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Abstract
Abstract
Improving quality and reducing cost have become the major objectives of any enterprise in
the global market. Becoming a competitive enterprise requires offering quality products that
meet customer requirements and satisfy his needs, while enhancing cost reduction opportunities and ongoing improvement projects to increase profits.
In the present study the Six Sigma approach is presented as one of cost reduction and process improvement approaches that depends on a formalized and systematic methodology working
through structured teams with assigned objectives. Being a project by project approach targeting quality objectives, the six sigma approach identifies the variability of a process in terms of product specifications, so that product quality and reliability meet and exceed
today’s demanding customer requirements. Six Sigma is a data driven approach supported by
management commitment that depends on continuous customer feedback ..
The study also identifies the critical factors that affect Six Sigma approach implementation process and highlights the differences between Six Sigma approach as a comprehensive
methodology for cost reduction and continuos improvement versus other quality-focused
initiatives. Although the basic elements of Six Sigma approach are not new, but the approach offers a framework that unifies a lot of quality tools together. In the present study the Six Sigma roadmap has been applied on a lubricant oil manufacturing facility to identify possible
inhibitors for process improvement and cost reduction opportunities.
The investigation proved through a practical application and implementation of Six Sigma roadmap that it is possible to improve profits through reducing cost and improving product quality through identifying problematic areas. Based on structured customer feedback procedures it was possible to determine cost reduction opportunities within the considered
process. As a result of suggested process improvement it was possible to increase process yield to 98.4 %, reduce production time for required quantities and reduce the number of
defective oil packages in a product line by 64 % from 46747 defect per million parts to only 16800 defect per million parts.
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