Professional Documents
Culture Documents
Y, xxxx 1
1 Introduction
Tremendous efforts are on in the last few decades to improve the operations in the
industries with the application of different optimisation techniques. The diversity of such
organisations increases the need for original and applied research in this area to
understand the intricacies involved in the applications of these continuous improvement
techniques to different sectors. Six Sigma is one such procedure that aids the industry in
4 S.S. Srinivas and V.R. Sreedharan
achieving goals set by the company itself over a period of time. Six Sigma is defined as
an integrated methodology for following continuous improvement of organisational
profits as well as customer satisfaction. This approach has been successfully implemented
in miscellaneous organisations in the past and discussed in the literature. In fact,
Six Sigma has proven to be an effective tool and easy to implement successfully in a
non-manufacturing environment (Dahlgaard and Mi Dahlgaard-Park, 2006). In this
review of literature, the various applications of Six Sigma in different environments is
discussed to demonstrate the effectiveness of this problem solving methodology across
organisational boundaries. Desai (2006) presented an Indian case where the customer
delivery commitments, one of the core business processes are improved using the Six
Sigma methodology. Kumar (2007) assessed the status of Six Sigma implementation in a
UK small and medium enterprise. Based on the findings, it is reported that critical
success factor is uncompromising commitment from top management and the two
hurdles are poor training and resource availability. A Six Sigma implementation
framework for the small and medium sized enterprises is an important step in the right
direction as presented by Zu et al. (2008). It is not only the big industrial powerhouses
which benefit from this technique. Rather, organisations irrespective of their size and
type have shown to implement the strategy successfully. While different problems are
known to exist in different industries, this continuous improvement initiative provides a
clear cut strategy to analyse problems and implement solutions.
In the case of manufacturing sector, this approach is applied to improve quality and
reduce energy cost in touch panel manufacturing with lean principles (Chen and Lyu,
2009) and automotive supplier industry (Bilgen and en, 2012) respectively. Chen and
Lyu (2009) utilised the Six Sigma method to enhance quality of products in touch panel
production. Bilgen and en (2012) produced significant reductions in energy cost by the
optimisation of materials transferring heat loss. The process industries too have
understood the importance of Six Sigma in industrial context. Bauelas et al. (2005)
implemented Six Sigma to reduce waste in the process of coating successfully with
minimum cost. Substantial quality enhancements have also been achieved with the
application of Six Sigma in a multinational automotive manufacturing firm (Krishna
et al., 2008).
The service and healthcare sectors have also utilised this technique to their advantage.
A good amount of annual savings was achieved with the application of Six Sigma
methodology in hospitals (Heuvel et al., 2005). Koutouvalas et al. (2005) produced
empirical evidence to present the perceived service quality management and loyalty in
the operations of public and private banks. Ozcelik (2010) suggested that the move of Six
Sigma from manufacturing to service has been successful based on the study of a few
major firms in the US service sector. Prashar (2015) presented a case of the application of
Six Sigma in a public utilities firm to improve the reading of energy meters. Digalwar
et al. (2014) presented and validated quality management concepts for software industries
in India. These cases clearly illustrate the benefits of the application of Six Sigma in the
areas of service and healthcare. Further, the positive results of the application of Six
Sigma in these areas are discussed elaborately.
This methodology also finds useful application in different types of supply chains
(Das, 2005; Knowles et al., 2005; Chappell and Peck, 2006; Chang et al., 2012). These
applications deal with the management of supply chain in terms of service quality.
However, the issues of quality due to defectives in distribution and retail units are not
discussed clearly in these cases. The problem of failure analysis considered in this paper
Failure analysis of automobile spares in a manufacturing supply chain 5
is not a direct indicator of service quality, i.e., the problem is not related to the delivery
time and delivery requirements. On the contrary, the primary problem in this case is the
damages in the delivered products itself. It is to be understood that the defectives are not
generated due to manufacturing errors or other wrongdoings at the manufacturers place.
The issue of these rejections is solely due to the inefficient activities of the distribution
centre. As a result, the focus of reducing these rejections lies with the distribution centre
only.
The application of Six Sigma has also extended to other sectors beyond
manufacturing, process, service, healthcare and supply chains. The results of a Six Sigma
project for longitudinal beam construction in a railway station are discussed (Stewart and
Spencer, 2006). To reduce the consumption of de-mineralised water in thermal power
plants, the Six Sigma DMAIC approach has been used (Kaushik and Khanduja, 2009).
These articles are an illustration of the fact that Six Sigma approach can be applied to
different sectors depending on the need with appropriate changes relevant to that sector.
This review clearly demonstrates that Six Sigma is not restricted to a particular sector
alone and can be applied to any sector with proper planning and implementation
procedure. However, the problem of analysing failures in a supply chain distribution
centre is closely related to the service sector. As the distribution centre stores and ships
the products, the procedures have to be streamlined so that the goods reach the final
destination safely. Once the spare parts are delivered and sold, the goodwill of the
distributor is at stake. The case of distribution centre varies from the service sector in the
sense that the service is not consumed as it is delivered. However, the customers will
develop an idea about the distribution unit from the quality of the products delivered and
it becomes the responsibility of the distribution centre to maintain the quality of products
at its place. From the literature review of Six Sigma, it is clear that this approach is one of
the first candidates to be considered for the reduction of automobile rejections in the
distribution centre.
3 Research study
This study is conducted in a spare parts distribution centre in India. The problem analysis
in an organisation can be performed using various methods depending on the problem
conditions. However, the ultimate aim is to minimise or eliminate the root cause of
rejections in the unit. The Six Sigma (DMAIC) approach is used for problem solving in
this case as the current quality level of the distribution unit is not satisfactory. Six Sigma
approach has been found to be very useful in the context of analysing causes of failures
and provides a structured approach to this problem. Six Sigma process and DMAIC
framework can be understood and implemented easily when compared to other
competing procedures like lean principles (Dahlgaard and Mi Dahlgaard-Park, 2006).
The application of Six Sigma in non-manufacturing is also known to be easy and
efficient. The distribution centre is considered to be a part of the non-manufacturing
bandwagon as the processes as the processes are completely different from that of a
manufacturing setup. The benefits of implementing Six Sigma in a distribution centre are
the following:
6 S.S. Srinivas and V.R. Sreedharan
The DMAIC procedure, associated with Six Sigma, follows a systematic and structured
approach to problem solving. Bilgen and en (2012) emphasised on the supreme abilities
of Six Sigma and mentioned the advantages of Six Sigma over other continuous
improvement initiatives. The advantageous features of Six Sigma include customer focus,
scientific approach to decision making and effective problem solving methodology. This
systematic procedure has shown to produce incredible results in terms of effectiveness of
the problem solved. The current problem in the spare parts distribution is solved with the
help of DMAIC methodology.
8 S.S. Srinivas and V.R. Sreedharan
After the analysis of different causes listed in the fishbone diagram, it is found that the
current packaging method is the root cause of the problem of failure. The packing
materials strength can be understood only after the effects of static and dynamic loads on
the packing material are investigated. The effect of loads on the component is studied
only based on the point of failure or breakage on the component. The forces acting on the
component is not given much importance. As far as static loading is concerned, ten
packing boxes are arranged one over another in the stores. However, the load that can be
withstood by the part is unknown. The lowest box in the pile has to withstand the load of
nine other parts. It is observed that each box can withstand static loads of about 90 kg
after the trial. Though the existing storage method is fit for the type 2 part, it leads to
rejections in the type 1 component. The number of type 1 components shipped is much
more than that of the type 2 components. As a result, it is concluded that the components
do not withstand static loads. In the case of dynamic loads, the component is moved from
the warehouse to the truck and vice versa. As mentioned earlier, there are a wide variety
of vehicles used for transportation based on the availability. Experiments are conducted
to understand the heights at which failure of the component occurs for different trucks.
About five trials each are conducted for loading and unloading respectively. The heights
of failure vary with the two kinds of components. The average failure heights for the
component with the existing method of packing are presented in Table 2. This is the real
time loads that the components are subject to. Thus, the packing strength of the material
needs to be improved to increase the heights of failure much more than the current
heights as mentioned in Table 2.
Table 2 Failure heights under dynamic loading with the current method
existing method. Thus, a solution has been arrived at to the problem of packing material
strength.
Table 3 Failure heights under dynamic loading with the suggested method
5 Practical implications
This is one of the first studies to analyse the rejections in a spare parts distribution unit.
The earlier studies have looked at the rejections in a manufacturing setup. However, the
rejections in a distribution unit are not primarily due to manufacturing defects. The
defects in this case are likely to arise because of activities related entirely to the
distribution unit. The fishbone analysis in Figure 4 illustrates the activities that lead to the
rejection of spare parts. Moreover, the analysis of rejections provides a clear idea about
the root cause of the problem the packing method. With the introduction of the new
packing method consisting of a cushion between the packing material and the spare part,
the experiments indicate that the number of rejections is bound to decrease. In addition,
12 S.S. Srinivas and V.R. Sreedharan
the minor change in packing method is very economic and aids in nullifying the other
potential cause of rejections like improper work procedures, incorrect inspection
techniques, etc. The following points indicate the implications of implementing this
solution.
the packing method is economic
the suggested solution is simple and easy to implement
by attacking and rectifying this root cause, the other potential causes are eliminated
It is extremely important to note that the solutions need not be very complex. In fact,
simple solutions are easily implementable in industries and are preferred by managers in
the industry. The experimental results suggest that the proposed method performs much
better the current packing method. This will eventually lead to significant savings for the
company in terms of cost of goodwill loss among the retailers and end customers owing
to the failure of the spare parts.
Further, this case study will aid the managers in the distribution centres to improve
the processes and reduce rejections at this stage. The supply chains cannot afford to lose
money at this stage of the supply chain due to different factors which are controllable. In
this case, the change in packing method might serve the needs of the company. However,
this might not be the case with other organisations and supply chains. As a result, it
becomes imperative on part of the different distribution centres to apply the Six Sigma
framework to find the problems and overcome them. This approach is not restricted to
failure analysis of products in these firms. It is reiterated that simple solutions could
produce significant cost savings for the company than complex solutions which might
become extremely difficult to implement in the first place. This framework comes under
the broader umbrella of continuous improvement initiatives and will aid the companies in
improving the processes day-by-day.
6 Conclusions
The need to reduce the number of failures becomes necessary for the spare parts
distribution unit to avoid the loss of goodwill among the customers and retailers. The
current problem in the distribution unit is defined in a precise and clear manner and
analysed with the help of DMAIC approach. This problem solving tool has worked
effectively as evidenced from the past literature and assists in reducing the number of
rejections in this case. Cause and Effect diagrams are used to list out the potential causes
and the causes are validated in the analyse phase with real-time observations and
experiments. The packing method is identified to be the root cause of this problem and a
new solution is suggested to reduce the damages in component. Cushion between the
component and the packing material proved to be an efficient solution and did not require
many alterations to the current method. The proposed method presented with much better
solutions than the present method of packing.
Failure analysis of automobile spares in a manufacturing supply chain 13
References
Andersson, R., Eriksson, H. and Torstensson, H. (2006) Similarities and differences between
TQM, Six Sigma and lean, The TQM Magazine, Vol. 18, No. 3, pp.282296.
Bauelas, R., Antony, J. and Brace, M. (2005) An application of Six Sigma to reduce waste,
Quality and Reliability Engineering International, Vol. 21, No. 6, pp.553570.
Bendell, T. (2006) A review and comparison of six sigma and the lean organisations, The TQM
Magazine, Vol. 18, No. 3, pp.255262.
Bensely, A., Stephen Jayakumar, S., Mohan Lal, D., Nagarajan, G. and Rajadurai, A. (2006)
Failure investigation of crown wheel and pinion, Engineering Failure Analysis, Vol. 13,
No. 8, pp.12851292.
Bhamu, J. and Singh Sangwan, K. (2014) Lean manufacturing: literature review and research
issues, International Journal of Operations and Production Management, Vol. 34, No. 7,
pp.876940.
Bhuiyan, N. and Baghel, A. (2005) An overview of continuous improvement: from the past to the
present, Management Decision, Vol. 43, No. 5, pp.761771.
Bilgen, B. and en, M. (2012) Project selection through fuzzy analytic hierarchy process and a
case study on Six Sigma implementation in an automotive industry, Production Planning and
Control, Vol. 23, No. 1, pp.225.
Chang, S., Yen, D., Chou, C., Wu, H. and Lee, H. (2012) Applying Six Sigma to the management
and improvement of production planning procedures performance, Total Quality
Management and Business Excellence, Vol. 23, Nos. 34, pp.291308.
Chappell, A. and Peck, H. (2006) Risk management in military supply chains: is there a role for
Six Sigma?, International Journal of Logistics, Vol. 9, No. 3, pp.253267.
Chen, M. and Lyu, J. (2009) A lean Six-Sigma approach to touch panel quality improvement,
Production Planning and Control, Vol. 20, No. 5, pp.445454.
Dahlgaard, J.J. and Mi Dahlgaard-Park, S. (2006) Lean production, six sigma quality, TQM and
company culture, The TQM Magazine, Vol.18, No.3, pp.263281.
Das, P. (2005) Reduction in delay in procurement of materials using Six Sigma philosophy, Total
Quality Management and Business Excellence, Vol. 16, No. 5, pp.645656.
Desai, D.A. (2006) Improving customer delivery commitments the Six Sigma way: case study of
an Indian small scale industry, International Journal of Six Sigma and Competitive
Advantage, Vol. 2, No. 1, pp2347.
Digalwar, A., Haridas, P. and Joseph, I. (2014) Development and validation of quality
management constructs for software industries: an empirical investigation from India,
International Journal of Services and Operations Management, Vol. 17, No. 4, pp.453478.
Heuvel, J., Does, R. and Verver, J. (2005) Six Sigma in healthcare: lessons learned from a
hospital, International Journal of Six Sigma and Competitive Advantage, Vol. 1, No. 4,
pp.380388.
Jaca, C., Santos, J., Errasti, A. and Viles, E. (2012) Lean thinking with improvement teams in
retail distribution: a case study, Total Quality Management and Business Excellence, Vol. 23,
Nos. 34, pp.449465.
Kaushik, P. and Khanduja, D. (2009) Application of Six Sigma DMAIC methodology in thermal
power plants: a case study, Total Quality Management and Business Excellence, Vol. 20,
No. 2, pp.197207.
Knowles, G., Whicker, L., Femat, J. and Canales, F. (2005) A conceptual model for the
application of Six Sigma methodologies to supply chain improvement, International Journal
of Logistics, Vol. 8, No. 1, pp.5165.
Koutouvalas, D., Siomkos, G. and Mylonakis, J. (2005) Perceived service quality management and
loyalty in public versus private banks operations: some empirical evidence, International
Journal of Services and Operations Management, Vol. 1, No. 2, pp.101122.
14 S.S. Srinivas and V.R. Sreedharan
Krishna, R., Sharan Dangayach, G., Motwani, J. and Akbulut, A.Y. (2008) Implementation of Six
Sigma approach to quality improvement in a multinational automotive parts manufacturer in
India: a case study, International Journal of Services and Operations Management, Vol. 4,
No. 2, pp.264276.
Kumar, M. (2007) Critical success factors and hurdles to Six Sigma implementation: the case of a
UK manufacturing SME, International Journal of Six Sigma and Competitive Advantage,
Vol. 3, No. 4, pp.333351.
Ozcelik, Y. (2010) Six Sigma implementation in the service sector: notable experiences of major
firms in the USA, International Journal of Services and Operations Management, Vol. 7,
No. 4, pp.401418.
Prashar, A. (2015) Six Sigma adoption in public utilities: a case study, Total Quality Management
and Business Excellence, Vol. 27, Nos. 56, pp.479506.
Roy, S. and Mukherjee, I. (2015) A framework for service quality improvement in multi-stage
processes, International Journal of Services and Operations Management, Vol. 21, No. 2,
pp.150174.
Stewart, R. and Spencer, C. (2006) Six-sigma as a strategy for process improvement on
construction projects: a case study, Construction Management and Economics, Vol. 24,
No. 4, pp.339348.
Zu, X., Fredendall, L. and Douglas, T. (2008) The evolving theory of quality management: the role
of Six Sigma, Journal of Operations Management, Vol. 26, No. 5, pp.630650.
The author has requested enhancement of the downloaded file. All in-text references underlined in blue are linked to publications on ResearchGate.