I N T E R N AT I O N A L M A N A G E M E N T I N S T I T U T E , N E W D E L H I

APPLICATION OF 6-SIGMA FOR ERROR REDUCTIONAT ADVANCE INFORMATICS PVT Ltd.

SUBMITTED TO: Prof. RAJEEV BHATIA SUBMITTED BY : GROUP-8

) ACKNOWLEDGEMENT We hereby regard our sincere thanks to Prof.Karan Kapoor (08PGDM-86) Biswadeep Sahoo (08PGDM-82) Prakhar Singh (08PGDM-100) Nishant Agarwal (08PGDM-34) Rakesh M (08PGDM . IMI New Delhi under whose guidance this project was undertaken. Rajeev Bhatia . 2 . We sincerely acknowledge the employees of Advance Informatics for their valuable assistance throughout the production of this project.

......5 1........................................................................................................................................................5 Project Charter........................................................................................................................................................................... But another thing to identify from the two given pareto charts is that even though wrong grade accounts for the highest number of errors and also the highest percentage in value terms but then too it when we consider the value parameter....................................................5 1.............................................2 Correlation & Pareto.......................9 3 Analyze..............................................................9 Process Diagram............................10 3......................................................................................... Improvement..................................13 3 ....................................................................................................................................................................6 1.............................................................................................6 1..............................................................................................................................................................................................1 Cause and Effect.........................................................................13 5 Conclusion & Outlook.5 1................9 2 Measurement...............................................................................12 4 4.............................................12 It can be seen that the majority of the errors are of the category ‘wrong grade’.....................................4 Framework.............10 3.................................................................10 ...........6 Constraints.Table of Content Table of Content........................8 1........................................................................................................................................................................................................................................................3 Goals and Expected Results...........................................................................12 Therefore the pareto chart in value terms is quiet significant as it shows that even though other errors are not so significant in terms of sheer numbers on which it occurred but the amount of rework other error cause is quiet significant as well.....................................................................................................2 Problems and its Symptoms.........................................................................................................................3 Executive Summary................1 Background Information...................................................................4 1 Overview: Project Selection................ it is quiet evident that counting error and compilation error also take significant proportions with 20% and 12% respectively................................................................

Executive Summary 6-sigma is a powerful tool to detect errors within a process regardless whether it is a manufacturing process or service process. specified our goal concerning the improvements we want to make and made assumptions concerning the process. In addition to that suggestions were collected to find out the factors that need to be changed in order to achieve a higher customer satisfaction. In the Improvement stage a DOE was conducted to reveal the impact of those factors which are considered as the most important in a process. Simulation was done using data from the measurement phase provided additional data for another DOE to test the other factors 4 . We applied the 6sigma Methodology with its roadmap DMAIC (Define – Measure – Analyze – Improve – Control) on the serving process of the IMI canteen in order to reduce the service time per customer and therefore the waiting time. The analyze step deals with a cause and effect diagram to find many factors that might have an influence on the output – the long waiting time. A CTQ tree and a rough process diagram were drawn to illustrate the process understanding. The measurement step contains a time-motion study of the service process at the canteen and a revised and improved process diagram with times measured for each single action. Constraints were set limit the range of the task and Variables (decision and dependency) were defined to give additional insight into the whole field of the project. During the define step we drew our project scope. After a qualitative selection of the most important ones a correlation matrix helped to find an order of the main factors and their importance. Furthermore a questionnaire was designed in order to find out more about the average number of ingredients ordered by students and their satisfaction with the present situation concerning waiting time and serving time.

2 Problems and its Symptoms The level of accuracy of rebar estimates is below the customer satisfaction level. 1. An estimate being too low gets the customers the job (tender) but the customer ends up paying from his own pocket to complete the job hence reducing its profits. Control the process. the implementation steps for 6-sigma Projects are followed to reduce rebar estimating errors at Advance Informatics. reduce waste. DMAIC (Define – Measure – Analyze – Improve Control).1 Overview: Project Selection 1. Architects and Manufacturers for over last 10 years. eliminate the occurrence of the same problem. Their customer process solutions encompass end to end solutions.. Its roadmap – DMAIC (Define-Measure-Analyze-Improve-Control) means: Define the problem of the process.000 sq ft and having about 100 employees. India is covering an area of over 5.1 Background Information Advance Informatics are recognized as a forerunner in the development and deployment of business process outsourcing solutions by providing CAD services for Engineers. An estimate being too high results in customers not getting jobs at all. It extends to a partnership where our structured program is designed to exceed your expectations of turn around time and quality. 5 . CAD operators & 3D Modellers. Its state of the art facilities at New Delhi. Their cost effective solutions are best in the industry. Improve the process. Architects. Measure the performance of the process. Engineers. They are catering to CAD outsourcing requirements of a varied segment of clients from USA & European Union countries. Analyze the cause if the process. In this research project. They can also analyse and suggest other solutions. back-office operations and support. This is resulting in customer loosing out on money and work due to errors in estimates. They are well bonded team of more than 100 experienced professionals consisting of Design Engineers. 6-sigma provides a blueprint for implementation of total quality system. It offers services in your desired format.

There are 2 CTQs: level of error and delivery time.Define 1. 1. In the following two moths the aim is to reduce errors to 1% on average.4 Framework Figure shows the SIPOC framework of our project and the scope of improvements 6 .3 Goals and Expected Results The 6-sigma team aims to decrease errors in estimating of the rebar team at Okhla to 3% on average in the first stage which will go on for two months.

7 .Q u ic k T im e ª a n d a d e c o m p re s s o r a r e n e e d e d t o s e e t h is p ic t u r e .

8 .5 Project Charter Q u ic k T im e ª a n d a d e c o m p re s s o r a re n e e d e d to s e e th is p ic tu re .1.

However. Much time is spent in the region between input two and output two of the operation sub process. Our observations from the new process diagram with process times were: This process contains a lot of branches and therefore is has a lack of standardizations. Due to these difficulties it was considered best to use the accuracy of a much more experienced and more accurate estimator for checking the accuracy and using his results as a proxy measure. 2 Measurement Process Diagram The analysis of the procedures shown in the time-motion study made us redraw the process diagram. the total efficiency will improve a lot. "Replenish sub process" takes almost 1 minute. From the time-motion study we could determine the times needed for each action step during the whole service process. Figure 3-1: Process diagram version 2. Proper configuration of the ingredients in front to reduce the frequency of replenishment.1.6 Constraints Actual accuracy of estimating is known only when the contractor actually completes the job. this information is rarely shared with us and it also involves a big time lag and data set would be much smaller. 1/3 9 .

1 Cause and Effect A fishbone chart. also called ‘Cause and Effect’ diagram.2 Correlation & Pareto After the Selection of the most crucial factors from the Cause and Effect 10 . 2/3 Figure 3-3: Process diagram version 2.Figure 3-2: Process diagram version 2. is helpful to brain storming many reasons that can lead to an outcome and is the first step to identify the key-reason and most crucial factors that have the highest influence on the outcome. Figure 4-1: Cause and Effect Diagram 3. 3/3 3 Analyze 3.

Diagram a correlation analysis of these main causes was mode. A Pareto-chart has been drawn to illustrate the crucial factors to concentrate on during further project process. 11 . After serious consideration. some factors were not taken into further consideration since it is not possible or hardly possible to change the factors in order to achieve improvements.

it is quiet evident that counting error and compilation error also take significant proportions with 20% and 12% respectively. Therefore the pareto chart in value terms is quiet significant as it shows that even though other errors are not so significant in terms of sheer numbers on which it occurred but the amount of rework other error cause is quiet significant as well.It can be seen that the majority of the errors are of the category ‘wrong grade’. But another thing to identify from the two given pareto charts is that even though wrong grade accounts for the highest number of errors and also the highest percentage in value terms but then too it when we consider the value parameter. 12 .

After the initial thirteen-day data-gathering period. Estimating 100% accurately is extremely difficult and doing so all the time nearly impossible. Different items can be marked with different colors to distinguish them. Use of digitizers To aid estimators in reducing and avoiding counting errors as well as reducing the time spent of them digitizers were provided to all of them. there were many concerns of employees that needed to be addressed. Employees were also asked to visualize how they approached estimating. Finally a person would compile the various sheets and send them for checking. They argued that mistakes will be made now and then as a part of estimating and it should not 13 . Moreover. The employees were concerned that the data gathered might be used to punish them for the mistakes they made. The next step is to compile a separate list of the items on the sheet(s) along with their multipliers for calculating weight. 5 Conclusion & Outlook . as well as where mistakes were happening most often and where they were most dangerous. The next step is to list the different items that are being used on the sheet. and an improved approach was suggested to reduce errors. where they were individually committing mistakes.A six sigma project is as much about getting all stakeholders to buy into the project as it is about data gathering. employees were shown. an estimator can easily see if he has missed an item by searching for any unmarked item on the sheet. Recommended approach or process of estimating The first step is to read the instructions and notes that came along with the project. Through digitizers estimators can mark different items with a dot and the digitizer does the counting automatically. The next step is to count the items and enter the numbers into the excel sheet. Although not apparent from the report.4 4. Note: this does not involve counting the number of each of those items. Improvement Improvement in estimating was carried out by imparting training to the employees and providing them feedback of where they were committing mistakes.

Employees were made to realize that the data is not to punish anyone but to help each of them improve their estimating by ensuring that they get individual feedback on their performance.be held against the estimator as it can be made by anyone. 14 . There would be a reward system and their performances would be measured only against their own and very realistic and slightly conservative targets would be set. The importance of data gathering and proper mapping of resources is very apparent as it led to very quick and significant improvements in estimating.

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