An application of Six Sigma to PPM reduction in the relationship with the external customer

Abstract

Presently, companies from automotive industry adopt Six Sigma strategy to facilitate waste elimination and defect reduction. This paper discusses the successful implementation of Six Sigma DMAIC (Define–Measure–Analyse–Improve–Control) technique in an automotive part manufacturing company to PPM reduction in the relationship with the external customer. The main objective is to propose the solutions to improve the activity in the Cutting Bending, Prototype and Welding workshops to reduce the PPM value in these workshops, so that the PPM value of company will be reduce with a percent of minimum 70%, from 6000 to 2000 value. The DMAIC approach has had a significant financial impact on the profitability of the company in terms of reduction in scrap cost, man-hour saving on rework and increased output. A gain of approximately 389 k€ was reported from this project.