Purpose -The purpose of this paper is to demonstrate the systematic application of Six Sigma tools for identification and reduction of cost of poor quality (COPQ). The study examines one of the chronic problems of failure of cooling fan assembly at repair division of a company dealing in helicopter components. Design/methodology/approach -The case adopted Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) methodology to achieve the goal of reduction in COPQ. Findings -After completing the Define, Measure and Analyze phase, it was found that use of extreme tolerances and cross-fitment of bearings are the root cause of cooling fan assembly failure. The major recommendations made during the Improve phase were to design a bearing matching software for improving the cross-fitment of bearings and to procure a hydraulic jig with electronic jig instead of manual jig. The value of implementing these recommended solutions equate to a saving of INR 34 lacs per annum. Since it was a chronic problem, the company expects this to be a recurring saving. Originality/value -This specific case exhibits the successful application of Six Sigma DMAIC methodology in repair and maintenance for driving down the cost of failure and improved processes. Keywords Six sigma, DMAIC, Rework, Pareto analysis, Cost of poor quality (COPQ), Capability analysis, Process failure mode effect analysis (PFMEA), Cause and effect diagram, Control chart, Chronic Paper type Case study COPQ is the total cost of repair, rework, scrap, service calls, warranty claims and write-offs from obsolete finished goods. The concept of COPQ connects the improvement priorities of a company with its strategic objectives of achieving improved financial performance and greater customer satisfaction. As per statistics, COPQ is o10 percent of sales for companies who are at "Six Sigma" level, about 15 to 20 percent of sales for companies who are at "four sigma" level and about 20 to 30 percent of sales for companies who are at "three sigma" levels (Clark, 1999).One of the well-known approaches to reduce COPQ is a project-based approach based on Six Sigma DMAIC methodology (Kumar and Sosnoski, 2009). Six Sigma DMAIC methodology, is used to improve already existing processes and had been proven to be successful in reducing costs, improving cycle times, eliminating defects, raising customer satisfaction and significantly increasing profitability in every industry and many organizations worldwide (Tong et al., 2004). There are number of studies which show the successful application of Six Sigma DMAIC methodology in automobile industry (
Purpose
– The purpose of this paper is to address the adoption of Lean-Kaizen approach to process improvement by the largest manufacturer of steering systems for passenger car and utility vehicle market in India. The company was facing severe liquidity crunch due to falling customer demand (25 percent lower than forecasted), rising cost of raw material and bank borrowing rates. In order to survive in such stiff scenario, the company systematically deployed Kaizen events and drastically improved their internal efficiency.
Design/methodology/approach
– The study categorically illustrates the employment of value stream mapping (VSM) to target the areas for Kaizen improvement events. Current state VSM was developed to display the non-value-added activities in the existing assembly process. Future state VSM was proposed. After identifying root cause of wastes using 5 Why, three Kaizen events were proposed.
Findings
– The current state VSM revealed cumulative inventory of 61 days in the entire process, long distances travelled by subassembly for final assembly (294 meters) and a high defect rate (879 parts per million). After modifying the assembly line using lean strategies, the company reduced its inventory levels by 66 percent, defect rate reduced by 32 percent and achieved other benefits such as reduced equipment, production staff and storage space. These reductions helped the company in saving the working capital and also contributed significantly to its profitability.
Originality/value
– The study exhibits implementation of Lean-Kaizen approach for redesigning assembly line in an auto component manufacturing unit. The proposed lean strategies are considered to be highly valuable for manufacturer of steering for passenger cars and utility vehicles market.
PurposeCorporation's board (CB) is viewed as a vital internal corporate governance (CG) mechanism, playing a critical role in mitigating the agency problems and enhancing firm performance. Considering the mixed nature of extant CG literature on CB-firm performance link, this study aims to examine the impact of specific CB attributes on firm performance studied in varied contextual settings and investigates the moderating effects of three contextual factors, i.e. legal origin, industry type and firm type on CB-performance relationships.Design/methodology/approachMeta-analysis technique suggested by Hedges and Olkin (1985) was used to analyse a sample of 330 effect sizes reported in 148 studies published between 2000 and 2020 in 85 peer-viewed journals, studying CB-performance associations across 31 countries. The analyses were conducted in two stages: first, the authors assessed the main effect of CB attributes on firm performance and tested the heterogeneity in effect size across the primary studies. In the next stage, the authors investigated the moderating variables accounting for this heterogeneity in the CB-firm performance relationship.FindingsBoard independence, board diversity, board size and role duality are the CB attributes, which significantly and positively impact firm performance. Further, the homogeneity tests revealed variability in effect size for all CB attributes except for board committees. Subgroup meta-analyses revealed that the contextual factors related to industry-type and firm-type are substantial explanatory source of heterogeneity in CB-performance association, though legal origin of firm also partially explains the heterogeneity in this relationship.Research limitations/implicationsOnly empirical research reporting Pearson product-moment correlation coefficients(r), as the effect size, were considered for this study. Some of the other CB attributes such as board composition, compensation structure of board members, performance evaluation and appointment process of board members were not included due to limited empirical research on these attributes.Practical implicationsThe paper includes implications for managers and policy makers for the development of effective corporate boards and CG mechanisms.Originality/valueThis paper integrates diverse empirical evidence on the associations of CB attributes with firm performance and systematically assesses the moderating factors that contributes to heterogeneity in these relationships.
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