Cost of poor quality reduction in auto sector: an exploration with Six-Sigma Online publication date: Tue, 11-Jan-2022
by Sourabh Kumar; Dinesh Khanduja
International Journal of Six Sigma and Competitive Advantage (IJSSCA), Vol. 13, No. 1/2/3, 2021
Abstract: The cost of poor quality (COPQ) always helps in analysing the operating costs for effective and profitable business management. COPQ consists of those costs which are generated as a result of producing defective material. The present study deal with implementing the Six-Sigma in the Indian automobile company. This research aims to reduce the problems faced by the company's quality inspection department. The department faces various rejection problems of two vehicles, such as front fork pivot hard movement, grease nipple broke, O-rings struck, edge bends, etc. We used a structural DMAIC methodology to improve the process. This study used multiple Six-Sigma tools such as Pareto chart, process map, fishbone diagram, and process capability chart to solve the rejection problem. Using a Six-Sigma methodology, we improved the sigma level of 1.875 to 4.375, which benefits 199,020 rupees' rework costs annually. This study helps practitioners and academicians to emphasise their effort towards COPQ.
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