Did you know, one of the leading paint manufacturing organizations of India was able to save INR 11 lacs for a year by implementing six sigma strategies?
One of the leading paint manufacturing organizations of India was incurring a high cost on raw materials and manufacturing. They were unable to identify the reason for the high cost of production.
The management team decided to deploy lean sigma strategies to control the cost of production. They deployed a lean six sigma personal to identify the backdrops.
Cost Reduction using Six Sigma Methodology
In a very short time, the organization identified the reason behind the high cost of production. While rolling the roller on the paint, a few droplets of the expensive paint fell on the floor. This was later cleaned by the machine operator without knowing the cost of the paint.
When this was brought to the notice of the management team, they decided to apply six sigma methodologies and make changes in the machine to save those droplets. The machine was wrapped around with a plastic paper. The speed of the roller was slowed. The data on how many droplets fell out before and after was collected.
Surprisingly, the count of the droplets falling out of the container before applying six sigma was around 72 lac droplets per year. Each drop contained around 3ml to 4ml of paint.
Later, when the data of the droplets after applying six sigma was collected, the results showed that all the droplets that fell down were now saved completely.
When the data was analyzed, it resulted in saving INR 11 lacs per year for the organization. It was highly surprising for the organisation to see how small changes made by implementing six sigma can help them save such amount of money. Â
Six Sigma can help organizations in vivid ways by saving time, money, improving productivity and profitability and much more. So, have you started implementing Six Sigma strategies?
Written & Compiled by Faber Priyal & Faber Mayuri
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