REDUCTION OF IN- HOUSE REJECTION BY SIX SIGMA IN AUTO- ANCILLARY INDUSTRIES

Abstract

Purpose- This paper is about the application of Six Sigma methodology in an auto ancillary industry. This paper demonstrates the application of DMAIC methodology to reduce the in- house rejections of the production process. Design/Methodology/approach- The complete manufacturing process auto ancillary parts was studied and decided to apply the DMAIC (Define-Measure-Analyze-Improve-Control) approach of Six Sigma methodology. The process was defined by SIPOC diagram, Pareto analysis is used to measure the defects, potential causes of the defects were found by cause and effect diagram, the process need to be improved by the control measures suggested for implementation to reduce the rejections. Thus, the in-house rejection will be reduced by increasing the productivity and thus by increase in sigma level. Findings- The process aims for the in-house rejection rate of 700 ppm. The actual rejection rate is above 2000 ppm which is 4.5 Sigma level. The six sigma methodology is applied and the major defects and the potential causes for the defect were found. The optimal solutions for were provided for improvement in process and for reduction of in- house rejections. Practical Implications- This six sigma methodology can be successfully implemented to improve the quality, productivity and profitability by reducing the defects in the process. Originality/Value- The auto ancillary manufacturing industry in India has the great potential for growth. This application of Six Sigma methodology in the production process improves the quality, productivity and profitability in small and medium scale industries.