To study the comparison and effect of Six Sigma and Red Bin Analysis in Indian manufacturing industries

Abstract

PurposeContinued quest for business improvement in terms of enhanced productivity and cost cuts is the most valued strategic function in an organization. Towards this endeavor, there have been evolutions of many problem-solving techniques like Lean, quality control (QC) tools, Six Sigma, total productive maintenance (TPM), etc. This paper introduces a different problem-solving methodology for quality improvement – prepare, measure, define, establish, control and stabilize (PMDECS) approach of Red Bin Analysis (RBA) – and presents empirical evidence of its effectiveness in eliminating the defectives at source (parts per million [PPM]) and improving the process capability (Cp).Design/Methodology/ApproachAn attempt has been made to compare RBA with the Six Sigma methodology in terms of number of defects, defectives, process capabilities, project duration, etc. Data validation with more than 2000 data points was conducted based on empirical data collected over multiple problem-solving projects conducted in six manufacturing industries of India to compare the effectiveness of both the methods. Finally, fuzzy AHP (analytical hierarchy process) model was proposed to identify the Quality Improvement Index for both the methods to address the manager’s dilemma in selecting an appropriate problem-solving method.FindingsThe paper provides empirical insights in establishing that the PMDECS approach of RBA is at par and sometimes better for problem-solving if the problem is not chronic and is at the initial stages, it requires less duration than Six Sigma projects and except casting process and it can yield better results in case of PPM rejection or Cp/Cpk improvement in other processes.Research limitations/implicationsBecause of the chosen research approach, the research results may lack generalizability. This research has been specifically conducted in automotive manufacturing industries. Therefore, researchers are encouraged to test the proposed propositions further.Practical implicationsThe paper includes implications for the usage of alternative problem-solving methods, like PMDECS approach of RBA.Originality/valueThis paper intends to compare how the results of six sigma projects in manufacturing industries are effective against a different methodology, PMDECS approach of RBA.