Investigating the Influence of Six Sigma Implementation in Khorasan Steel Plant in Year 2011

Kamran Nourbakhsh,Ishak Mad Shah,Sara Ghaffari,Ali Zargarany

doi:10.19026/rjaset.6.3700

Abstract

The purpose of this empirical research is to investigate the influence of implementation Six Sigma project in commodity management unit in Khorasan steel plant in year 2011 to explore the main reasons of the defects in determining the purchase orders amount and inventory control to generate the improvement in the processes and also the profitability through decreasing the defects in the purchase orders amount and inventory control. The researchers regarding the requirement of an assessment in commodity management unit after establishing management information system, decided to scrutinize the unit and tried for implementing Six Sigma quality improvement project and applying five stages of Six Sigma (DMAIC) and its techniques such as Project Prism, SIPOC Chart, Failure Mode and Effect Analysis (FMEA), Workflow Chart, Fishbone Chart or Cause and Effect Analysis, Histogram, Process Capability ratio (CPK) and using tools like Minitab and Sigma Calculator, examining the Sigma level for finding the reasons of the defects in determining the purchase orders amount and inventory control. Finally, the critical points that have significant effects on decreasing the deviation in the process were found and solutions for improving the process and decreasing the defects for commodity management unit of khorasan steel plant were provided.

Highlights

This empirical research by applying the five stages of Six Sigma project, Define, Measure, Analyze, Improve and Control (DMAIC) and its techniques such as Project Prism, Suppliers, Inputs, Process, Outputs and Customers (SIPOC Chart), Failure Mode and Effect Analysis (FMEA), Workflow Chart, Fishbone Chart or Cause and Effect Analysis, Histogram, Process Capability ratio (CPK) and using tools like Minitab, Sigma Calculator by examining the Sigma level try to explore the main reasons of defects in determining the purchase orders amount and inventory control in Ball bearing management unit in Khorasan steel factory in Iran in year 2011
What product or service does the process deliver to the customer? Outputs 1 Determining the point of purchase order 2 Warehouse inventory control
It was observed that through the improvement implementation, the Sigma level 1.944 amount increased, it means that the defects in the previous process was 785046.729 per million to 126168.224 Defects per million decreased

Summary

INTRODUCTION

Promoting the processes of trade activities, increasing the customer satisfaction, decreasing the organization expenses and increasing the quality of the products are always the important topics that the organizations are facing and searching to find solutions for (Porforoshan and Nosrati, 2007) This empirical research by applying the five stages of Six Sigma project, Define, Measure, Analyze, Improve and Control (DMAIC) and its techniques such as Project Prism, Suppliers, Inputs, Process, Outputs and Customers (SIPOC Chart), Failure Mode and Effect Analysis (FMEA), Workflow Chart, Fishbone Chart or Cause and Effect Analysis, Histogram, Process Capability ratio (CPK) and using tools like Minitab, Sigma Calculator by examining the Sigma level try to explore the main reasons of defects in determining the purchase orders amount and inventory control in Ball bearing management unit in Khorasan steel factory in Iran in year 2011. Trough the last stage which is called Control, by giving some suggestions for the process improvement, the Six Sigma five stages would be finished

DISCUSSION

IRSA company

Determining the

CONCLUSION