Presentation On Two Case Studies: Based On Tools (FMEA, lean in

quality, TQM, six sigma, balanced scorecard, ISO) applications in

different organizations.

AQM-2
Mid-Term Assignment

Submitted To: Submitted By: Nikita Yadav

Dr. Jai Kishan Sambharia Shubhangi Singh
TABLE OF CONTENTS
[Link]
[Link] Study 1 Overview
[Link] Statement & Objectives
[Link] Six Sigma & DMAIC
[Link] Analysis
[Link] & Results
[Link] Study 2 Overview
[Link] Statement & Objectives
[Link] Implementation
[Link] & Conclusion
[Link]
 CASE STUDY 1:

Implementation of Lean Six Sigma to

Improve the Quality and Productivity in
Textile Sector

01.
Overview:

This study focuses on improving production efficiency in a textile company

It applies Lean Six Sigma (LSS) methodology
The study identifies problems, analyzes causes, and provides solutions
A real-life case study is used to validate the results
The goal is to make production faster, better, and more reliable

02.
 Introduction:
Textile industry is one of the largest and fastest-growing sectors worldwide.
Plays a key role in employment generation and economic development.
Growth driven by:
Expansion of e-commerce.
Globalization and international trade.
Technological advancements in manufacturing.
Despite growth, the industry faces several challenges:
Production delays and inefficiencies.
Quality defects and rework.
High operational costs.

Therefore, companies need to focus on improving productivity, quality, and

efficiency to stay competitive

03.
 Problem Statement:

Operational Issues Key Data from Study: Inference:

Identified: Cycle Time: 62.5 The process is inefficient
High Cycle Time (CT) minutes (Target: 55 and unable to meet
leading to slow minutes) performance targets.
production. Defective Products: Results in low productivity,
High percentage of 19.43% poor quality, and customer
defective products. dissatisfaction.
Delays in order delivery Indicates a strong need for
Increased cost due to process improvement
rework and poor quality. using Lean Six Sigma.

04.
Objectives of the Study

Reduce Cycle Time (CT) to improve production speed.

Improve product quality and consistency.
Reduce non-conforming (defective) products.
Increase overall productivity of the process.
Enhance process efficiency and performance.

05.
 What is Lean Six Sigma?

Lean Concept: Six Sigma Concept:

Focuses on eliminating waste (MUDA-waste) Focuses on reducing defects and variation.
Removes: Improves process accuracy and
Unnecessary steps consistency.
Waiting time Uses data and statistical tools.
Excess movement

Combined Benefits of LSS: Inference:

Faster and smoother production process Lean Six Sigma ensures efficient + high-
and improved product quality. quality production.
Reduction in defects and rework. It is a powerful tool for continuous
Lower operational costs. improvement in industries.
.

06.
 Methodology:
Define → Identify problem and goals
Measure → Collect process data
Analyze → Identify root causes
Improve → Implement solutions
Control → Maintain improvements
Inference:
Provides structured problem-solving.
Ensures data-based decisions.
Leads to sustainable improvements.

07.
 Process Understanding (SIPOC)
SIPOC Overview:
Suppliers → provide raw materials
Inputs → materials, labor, machines
Process → cutting → assembly → finishing → packing
Outputs → finished garments
Customers → buyers
Purpose:
Gives a clear view of the entire process flow.
Helps understand how different stages are
connected.
Inference:
Identifies waste (non-value-added activities).
Highlights inefficiencies and delays in process.

08.
 Current Process (VSM - Before)

Process Flow:
Represents complete production of sports sweaters
Includes stages:
Picking → Cutting → Assembly → Packing
Each stage shows time, workers, and scrap level.
Observations:
Total Cycle Time = 62.5 minutes (Target: 55 min)
Uneven time across stages
One process step takes 38.5 min (very high)
Inference:
Process is inefficient and slower than required.
Bottlenecks identified in:
Cutting / making stage
Ironing stage
From the Value Stream Map, we can clearly see that one stage takes significantly
These stages delay the overall production flow.
more time than others, creating a bottleneck and increasing the overall
production time.

09.
 Cycle Time Analysis

Cycle Time Evaluation:

Target Cycle Time (CT) = 55 minutes
Actual average CT ≈ 62.5 minutes
Most production values are above the target limit.
Observations:
Data points are spread beyond acceptable range.
Process shows high variability in production time.
Unable to consistently meet required standards.
Inference:
Process is not capable of meeting target CT.
Indicates inefficiency and inconsistency.
Requires improvement using Lean Six Sigma tools.
The capability graph shows that most cycle time values exceed the
target of 55 minutes, indicating that the process is not capable and
requires improvement.

10.
Quality Analysis:
Quality Evaluation:
Defect rate = 19.43%
Based on analysis of defective garments over time.
Observations:
Many data points lie above the average defect level.
High fluctuation in defect percentage.
Indicates inconsistent product quality.
Inference:
Process is unstable and not under control.
Quality standards are not being met. The defect rate is much higher than the acceptable
Strong need for improved quality control and limit, and the variation shows that the process is
unstable and needs improvement.
process optimization.

11.
 Root Cause Analysis:

Main Causes Identified:

Poor quality verification methods
Machine failures and equipment issues
Improper machine setup
Issues in raw materials
Inference:
Defects are caused by both:
Machine-related problems
Process and method issues
Addressing these root causes will help reduce
defects and improve quality.
This diagram shows the main reasons behind defects, mainly related to
machines, methods, and materials, which need to be improved.

12.
 Improvement Strategies
Several improvement strategies were implemented to enhance the production
process:
Reassignment of workers to balance workload.
Implementation of 5S to maintain a clean and organized workplace.
Preventive maintenance to reduce machine breakdowns.
Introduction of quality checks and inspection at different stages.
Training programs to improve worker skills.
These changes helped in reducing delays, minimizing defects, and improving
overall workflow

The main focus was on reducing waste and improving quality and efficiency

13.
 Results & Comparison

After implementing Lean Six Sigma, significant improvements were

observed:
Cycle Time reduced from 62.5 minutes to 53.07 minutes
Defect rate reduced from 19.43% to 12.38%
Overall process performance and consistency improved
The production process became faster and more efficient, with
better control over quality

14.
 Conclusion
The implementation of Lean Six Sigma helped in improving both productivity and
product quality
It reduced cycle time, defects, and unnecessary waste in the process
The study shows that structured methodologies can significantly improve industrial
performance
However, continuous monitoring and further improvements are necessary to achieve
long-term success

Lean Six Sigma proves to be an effective approach for process improvement in the textile
industry

15.
 CASE STUDY 2:

The application of six sigma to improve

textile factory inventory costs

16.
 Overview:

Study focuses on reducing inventory cost using Six Sigma

Uses DMAIC approach for improvement
Major issue: High inventory cost due to poor planning
Cotton 1/30 & Cotton 1/24 = ~70–75% cost
JIT & Kanban implemented for improvement
Result: ~55% reduction in holding cost

17.
 Introduction:
Inventory management plays a critical role in textile manufacturing as it directly affects cost,
efficiency, and production flow.
Inefficient inventory systems lead to:
High holding costs
Overstocking and wastage
Poor synchronization between demand and supply
Traditional systems follow a push-based approach, resulting in excess stock.
To overcome these challenges, Six Sigma methodology is used to improve process performance
through data-driven decision-making.

18.
 Problem Statement:
High inventory holding costs due to excessive stock accumulation.
Lack of accurate demand forecasting.
Inefficient replenishment system based on traditional push approach.
Long storage periods leading to increased cost and reduced efficiency.
Major issue concentrated in Cotton 1/30 and Cotton 1/24 materials.

19.
 Objectives of the Study

To reduce inventory holding costs by minimizing excess stock.

To identify and focus on high-cost materials (Cotton 1/30 and Cotton 1/24).
To improve demand-based inventory planning.
To implement a Just-In-Time (JIT) system for efficient stock management.
To introduce the Kanban system for real-time production control.
To enhance coordination between production, planning, and inventory systems.
To improve overall operational efficiency and reduce waste.

20.
About Six Sigma DMAIC Methodology
Developed by Motorola (1986)
Data-driven quality improvement method
Focuses on reducing variation
Based on: Y = f(X)
Improves:
Quality
Cost efficiency
Process control

DMAIC METHODOLOGY FLOWCHART

21.
 Define Phase:
A project charter was developed to define
the scope and objectives.
Key issues identified:
High inventory cost
Poor planning and forecasting
Lack of an efficient control system

The phase establishes a clear roadmap for

improvement.
Emphasis placed on aligning business
goals with cost reduction strategies.

Project Charter

22,
 Measure Phase:
Data collected on inventory levels, material costs, and
production trends.
Five product categories analyzed:
Cotton 1/30
Cotton 1/24
Cotton 20/80
Beka 50/50
Cotton 35/65
Inventory cost analysis revealed: Table : Total Inventory Costs
This table shows that Cotton 1/30 and Cotton 1/24 have the highest inventory cost.
Cotton 1/30 → ~45% of total cost
Cotton 1/24 → ~22% of total cost
These materials became the focus of further analysis.

23.
Pareto Analysis:
Pareto principle (80/20 rule) applied to prioritize key issues.
Identified that majority of inventory cost is contributed by
few materials.
Cotton 1/30 and Cotton 1/24 together contribute ~70% of
total cost.
This helped in focusing improvement efforts on critical
areas rather than entire system.

Pareto chart showing contribution of materials to total inventory cost.

Cotton 1/30 = highest (~45%)

Cotton 1/24 = second (~22%)
Together ~70% →focus area

24.
 Analysis Phase:
Root cause analysis conducted using Five Whys technique.

Key Root Causes:

Excess storage due to lack of demand-based planning
Inefficient replenishment system
Dependence on traditional push system
Lack of continuous improvement practices
Poor integration of demand and supply data

Main root cause: Absence of demand-driven inventory system

25.
 Improvement Phase:
Solutions implemented to address root causes:
Adoption of the Just-In-Time (JIT) system
Implementation of Kanban system (Pull system)
JIT ensures production is aligned with actual demand.
Kanban provides visual signals for material movement and
production control.
These improvements reduce waste, excess inventory, and
inefficiencies.

Improvement plan including JIT and Kanban implementation.

26.
Kanban System:
Kanban is a visual control system that regulates production flow.

Two types used:

Production Instruction Kanban (PIK)
Production Withdrawal Kanban (PWK)

It helps in: Kanban Flow

Limiting work-in-progress (WIP)

Ensuring smooth material flow
Preventing overproduction
Shifts system from push to pull-based production.

Kanban Card

27.
 Inventory Reduction Results:

Significant reduction in inventory levels observed:

Cotton 1/30 → reduced by 50%
Cotton 1/24 → reduced by 70%

Improved synchronization between production and

demand.

Reduced excess stock and improved space utilization.

“Improvement in inventory levels after Kanban implementation

28.
 Cost Reduction Results:
Holding cost reduced significantly after JIT implementation:
Before JIT:
Cotton 1/30 → $2340
Cotton 1/24 → $1480

After JIT:
Cotton 1/30 → $1249
Cotton 1/24 → $520

Overall cost reduction ≈ 55%

Comparison of inventory cost before and after JIT system

29.
 Control Phase:
Continuous monitoring using control charts
Implementation of Kanban rules to regulate flow
Regular tracking of inventory levels
Ensures sustainability of improvements over time
Helps in detecting deviations and taking corrective actions

30.
 Key Learnings:

Six Sigma provides structured and data-driven improvement approach

Pareto analysis helps focus on critical issues
JIT reduces waste and unnecessary inventory
Kanban improves production flow and efficiency
Integration of tools leads to better operational performance

31.
 Conclusion:

Six Sigma successfully improved inventory management in textile

industry
Implementation of JIT and Kanban significantly reduced cost and waste
The study demonstrates effectiveness of data-driven decision-making
Helps in achieving:
Cost efficiency
Operational excellence
Improved productivity

32.
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34.