Six Sigma Project Examples
 
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Six Sigma Project Examples

 

Throughout the business world, the Six Sigma program has become a leading method to improve quality, save time, and cut costs. It applies to all aspects of business, including design, manufacturing, inventory, delivery, and product performance. Motorola pioneered the Six Sigma concept over 12 years ago, but since years many organizations have been active participants and a charter members of the Motorola Six Sigma Consortium. They have examined the Six Sigma Black Belt programs of several major companies (including Motorola, Texas Instrument, GE and AlliedSignal), and have taken the best of these programs to form their own program.

 

Six Sigma projects used for certification purposes must demonstrate application of a variety of the Six Sigma tools and have a sufficient return on investment (ROI). Six sigma projects yield significant improvements in strategic business areas. Six sigma projects are where the work to achieve the gains is done.

 

When defining the process for identifying Six Sigma Project Examples, research on current industry practices and methodologies for selecting projects was conducted.  Research results provided broad and subjective guidelines for project selection. Because of the subjectivity and vagueness of the industry guidelines, the Supply Chain developed the Six Sigma Project Selection Criteria Matrix that provides an objective and concrete approach to selecting and rating Six Sigma projects. 

 

The Six Sigma Project Selection Criteria Matrix consists of five major criteria questions.  Each question has six responses with a survey rating of 0-5.  To maximize ease of use of the tool, all criteria were considered to have equal importance with no weighting factors applied.  The project score is calculated by summing the ratings for each criterion.  The rating score is used to determine the relative strength of the Six Sigma project.  All project scores are then evaluated against each other to determine final selection and prioritization of Six Sigma projects. 

 

A selection of Six Sigma Project Examples are:

 

Set Permanent Electric Meter:

 

Objective: The purpose of this project is to reduce the cycle time, from Final Inspection to Permanent Electric Meter being set, to within 10 business days, to avoid delayed move-ins of new homeowners.

 

Benefits: Fort Worth Habitat for Humanity can give valid move-in dates to new homeowners, without worry that homeowners may be displaced if Permanent Meter is not set.

 

There can be many other Six Sigma Project Examples, like Reducing the Cost of Rock Disposal at No.7 Mine: Roughly half the material extracted from JWR’s No.7 Mine is rock. It is separated from the coal in the preparation plant to produce a marketable product. Every year, up to 1.8 million tons of rock must be disposed.

 

Traditionally, the rock has been transported to designated disposal sites with large trucks. Longer haul distances and increases in the cost of diesel fuel, tires, maintenance, and labor led to the need for alternate means of rock disposal.

 

This Six Sigma project determined that replacing the large trucks with a radial stacker and bulldozer system would yield significant savings. Now, rock is transported from the 300-ton rock bin to a radial stacker by a conveyor system. The stacker creates a temporary pile, which is pushed out by a bulldozer. After the immediate area surrounding the stacker reaches full capacity, the stacker and conveyor are advanced about 400 feet and the cycle is repeated. The equipment is expected to move about once every nine months.

 

This project began in 2001, but implementation was delayed until the necessary equipment could be purchased. Equipment installation was complete in April 2003. The savings resulting from this project are estimated at $459,000 annually.

 

Recovering more Coal in the Flotation Circuit: When coal is mined from the ground, rock is inevitably extracted with the coal. Six Sigma projects at JWR often focus on how to more efficiently separate rock from coal throughout the preparation plant above ground. For this Six Sigma project, Green Belt Bruce Hamilton analyzed the flotation circuit at the preparation plant of Mine No. 7.

 

In the flotation circuit, a mixture of coal and rock in tiny pieces smaller than 0.15 millimeters in diameter is poured into one of six water banks and agitated with bubbles. The coal floats to the top and is raked off.

 

Hamilton found that the amount of coal not floating to the top and lost with the rock could be reduced by more evenly distributing the feed coming into each of the six banks. The result was the same amount of rock being removed, but with less coal lost. Because of this project, 11,600 tons of additional coal was recovered between May 2002 and April 2003, resulting in additional revenue of $388,000 in one year.


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