Lean Six Sigma

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Abstract Six Sigma is an organized & systematic method for strategic process improvement that relies on statistical & scientific methods to reduce the defect rates and achieve significant quality up- gradation. A case study is carried out for a logistical warehouse, where Six Sigma methodology is implemented for the defect reduction. The optimized parameters are considered to perform the practical run for the differential housing castings. Proposed techniques optimized control factors, resulting in superior quality and stability. This study aims to implement a novel approach to improve the quality (reducing the defects) of the warehouse by Six Sigma methodology on the selected projects. Introduction In 1987, Motorola developed and organized the Six Sigma process improvement Methodology to achieve “world-class” performance, quality, and total customer satisfaction. Since that time, at least 25% of the Fortune 200, including Motorola, General Electric, Ford, Boeing, Allied Signal, Toyota, Honeywell, Kodak, Raytheon, and Bank of America, to name a few, have implemented a Six Sigma program (Antony et al. 2008, Hammer, 2002). These companies claim that Six Sigma has significantly improved their profitability (Hammer, 2002). For example, in 1998 GE claimed benefits of $1.2 billion and costs of $450 million, for a net benefit of $750 million. The company’s 1999 annual report further claimed a net benefit of more than $2 billion through the elimination of all non–value added activities in all business processes within the company (Lucas, 2002). Similarly, Allied Signal reported that Six Sigma was a major factor in the company’s $1.5 billion in estimated savings (Lucas, 2002). Six Sigma has also enabled Honeywell to reduce the development time required to redesign Web sites by 84% for its specialty materials (Maddox, 2004b). Six Sigma has been defined as a

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