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Listed below are a few of the Six Sigma projects carried out by our customers:
Company Name: Sudarshan Chemical Industries Ltd., a leading pigment manufacturing company.
Project Objective: Increase plant manufacturing capacity for a specified pigment from 60 tons per month to 90 tons per month.
Effort: 8 persons for 6 months.
Project Result: Production increased to 87 tons per month, an increase of nearly 50%, achieved through efficient utilization of existing process, optimization of process parameters and removal of production bottlenecks and standardization. This resulted in 100% increase in profitability, and nearly 50% increase in sales value.
Financial Benefits: Audited annualized savings for the first year of Rs.16.5 Mn.
Next Steps: Seeing the success of the pilot project, the company instituted a full blown Six Sigma initiative. Some of the projects that have been completed/ongoing are:
Reduce incoming raw material inspection and testing cost by 20%
Improvement in overall plant production
Improvement in vendor scheduling process
Reduction in new product development and commercialization cycle time
Improvement in plant yield
Reduction in energy cost by 20%
Company Name: Bharat Forge Limited, a world leader in manufacture of forgings and supplier of machined automotive components to world leaders like Spicer, Meritor, Mercedes Benz, Toyota etc.
Project Objective: Reduction in rejection of crankshafts for a particular export line from 4% by 2%..
Effort: 2 persons for 6 months.
Project Result: On starting the project, it became apparent that the prevailing rejection was actually 5.9% (not 4%), thus increasing the challenge. On completion of the project the rejection dropped from 5.9% to 3.2% in six months. Average production level of this production line being 6300 crankshafts per month, it means a reduction in rejection of 170 crankshafts per month. As a result, rework reduced and productivity increased.
Financial Benefits: Financial impact of this is savings of Rs 2.3 million per annum.
Next Steps: It is proposed that a full blown Six Sigma deployment is undertaken. Initiation of Green Belt training and projects can help the company get full advantage of the initial success.
Company Name: HDFC, a premier home loan financing organization.
Project Objective: Improvement of cycle time for Home Loan Application to Approval Process.
Effort: 5 persons for 3 months.
Project Result: Cycle time improved from 7.5 to 2 working days. This resulted in higher conversion of the applications processed, from 45% to 50%, as well as increased customer satisfaction.
Financial Benefits: Annualized benefits of Rs. 25 Mn.
Next Steps: Seeing the success of the project, the company initiated Six Sigma projects in other locations. These include:
Improvement in Marketing Process
Improvement in Loan Sanction to Disbursement Process
Improvement in Visitor Management Process
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