Barriers for implementation of Six Sigma by educational institute

IMPLEMENTATION OF SIX SIGMA IN SMALL SCALE INDUSTRY: A CASE STUDY ON TRIMURTI CHAMICALS(DYE MANUFACTURING UNIT)Prepared byMeet patel (110010119020)Kirit patel (1100111925)Hardik Patel (11001011100)Diwakar Bhargav (110010119093)Guided byMr mehul patel

A D Patel Institute of Technology Mechanical Engineering Department

Why Six Sigma in Small scale industries ?For achieving global competitiveness and operational excellence in current market condition, industries are needed to produce the products which provide high quality at the lowest possible cost.

Six sigma has been widely used project driven management approach to produce high quality products with the lowest possible cost. from the review we have discovered that Indian small scale industries has not adopted this approach up to it full extend.Objective To study application of six sigma in Small scale industries.Doing case study on small scale dye manufacturing industryGive appropriate suggestions to improve the plant performance.LITERATURE REVIEW AuthorJournal NameTitleTheoryDick lewis ,Jose macedoMIOTLean academySix sigma basicsTushar N. Desai , Dr. R. L. Shrivastava WCECSSix Sigma A New Direction to Quality and Productivity ManagementSix sigma for qualityAbhijit Chakraborty,Sudip Kr. Deb,SitanathMukhopadhaySCMHRDExternal Obstacles to Quality for Small ScaleEnterprises Obstacle in small scale industriesAbhijit Chakraborty, Ranjan BhattacharyaISSNInternal Obstacles To Quality For Small Scale EnterprisesObstacle in small scale industries

methodologyWhat is DMAIC Methodology?DMAIC is short form for Define Measure Analyse Improve Control process.DMAIC represents five sequential phases through which the process under consideration shall pass so that the defects can be removed from process and process can be made stable within control limits.The DMAIC is a systematic and continuous methodology used by company professionals for solving problems, improving the quality of products and reducing the defects or waste within an organization.Each phase of the DMAIC has questions that need to be answered. By answering the questions, deliverables or outcomes are produced.

(1) Defining phase:

Defining is the first step of DMAIC process. The following table gives idea about the problem

PhaseExample Questions to be AnsweredPotential AnswersDEFINE1) Who is the customer?The local dealers are the customer.2) What is the problem specifically?Low production due to less order & rejection of product3) Who is part of our team?Five Member in our team.4) What is our plan?Our plan is to give appropriate suggestion for increase productivity of company5) Who is the person we are generatinga final report for?Final report is being generated for owner of SHREE TRIMURTI CHEMICALS. 6) What are the teams goals?Increase the production, revenue and decrease the waste.1. Current state analysisShree Trimurti Chemicals was started in year 2005. it is owned by Alakh patel. he started his business as leather dyes manufacturing unit. Shree Trimurti chemicals produce 90 m ton dye per year with the help of a machine available in the company. company has manufactured product for dealers .so company has not directly contact with the customer.second, currently the company has machine which is not as fast as other modern machine available in market now a days.third, currently there is no inspection of quality of product produce while manufacturing , because they think that they are manufacturing better quality product without any fault.

Recommended tools for Define Phase :SIPOC

SIPOC is the acronym that stands for five elements: Suppliers, Inputs, Process, Outputs,and Customers. A SIPOC diagram is shown here:SuppliersInputsProcessOutputsCustomersLocal factoriesHCL & NitriteMix the raw material according to the prices and quality requirement by buyersACID BLACK 210, ACID BLACK 234ACID BLACK 1ACID YELLOW 73The output is produced for dealers(2)Measurement phase:

After completing the defining phase here we comes on second phase which is measuring phase. DMAIC methodology comes in these phase: from which we can determine

The characteristic that affect the process, these is completed by making the measurements and collecting data from manufacturing company SHREE TRIMURTI CHEMICALS.

NO.Questions to be Answered?Potential Answers1What is the current measurement?Company produced nearly 90 M ton dyes in year 2014.2.What are we going to collect?Companys Type of product, total production in a year, profit and losses. 3.How will we measure it? By visiting the company and collecting data and by preparing the questionnaire and taking review from employee of company. 4.Where do we find the data?Owner of SHREE TRIMURTI CHEMICALS provided all data.5.What is the gap between currentstate and industry standard?Currently, company does not following standards strictly. So there is a big difference between the manufacturing process of industry standard and SHREE TRIMURTI CHEMICALS.6.What are the teams deliverables?During this stage team deliverable will be to collect the data of current manufacturing process and Production from owner of SHREE TRIMURTI CHEMICALS.THE DATA COLLECTED FROM THE COMPANY SHREE TRIMURTI CHEMICALS.NAME: SHREE TRIMURTI CHEMICALS. Type: Leather Dyes Manufacturing Unit.Product : Particularly manufacturing ACID BLACK 210, ACID BLACK 234 (different shades in black Colour) ACID BLACK 1 ,ACID YELLOW 73 ,providing Leather Black colour for dying & tanning the leather. Customer : Leather tanneries are main consumer of the dyes.Process : Batch process department, Filtration, Drying, Blending, and Packing.Machines : 3 ms vessel, 1 filter press, 2 dryers, 1 hot air generator, 1 steam boiler, 2 Ball mill.Maintenance done in last year 14 timesAccident happened in last year 2 times

Batch process:First we diazotise one material with HCL & Nitrite give 3 hours for stirring then coupled the same with another material, Allow the whole mask stirring whole day & overnight. Another day 3rd material being diazotised & coupled with whole mask, set the PH of the mask with soda.After that add on more coupler in that mask, allow 3 hours stirring then start heating the whole mask raise temp. up to 70 c.it takes whole night steaming by boiler.Precipitate the mask with salt & HCL & start filtering, after that open the filter press take press cake to dryer, then drying, pulverising, blending, Packing & despatch.

Capacity of Plant: 15 M Ton dyes per Month.Year: 2014-2015 70 M Ton.Year: 2013-2014 115 M Ton. Year: 2012-2013 95 M Ton.Questions to be answered for Measure phase :Basic Information :1.Name of the Unit(Address/Email/Contact No.)SHREE TRIMURTI Pvt.2.Type of Constitution(Proprietorship/Partnership/Pvt ltd.)Pvt3.Investment (Land & Plant &Machinery) Rs. In Lakhs2 Cr4.Employment155.Age of the Company10 year6.Turn Over2 Cr(annual)Supportive Information:7.Quality of Staff:I ) Skill LevelII ) No. of employees does Repetitive Task. III ) No Of Training conducted In a year. IV ) Priority of Organization on quality/Production1 engineer,1deploma,6 ITI,7 are 10 pass13Zero production8.Process Improvement Level:I) Any Quality Tools Used.II) Production/RejectionAnalysis done.III) Technology updateIV) Customer feedbackNoNoNoNo Evaluation :9.Cost of production :I) Raw Material costII) ManpowerIII) Reject Cost250 per kg15 Rs per kg12.5 Lakh per year10.Delivery of productI) Mode of transportII) Packing materialIII) Delivery schedule followed Private vehiclePlasticUsually 11.Plant safetyI)Handling pf hazardous materialII) fire extinguisher usedIII) Accident plant handling is there or not.ManuallyYes No 12.Organizational characteristics I) Number of workers II) Number of machinesIII) Type of product1510Leather dye manufacturing13.Supplier motiveI) Aware of the product qualityII) Additional care for the material suppliedIII) How Frequently Supplier evaluation doneNoNoNo

(3) Analysis phaseDuring this phase, the data collected during the measure phase is used to analyse the gap between the current and desired performance.

Root-cause analysis is done to define the possible reasons for the performance gap and quality issue.Quality management system

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage204027319SUMMARY OF QUESTIONNAIRE 2. Management commitment

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage10252020421 3. Quality Policy

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage12341611523Customer Satisfaction

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage113416115255. Responsibility, Authority and communication

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage102520219156. Resource Management

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage103016268107. Purchasing

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage92739143188. Measurement analysis and Improvement

Strongly DisagreeDisagreeNeither agree Nor disagreeStronglyAgreeStronglyAgreeDont knowPercentage7273017019Affecting factorsThe quality improvements problematic sides are observed during the study (survey) & interview with the Employees & staff of the management of small scale enterprise.1) What are the main causes or factors that can create problem?Internal factorsProcess of Production LeadershipCompany policy & strategy WorkersSafety toolsAvailability of raw materialFaulty machinesBad environment of plant

II. External factors

Supplier of row material Customer Government policies Failure in delivery due to transportation 2) What are the sub factors for main factors?Mentioned in fish bone diagram below

CAUSE AND EFFECT DIAGRAMThe employees are not having require qualification & expertise in the aspect of improvement qualityThe entrepreneur do not carry out any sort of quality study that is required for their own survival and existenceSome staff members are having ideas but fear from their higher authority restricts them from suggesting new concept for the improvement of qualityThe management is just interested to sale more number of units they produce. Thus, they always go for short term benefit and no long term planning is there Industry does not aware about Total Quality Management frameworkThey only focus toward the customer requirement, do not concern about satisfaction of workersIndustry does not update technology on time to time basis. They still do work manually.To reduce the production cost Small scale industry chooses suppliers on the basis of price only. It affects quality of product.

OBSERVATIONSThey do not give priorities to the workers in a case of management decision making process.They produce the product on the basis of order only. So there is no policy, procedure and discipline in factory.Irregularity of delivery of raw material from supplier.Poor raw materials from supplier affect the quality and rejection rate.Bad maintenance system. Bad and dusty working environment .Customer feedback system is not available.

CONTINUED.Below are few suggestion given to the industry to overcome the above factors that affect the productivity of the Plant :3) IMPROVE PHASE Better manpower should be hiredUnderstand customers need properly & increase communication with customer Planning of regular training and development of manpower are needed. Organisation is to plan such training programme in its site or can depute the persons to related training institute. The training curriculum should be both technical and managerialSuppliers evaluation, Quality Control at supplier site, to make aware of voice of customer and voice of process. Improvement in Safety toolsUp gradation of machines available in plantDo regularly maintains of machinesImprove plant environment for workers conclusionTo sustain in the present competitive age, Six Sigma is emerging as one of the most effective business strategies in the small scale organisations over the world.

The multiple gains achieved by Six Sigma efforts over different productivity problems in a company prove the usefulness of this strategy for small industries as well.

By applying six sigma in small scale industry,crictical factors of quality can be known and overall performance of plant will increase

Gantt chartMonth February March April AprilworkProblem definitionLiterature review & selection of company for case study Implement various phases of six sigma in dye manufacturing industrySubmission REFERENCESLean Academy by Dick lewis and Jose marcedo .Six Sigma A New Direction to Quality and Productivity Management by Tushar N Desai and Dr. R. L. ShrivastavaRaghunath A, Dr. Jayathirtha R V Barriers for implementation of Six Sigma by Small and Medium enterprisesPloytip Jirasukprasert,A Case Study of Defects Reduction in a Rubber Gloves Manufacturing Process by Applying Six Sigma Principles and DMAIC Problem Solving MethodologyMohammad Israr A Comparative Analysis between Small and Medium Scale Manufacturing Company through Total Quality Management Techniques