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Six Sigma Problem Statement

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Six Sigma is an idea that was begun by Motorola Inc. in United States in around 80’s. Six Sigma utilizes an organized strategy regardless of whether the assignment is development procedure or new item plan. On account of development, the strategy is designed after the plan, do, check, act (PDCA) scheme. One of the famous strategies, DMAIC that includes define, measure, analyze, improve and control steps which are five stages for improvement. (Linderman, Schroeder, Zaheer & Choo, 2003) [1] There are many companies which need to apply Six Sigma for improvement in the workplace such as Schneider Electric.

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Schneider Electric that established by multinational corporation in 1836 is the best factory of iron and steel industry which has improvement fast. Starting from its roots in the iron and steel industry, heavy machinery and ship building, it moved into electricity and automation management. The biggest aim of his is contributing to the development of people and societies through education, awareness-raising and vocational training related to energy and develop this company by producing qualified, reliable, eco-friendly products. Schneider Electric has had its head office in the Trianon site in Rueil-Malmaison, France and it exports to many foreign countries in Asia, Europe and Africa whereas it imports to abroad includes America.[2] Schneider Electric needs an improvement to decrease material handling process time due to inefficient layout. The high material handling process time is a problem since it is measurable, achievable and realistic.

Determining the best layout for a facility is an important issue regarding productivity. Early industrial engineers often were known as efficiency experts and were interested in determining layouts to optimize some measure of production efficiency such as plant layout. In Schneider Electric, there are many departments such as extrusion production area, injection manufacturing area, assembly area, received raw material zone of these production areas, received contract manufacturing product zone, maintenance office, molding area, breakage zone, cooling towers, research and development office, quarantine zone, purchasing department, finance department, laboratory, industrialization office, human resources department, method engineering, quality department, storage area, supply chain and logistics department. These departments have roles and relationships. These departments were not being located as an efficient way in Schneider Electric. This problem decreases efficiency and competitiveness, increases manufacturing cycle time, decreases inventory turnover which lead less productivity and revenue.

One of the important disadvantage of inefficient layout is customer dissatisfaction which includes dissatisfied internal and external customer. [3] For instance, employees are internal customers of the company. Inefficient layout is an issue for employees because it requires more material handling process time. Therefore, the company should aim to solve this problem because it has bad impact on the company. Also, if the layout will be improved, the company may meet the external customer’s demand earlier since manufacturing cycle time and lead time will be reduced. In this way, the company may produce more product faster and this will lead to increase in revenue.

In conclusion, material handling process time problem is a waste of time and money for the company. Determining and understanding this problem is an important step since the project team can be determine the problem and focus to solve this issue for an improvement.

REFERENCES:

[1] Linderman, K., Schroeder, R. G., Zaheer, S. & Choo, A. S. (2003). Six Sigma: A Goal-Theoretic Perspective, Journal of Operations Management.

[2] Schneider Electric Company. Retrieved from https://www.schneider-electric.us/en/

[3] Define-Phase 1 of Lean Six Sigma. Retrieved from https://goleansixsigma.com/define-phase-1-of-5-of-lean-six-sigma/

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