William T. Truscott, "Six Sigma: Continual Improvement for Businesses"
Butterworth-Heinemann | ISBN: 0 7506 57650 | 250 Pages | PDF | 1.3 Mb
Let us put ‘Six Sigma’ aside for the moment. Instead, let us reflect on some real-life scenarios in a number of quite different organizations.
Take the machine shop whose machines are not exactly new. They have great difficulty meeting the tolerances and are continually pressed to meet almost impossible delivery dates in the presence of varying degrees of unscheduled scrap and rework and the corresponding high levels of inspection and re-inspection. Profit margins are low, even when things are going relatively well and negative when they do not. Then there is the foundry that makes overhead cam manifolds for the motor vehicle industry. On just this one product line alone the effect of scrap and reworks impregnation adversely affects the ‘bottom line’ to the tune of over £58 000 per year. Recognize the electricity power insulator manufacturer where the actual ongoing yield of its main-line glass fibre product was 34% compared with a break-even yield of 52%.
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