Reducing the Scrap Rate in Manufacturing SMEs Through Lean Six Sigma Methodology: An Action Research

Abstract

The aim of this project was to investigate operational benefits of the Lean Six Sigma (LSS) methodology to reduce the scrap rate in the production line of a first tier supplier of automotive sector. This is an action research case study using LSS methodology in fully automated subprocess of the manufacturers. The implementation of LSS methodology had an effective and significant impact on the scrap rate reduction with increased First Run Yield (FRY) with significant financial impact at this scale. The research investigation needs to be fully controlled by the team in order to correctly gauge the effect of any changes made to the process. This action research can be replicated in other sub-processes of the production line and other processes of the company. This project addresses novelty about effectiveness of LSS methodology to reduce scrap rate and add value to automated processes in first-tier manufacturing SMEs supplying automotive sector. The project had greater saving than expected by the managers at £98k per annum. The approach of this research project combines proven statistical tools with some basic but effective lean tools to be applied in an original sequence in order to design robust product and match manufacturing capabilities.

Investigation and modelling lean six sigma barriers in service industries: a hybrid ISM-Fuzzy MICMAC approach

“…Fewer initiatives and insufficient rewards add to the reasons for low motivation among employees (Kumar et al, 2016;Trakulsunti and Antony, 2018). Poor deployment of strategy by the implementers and the management can lead to unsatisfactory results from the project (Moya et al, 2019;Shokri, 2019;Kokkranikal et al, 2022). Poor budgeting estimation has also been considered a barrier to implementing LSS Table 1 Barriers to implementing LSS Barriers projects; it severely erodes the financial gains that a company is expected to achieve from implementing LSS (Na ¨slund, 2013;Prashar, 2014).…”

“…The literature suggests that without top management commitment, it is difficult to achieve the quality improvement outcome expected from LSS implementation (Aleem et al , 2014; Boström et al , 2020; Zhang and Li, 2020) because managers play a vital role in the success of any planned and implemented project in organisations, especially LSS projects (Antony and Karaminas, 2016). Unlike manufacturing industry, where lack of customer focus is not a significant barrier to implementing Six Sigma in the service industries (Eberle et al , 2018), failure to understand customer needs and expectations in developing an LSS strategy can be disastrous (Shokri, 2019). Scholars show that implementing the LSS tool to improve the service sector has seen challenges (Isack et al , 2018; Joseph et al (2022).…”

“…The compatibility of Lean and Six Sigma provides the service industries with a well-organised system for simultaneously reducing waste and improving process efficiency (Zhuo, 2019). The new design adds value from the continuous improvement measure, ensuring that the customer’s journey is smooth and continually evaluating the services provided through a feedback mechanism (Milner and Savage, 2016; Eberle et al , 2018; Shokri, 2019).…”

Assessment of the Demand of Critical Materials for Fuel Cell Micro CHP for Households in Germany

“…Additional losses can occur during the fabrication process of the FC stack, as a fraction of the manufactured PEMFC units may not comply with quality control procedures. Assuming a high value of confidence for the manufacturing process, the discarded products are lower than 2% (Shokri et al, 2015;Matathil et al, 2012), with target values of 0,1% (Matathil et al, 2012).…”

Minimizing Costs of Poor Quality for Glass Container Bottles Production Using Six Sigma’s Dmaic Methodology: A Case Study in a Bottle and Glass Share Company

“…Process improvement and operational cost reduction through quality improvement practices has been at the centre of attention for many businesses in different sizes and in a variety of sectors to gain a more competitive advantage. Lean Six Sigma (LSS) is an effective and disciplined business transformation strategy and problem solving tool that has evolved through the combination of Lean and Six Sigma, both recognized as leading Total Quality Management (TQM) tools for performance improvement in organizations with a proper infrastructure built on leadership and change culture [12]. A fundamental aspect of Six Sigma methodology is the identification of critical-to-quality (CTQ) characteristics that are vital to customer satisfaction [5].…”