An Application of Six Sigma to Reduce Supplier Quality Cost

Gaikwad, Lokpriya; Teli, S. N.; Majali, V. S.; Bhushi, Umesh

doi:10.1007/s40032-015-0200-2

Cited by 14 publications

(11 citation statements)

References 6 publications

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“…This research not only validates the proposed framework through an in-firm case study, but also confirms the relevance of mitigating and avoiding biases and recommends standardizing processes and regularly training the employees involved. Unlike Gaikwad et al (2016), this study uses an FMEA tool to evaluate risks and prioritize an action plan in order to obtain greater benefits during the analysis phase. In fact, one of the aims of this research is to reduce COPQ by standardizing the supplier complaint process and training the employees involved.…”

Section: Discussionmentioning

confidence: 99%

“…These phases are described in detail in the case study in Section 3.1. Researchers like Gaikwad et al (2016) applied the DMAIC framework in different contexts. Many expressions employed in complaint management were compiled from a specialized dictionary, namely Herbst and Amman's (2000) Dictionary of Commercial and Legal Terms.…”

Section: Literature Review and Six Sigma Approachmentioning

confidence: 99%

“…Laureani and Anton (2017) conducted a literature review about the Leadership and Lean Six Sigma methodologies. Gaikwad et al (2016) presented an application of Six Sigma in India, and Conger (2015) implemented the Six Sigma methodology for improving an inefficient help desk process. Whereas Vaishnavi and Suresh (2020) analyzed the implementation of Lean Six Sigma in healthcare organizations, Belhadi et al (2020) analyzed the integrated effect of Big Data Analytics, Lean Six Sigma and Green Manufacturing on the environmental performance of manufacturing firms in North Africa.…”

Section: Literature Review and Six Sigma Approachmentioning

confidence: 99%

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How to influence total costs of sourcing? A case study of SCOPQ with Six Sigma

Serrano

González-Ramírez

Gascó

et al. 2021

Int. J. Appl. Res. Manag. Econ.

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Total cost of sourcing is receiving significant attention from firms in general and purchasing managers in particular. Academic research on lean and six sigma programs has evolved rapidly in the last decade. This study focuses on uncovering most effective sourcing initiatives, which aim to decrease total costs addressing quality issues and Supplier Costs of Poor Quality (SCOPQ). This research aims to update the literature on supply chain management by analysing and verifying the proposed Six Sigma framework through a case study. A case study focused on a set of interviews with practitioners based on a firm located in Germany was used that generates uncaptured insights in previous research of this area. The results of the paper highlight the relevance of building cross-functional teams for achieving continuous improvement and implementing suitable, proven, and appropriated tools. Whereas lean is preferred for scopes as part of processes with few interfaces and medium grade of difficulty, Six Sigma is the most suitable methodology for scopes with a high grade of difficulty or problems involving cross-functional processes. SCOPQ is defined as the costs associated with defects and deficiencies originated by suppliers. For instance, they could include the costs for supplier-related incidents like shortages or failure-related costs, production stop costs, rework costs, complaints, etc. This research not only validates the proposed framework through an in-firm case study, but also confirms the relevance of mitigating and avoiding biases, recommends standardizing processes and texts templates, and the regularly training of the employees involved. Besides of the main goal of investigating Six Sigma's role in reducing quality costs, research results demonstrate the advantage of standardized multilingual texts for the complaint process of global players. The study indentified the influence of English collocations into the complaint process because of the majority of the specialized literature is written in English.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Review and Six Sigma Approachmentioning

confidence: 99%

Section: Literature Review and Six Sigma Approachmentioning

confidence: 99%

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How to influence total costs of sourcing? A case study of SCOPQ with Six Sigma

Serrano

González-Ramírez

Gascó

et al. 2021

Int. J. Appl. Res. Manag. Econ.

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“…Tedarik edilen hammadde, yarı mamul veya malzemelerin kalitesiz olması durumu kullanıldığı mamul ve hizmet için kalite ve teslim zamanı ile ilgili soruna yol açar. Bu sorunlardan kaynaklanan maliyetlerin satın alma maliyetlerinin %10'una karşılık geldiği bilinmektedir (Gaikwad 2016). Satın alma maliyetini düşürerek karlılığı arttırmanın yolu tedarikçi kalitesini iyileştirmeye dayanmaktadır.…”

Section: Introductionunclassified

Alti Si̇gma Yöntemi̇ İle Tedari̇kçi̇ Kali̇tesi̇ İyi̇leşti̇rme: Bi̇r Uygulama

Çağıl¹,

Boran²,

Sucu³

2016

Balıkesir Üniversitesi Sosyal Bilimler Enstitüsü Dergisi

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Öz: İşletmelerin tedarik ettikleri parçaların kalitesinin ürünlerinin kalitesini etkileyeceği açıktır. İşletme ve tedarikçisi arasında uzun dönemli işbirliği ile tedarikçi kalitesinin iyileştirilmesi sağlanabilecektir. Bu durum hem tedarikçi hem de işletmenin kalitesi ile birlikte, teslim süreleri, çevrim süresi, verimlilik ve karlılıklarında da iyileşmeler sağlayacaktır. Ancak işletmeler büyüdükçe ve ürünler karmaşıklaştıkça girdilerin birbiri ile olan etkileşimi artmakta ve kalitesizlik çok daha karmaşık sorun haline gelmektedir. Dolayısı ile tedarikçi kalite problemlerinin iyileştirme çalışmalarında pek çok istatistiksel ve istatistiksel olmayan araç ve yöntemden yararlanılması söz konusu olmaktadır. Altı sigma yöntemi son yıllarda kalite iyileştirme çalışmalarında en çok tercih edilen yöntem olma özelliğindedir. Çünkü yöntem pek çok kalite aracından yararlanmayı istemekte ve iyileşmenin sigma gibi bir ölçekle ve finansal değerle ölçülmesini sağlamaktadır.Bu çalışmada çok sayıda tedarikçiye sahip bir otomobil üreticisinin tedarik edilen bir üründe Altı Sigma yöntemi uygulanabilirliği gösterilmektedir. Çalışma araç FRP arka duvarı üzerindeki boya hatalarının iyileştirilmesi ile ilgili yapılmıştır. İyileşme önerileri hem işletme hem tedarikçi işletme için uygulanarak sigma düzeyinde -1.97 den 1.48'e artış ve araç başına 9.14 € luk kazanç elde edilmiştir.Abstract: It is evident that the quality of parts obtained from suppliers affects the quality of the products. The improvement of supplier quality can be obtained by longterm collaboration of the company and the supplier. This collaboration not only improves the quality of the supplier and the company but also improves delivery time, cycle time, productivity and profitability. As the companies grow and the products get complex, interaction between products increase and then the lack of quality becomes more complicated problem. Therefore, statistical and non-statistical tools and methods are used for the improvement practices of supplier quality. Recently, six sigma method is mostly preferred for quality improvement practices because this method is required to use too many quality tools and allows measurement of improvement by sigma and financial value.In this study, it is shown that six sigma method can be applied to supplied component in car manufacturing.. The method is used for improvement of the dyeing failure on FRP back wall of the cars. Sigma level increased from -1.97 to 1.48 and it was saved 9.14 € per car after corrective actions are applied both to the manufacturer and the supplier.

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“…(2003),Ramudhin et al (2008),Sawan et al (2018),Alglawe et al (2019), Castillo-Villar et al (2012), Castillo-Villar et al (2012,Batson (2011),Gaikwad et al (2016),Teli et al (2012Teli et al ( , 2014,Noshad and Awashti (2015) Consequential costs of failure purchasing (CCFP) 4Chen andYang (2003),Batson (2011),Gaikwad et al (2016),Teli et al (2012Teli et al ( , 2014,Noshad and Awashti (2015) …”

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confidence: 99%

The influence of the quality criteria on the quality cost of suppliers in SMEs

Masoudi

Shahin

2021

BIJ

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PurposeAfter quality costing, most companies do not know how to invest in supplier quality improvement. This study aims to develop a comprehensive model for the effect of supplier quality criteria on supplier quality costs.Design/methodology/approachThe independent variable of supplier quality criteria and the dependent variable of supplier quality costs have been identified based on a literature review. Then a model has been developed for the effect of the variables. A questionnaire has been designed and distributed to 158 small and medium enterprises (SMEs) in Jey Industrial Town located in the Isfahan Province. Structural equation modeling and partial least square structural equation modeling (PLS-SEM) have been used for data analysis.FindingsSupplier quality criteria influenced supplier quality costs (with a value of 0.711). The results also implied that organizational quality had the highest impact. The appraisal costs and the internal failure costs of purchasing received most of the influence. Also, process quality and consequential costs of failure purchasing had the lowest influencing and influenced values.Practical implicationsThe findings of this research encourage the managers of SMEs to evaluate and rank the most appropriate quality criteria related to quality costs for selecting a supplier as one of the most fundamental decisions in supply chain management.Social implicationsAppropriate selection of quality criteria influencing quality costs results in reduced quality cost. Quality cost reduction also results in decreased products' fixed prices. Ultimately, the company will have more competitive pricing, and consumers will benefit from such a significant advantage.Originality/valueStudying the influence of supplier quality criteria on supplier quality costs is relatively new in the manufacturing industry. The comprehensiveness of the investigated variables is also another advantage of the proposed model.

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An Application of Six Sigma to Reduce Supplier Quality Cost

Cited by 14 publications

References 6 publications

How to influence total costs of sourcing? A case study of SCOPQ with Six Sigma

How to influence total costs of sourcing? A case study of SCOPQ with Six Sigma

Alti Si̇gma Yöntemi̇ İle Tedari̇kçi̇ Kali̇tesi̇ İyi̇leşti̇rme: Bi̇r Uygulama

The influence of the quality criteria on the quality cost of suppliers in SMEs

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