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Some study on need for L6σ in small scale industries

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Global Journal of Finance and Management.
ISSN 0975-6477 Volume 9, Number 1 (2017), pp. 15-22
© Research India Publications
http://www.ripublication.com

Some study on need for L6σ in small scale industries

G.Muthukumaran1, V.S.K. Venkatachalapathy2 and K.Pajaniradja3

1
Department of Mechanical Engineering, Pondicherry Engineering College/
Pondicherry University, India.
2
Department of Mechanical Engineering, Sri Manakula Vinayagar Engineering
College/ Pondicherry University, India.
3
Department of Mechanical Engineering, Pondicherry Engineering College/
Pondicherry University, India.

Abstract

Small Scale industries play a key role in the industrial economy all over the
globe. They contribute significantly to economic growth, innovation, and
employment generation. Globalization, quick technological changes, and bigger
competitive pressure are having a major impact on small scale industries around
the globe. Small scale industries need to upgrade their professional organization
methods to reach financial, social and environmental improvement without
large investments or extensive changes. The integration of lean and Six Sigma
is the best response to this challenge. However, the adoption of lean Six Sigma
in small scale industries is not widespread due to the fear of high
implementation cost and the subsequent benefits. With the limited resources to
implement Lean six sigma for small scale industries without external aid.

Keyword: Lean six sigma, small scale industries

1.0 INTRODUCTION:
With the growing accomplishment and acceptance of 6σ further and more
manufacturing organizations currently are using a blend of Lean and 6σ tools to
improve their processes and reduce variation. The two methods complement each other
in a lot of ways. 6σ eliminates defects but it does not report the question of in what way
to improve process flow; Lean principles exclude the advanced statistical tools required
to achieve the process capabilities needed to be truly 'lean'.
16 G.Muthukumaran, V.S.K.Venkatachalapathy and K.Pajaniradja

A Lean Strategy brings a set of proven tools and techniques to reduce cycle time,
inventory, setup time, equipment downtime, scrap, rework and other hidden waste in
the factory. The focus is on value from customer’s perspective and flowing this through
the entire supply chain.
Value Stream approach to map the process was considered most appropriate for this
study as the process uncovers problems that cannot be solved without reducing process
variability. Process variability is the reason for many of the seven wastes; for example,
it can be responsible for overproduction, excess inventory, defects, over processing,
etc. In some cases, process variability cannot be reduced with a simple fix such as a
go/no-go fixture; the tools of Six Sigma and the Six Sigma define, measure, analyze,
improve and control (DMAIC) methodology are very effective in these cases. This is
where Six Sigma fits into lean and was considered the most appropriate for the study.
[1]
However, applying both methods simultaneously holds the capacity of being able to
address all types of process difficulties with the most appropriate tool kit. This research
work utilizes the tools of both methodologies to help a manufacturing company reduce
the lead times and scrap of an injection molding process. Value stream mapping is
applied to map the current and future process and help make recommendations to
reduce scrap. Six Sigma methodology of problem solving is utilized to shortlist
variables that can be studied further during design of experiments to further cut down
the scrap and rework. [2]

2.0 SMALL SCALE INDUSTRIES:

One of the major source that initiate the economy of the nation is the small-scale
industry. Countries that are industrialized, advanced and economically buoyant are
countries with vibrant and active manufacturing sector. [3]

3.0 QUALITY SYSTEM SURVEY:

Based on the survey over 500 small scale industries in and around Puducherry, it is
being clear that there is a clear lack of knowledge in Lean Six sigma

Chart of Percentages
35

30

25
Percentages

20

15

10

0
5S n O m s M M a ke g a
iz a IS te er TQ TP m in gm
s th Sig Yo ur Si
Ka Sy O ka ac
t
x
No Six Po uf Si
an an
M Le
an
Le
Quality Systems

Figure 1: Quality system survey in small scale industries

Some study on need for L6σ in small scale industries 17

4.0 DISCUSSION ON IMPLEMENTING LEAN SIX SIGMA TO SMALL

SCALE INDUSTRIES:
The main objective of this research is to utilize a combination of Lean and Six Sigma
techniques to streamline their processes. Value stream mapping captures the current
state of the process in its entirety and objectively analyzes the areas where lead time
improvements can be introduced. This study looked at an Injection Molding process
and identifying the bottlenecks which impact the increase in the lead time of the
manufacturing process, eliminating the non-value-added activities and developing a
future state value stream for the process. The study also focuses on application of six
sigma tools to analyze the probable causes of defects and recommend areas of
improvement to reduce the scrap rework. [4]

5.0 CASE STUDY ON INITIAL STATUS OF THE COMPANY (NPPL):

NPPL is in Puducherry, India. Nuvo Plastic specializes in custom plastic injection
molding. The services include design assistance, tooling, production and packaging.
The reason for selecting this concern is due local contacts and the company is also
willing to implement lean six sigma.

6.0 PROCESS FLOW OF NPPL:

Raw Raw Packing

Customer Initial Set
Scheduling Material Material Trail Run Production Inspection and
Order Up
Purchasing Processing Delivery

Figure 2: Process flow of NPPL

A plastic injection molding company practicing the 5s method will benefit by having
faster set up times, reduced working costs, a visually attractive workspace and higher
employee confidence. As the concept is well known, the initial stage is to check the
status of the company.
18 G.Muthukumaran, V.S.K.Venkatachalapathy and K.Pajaniradja

5 S audit has been conducted for plastic injection moulding

5S Audit Chart
Initial Audit in Small Scale Industry
10

6
Score

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so
et
su uk
(S e it (s
s
(S eik hit
RT Y G (S (S
SO IF IN E N
L AN IZ AI
MP E RD ST
SI CL DA SU
IC AN
AT ST
EM
ST
SY

Figure 3: Initial 5S audit

From the initial audit, the company is facing identification issue and over all there is no
proper handling of equipment, tools and machine parts. The audit is evaluated for the
score maximum of 10 points scale. The score from the initial audit is clear that the
industry is in need of training and obviously lean six sigma.
According to Lean Six Sigma, small scale industries can improve work flow by
reducing waste. This specific practice targets to report project management
requirements and to support in associate companies attain better levels of production
however refining upon processes. Lean waste is most commonly examined because it
is up to the success full enterprise to minimize such matters and to ensure positive
outcomes.

Figure 4: Initial status of the NPPL

Some study on need for L6σ in small scale industries 19

To maintain a competitive edge, Six Sigma encourages the technical person to identify
and eliminate the waste that is encountered within the organization. These measures
aim to enhance the flow of production and to strengthen the weaker areas that are
encountered within the business. There are many common areas where such negative
outcomes may develop. [4], [5].
Wasteful areas within an organization are known to develop in several ways. Many
processes that add to the complexity of running an enterprise become lost over time
requiring re-application and re-organization. This can be a timely and costly measure
especially where methods or programs are rarely used yet require specified knowledge
to perform.
When businesses engage in an over analysis and constant assessments, it will not only
prove expensive, but it takes away from performing essential organizational tasks. To
develop accurate ways of improving performance, it is important to consider the ways
in which customers are served in achieving client satisfaction. The Lean approach
emphasizes the fact that companies should use the appropriate resources to meet the
demand.
All problems that are identified within the organization should be treated with equal
levels of focus and need to resolve. Companies are advised to achieve more accurate
data results with the use of statistical charts and techniques including the necessary
quantitative methods. It is important to consider the measures needed to meet the
demand in an efficient and quality manner. [6]
20 G.Muthukumaran, V.S.K.Venkatachalapathy and K.Pajaniradja

Figure 5: Initial status of the NPPL

The objective for the companies is to make the assessment and reading of information
more efficient as it allows that company to get to the root of the problem more
effectively. When measures are put in place that are easy to understand and may be
applied in an appropriate manner, all employees are better equipped to respond to
organizational demands and changes. This will further aid in addressing idle resources
and the ability to make use of measures in an effective and comprehensive manner.
Waiting is a problem that is encountered a number of times when it comes to the
implementation of a project or experiments within the business. This means that a
company is slowed down and productivity wasted as all individuals are reliant on the
delivery of certain project resources, data, and a range of measures that are required for
successful and speedy outcomes. Poor planning is a contributing factor as it wastes
resources and return on investment.
If companies spend a considerable period waiting on particular projects, the costs of
turnover will simply rise. Lean waste can be minimized and eliminated with the
implementation of the appropriate tools. Six Sigma believes in tackling such processes
to ensure that the business remains productive and will prevent against delays,
overstocking, and ongoing losses.
Some study on need for L6σ in small scale industries 21

7.0 CONCLUSION:
Lean Six Sigma is valid in both large as well as small scale industries, the difficulty is
that small industries regularly do not have satisfactory funds to bring out the
implementation successfully. By selecting for Lean Six Sigma implementation, small
enterprises frequently expose themselves to numerous restrictions. Lack of suitable
funds, both human and economic leads to increased level of employee frustration, as
they must work extra hours all thru the implementation phase. Small organizations are
facing difficulties in engagement of Lean Six Sigma experts, who are vital for the
success of any implementation.
It is challenging for these organizations to speed up the implementation process, as they
must manipulate between meeting existing duties and supervising the project
implementation at the same period. These restrictions can make different sorts of
problems such as the absence of the necessary tools and methods that are necessary for
effective and apt implementation of the Lean Six Sigma project. The restrictions also
increase the threat of producing out dated and unsuccessful results aimed at redesigning
the product, service or the business process. These limitations can easily extend the
deployment cycle time as chances are high that faults start happening at the early
deployment periods, which eventually can generate a chain of numerous errors. If the
small-scale industries overcome these difficulties, there will be drastic change in the
organization.

REFERENCES

[1] Don Tapping, Tom Luyster , Tom Shuker, Value Stream Management, New
York: PAP/CDR edition, 2002.

[2] A Chiarini, "Lean production: mistakes and limitations of accounting systems

inside the SME sector," Journal of Manufacturing Technology Management, vol.
23, no. 5, pp. 681-700, 2012.

[3] "www.profitableventure.com," [Online]. Available:

http://www.profitableventure.com/manufacturing-business-ideas/. [Accessed 25
November 2016].

[4] G.Muthukumaran, V.S.K.Venkatachalapathy, K.Pajaniradja, "Impact on

integration of Lean Manufacturing and Six Sigma in various applications - a
review," IOSR Journal of Mechanical and Civil Engineering, vol. 6, no. 1, pp.
98-101, Mar. - Apr. 2013.
 22 G.Muthukumaran, V.S.K.Venkatachalapathy and K.Pajaniradja

[5] Peter Pande, Lawrence Holpp, What Is Six Sigma?, USA: McGraw Hill
Professional, 2002.

[6] Eckes, George, Six Sigma for Everyone, Wiley, 2003.

[7] Thomas Pyzdek, Paul A. Keller, Quality Engineering Handbook (Quality and
Reliability), CRC Press, 2003.

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