycle focused on saving money variability and achieving the telecom manufacturing company objectives. 

Define Phase

The first step is identifying the area that requires improvement and the most suitable team members to execute the project. Defining problems is best achieved with a well-defined vision and a strategic approach to enhance service quality.

During the define phase , the team tried to:

Each of these is a crucial step in any successful project.

Additionally, researchers identify the stakeholders and capture the voice of customers (VOCs). Customer requirements are divided into Critical to Quality CTQ parameters to focus on key aspects for the team. The team conducted a SIPOC and SWOT analysis to ease project success and break down customer requirements into CTQ parameters .

Measure Phase

During the measure phase , the researchers identified defects in exceptional service. The CTQ chart is a useful Six Sigma tool used at this stage, revealing crucial processes necessary for success. In this phase, team members assess the current processes and avoid making changes.

The team established the baseline performance for the production facility process and collected all data during this phase. Collecting enough data for a reliable project outcome is important while avoiding spending time on unnecessary data.

Analyze Phase

To find the root causes , the researchers analyzed the data measured. They then prioritize the sources to determine which ones require the most urgent action. For example, the assembly analysis revealed only one accurate MINI-LINK assembly out of five with the correct index pair.

Telecom Lean Six Sigma Case Study 2

They also perform calibration consistency analysis. The study found that broken parts cause problems and make things less reliable, which means more stuff needs to be stored before fixing them.

Telecom Lean Six Sigma Case Study 3

Successive processes increase the disorder further. Cause and Effect Diagrams , frequency plots and graphs, and scatter plots and diagrams are helpful Six Sigma tools.

Improve Phase

After identifying the root cause of the problem, the Improve phase of DMAIC aims to discover a lasting solution. It involves reducing the number of products in the process to expose system problems and lead to further improvement. Besides, implementing specific measures can make the process more robust and flexible. These measures include ceasing picking when the buffer stock exceeds 12 units and requesting assistance when the buffer stock falls below six teams. These steps can lead to additional improvements.

The implementation of these changes resulted in a system that was more reliable, robust, and aligned with an agile approach. In addition, the team made some changes to MINI-LINK’s transportation and staff walking distances. As a result, they could assign some staff to other tasks based on calculated Takt time .

The researchers made some changes that made the system better. It’s now more dependable, strong, and can adapt easily using agile principles. Furthermore, there were notable quantitative improvements. Significant reductions were made to refinement time while ensuring delivery precision. The lead time was reduced from 80 to 48 hours or less for 98% of the products. This reduction in lead time was one of the critical objectives of the changes.

Before these changes, the repair process was a critical issue, but waiting time decreased after modifying the routine and flow. In addition, the research showed that values improved over time with the introduction of the last phase of the Lean concept.

Control Phase

This phase is the final step of the DMAIC process. The Control phase involves monitoring things and taking action if there are any problems.

After finishing the “Improve” step and doing everything the team planned, they saved more than 1 million euros annually. This shows that Six Sigma helps us improve our work, more adaptable, tougher, and cheaper.

Ericsson Group worked on building a stronger team by having group activities that helped everyone share the same values. They also had training sessions twice a year and quick meetings between shifts to make the team feel more connected. Additionally, they incorporated the Lean philosophy to achieve sustained improvement. This included implementing a PDCA cycle for continuous improvement, TPM , VMS application thrice daily, visualization routines , and waste reduction .

Telecom companies can save money, make employees happier, and plan better by using these tools. For example, VMS can turn boring data into pictures that are easy to understand, changing the way the company works.

Telecom Lean Six Sigma Case Study Conclusion

Combining Six Sigma and Lean are practical manufacturing tools that complement each other. Lean helps to make work smoother by getting rid of things that don’t help. Six Sigma makes sure everything is consistent by finding the cause of problems. This helps to make work better, faster, and cheaper.

To make things even better, Lean adds important things like getting rid of waste, using visual aids, keeping things in good shape, always trying to get better, and letting people work together. Using Lean Six Sigma, we can ensure work is done well, can change when needed, is strong, and doesn’t cost too much. But, we also need to train people, make sure everyone in the company is working together, and partner with others to make it work even better. These measures will help functions remain agile in changing environments.

I originally created SixSigmaStudyGuide.com to help me prepare for my own Black belt exams. Overtime I've grown the site to help tens of thousands of Six Sigma belt candidates prepare for their Green Belt & Black Belt exams. Go here to learn how to pass your Six Sigma exam the 1st time through!

View all posts

Sarah Dosunmu

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Insert/edit link

Enter the destination URL

Or link to existing content

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

paper cover thumbnail

Six Sigma in Electronics Company: A Case Study on Samsung

Profile image of Ramesh Kumar

Six Sigma is a method that provides organizations equipment to improve the capability of their business procedures. This increase in performance and decrease in process variation lead to defect reduction and enhancement in profits, employee morale, and high quality of product or service. Six Sigma quality is a term normally used to indicate a process is well in control. Electronics have become an important part of human life. Electronics is used every work done by the human being. cooking food, health, in driving, in watching and many other things you will see the existence of electronics around. in this paper we will discuss about the six sigma application in samsung.

Related Papers

Eleni Voutsa

six sigma company case study

The Tqm Journal

Anil Kumar Lal

iaeme iaeme

International Journal of Lean Six Sigma

Gregory Watson

Abhishek Yadav

IJERA Journal

Kanuranjan Bakshi

Mahipal Sharma

Six sigma is a quality improvement tool to measure the process outputs for error reducing system. It aims to maximize user/ customer satisfaction and minimize defects in products and services being offered by an organization. To evaluate “users satisfaction” and to develop the “quality” of the library, it is mandatory to bring a new innovation. To provide maximum users’ satisfaction, it is necessary to implement Six Sigma in Libraries. This paper elaborates Six Sigma tools and emphasizes on how to implement the six sigma tool in library management for identifying the key functional areas to achieve the user’s satisfaction with continuous process. This study aims to implement Six Sigma to provide better service and full satisfaction to the library users.

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

jiju1968 antony

Cyro Barretto

IJESRT Journal

Sang Mualim

… Journal of Quality & …

Jiju Antony

ΒΑΣΙΛΕΙΟΣ ΙΣΜΥΡΛΗΣ

Marly Monteiro de Carvalho

International Journal of Six Sigma and Competitive Advantage

Rick Edgeman

Thuy Nguyen Ngoc

Frank Anbari

International Journal of Performability …

Michael Pecht

Lal Mohan Baral

Mnj Nataraj

Pedro Alexandre Marques , José Requeijo , Pedro Saraiva

IAEME Publication

eSAT Journals

Sunil Kumar Jauhar

International Journal of Productivity and Quality Management

Suhaiza Zailani

Bernardo Nicoletti

European Journal of Business and Management

Charles Mensah

Rahul Goldy

Bernard Baiden

Guilherme L Roehe Vaccaro

IJMSBR Open Access Journal , Michael Glykas

International Journal of Innovations in Engineering and Science, ISSN:2456-3463 IJIES

Fahim Ullah , Prof. Dr. Hamza F Gabriel

mmUPIA 2016

Parani Tharan

TJPRC Publication

Dr Paul Barach

International Journal of Production Research

Leopoldo Gutierrez

Leopoldo Gutierrez , Cristina Alcaide-Muñoz

Mohamed Elsherif

Vanesa Barrales-Molina , Leopoldo Gutierrez

Sixsigma DSI

Lean Six Sigma Case Studies

A lean six sigma project to reduce leadtime at a tubing company.

by Kevin Clay | Jan 19, 2015 | Case Studies , SSDSI Blog

A LEAN SIX SIGMA PROJECT TO REDUCE LEADTIME AT A TUBING COMPANY SSDSI used "Day 0" of the event to complete data analysis to reduce the scope of the project. The company in question is a high SKU environment and their original request was to reduce the lead time in...

Healthcare Case Study

Healthcare Case Study

Healthcare Case Study LEAN LEAN Definition LEAN is a production method aimed primarily ... Learn More... 5S Lean 5S Visual Management Training The Lean 5S training tool... Learn More... Event at a Health Care Center to Increase Bed Space and Remove the need for a Proposed New Facility. Six Sigma Six Sigma Definition: Six Sigma is a set of techniques and t... Learn More... Development Solutions, Inc. was invited to a Health Care Center in South Texas by a new CEO. This hospital was in the planning...

SIX SIGMA CASE STUDY TO REDUCE LEAKERS

LEAN SIX SIGMA PROJECT CASE STUDY TO REDUCE LEAKERS In this Lean Six Sigma project case study, we were tasked with reducing the amount of "Leakers" on a Bartelt Line producing Pistachios using the Six Sigma DMAIC DMAIC is an abbreviation of the five improvement steps it co... Learn More... process There are many ways to organize your lean six sigma processe... . First, we completed a SIPOC to determine if...

LEAN SIX SIGMA PROJECT AT HELPDESK TO REDUCE OFFICE 365 OUTLOOK INCIDENT TICKETS

This company’s helpdesk team discovered what most helpdesk teams learn when they first embark on a Six Sigma journey …that only reacting to the incident tickets will never get you to a significantly improved process. By understanding the root cause, and controlling...

Quick Changeover Event on a Mold Setup Process

Quick Changeover Event on a Mold Setup Process

What is SMED? Lean Six Sigma SMED meaning (Definition: Single Minute Exchange of Die) is a system that dramatically reduces the time required to complete equipment changeovers. It aims to make as many of the changeover steps as possible "external" (performed while...

Insert/edit link

Enter the destination URL

Or link to existing content

Six Sigma Daily

Case Study: Six Sigma for Small Business

' src=

Six Sigma has proven to work for huge companies like Motorola and GE, which accumulate a lot of waste and redundancy because of their sheer size. But what about smaller organizations? What about local businesses?

What about your company?

Is Six Sigma worthwhile for smaller institutions who don’t have hundred-man teams, or thousand-step processes?

Well, in October 2017, three people asked that same question. They conducted a study, and they published their findings in the Advances of Mechanic Engineering section of  SAGE Journals .

Two of the authors – Murilo Riyuzo Vendrame Takao and Iris Bento da Silva – work in mechanical engineering at the University of São Paulo, in São Carlos Brazil. The other author, Jason Woldt, teaches management classes at the University of Wisconsin-Platteville. They put their heads together to create a comprehensive study on the effects of Six Sigma, as it applied to one specific small-to-medium-sized enterprise…

A plumbing product distribution business.

Spoilers: Six Sigma works.

It has worked for huge businesses like General Electric, and it still works for small- and medium-sized enterprises (SMEs) like your neighborhood lemonade stand.

“This article uses a case study highlighting the implementation of Six Sigma methodology in a North American manufacturer of plumbing products (SME). Each step of the process is properly described, and the results are also presented,” the authors said.

“We conclude that it is possible to identify the improvements and benefits achieved by the implementation of the Six Sigma quality program in an SME environment.”

How did they reach this conclusion? What did they find?

The Six Sigma Difference

They discovered that Six Sigma is different from other quality management programs because of the structured application of its tools and procedures (and, specifically, how those tools integrate with the goals of an organization).

These tools are used to facilitate each step of DMAIC – a project development framework, and a tent-pole of Six Sigma. It stands for…

Define: Figure out the scope and importance of your project, identify the needs of your consumers, and then assemble the team responsible for the project’s execution.

Measure: Pinpoint the problem you’re trying to solve, gather all the data you need, determine priority problems, and establish goals.

Analyze: Discover the cause of the priority problems and figure out where the problems start.

Improve: Propose, evaluate, and implement solutions to priority problems.

Control: Maintain the scope of the long-term goal, monitor performance, and take corrective action to keep on track.

Video: What is Six Sigma?

Levels of Six Sigma

DMAIC works across all levels and scopes of Six Sigma projects and practitioners. And for your reference, Six Sigma features a hierarchy of six components:

White and Yellow Belts: those practitioners who are trained in the basic tools of Six Sigma.

Green Belts: those practitioners dedicated to improvements within a project.

Black Belts: those practitioners who lead projects and train staff.

Master Black Belts: those practitioners who connect the general management of Six Sigma projects to the people responsible for the improvement projects.

Champions: members of the executive committee.

Sponsors: those who promote and define the guidelines for Six Sigma implementation.

The Case Study

There are dozens of tools that can be used during DMAIC, and the research dives into their case study to show a few tools in action.

The case study covers a period of about 18 months, following (as previously mentioned) a plumbing product distributor. The company wasn’t being well-received by its customers, and it endeavored to find out why.

Enter the Define phase. One of the tools they used was called voice of the customer (VoC), which defines the needs and requirements of your customer base. It’s a very important tool for a company that’s not getting a lot of positive reviews. For the case study, VoC showed that customers expected prompt delivery, correct product selection, and a knowledgeable distribution team.

Six Sigma DMAIC

So, with their problem discovered, they ventured into the Analyze phase, where they worked to answer one question – why was their delivery so slow, compared to their competitors? They brainstormed causes, and came up with four potential causes: (1) the accuracy of the sales plans, (2) safety stock issues, (3) vendor delivery performance, and (4) falling behind the manufacturing schedule. They conducted regression analysis on all potential causes, to see which one would cause the most trouble. And they found it. After creating a Pareto diagram , they realized that 74% of their sales came from only 21% of their products – and there wasn’t enough safety stock to get those in-demand products to all the customers who wanted them.

That led to the Improve phase, where they aimed to solve the problem. They started by implementing a monthly demand review, to make sure the in-demand products stayed in-demand, and it wasn’t a one-time fluke. The second measure was to actually order and provide the customers with the products they wanted.

The Control phase was simple. They wanted to make sure their solutions worked for as long as possible, so they created plans to monitor sales on their bestselling 21% of products (to make sure they weren’t exceeding or under-supplying demand). And every year, they’d review how well those products sold; if a product started following out of high demand, they could replace it with a product that was coming into high demand.

The Results

After 18 months with the plumbing product distributor, the researchers came to a confident conclusion.

“This case study illustrates that quality management and its tools should be increasingly adopted regardless of whether they are SMEs or large companies. Thus, in order to achieve competitiveness, the Six Sigma methodology should be much more applied in the SMEs, due to the interrelationship with the stakeholders and limited use of consultancies.”

Using Six Sigma principles , the company in the case study increased their annual sales by $248,034. They reduced delivery time by more than four full days.

The Takeaway

This research is another point in favor of process improvement methodologies. It doesn’t matter how big your company is, how many employees you have, or how much revenue you gross every year.

All. Companies. Have. Processes.

Whether you’re distributing plumbing supplies, making billion-dollar acquisitions, or selling lemonade on the street corner, Six Sigma is absolutely worth looking into.

six sigma company case study

Ergonomics Case Study: The Dow Chemical Company's Use of the "Six Sigma" Methodology

OSHA Small Business Home

Company:  The Dow Chemical Company

May 15, 2004

The Problem: Reducing Musculoskeletal Disorders

Ergonomics-related injuries, including musculoskeletal disorders (MSDs) caused by repetitive strains, continue to be a serious problem for employers. In 2002, ergonomics-related injuries accounted for a third of all workplace injuries involving missed work time, with an average absence of nine days per injury. 1  The resulting worker injury claims and loss of productivity are estimated to cost $13 to $20 million per year for U.S. employers. 2  As computer workstation users spend more and more time at desktops, the risk of MSDs occurring has increased. Yet, as illustrated below, in many companies there are inherent difficulties and concerns associated with addressing this increased ergonomics risk.

For example, Tricia, the Environmental, Health and Safety (EH&S) Leader for the Specialty Chemicals Business of The Dow Chemical Company, wants to reduce MSDs among computer workstation users throughout her business' various divisions and operations. Before she can understand what changes to make in either the workstations or the work practices in those divisions, she must identify the root causes of MSDs among the operators. Although she has some theories, Tricia does not know for sure what factors are causing or contributing to the employees' MSD complaints. Only by knowing the root causes can she implement with confidence controls that would achieve positive results.

Tricia also suspects, but is not sure, that many of the root causes of MSDs are the same across the different operations and divisions in her business. Because of constraints on both her budget and time, Tricia would like to design one basic program that is flexible enough to implement company-wide. She also knows that any reductions achieved under the new program must be sustained over the long term, and she is concerned that over time employees and managers will "backslide" on their commitment to the program and return to their ergonomically risky behaviors.

Fortunately for Tricia, she could refer to a similar project successfully undertaken by the Design and Construction function of The Dow Chemical Company, which is discussed in the case study below. This project, which utilized a problem-solving methodology called "Six Sigma," offered an innovative way to address Tricia's concerns for the development and implementation of a sustainable program to reduce MSDs throughout her business.

A Solution: The Dow Chemical Company's Innovative Use of "Six Sigma" 3

Avoiding ergonomics-related injuries is an important component of The Dow Chemical Company's ("Dow" or "the Company") overall emphasis on safety and health. Dow is a science and technology company that develops, manufactures and provides various chemical, plastic and agricultural products and services for customers in over 180 countries. In 1994, Dow adopted a set of voluntary 10-year EH&S goals to dramatically improve the Company's performance by 2005. These goals call for a reduction in the Company's reportable injury and illness rate by 90 percent to 0.24.

In 2000, the company identified an opportunity to improve its injury rate within the Dow Design and Construction business unit. Dow Design and Construction ("DDC") is responsible for managing the design and construction of Dow's facilities worldwide. Because DDC's approximately 1,250 workers (including employees and contractors) work primarily at desktop workstations, where they spend the majority of their time working at computer keyboards, they were increasingly susceptible to ergonomics injuries. While the rate of ergonomics-related injuries among the DDC workers was low (only three were reported in 1999), the Company chose to make proactive improvements before ergonomic injuries increased in number or severity.

Dow's EH&S function decided to address ergonomic injuries at DDC using the "Six Sigma" problem solving methodology. "Six Sigma" is a disciplined, process-oriented approach to problem solving, adopted by Dow and many other companies, which emphasizes the reduction of defects in processes, products and services by applying a four-step improvement methodology. Because "Six Sigma" emphasizes sustainable results over short-term fixes, Dow has found it particularly useful for EH&S projects. Following the steps prescribed under "Six Sigma", Dow developed a "Six Sigma" project team, which first defined the primary contributing factors to MSDs in the DDC function, and then sought to reduce the those factors by 70 percent. While each of the four steps of the "Six Sigma" project are outlined below, a more detailed discussion of the "Six Sigma" methodology appears at the end of this case study.

Step 1: Measure

Once the "Six Sigma" project team developed its charter and defined its task, it then began by defining the current process. First, the team outlined the sequence of events from workstation assignment to task performance and potential injury. They next identified a series of key variables affecting the process outcome that included:

In this phase of the "Six Sigma" method, the "defect" - a measurable outcome of the process for which improvement is desired - is defined. While the true "defect" for this process would be the occurrence of an ergonomic injury, there were so few at the start of the project that measuring a statistically significant improvement was going to be difficult. Therefore, the key process variables identified were taken as the "defect," and a goal of 70% improvement (reduction) in the baseline level was set for the project. Scored surveys of DDC workstation users were developed and conducted on the variables identified and used to measure the baseline defect level.

Step 2: Analyze

Accurately identifying the root causes of a problem, which in turn leads to more effective improvements, is an essential function of the "Six Sigma" methodology. Therefore, the project team next analyzed the collected survey data to determine differences in the workstations, work environments, user training, and behavior at the different DDC sites. The team then identified possible root causes underlying these variables using several of the "Six Sigma" tools and methodologies, including brainstorming, 'fishbone' diagramming, a work performance matrix, and Antecedant-Behavior-Consequence and Balance of Consequences analyses. After developing a list of possible root causes, the team used additional "Six Sigma" tools and methodologies to identify probable root causes and validate them. For example, one possible root cause identified was a failure of the employee to recognize the importance of ergonomics compliance to his or her personal well-being. This root cause was validated by the employee survey, in which many of the employees expressed an attitude of "it won't happen to me."

Other key root causes validated through this process were the lack of adjustable furniture at some worksites and a lack of "ownership" in personal safety on the part of the employee. The team also determined that ergonomics was not emphasized by DDC to the same extent as other, more immediate, safety issues such as the use of personal protective equipment in hazardous environments.

Step 3: Improve

After determining the most significant root causes through analysis and validation, the project team developed a series of improvements to correct the identified root causes, including both work-related and personal risk factors. Workstation deficiencies were easily addressed by implementing a workstation upgrade plan. Elevating workstation ergonomics to the same level of importance as other personal safety and health issues was a more challenging improvement. However, the team elevated the focus on workstation ergonomics by improving awareness on the part of management and employees and by altering employee behavior and work habits through increased accountability.

The project team developed a novel approach to raising employee awareness by collecting a series of personal testimonials from other employees and posting them on the Company's intranet site. These testimonials were supplemented by more traditional communications, including regular work group safety meetings, training, and increased ergonomics resources. At each facility, the company also designated Ergonomic Focal Points and Ergonomic Contacts, DDC workers who volunteered to receive specialized training and be available as a first point of contact for ergonomic concerns and questions. The team addressed employee behavior by providing feedback to individuals, creating a specific channel for early reporting of discomfort, and developing a health assessment program to address the early warning signs of potential MSDs. Employee personal accountability was addressed by implementing a "Safety First" mentality that stressed ergonomics as a key issue in personal safety and not a separate stand-alone topic.

These improvements are not static, but are a part of an ongoing ergonomics safety and health process. For example, while furniture improvements have been implemented, it is understood that the workstations will continually evolve to meet the employees' changing needs.

Step 4: Control

After the immediate improvements were implemented, the project team developed a long-term control plan designed to sustain the achievements. The control plan took the sequence of events which might contribute to an injury, as outlined in the Measure step, and added a series of performance standards, measures, responsibilities, and contingency plans. For example, in the original sequence, an employee was instructed to attend ergonomics training when starting a job, but there was no control measure to ensure this took place. Under the control plan, the employee is now required to attend the training within 30 days of job assignment, and the designated Ergo Contact at the job site is alerted and follows up with the employee if the employee fails to attend within that timeframe. Each step in the sequence has a similar control, ensuring that the improved process is followed long after the conclusion of the project.

Results of the Project

DDC made immediate improvements in the identified risk factors, which have been reduced 64% since the baseline measurement and by more than 45% overall. These improvements have been well received by the DDC's management and workers, and employees are proactive in addressing discomfort and have a better understanding of the personal benefits of ergonomics. As improvements like these have been repeated throughout the Company, the severity of ergonomics injuries has declined. In 2001, 53% of the Company's ergonomic injuries resulted in lost work time or advanced medical treatment. However, in 2003, only 30% of ergonomic injuries were this severe; the remaining 70% of cases required only first aid or precautionary measures. This result, in turn, has contributed to Dow's 2005 goal of reducing the Company's reportable injury and illness rate by 90 percent to 0.24.

Moreover, by virtue of the "Six Sigma" Methodology's emphasis on long-term control, the project has developed an ongoing process that will help the DDC sustain its immediate results and continue to improve. The positive results of this project have been shared with Tricia and other EH&S managers at other business units, leading to similar projects throughout the company.

Dow believes that using "Six Sigma" for EH&S projects such as these enables employers to develop program improvements based on measurement and analysis, rather than speculation, resulting in a more cost-efficient and sustainable fix that will yield benefits indefinitely. Rather than undertaking costly trial and error attempts at solutions, the Company was able to identify the root causes of ergonomic injuries with confidence and make improvements to the ergonomics program in a systematic and sustainable way.

Sidebar: "Six Sigma" Methodology

The Greek letter sigma (σ) is used in mathematics to represent standard deviation, or how much a process varies from its average value. Under the "Six Sigma" methodology, deficiencies are described in terms of "defects" per million opportunities, with the score of 6σ equal to 3.4 defects per million opportunities. "Six Sigma" uses the following four-step process known as MAIC (Measure, Analyze, Improve, Control) to significantly reduce defects in processes, products, and/or services:

The methodology can be applied to any process that allows the measurement of benefits and improvements in defect reduction, whether in the manufacture of a product, the delivery of a service, the control of costs, or the management of injuries and illnesses.

Dow has adopted the "Six Sigma" methodology to accelerate the company's improvement in quality and productivity. Dow has expanded the use of the "Six Sigma" approach to help manage aspects of the Company's operations beyond production and quality, including the safety and health of its workforce. Some of the projects to which Dow has applied the "Six Sigma" methodology include:

These projects have been key components of Dow's 2005 Environmental, Health and Safety Goals, which include reducing Dow's reportable injury and illness rate by 90% to 0.24.

As the example in our case study illustrates, Dow's Environmental Health and Safety (EHS) function has found the "Six Sigma" methodology particularly useful in identifying and validating root causes that are hard to discern because of their subjectivity, and in focusing improvements to an ergonomics program in ways that caused measurable improvements. Moreover, since the "Six Sigma" process includes implementation of controls to ensure that achievements are sustained over a long-term period, the Company expects to realize the benefits of its efforts for years to come.

This product was funded under GS 35F 5544H for the US Department of Labor, Occupational Safety and Health Administration. The views expressed herein do not necessarily represent the official position or policy of the U.S. Department of Labor.

Tel: 404.793.0778

logo-red.png

How General Electric Used Six Sigma to Transform Their Company

General Electric is one of America’s most recognizable brands.

How did it get here? Probably by deciding that it wasn’t going to be an average company. On its site, the company points out that globalization and technological advancement have changed the way consumers do business. Today’s consumers have access to instant information, meaning there’s little room for error.

To compete with the rest of the world, innovators at GE knew they needed to be more than average. They needed to be exceptional so in the late 1980s, the company began focusing solely on quality control. In 1995, CEO Jack Welch made a goal for GE to become a Six Sigma company within five years by adopting the “Six Sigma Quality” as a part of the company’s culture.

What does Six Sigma mean to a company like GE? It means measuring the number of defects in your company processes to “systematically” determine how to reduce error and get as close to perfect efficiency as possible. According to the statistical formula behind Six Sigma, the process must only have 3.4 “defects” per million opportunities or chances for error. Obviously, this requires something very close to perfection.

According to Bright Hub PM , just two years after adopting the Six Sigma strategy, GE gained $700 million in corporate benefits. Welch applied Six Sigma in four key ways that ultimately translated to a formula for success:

1. Training:

GE required almost all employees to take a two week, 100-hour Six Sigma Training Program. Afterward, employees were asked to complete a project implementing those methodologies.

2. Mentoring:

Mentoring was key to GE’s success. Full-time, Master Black Belt Six Sigma professionals were required to train and mentor employees whose jobs were integral to key processes. After those employees were trained and mentored to become Black Belts as well, GE Black Belt teams carried out different Six Sigma projects within the company. Green Belts were also able to join projects teams to a certain capacity.

3. Leadership:

Welch also asked for a commitment to their Six Sigma goals from both executives and the GE workforce, linking promotions and bonuses to improvement in quality. A Green Belt certification became a minimum requirement for promotion at GE and almost half of each area of bonuses depended on the successful implementation of a Six Sigma project. Even the CEO and President attended training sessions.

4. Focused Implementation:

GE used three key implementation approaches.

“Show Me the Money” meant GE focused on the bottom line, cutting costs to compete in price-sensitive markets.

“Everybody Plays” meant that even outsourced suppliers were expected to participate in the Six Sigma initiative to make sure that the quality was assured from start to finish for each product.

“Specific Techniques” meant GE used process maps and other Six Sigma tools to rank and associate projects with overarching business goals. & improve

Looking to improve your business processes & grow your career?

Learn more about Lean Six Sigma training today!

#LeanSixSigma #SixSigmaCertification #SixSigmaTraining

Lean Six Sigma Training Certification

Monthly Management Tips

Six Sigma Case Study: Ford Motors

May 19th, 2017

The Ford Motor Company is one of America’s, and the world’s, largest and most successful automakers. Named after its founder Henry Ford, the company is known for its innovative and dynamic approach to manufacturing. Henry Ford pioneered and employed such manufacturing concepts as standardization, assembly lines, which came to be known as Fordism. He also paid his workers a living wage, allowing them to purchase the very products they made. Products like his famous Model T.

Ford was a visionary man. He saw the necessity of breaking down complex tasks into simpler procedures, using specialized tools, and interchangeable parts. While Ford’s assembly line was a revolutionary achievement, his work grew from solidified ideas, with an eye for continuous improvement. Ford looked at established modes and broke them down into their core components, before building them back up again. He strove to take existing processes and always make them more functional, efficient, and effective. There were many advantages to Ford’s ideas. Namely, the significant decrease in costs of production, radically simplifying the labor process and reducing required the workforce.

Learn More About Our Lean Six Sigma Training

But how are Six Sigma and all its related approaches, like Lean and Kaizen , related to Ford? As you may know, Ford is a company known for its high quality. The company has pledged to utilize innovative products and use Total Quality Management to accomplish its goal of Quality Is Job 1 . JD Power and Associates ranked Ford as one of the leading high-quality automakers, but Ford has come a long way in the last few decades. Today we examine just how the Ford Motor Company used Six Sigma to transform its processes and achieve its success.

Why Was Six Sigma Necessary for Ford?

There are four core factors behind Ford’s Six Sigma initiative. These are:

Ford’s Approach to Six Sigma

The Ford Motor Company began using Six Sigma strategy in the late nineties. Their goal was to become a fully-fledged consumer products company and not just another automobile manufacturer. Additionally, they wished to enhance the quality of their products and to improve their customer satisfaction rates. Their approach towards achieving these goals they referred to as Consumer-driven Six Sigma. Furthermore, Ford was the world’s very first automaker company to implement Six Sigma methodology into their business operations on a large scale.

One of the most pressing problems facing Ford at the time was the 20,000 plus opportunities for defects that came with manufacturing cars. Despite the company’s prior history of quality control and innovation, some defects inevitably slipped through their fingers. Following this revelation, they achieved substantial improvements using Six Sigma. Their aim was to reduce their defect rate to only a single defect per every 14.8 vehicles, and they succeeded. Furthermore, this also satisfied their goal of enhancing customer satisfaction. In Six Sigma, even the smallest change can have a ripple effect, helping to change other processes and move towards continuous improvement.

Obstacles for Ford’s Six Sigma Initiative

Despite its success, there were several obstacles in the way of Ford’s Six Sigma implementation. These are:

Ford’s Six Sigma Successes

Ford’s use of Six Sigma methodology, while it did provide some road bumps, enabled them to eliminate more than $2.19 billion in waste over the last decade and a half. They solved this problem by applying Lean Six Sigma techniques , such as a data-driven problem-solving process, to devise solutions to waste issues. Moreover, the company’s methodologies for quality improvement and waste elimination saw a staggering impact on the company’s operations. Ford’s Consumer-driven Six Sigma has saved them over a billion dollars worldwide, helping complete almost 10,000 improvement projects since the early 2000s. Regarding customer satisfaction, Ford managed to increase their percentage by five points. We may go as far as to say that Six Sigma saved Ford from its deep-rooted problems. These issues include inadequate productivity, poor use of resources, low customer satisfaction, and environmental unfriendliness.

Contact us and find out how we can positively help you plan and change the culture and operations of your organization. We offer Six Sigma Green Belt and Six Sigma Black Belt training programs, as well as a Six Sigma Master Black Belt program.

6Sigma.com - Logo

Six Sigma Case Study: Motorola Pioneers

Motorola was one of the founding organization of Six Sigma as we know it today. We can trace all of Six Sigma’s present-day and past successes back to Motorola’s pioneering work. Without them, we wouldn’t have the essential tools and strategies we used to detect and eliminate defects. Similarly, without their early work developing the methodology, there would be no Belt-based hierarchy, around which Six Sigma pivots. But how did they do it? What were Motorola’s early successes and is Six Sigma still as effective today? Keep reading to learn how they created and first implemented the greatest and most powerful improvement methodology in their work.

The Start of Six Sigma

Back in the seventies, Motorola invested their time primarily in manufacturing Quasar television sets. This was long before the advent of mobile phones, modern computers, the internet, and many of the technologies associated with Motorola. A Japanese company took over control of Motorola’s Quasar factory at the time and began implementing unheard of changes. They set about revamping and restructuring the way factory operations, rebuilding it from the ground up.

Soon, while under new management, Motorola’s Quasar factory began to produce TV sets with one-twentieth the number of defects than before. Simply put, there was something Japanese management brought to the factory that Motorola didn’t. The factory even maintained the same workforce, machinery, and design work. It soon became clear that Motorola management was the problem. It was in the next decade that Motorola knuckled down and started treating quality with the seriousness it deserves. Their then CEO, Bob Galvin, redirected Motorola towards on the quality achieving Six Sigma levels of quality. It was this decision that made Motorola a top quality and profit leader in the business world. Six Sigma was the secret to their success. And it’s just as popular and effective today as it was then!

How Does Motorola Use Six Sigma Today?

For Six Sigma, quality is about helping an organization increase profit. In Six Sigma, quality is a value contributed by a productive enterprise or activity. Motorola uses Six Sigma to maintain high efficiency by eliminating waste and defect as they discover them. This may be on a production line or even in administration.

Six Sigma aims to improve quality by minimizing variation and (overlapping with Lean) reducing waste. This helped Motorola improved its products and services, producing them faster and for less. In basic terms, Six Sigma’s goals are preventing defect, reducing cycle time, and minimizing costs. Six Sigma’s effectiveness comes from its ability to identify and eliminate waste costs, i.e. those that provide no value for customers.

Unlike Motorola, companies that eschew or dismiss Six Sigma ideas tend to have extremely costly operating processes. For those operating at low sigma, the cost of (poor) quality tends to be high, often spending 25%-40% of their revenues addressing issues. Companies operating at Six Sigma, however, typically expend less than 5% to fix problems. The dollar cost of this gap is often considerably large. This has cost companies like General Electric between $8 billion and $12 billion annually. Motorola, however, has enjoyed and still enjoys the benefits of Six Sigma. As one of its leading pioneers, they have perfected it over the years. Their success is not surprising.

No responses / comments so far.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

At home or workplace, we have you covered

Training Options

More than 500 locations

Classroom Training

Learn anytime, anywhere

Online Training

Live instructor-led training

Webinar Training

Customized training programs

On-site Training

Accelerated training programs

Blended Training

For streamlined business plans

Operational Excellence

Exclusive consulting services

Consulting Services

Fully customized programs

Group/Corporate Training

International six sigma inc. accreditation & affiliations.

IACET logo 6sigma-com

Email: [email protected] Toll Free in the US: (866) 409-1363

Courses / Training

Category: Case Studies

six sigma company case study

The Cost of Customer Misalignment (& How to Fix It)

This consumer products company has a large portfolio of products. Working with key customers, the company develops and promotes brand marketing programs to help the customer improve their sales which increases the company’s revenue as well. The CEO of the company realized the percentage of successful promotions was less than he expected. At the same […]

data analysis

Data Transformations Helped One Company Better Analyze Their Process Data

Normality of the data is an underlying assumption for the use of many statistical tools. When normality doesn’t exist, transforming the data may be necessary. Let’s see how one company did that.

pharmaceutical company DOE success

How Design of Experiments (DOE) Helped a Pharma Company Extend Product Shelf Life

Through the use of Design of Experiments (DOE), a pharmaceutical company was able to extend the shelf life for one of its life saving liquid oncology medicines. Let’s see how this saved the company money, lowered the price of the drug and helped save lives. 

six sigma company case study

Chi-Square Analysis Helped This Company Increase Sales by 8.9%

Chi-square analysis is a powerful tool for examining the relationship between variables formatted in a table. One consumer products company used it to look at its consumers in a different way, resulting in a significant increase in sales and profitability of its product portfolio.  Traditionally, an organization’s sales and marketing department makes advertising decisions based […]

six sigma company case study

Using Failure Modes and Effects Analysis (FMEA) Reduced Adverse Medical Events at This Hospital

After experiencing multiple adverse medical events, one large hospital system moved from the sole use of a reactive root cause analysis approach to include a proactive Failure Modes and Effects Analysis strategy, which significantly reduced adverse medical events.  As was the strategy at the time, a large tax supported public health system relied on root […]

Conjoint Analysis Helped This Company Develop a Blockbuster New Packaging Design and Sell More Product

Stop guessing what your customers value in your product or service. Use conjoint analysis to determine what features are most important to them and have the data to support your decisions. Conjoint analysis is often described as a design of experiments (DOE) for marketing. It is a structured way to help you identify and evaluate […]

Basic Six Sigma Tools Helped This Company Reduce Waste and Product Rejections

How hard can it be to make orange juice? As one large global company found out, no single Six Sigma tool will solve all the problems in an organization. However, the integration of a number of tools such as correlation, Measurement System Analysis (MSA), control charts, and process capability will help solve many of them.  […]

Using Binary Logistic Regression Helped a Global Financial Company Win More Business 

Let’s look at the financial division of a global conglomerate. One of its businesses was providing loans to corporate clients. Although a dominant player in the market, the company still had to compete with other organizations to provide financing and lending to myriad businesses. By using binary logistic regression to help refine its lending offers, […]

Control Charts and Employee Engagement Helped This Company Save Over $150,000 in One Year 

Providing the proper organizational environment for engaging people in your continuous improvement effort will provide large benefits for your organization. In this study, we look at how the combination of using control charts and providing an environment for people engagement helped one company achieve significant financial benefits. Control charts are a powerful tool for understanding […]

Verifying Their Data With Measurement System Analysis (MSA) Saved This Company $1M

Most businesses today brag about how they make data driven decisions on important company issues. But, what if the data is not accurate or reflective of what is really going on in the company? You might be making the wrong business decisions and inadvertently costing your company lots of money. Let’s see how one company […]

How Root Cause Analysis (and Employee Engagement) Can Save Lives and Prevent Injuries

A company producing commercial ink products noticed that injury rates during one step in their manufacturing process were rising after the introduction of a new product. A Lean Six Sigma Master Black Belt (MBB) consultant was hired to help the company try to resolve this serious problem. Was there a simple solution, or would it […]

Using SIPOC-(R) to Assess Team Culture Leads to Meaningful Dialogue About Communication

Culture is the “white whale” of leadership: in Moby Dick, Captain Ahab was obsessed with capturing the white whale, and modern leaders have a similar obsession with developing organizational culture.  Lean Six Sigma organizations task themselves with fostering a culture of continuous improvement (or kaizen) that draws from customer requirements, objective data and metrics, and […]

PPE

Case Study: Using RACI and Swimlane in the Pandemic

The problem: Healthcare providers needed to safely care for patients over the course of the pandemic. But how could they keep everyone safe without adequate supply of N95 masks?

Improved Rescue Time from a Bolling Mill Machine

Improved Rescue Time from a Bolling Mill Machine

While a Bolling mill machine creates uniform sheets of rubber with ease, it also poses a danger to an operator’s hands. Reducing rescue time and improving safety measures made for a successful Yellow Belt project in one lab.

Quick Wins Can Successfully Launch Operational Excellence in Healthcare

Quick Wins Can Successfully Launch Operational Excellence in Healthcare

If the Mayo Clinic can do it, so can you! Let this case study at the medical organization’s Phoenix Transplant Center be your guide to operational excellence in healthcare settings.

Streamlining a Hiring Process with Lean Six Sigma

Case Study: Streamlining a Hiring Process

How do you elevate a recruiting free-for-all into a standardized, efficient and well-respected process that gets new hires in the door faster? Hello, Lean Six Sigma!

Robotic Process Automation

Case Study: Edward Jones Adds Robotic Process Automation with Lean Six Sigma

In only three years, Edward Jones has realized more than a million dollars in cost avoidance through the use of bots combined with LSS.

Healthcare Paperwork

Case Study: DMAIC Project Improves Hospital’s On-time Completion of Administrative Tasks

Healthcare is a heavily regulated industry and requires substantial amounts of paperwork. Paperwork may not be as pressing as patient care, but it must be done in a timely fashion. A Lean Six Sigma project reduced the task delinquency rate in its residency program.

Image of the top of a purchase order with a blue pen lying across it

Case Study: Reducing Purchase Order Cycle Time, Part 2

A Green Belt project aimed at reducing the cycle time for purchase orders finds the bottleneck and dramatically improves the process, exceeding the project’s original goals, and even realizes bonus benefits.

Case Study: Reducing Purchase Order Cycle Time, Part 1

Using the DMAIC methodology, a Green Belt project aims to reduce the cycle time for purchase orders and straighten up a direction-less process.

Fayetteville North Carolina

From Chaos to Order: Reinvigorating a City’s Finance Department

The City of Fayetteville, North Carolina, faced a staffing crisis in its Finance department. Thanks to a DMAIC project, in just 14 weeks the City was able to turn the department’s chaos around.

Diagnostic Clinics Six Sigma Case Study

Creating Customer Delight – A Case Study in Diagnostic Clinics: Part 5 of 5

In this continuation of a multi-part case study, recurring problems are identified and eliminated at the diagnostic clinics’ newly established centralized laboratory.

Control Chart Turn Around Time

Creating Customer Delight – A Case Study in Diagnostic Clinics: Part 4 of 5

This now five-part case study focuses on improving customer satisfaction at two of a company’s diagnostic clinics – Centers A and B. In Part One, the company worked at Center A to reduce patient turnaround time, a defining component of patient satisfaction. In Part Two, the chain’s improvement story focuses on increasing patient delight at […]

Sime Darby Six Sigma

Case Study: Sime Darby Adds $250M with Lean Six Sigma

Who Is Sime Darby Plantation? Sime Darby Plantation is the world’s largest sustainable palm oil producer and has four areas of focus: Upstream: 248 estates and 72 mills where fresh fruit is processed into crude palm oil Downstream: Production of oils and fats, oleochemicals, biodiesel, other palm oil derivatives and renewables in 16 countries Research […]

THE QHSE GROUP

Services | Risk Management Training | Quality Management Training

Lean Six Sigma – DMAIC Case Study

Six Sigma is a method that provides organizations tools to improve the capability of their business processes.

This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services.

Lean Six Sigma DMAIC Case Study

The quality team at a commercial lending company is approached by the director of sales. He is very concerned about meeting his sales numbers this year.

The people on his sales team have been telling him that they are losing deals to competitors because of customer satisfaction issues: they cannot meet the customers’ expectations in terms of delivering funds on time.

Consequently, the customers are getting their loans from the firm’s competitors.

The sales director wants to know how the company can use Lean Six Sigma to decrease its response time to the customer.

Step 1: Problem Overview

Who Is the Customer?

While the internal customer for this project is the sales director, the ultimate customer for whom the process has to improve is the individual or business requesting the loan.

What Is the Project CTQ?

Based on VOC collected by the sales director, loan applicants want a faster response from the lending company.

Step 2: Outline the Business Case

Based on data collection and interviews with key executives, the Lean Six Sigma team has developed the preliminary business case shown in Figure below :

six sigma company case study

Step 3: Develop a High-Level Process Map

Using the SIPOC tool, the Lean Six Sigma team was able to better define the boundaries of the project, as shown in Figure below :

six sigma company case study

MEASURE PHASE DELIVERABLES

Step 5: Define the CTQ Characteristics (Project Y)

With the approval from the Lean Six Sigma Steering Committee, the team can now proceed to the Measure phase.

A detailed process map is created to ensure that everyone has a common understanding of the flow, key inputs, and deliverables. A segment of the map is shown in Figure below :

six sigma company case study

The map helps the team identify the process steps that have historically caused issues in approving loan applications.

Using the fishbone tool (Figure below), the team begins discussing the possible root causes of the issues that are leading to unacceptable response times.

Armed with this information, the team now focuses its data collection and analysis efforts on a few key drivers.

six sigma company case study

Step 6: Outline Performance Standard

The team has to determine the best way to measure the problem and also agree on a definition of a defect.

Using interviews with customers and with key staff members in sales and operations, the team is able to define an upper specification, a lower specification, a target, and a defect definition (see Figure below )

six sigma company case study

Steps 7 and 8: Develop a Data Collection Plan and Validate the Measurement System

The Lean Six Sigma team wanted to ensure that the complaints received by the sales team could be validated by data—that is, were the results really as bad as the customers were saying?

However, to do this, the team needed to ensure that the data collection and measurement systems were adequate.

Loan applications were either sent in electronically, in which case the system generated an automatic time stamp, or they were mailed in.

The applications with system time stamps did not require further investigation—the second the loan officer pressed “submit application,” the system would generate a time stamp. However, for the 30 percent of the applications that were received via mail, the application was scanned by the administrator and the application information was manually entered into the system.

While it was impossible to determine the length of time that the application waited to be scanned, the team could determine the cycle time between scanning and data entry (which then would make the application available for operations to begin the review process).

The team agreed that it should only take four minutes to enter data, and that anything beyond that could indicate a measurement system issue. Based on 250 data points, there were only four instances in which the system time stamp and the file time stamp did not meet the four-minute timeline (see Table 2.9).

Therefore, the measurement system accuracy is around 98.4 percent (1 − (4/250)) × 100%.

The team could, with confidence, rely on the historical data to provide a true depiction of process performance.

six sigma company case study

ANALYZE PHASE DELIVERABLES

Step 9: Baseline the Process’s Current Capability

The members of the project team calculated the process capability to ensure that they had properly documented the current performance level before any improvements were implemented.

Using data for the previous year, they calculated the difference between the time when the borrower information packet was received and the time when a final decision was communicated to the borrower.

Using statistical software (or Excel), they calculated the values for the average and standard deviation.

Since they knew that the customer expects an answer within 3 days (72 hours), a z score was calculated:

six sigma company case study

The sigma value or z score of this process is 0.3, or less than 1. 

This is a very poorly performing process. 

The histogram in Figure 3.23 compares the current performance of the process with customer expectation (upper specification level) and the performance level required (target) in order to consistently meet customers’ needs.

six sigma company case study

Step 10: Define the Performance Objectives for the Process

For this project, since the customer requirements were defined very clearly, benchmarking to refine the project goals was not required.

The team just moved on to Step 11, trying to identify the root causes of poor performance.

Step 11: Identify Sources of Variation

To confirm that there is a relationship between response time and lost deals, the team members conducted a correlation study and also plotted the data using a scatter plot.

Using data from two quarters, they plotted the average response time for each month and the number of lost deals (see Figure 3.24).

Using statistical software, the correlation coefficient r was calculated to be 0.979.

Since this value is very close to 1, there is a strong statistical relationship between response time and lost deals; that is, the longer it takes to respond to the customer, the higher the chances that the borrower will choose another lender.

six sigma company case study

Now that the team members understood the relationship between cycle time and lost deals, they needed to determine whether the competitor was really much better at responding to customers.

To find the answer, they conducted a hypothesis test.

They compared their response time to that of their competitors.

Using a t test, they set up the following test:

six sigma company case study

Alternative hypothesis: average cycle time for the company ≠ average cycle time for competitors.

Using statistical software, the results of the t test are:

six sigma company case study

The company’s competitors are responding to a borrower within 36 hours (1.5 days) of having received his information, whereas the company is responding after 64 hours (2.7 days).

The p value of less than 0.05 confirms that there is a statistical difference between the performance of the company and its competitors (when the p value is less than 0.05, the null hypothesis is rejected).

Armed with the statistical confirmation that the company is facing better-performing competitors, the team moves into the Improve phase.

IMPROVE PHASE DELIVERABLES

Step 12: Identify the Vital Xs and Implementable Solutions

In the Measure phase, using a fishbone, the team agreed that the manual data entry process had the largest impact on the overall process cycle time. In the Improve phase, the team had to understand why.

Using the same tool, the fishbone, the team conducted another brainstorming session, and the results pointed to one central reason: missing critical information.

As outlined in the fishbone diagram in Figure 4.12, some of the main reasons for missing critical customer information were:

six sigma company case study

six sigma company case study

Now the team has to determine what elements in the process of customer data collection it needs to change in order to never exceed three missing data points.

To find the right answer, it has to set up an experiment, a process known as design of experiment (DOE).

This topic was not covered in the book, as it requires advanced statistical knowledge.

If you think that modifying multiple process parameters will be required to find the right answer, then you will need the advice and help of a statistician.

For this case study, the team knew that the critical drivers of missing data were:

The team set up an experiment in which one, two, or all three variables were changed and the documentation cycle time was measured. The objective was to test the process under all possible conditions. The results of the experiment were studied using statistical software.

The team concluded that the process cycle time was significantly reduced when a list of required items was provided to the borrower and she was asked to e-mail all information.

Asking for one vs. two years of financial information had minimal impact on overall cycle time.

The team must now pilot these solutions to confirm the results of the experiment and develop control plans for long-term sustainability.

CONTROL PHASE DELIVERABLES

After the process change, the team knew that in order to meet customer expectations, it had to make sure that the operations team completed the review of each packet within 36 hours.

To attain this operational goal, the incoming packet had to be received via e-mail, and no packet could have more than three critical customer data points missing from it.

Prior to implementing a control plan, the team had to ensure that they had an accurate and reliable process for collecting data on the critical Xs (missing data points and receipt of info via email).

Since the data collection process will be 100 percent manual, they trained the future data collectors on the how to identify and record a defect.

After running a repeatability and reproducibility test (discussed in Measure phase), the team was comfortable that they had a reliable data collection process.

Prior to the improvements, the team members had collected data on the number of missing data points in each packet (they used these data to determine whether there was a relationship between missing data and cycle time).

To calculate the new process capability, and also to monitor the process, they implemented an SPC chart.

On a daily basis, 40 random files were collected, and the number of missing data points was counted. This process was repeated for 20 days (similar to the data collection process prior to the improvements).

The data were plotted using a C chart, and they indicated that the average number of missing data points for the 40 files on a daily basis was about 1.15 (see Figure 5.8). However, there was one instance in which four data points were missing. So is the process better?

To answer this question, the team compared the before and after process capability for receiving customer data.

six sigma company case study

The team was able to gain substantial improvements in terms of the reduction in error rates and improved process capability (z score).

With a good control plan for one of the process’s critical Xs (missing data points), the team’s final step will be to develop a control chart for the process Y: response time to the customer.

9 Responses

Great ?I should definitely pronounce, impressed with your site. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your client to communicate. Nice task..

Thanks for the good course.

I would behind to thank you for the efforts youve put in penning this blog. I truly wish to view the same high-grade content from you later on as well. In truth, your creative writing abilities has annoyed me to get my own, personal blog now

Good content. The audio quality is very poor making the learning difficult.

Youre so cool! I dont suppose Ive read something like this before. So good to search out someone with some original ideas on this subject. realy thank you for beginning this up. this website is one thing that’s needed on the web, somebody with just a little originality. useful job for bringing something new to the internet!

I visited multiple websites but the audio quality for audio songs current at this site is in fact wonderful.

You could definitely see your skills in the work you write. The world hopes for even more passionate writers like you who aren’t afraid to say how they believe. Always follow your heart.

Thanks for your tips on this blog. One particular thing I would like to say is the fact that purchasing electronic devices items over the Internet is nothing new. In reality, in the past decades alone, the marketplace for online electronic products has grown drastically. Today, you will discover practically virtually any electronic gadget and devices on the Internet, including cameras and also camcorders to computer elements and gambling consoles.

Simply want to say your article is as astounding. The clearness in your post is just cool and i could assume you are an expert on this subject. Fine with your permission let me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please keep up the gratifying work.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Lean and Six Sigma: Total Quality Management

The case study illustrates how a health organization in Texas utilized Six Sigma to discover and improve its N95 face mask reprocessing project. Lean Six Sigma is a systematic collective process that strives to boost production by reducing mistakes and waste. It associates the Six Sigma technique and methods with lean manufacturing philosophy to minimize waste of assets, effort, time, and skill and retain quality in its processes and production. Any use of assets that would not deliver value to the client is regarded as wastage and must be reduced according to Lean Six Sigma principles. The “lean” management concept prioritizes removing and reducing eight categories of wastage referred to as “DOWNTIME.”

“Lean” is known as any technique, measure, or device that assists in discovering and eradicating wastes. Six Sigma is a term used to describe techniques and tools to improve industrial operations. It was created in 1986 by a Motorola engineer who was influenced by the Kaizen philosophy of Japan. Its goal is to enhance procedures by removing and identifying the sources of flaws and variances in business and industrial processes. The DMAIC stages of Six Sigma are used in Lean Six Sigma. The abbreviation refers to data-driven strategies for enhancing, optimizing, and maintaining business and industrial processes.

Six Sigma is widely utilized in various industrial areas, but there are no discernible uses in health operations. This study examines the unique scenario of health logistical issues, wherein reduction in cost is not the only element evaluated in project selection. This study proposes a methodology for implementing Six Sigma in healthcare logistics. It also includes a case study of how the suggested framework was implemented in a Jordanian hospital.

Lean Six Sigma techniques are utilized in various sectors to increase process efficiency by reducing waste and mistakes (Cudney et al., 2020). When applied correctly, these tactics may result in happier customers and more money. Issues in the health sector also affect profitability and client satisfaction. However, it may ultimately imply life or death. Lean Six Sigma techniques are important in healthcare because they may reduce flaws that contribute to medical errors. Medical mistakes kill more than 210,000 individuals in the United States each year and cost the healthcare business an estimated $17.1 billion. Many government agencies have tried to address this issue nationally by enacting legislation and enforcing rules. Nevertheless, medical providers, clinic executives, facility executives, or professionals use. Lean Six Sigma concepts will help them make a huge difference in their businesses (Henrique & Godinho Filho, 2020).

Six Sigma methodology may be used to improve healthcare quality. Reduce the number of times patients are needed to wait at institutions and healthcare services. Accidents, as well as fractures, must be minimized in assisted living facilities. Medical errors must be eliminated when diagnosing, administering, or completing medications. Extend the time required for test results to be returned. Six Sigma could also assist you in cutting costs. These kinds of results are reachable by medical practitioners who use tried-and-true Lean or Six Sigma methods. Streamlining the check-in process is only the start. There have been several excellent Lean Six Sigma implementations in hospitals, making medical studies more cost-effective to minimize consultation cancellations.

Cudney, E. A., Venuthurumilli, S. S. J., Materla, T., & Antony, J. (2020). A systematic review of Lean and Six Sigma approaches in higher education. Total Quality Management & Business Excellence , 31 (3-4), 231-244.

Henrique, D. B., & Godinho Filho, M. (2020). A systematic literature review of empirical research in Lean and Six Sigma in healthcare. Total Quality Management & Business Excellence , 31 (3-4), 429-449.

Cite this paper

StudyCorgi. (2023, March 3). Lean and Six Sigma: Total Quality Management. Retrieved from https://studycorgi.com/lean-and-six-sigma-total-quality-management/

StudyCorgi. (2023, March 3). Lean and Six Sigma: Total Quality Management. https://studycorgi.com/lean-and-six-sigma-total-quality-management/

"Lean and Six Sigma: Total Quality Management." StudyCorgi , 3 Mar. 2023, studycorgi.com/lean-and-six-sigma-total-quality-management/.

1. StudyCorgi . "Lean and Six Sigma: Total Quality Management." March 3, 2023. https://studycorgi.com/lean-and-six-sigma-total-quality-management/.

Bibliography

StudyCorgi . "Lean and Six Sigma: Total Quality Management." March 3, 2023. https://studycorgi.com/lean-and-six-sigma-total-quality-management/.

StudyCorgi . 2023. "Lean and Six Sigma: Total Quality Management." March 3, 2023. https://studycorgi.com/lean-and-six-sigma-total-quality-management/.

StudyCorgi . (2023) 'Lean and Six Sigma: Total Quality Management'. 3 March.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal .

IMAGES

  1. Redeploy Diagnostics Six Sigma Case Study

    six sigma company case study

  2. Lean Six Sigma

    six sigma company case study

  3. Six sigma Complete Project case study

    six sigma company case study

  4. Six Sigma

    six sigma company case study

  5. Six Sigma Case Study_ Ford Motors

    six sigma company case study

  6. Six Sigma Case Study

    six sigma company case study

VIDEO

  1. 3 Sigma Company Vs 6 Sigma Company| JOURNEY TO ZERO DEFECTS

  2. The #1 skill you need for your carreer

  3. SIGMA BOY ! #shorts #sigma #tranding #attitude

  4. Physics wallah Success Story in Hindi

  5. Lean Six Sigma Master Class

  6. Six Sigma Case Study 1

COMMENTS

  1. Case Studies Archive

    Demonstration of Six Sigma Principles through Catalent Pharma Solutions Case Study: Lean Six Sigma Improves Environment - Baxter Manufacturing Case Study: Lean 6 Sigma in Aerospace Manufacturer Streamlines Processes & Improves Cycle Time 3M Six Sigma Case Study - Pollution Prevention - 6sigma Ready to start learning?

  2. Coca-Cola Case Study: The Six Sigma Process in 2023 [Updated]

    Six Sigma is a methodology which provides tools and techniques to define and evaluate each step of a process. It provides methods to improve efficiencies in a business structure improve the quality of the process and increase the bottom-line profit.

  3. Six Sigma: A Case Study in Motorola

    Six Sigma is a methodology which uses specific principles and mechanisms that ensure excellence within the organization. The ultimate goal of this methodology is to create products or services with less than 3.4 defects per million products or services produced.

  4. Six Sigma Case Study: General Electric

    Six Sigma Case Study: General Electric May 22nd, 2017 Thanks to ex-CEO of General Electric Jack Welch, the companies throughout the business sector know Six Sigma as a staple of good business practice. In fact, more than half of all Fortune 500 companies use Six Sigma to improve and streamline their own processes.

  5. (PDF) Six Sigma: A Case Study( Foundry work)

    Six sigma provides systematic disciplined and quantitative approach to continuous improvement the paper presents a case study of implementation of six-sigma approach in M/s Mutha...

  6. Johnson & Johnson Six Sigma Process: A Six Sigma Case Study in 2023

    IN +91 9891953953 US +1 4157044270. A Six Sigma case study written based on Johnson & Johnson's six sigma process.Year after year, Six Sigma continues to be a cornerstone of the business world, opening the doors for rising experts to grasp the precepts that have just driven led so many to prosperity. Six Sigma is currently an enormous ...

  7. Six Sigma Case Study: Ford Motors

    Six Sigma Case Study: Ford Motors May 19th, 2017 The Ford Motor Company is one of America's, and the world's, largest and most successful automakers. Named after its founder Henry Ford, the company is known for its innovative and dynamic approach to manufacturing.

  8. Six Sigma Case Studies

    Case Study #6 - Reduction of Days Sales Outstanding Looks at a large oil and gas company which had taken over multiple smaller companies over the years and was planning to acquire even more. Due to this, it was extremely important for them to increase their cash flow. Case Study #7 - Online Top-Up for Prepaid Cellular Service Provider

  9. Lean Six Sigma Project Examples

    Lean Six Sigma Increases Daily Meat Production by 25% Nonprofit Lean Six Sigma Helps Feed People In Need 45% Faster Technology Accelerating Lean Productivity With Immersive Collaboration Reducing Incorrect Router Installations by 60% for Call One Reducing Software Bug Fix Lead Time From 25 to 15 Days Lean Reviews: Stories from Our Customers

  10. Telecom Lean Six Sigma Case Study

    Here's a Telecom Lean Six Sigma Case Study to bring this story to life. Researchers from Jönköping University in Sweden conducted a study on the Swedish telecom manufacturing industry. They wanted to see if using Lean Six Sigma together could make the industry more flexible, robust, and cost-efficient. The research analyzed a Six Sigma ...

  11. LEAN SIX SIGMA

    LEAN and Six Sigma Case Study in Call Center Introduction As per Taylor et al., (2003) outbound and inbound centers are the two main categories of call centers. The most typical are call centers that receive inbound calls. ... The company places a lot of focus on its level of customer service, which is a crucial component of its purpose, ...

  12. Six Sigma in Electronics Company: A Case Study on Samsung

    Six Sigma in Electronics Company: A Case Study on Samsung Gedela Rakesh Varma Prof.Jaladi Ravi Research Scholar, Professor, Department of Commerce and Management Studies, Department of Commerce and Management Studies, Andhra University, Visakhapatnam-530003. Andhra University, Visakhapatnam-530003.

  13. Lean Six Sigma Continuous Improvement Case Studies

    LEAN SIX SIGMA PROJECT CASE STUDY TO REDUCE LEAKERS In this Lean Six Sigma project case study, we were tasked with reducing the amount of "Leakers" on a Bartelt Line producing Pistachios using the Six Sigma DMAIC process. First, we completed a SIPOC to determine if... LEAN SIX SIGMA PROJECT AT HELPDESK TO REDUCE OFFICE 365 OUTLOOK INCIDENT TICKETS

  14. Case Study: Six Sigma for Small Business

    Using Six Sigma principles, the company in the case study increased their annual sales by $248,034. They reduced delivery time by more than four full days. The Takeaway This research is another point in favor of process improvement methodologies.

  15. Ergonomics Case Study: The Dow Chemical Company's Use of the "Six Sigma

    While each of the four steps of the "Six Sigma" project are outlined below, a more detailed discussion of the "Six Sigma" methodology appears at the end of this case study. Step 1: Measure. Once the "Six Sigma" project team developed its charter and defined its task, it then began by defining the current process.

  16. How General Electric Used Six Sigma to Transform Their Company

    Six Sigma Education; Six Sigma Case Study; Terminologies; Six Sigma Terminologies; Jennifer Holbus. Dec 11, 2022; 2 min read; ... In 1995, CEO Jack Welch made a goal for GE to become a Six Sigma company within five years by adopting the "Six Sigma Quality" as a part of the company's culture.

  17. Six Sigma Case Study: Ford Motors

    Improving quality. Ford has always been known for their quality products, but event heir standards slip from time to time. While, for most companies, a mere 99% quality level is considered acceptable, this lets through a surprising amount of defect. As much as 20,000 instances of defect. Six Sigma espouses that only 99.99966% (and up) is ideal.

  18. PDF Six Sigma-A Case Study of Amazon

    at General Electric in 1995, He wrote in the annual report that in just three years, Six Sigma had saved the company more than $2 billion. Features Six Sigma puts the customer first and uses the facts and data to drive better solutions. Six Sigma efforts target three main areas: 1) Improving customer satisfaction 2) Reducing process cycle time

  19. Six Sigma Case Study: Motorola Pioneers

    Motorola uses Six Sigma to maintain high efficiency by eliminating waste and defect as they discover them. This may be on a production line or even in administration. Six Sigma aims to improve quality by minimizing variation and (overlapping with Lean) reducing waste. This helped Motorola improved its products and services, producing them ...

  20. Case Studies Archives

    Case Study: Edward Jones Adds Robotic Process Automation with Lean Six Sigma. Published: June 1, 2020 by Brooke Holmes. In only three years, Edward Jones has realized more than a million dollars in cost avoidance through the use of bots combined with LSS. Read more ». Tagged bots rpa SIPOC.

  21. PDF Six Sigma in Electronics Company: A Case Study on Samsung

    Category4: Six Sigma Applications I n Service Organizations These publications present overview of Six Sigma DMAIC methodology in service organizations. In addition, case studies related to Six Sigma applications in services including financial organizations, education and health care have been discussed.

  22. Lean Six Sigma

    Lean Six Sigma - DMAIC Case Study. Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services.

  23. Lean and Six Sigma: Total Quality Management

    This study proposes a methodology for implementing Six Sigma in healthcare logistics. It also includes a case study of how the suggested framework was implemented in a Jordanian hospital. Lean Six Sigma techniques are utilized in various sectors to increase process efficiency by reducing waste and mistakes (Cudney et al., 2020).