The goal of this Six Sigma project is to reduce defects in Cadbury's GEMS More Chocolaty Rs. 5 packs from a DPMO of 284K to 142K by December 2021. Manufacturing defects like incorrect count, color, shape, or cracks cause customer dissatisfaction and an estimated 2% drop in quarterly sales worth Rs. 1.1 million. Reducing defects could improve process quality by 4%, lower costs by Rs. 1.2 million, enhance the customer experience by 120 basis points, and generate sustainable profits. The project team will complete scoping, definition, measurement, analysis, improvement and control phases by specified deadlines to achieve the goal.
The goal of this Six Sigma project is to reduce defects in Cadbury's GEMS More Chocolaty Rs. 5 packs from a DPMO of 284K to 142K by December 2021. Manufacturing defects like incorrect count, color, shape, or cracks cause customer dissatisfaction and an estimated 2% drop in quarterly sales worth Rs. 1.1 million. Reducing defects could improve process quality by 4%, lower costs by Rs. 1.2 million, enhance the customer experience by 120 basis points, and generate sustainable profits. The project team will complete scoping, definition, measurement, analysis, improvement and control phases by specified deadlines to achieve the goal.
The goal of this Six Sigma project is to reduce defects in Cadbury's GEMS More Chocolaty Rs. 5 packs from a DPMO of 284K to 142K by December 2021. Manufacturing defects like incorrect count, color, shape, or cracks cause customer dissatisfaction and an estimated 2% drop in quarterly sales worth Rs. 1.1 million. Reducing defects could improve process quality by 4%, lower costs by Rs. 1.2 million, enhance the customer experience by 120 basis points, and generate sustainable profits. The project team will complete scoping, definition, measurement, analysis, improvement and control phases by specified deadlines to achieve the goal.
Business Case: Cadbury’s GEMS (More chocolaty) is sold at Rs. 5 per pack in India. It was introduced in India in the year 2011 with a target to achieve 20% market share under demographic market segmentation for age group 4 to 8 years. Manufacturing defects like count, color, shape, and crack in the pebbles cause a bad customer experience. This experience negatively impacts the sales where we estimate drop in sales by 2% per quarter i.e. a potential of Rs. 1.1 Million. Reduction in defects would result in improved process quality by 4%, reduction in Cost Of Poor Quality (COPQ) by Rs. 1.2 Million, improved customer experience by 120 bps, and sustainable profits Quarter On Quarter (QoQ). Problem 4 Opportunities of Error (OFE) has been identified to measure quality of the pack i.e. count, color, shape, and crack. 10 packets were sampled by the quality team Statement: recently and the DPMO and Zst score was 284K and 2.08 respectively. An anecdote recorded recently from a 6 year old customer is as “I don’t like my pebbles to be broken and not in shape. My friend got 11 pebbles last week and I got only 9 and I feel sad”. Production team incurs increased COPQ due to these defects and they report increased cost. Invariably these defects affect both internal and external customers. Project Goal: The goal of this Six sigma project is to reduce the DPMO of Cadbury’s GEMS (More chocolaty) from 284K to 142K (50% reduction goal) by Dec’ 2021.
Project Team: Project Sponsor: Mr. Manoj Guru
Project Champion: Mr. Rajesh Dhanasekaran Project Leader: Mr. Anand Srinivasan Project Partner: Mr. Chetan Project Team: Mr. Sathish, Mr. Rahul, Mr. Sridhar Project Project scoping - [Duration - 2 weeks; Target Closure date: 23rd July 2021] Define phase - [Duration - 3 weeks; Target Closure date: 13th Aug 2021] Milestones: Measure phase - [Duration - 3 weeks; Target Closure date: 3rd Sep 2021] Analyze phase - [Duration – 3 weeks; Target Closure date: 24th Sep2021] Improve phase - [Duration - 6 weeks; Target Closure date: 5th Nov 2021] Control phase - [Duration - 3 weeks; Target Closure date: 26th Nov 2021] Project Estimate project impact is: Rs. 2,300,000. Impact is calculated over COPQ reduction (1,200,000) + Market share potential impact/benefit: loss (1,100,000). Financial saving estimate and calculation is validated and signed off by the Finance controller of the business. Project Team Validate problem statement and goal - Project Sponsor Create Communication plan - Project Leader roles and Select and launch team - Project Leader responsibilities: Develop measurement plan - Project Leader Collect baseline data - Project Team Project review, Mentor, and Coaching - Project champion Project reporting to leadership - Project Leader