Research Proposal for Implementing six Sigma
in Automatic Specialties Inc.
Student Name and student number
1Abstract— Since the development of the 6σ concept by
Motorola in the 80's many changes have made the market and
now became more competitive and demanding, Especially in the
automotive sector. The present work AIMS to describe the
research proposal by providing a case of the company Automatic
Specialties Inc, who is an ideal candidate for implementing 6σ.
The research proposal is backed with 6-7 literature review, to
support the thought process. This paper research to identify
characteristics about the use of 6σ tools such as implementing,
project selection, training and the results obtained with the
projects. In the end, if fouled Identifying the factors critical to the
success of the program That presents the theory match with the
reality of the company. As the main conclusion, the study shows
That the company has used many recommendations of the theory
in its application. The research starts with hypothesis testing and
conclude with verification of this hypothesis.
Index Terms—DMAIC, Hypothesis, Theory od constraints,
DPMO, SMEs, CLSE
I. INTRODUCTION
σ is an improvement approach that has been well received
6 thanks to its ability to provide an effective solution to many
problems facing organizations today [1]. For this reason, large
companies worldwide have implemented this approach as a
business strategy to improve the quality of products and
services, improve process efficiency, increase customer
satisfaction and increase profitability. While there is research
showing that Six Sigma can generate benefits in organizations,
regardless of size, there are others that show that these benefits
are in large companies compared to SMEs. This situation is
largely due to factors such as lack of management
commitment; limited financial resources and personnel;
resistance to change; the absence of a culture of continuous
improvement; lack of leadership; the lack of recognition of the
importance of the methodology; the lack of performance
measurement processes, among others [2].
A 6σ program is much more than just an improvement
program, it is a management system to form lasting, high-
performance leaders to benefit the business, customers,
partners and shareholders. According to the above author, it is
also a capability of measurement processes in a goal for
improvement, whose aim is to get close to perfection. Ang &
Sin boon [3] complemented with a broad overview of Six
Student Name (student number) is studying XXXX engineering in the
Griffith School of Engineering and built Environment, Griffith University.
Email F.Author@griffithuni.edu.au
1
Sigma, highlighting it as an approach that drives improved
business performance and value of customer satisfaction
through, (I) Strategic approach to management, (ii) an
application of statistical thinking at all activity levels; (iii) the
use of performance indicators;
6σ is supported on a methodology consists of five phases:
Define Measure Analyze Improve Control, commonly called
DMAIC, by its acronym (Define, Measure, Analyze, Improve,
Control) and it aims to increase the capacity of the process, so
that they generate only 3.4 defects per million opportunities
(DPMO), whereby errors or malfunctions are almost
imperceptible to the customer [4].
At present time, when market completion is in very niche
condition, low profitability is because serious problem for
entire business, The Company for which we are proposing for
research is named as Automatic Specialties Inc. the reason for
selecting this company is that, it is one of the company which
is news for making lower profitability and seeking some
extraordinary leap in the market with its new clutch wire
product, started two year ago. The company itself started in
1975 and making wired product with around 28 people in
organization and situated in Marlborough, MA. The current
revenue for this company is around $ 4961000. For clutch wire
production, they setup the machine which is known as twist
mill has totaled operating hour is 475200 min/year. There is a
rumor on shop floor that if the machine is optimized, its total
time will be reduced by approx. 15%, then time for other
operation will be reduce by 8%. The requirement of production
time is around 43200± 5 min/year, this would increase the
saving of $ 496000. Our motto is to implement the 6σ
methodology with the hypothesis is that, we can increase the
profitability by implementing the 6σ and save this 10%
amount.
This is the situation of predicting specific relationship
between variable, therefore It is better would go of one tailed
hypothesis, and it can be defined as
𝐻𝑜 : 𝑠𝑎𝑣𝑖𝑛𝑔 𝑐𝑎𝑛 𝑏𝑒 𝑑𝑜𝑛𝑒 𝑏𝑦 𝑖𝑚𝑝𝑙𝑒𝑚𝑒𝑛𝑡𝑖𝑛𝑔 6𝜎
There are dozens of research have been done which try to
find the correlation between implantation and improvement,
some of the research is described in Literature review
.
 II. LITRATURE REVIEW
The Six Sigma program is seen in the literature as a statistic
or strategic approach. In the statistical approach, the focus is
on the quantification of the variation, which is made in
standard deviation quantities associated with a random
variable of interest in the study of a critical process .Harry [5]
states that the source of defects is often connected to some
form of change, or materials, procedures, process conditions,
etc. According to the cited author, this is the reason why the
variation is so frowned upon based on the Six Sigma
fundamentals because change means customers will not get
what they want. The Sigma level, represented by the Greek
letter (σ) or the number of standard deviations of a process
depends on the customer requirements, thus not always work
with a high number of standard deviations is advantageous
because it can become very costly for the company. According
to Harry [5], the sigma level is the capability of a process,
measured in defects per million opportunities thus allows very
different processes can be compared. The standard deviation
measures the dispersion of individual values around a mean.
The literature provided by Javed and Darshak, Desai [6]
suggests that, implementing 6σ helps to achieve breakthrough
strategy and not only helps organization themselves by
detecting the defect and improve their financial performance,
but also helps in generating innovative ideas for future
sustenance, they further agreed upon the fact that 6σ
methodology is applicable in all sizes of organization. Their
suggestion regrading DMAIC process with some more
improvement tools which is applicable for other SMEs, show
the new dimension of analysis improvement. They propose the
research methodology should be in such a way that,
involvement of top management, availability of resources and
utilizing the tools and techniques used, this will surely shows
the way for sustained future, and 6σ is most structured tools
for it [6]. 6σ deployment in SMEs is surely having the stronger
foundation if framework given by Kumar et al. is used for 6σ
implementation. The research based on triangulation basis is
still under naïve phase, and requirement of highly qualified
literature is still unavailable, so that triangulation basis can be
more rigidly adopted for implementation of 6σ and
involvement of qualified literature should be increased. The
main challenges in triangulation framework are facing the
constraints of the resources, which can disable the whole
process, if the implementation process is not aligned with
strategic objective of the company. The phase wise
implementation is also viable in triangulation framework of
implementing 6σ [7].
Other works have been developed in the same industry with
similar characteristics, such as Vinod & Ruben [8]. This paper
points out that the company usually develops customized
products according to customer demand, thus becoming the
sole supplier of many of them. With this customer dependency
relationship, which cannot switch suppliers or simply
terminate their contracts at any time, it appears that the
partnership between the companies involves high investment
and therefore requires trust on both sides. The company has
high demand for domestic and international customers, is
2
interested in increasing the production capacity, but some
waste such as rework, delays and other losses in the processes
prevent this increase. The Six Sigma program can become a
chance for the organization to stand out in the market and be
the preference of customers due to its structured approach to
the problem and have customer focus. In the case the analyzed
company can also supply this need for rework reduction,
thereby increasing its production capacity. Another paper
published that refers to similar company analyzed (same
corporation but other plant) is [5], according to which the
company uses events such as Kaizen together with DMAIC, to
assist in the implementation of improvements. Kaizen is used
in three phases: measuring, improve and control. In phase
measure, the author states that can reduce the time, when there
are many improvements that do not require further analysis,
not needing so, wait until the phase to improve. An appropriate
way to use would be to staff stay united and concentrated for a
period, leading brainstorming and discussions, typical Kaizen.
This avoids wasting time in conducting several smaller
meetings. In the step of improving the Kaizen is to basically
speed up the process and control, for example, to quickly
implement visual controls the processes.
Talat & Pietro [8] invented a model for implementing Six
Sigma in supply chains. The model consists of two cycles, the
first deals with relation between consumer manufacturer and
supplier of the organization and the second cycle focuses on
the implementation sustainability responsiveness and
innovation-based program, using game-theoretic approach,
especially for closed loop supply chain. The entire process
involves in depth analytical skill with the use of proven
mathematical formula. They also suggest that, increase in
marginal production cost may lead to certain innovation which
can lead to long time success of organization. Their centralized
vertical integration examination for CLSC facilitates the
candidate to change their strategy in the absence of dual
marginalized effect. Their conclusion of improving the profit
by centralizing helps to generate more profit than decentralized
condition [8].
To successfully implement a Six Sigma program, Mayas &
Ala [9] state that one of the main critical factors of success of
Six Sigma in the UK is the involvement and top management
commitment to the program - as in the case of Motorola.
Besides these factors are of equal importance to cultural
change and investment in training for absorption and
application of knowledge necessary for a successful project
development. The training of employees involved in Six
Sigma uses a distinct practice, by which names are assigned
according to the workload of according to their level of
knowledge in the categories of Green Belts, Black Belts and
Master Black Belts. These are supported by leaders, or
champions, that are responsible for removing the barriers that
arise for the development of these projects Warner & Timans
[7].In addition to these factors, it is important to implement the
program the selection and management of Six Sigma projects,
since the lack of skill in selecting and driving a project can
consume time and resources which then generate frustrations
and failures. A set of guidelines for the selection of Six Sigma
projects are as follows [10]. TIme series for Idle time and profit(%)

The implementation of 6σ in aeronautical industries 40.00

contradicts the thesis that 6σ is limited to low production
30.00

Profit (%)
volume organization. But at the same time researchers admits
20.00
that some characteristics certainly influence the application in
some more degree or less, it due to nature of product provided 10.00
in aeronautical industries. Even the type of work force is highly 0.00

Jan

Aug
Feb
Mar
Apr
May

Sep

Nov
Jun
Jul

qualified in this field, so they easy to train as compared to other
sector but hinders the way of work done by staffs. The main
advantage in implementing 6σ in this sector is that they are
already having high demand of quality, which empowers the
methodology in certain degree [10].
Most of the food industry has pioneered in their lean
managing process, and hence implementing 6σ leveraged them
beyond direct gains in productivity, the implementing cases
illustrated by Orlando & Alexandro et al [11] is similar to
previous article and they also believe in giving pure attention
by management philosophy. Only one thing is fascinating in
this research is that it also believes in reinforcing employee
engagement is critical to success. They are heading towards
future work of benchmarking with the other sectors parameters
[11].
Dec
Oct
Profit% Mc Idle time(%)
Production time (Month)
Figure 1 Time series analysis of Mc Idle time and profitability before 6σ
After analyzing the time series, it is clearly visible the when
machine idle time increases the, the profit (%) decreases. This
show that there is some inverse relation between these two. It
also means that, reducing the idle time can increase the
profitability.
The second stage which is Measure, in this stage as we
observed two problems which can be considered is reducing
idle time and increasing profitability, the target time for
machine is to optimize it by 15% and in same time observe the
indicator profitability and check performance.

III. RESEARCH METHOD

We have discussed earlier that, for implementing 6σ in

Automatic Specialties Inc. we must optimize the machine and
production flow of the system, using the VMS or SIPOC tools,
the research related to flow is can be achieved very easily. The
interrelation between each of the transaction with reference to
time and cost will help the data analysis, so that problems can
be identified.
The implementation of 6σ through DMAIC framework is
the best method we have observed till the time. The use of
statistical tools in every required step is key to this framework.
The define stage will consists of, it can be performed in a
way that we can compare the average machine running time
with average of downtime profitability, for the case of
Automatic Specialties Inc (ASI) copied text, plots, equations,
etc. The average comparison confirms the cause, which was
achieved with the help of VMS. The formation of team of
experts is also being held which is known as belts.
In this stage we also considered that the identification of
delay in processing is done with a visual inspection is carried
out a study matching attributes, the results yielded an overall
error rate of 5%, thus it was considered that the consistency in
the process and inspection criteria they were acceptable.
Figure 2 Theory of constraint process, Proposed by
Eliyahu M. Goldratt
In the third phase we must use the tools, to remove the
variable that has effect on machine. Generally, in this context,
pareto chart or plot box etc. can be used to identify the
variables, but in this case, we will use a tool which is known
as “theory of Constraint”, the first used and proposed by
Eliyahu Goldratt, and often accepted by number of SME and
larger company to increase their profitability. In this process,
the larger constrains is being removed by exploiting and
subordinating it and repeat the process for another bigger
constraint.
During implementation phase, we also gone through
involvement of management and supporting team with the help
of several tools

Further, identifying root causes of delay, we should make an

analysis of the variables involved in the cutting and assembly

3
processes. In the process of cutting the causes for which the
wire cut did not meet the established tolerances, since this
problem hampers coupling with knockers’ drawers and
dressers of the alcoves they were identified. On the other hand,
in the process of assembling the causes which were poorly
assembled drawers were identified. Ishikawa diagram used as
a tool to identify each of the causes, which were classified into
six (6) categories: Labor, Materials, Methods, machines,
measurement and work environment [12].
wire. Given the company so far validation did not have a
strategic direction, proceeded to identify targets in the medium
and long term, some of these are: position their products
among higher sales; improve the quality standards of its
products, which is reflected and decline in services generated
returned by the end customer; improve the productivity of their
production processes, which impact on production costs, the
costs of poor quality, rework, cycle times and production
capacity.

The cause associated human factors were validated by

examination and procedural variance factors by analysis of IV. DATA ANALYSIS
failure modes and effects (FMEA). The results showed that the For data analysis, data collection is an important factor, in
root cause was linked mostly to errors in the cutting process, our case; data collection is based on primary data given by the
however the experience and knowledge of the operator were company, the annual reports, production report, and case
not relevant. It was established that cutting processes were not studies. The initial analysis of data which is already given in
properly standardized, no guidance or support tools were used graph shows that there is high variation in production process
to perform high-precision cutting and inspection processes in and it need to make even to some extent. The monthly
the cutting area did not guarantee an acceptable quality for the production of company is as given in the table, which shows
assembly process [5]. that
The result obtained from the measures phase which is also Table 1 Monthly production and cost data for ASI
known as result of root cause analysis directly being
implemented in fourth phase i.e. implementation phase of Production Profit Operating
DMAIC methodology. The priority which was considered in Month (No of Coil) ($) cost ($)
earlier condition, was caused by the problem of suppliers, in 1 12 33120 350400
time material availability and quality of steel wire, which is to
2 15 41400 427500
be drawn not up to the specified level. This causing breakage
and stops the machine automatically, which is assigned to do 3 18 49680 496800
so. 4 14 38640 392280
One of the fundamental characteristics of 6σ approach is the
5 11 30360 338800
intensive use of data and information, used for process
analysis, design improvement strategies and decision-making. 6 16 44160 457600
For this reason, before developing the phases of analysis and 7 18 49680 538000
improvement it is necessary to ensure that sources of
8 16 44160 476900
information and measurement systems are sufficiently reliable
to avoid taking wrong actions leading to lack of results. 9 13 35880 472600
Additionally, at this stage we must raise a baseline, to serve as 10 19 52440 514900
a starting point for evaluating the effectiveness of the
improvements achieved with the achievement of each project. 11 14 38640 504800
the improvement actions must be implemented in accordance 12 12 33120 484900
with the previously defined plan, and on which should be
regularly monitored for compliance and take corrective action Almost every three months, the production goes down for
when necessary [2]. The improvement action we must use some reason, and after that it recovers.
statistical tools and management attention, not only to generate
ideas and support decisions, but also to structure them into an The theory of constraint is applied first for fifth month;
action plan with specific activities. For this we must use because it is the month which has lowest production (only 11
statistical methods such as regression analysis, DOE, methods bundles of wire were created, the average size of coil is 300
of response surface, simulation, and can also be used tools kg.
Lean as 5S, Kanban, the flows of one-piece, Total Productive
The equation for calculating profit from production cost
Maintenance, SMED, Visual Management, rolling lines and
Poka-Yokes. The last step of implementation is regarded as
validating the results on as they are implementing the The Operating cost
improvement actions. In this step assess the impact they 𝐶 = 𝑁𝑜. 𝑜𝑓 𝐶𝑜𝑖𝑙𝑠 𝑥 27600 ± 1%
generate on the problem, this is done with the review and
analysis of the LSS metrics, operational metrics and financial 𝑃 = 𝑁𝑜 𝑜𝑓 𝐶𝑜𝑖𝑙𝑠 𝑥 2760 ± 2%
metrics. If the target is not met should review and reconsider
the actions defined [11]. The profit %
𝑚𝑜𝑛𝑡ℎ
Validation of the methodology being carried out in 𝑃(%) = 𝑃𝑟𝑜𝑓𝑖𝑡 𝑜𝑓 +
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑚𝑜𝑛𝑡ℎ
Automatic Specialties Inc. dedicated to the manufacture clutch

4
 0.001 2 0.002 2
𝑃%√( ) +( )
1 2
V. RESULT DISCUSSION
As discussed earlier that, the outcome of data reveals that
The initial calculation by the given data result in this the problem is with supplier of the material. The failure of
delivery time is the main cause in this case, the other factors
Table 2 Calculation of some relevant parameter
that influence the profitability is %C in the supplied material
Operating is not up to the standard. This cause wire breakage in
time Mc Idle Mc Idle time processing the steel material. Brainstorming is one of the best
Profit% (min) (min) (%) tools that can be used before making cause and effect diagram.
The event like wire breakage took around 30 minutes to start
9.45 528 132 25.00
the machine again, if this problem is solved the, machine will
9.68 660 1 0.15 available for around 600 minutes extra available for
10.00 660 1 0.15 production. Only these factors will elevate the profit % by 10.
9.85 616 44 7.14 It was always seen that after implementing 6σ, the efficiency
rose by more than what is target taken initially.
8.96 484 176 36.36
9.65 660 1 0.15 After implementation of methodology, the improvement
9.23 660 1 0.15 process does take leave for a moment, it’s a continuous
process.
9.26 660 1 0.15
7.59 572 88 15.38 At this point the ASI seeks to incorporate and standardize
10.18 660 1 0.15 the changes in the stage of improvement. For this reason, it is
7.65 616 44 7.14 important to document processes or modified processes, and
can be used for this approach quality assurance through ISO
6.83 528 132 25.00 9001. Additionally, mechanisms should be designed to ensure
that changes and improvements achieved are maintained over
time, to give continuity beyond the project closure. Key
From calculation we can see that, around 650 min the activities at this stage are:
machine is not utilized for their production, it is around 10%
percent of total operating time.
Standardize and integrate process improvement: This activity
should lift procedures manuals, process diagrams, process
After implementation of Theory of constraints, it was found
that the supplier is not able to provide material on time, and maps, and if the company has a quality management system,
company stocking the material for three months only, from then you must update the quality manual.
second month of material coming, they start chasing the Define control mechanisms improvements: mechanisms
supplier, but time of deliveries always failed by 1 or 2 weeks. should be designed to monitor and maintain the improvements
This causes loss of production. To acquire this better achieved. For this reason, it is necessary to communicate
production plan is required; the procurement can also be done changes to stakeholders, and if necessary to enable them to
with two of more suppliers, so that material is available on assume the new changes. To create discipline and order can
time. turn to tools like 5S, and to monitor indicators can be used
After exploiting the first constraint, we should move to control charts and Visual Management.
another constraint and repeat the process till all the constraint Close project: when you have achieved the goals and expected
will be elevated. As discussed earlier, the use of other tools impacts should develop a project closure report, by which it
such as Ishikawa diagram, Box plot, etc. can communicate to stakeholders, clearly and precisely, all the
outcomes of the project.
Evaluating of the results derived from the implementation of

6
Wire break the project portfolio is critical because it identifies new
opportunities for improvement and lessons learned that lead to
No of breakage

the realization of new LSS projects. LSS is important for the

4 team to highlight the positive and negative aspects of each
project, as this enhances organizational learning.
2
The evaluation process involves Increase in the capacity of the
0
cutting process, specifically in the accuracy of the dimensions
1 2 3 4 5 6 7 8 9 10 11 12
Month Wire break of the cut pieces. Increased capacity drawer assembly process,
Figure 3- Wire breakage problem in ASI since the percentage of non-compliance is decreased in this
area. to Increase in capacity of machine assembly process,

5
since the percentage of non-compliance by the presence of
open fault was decreased. The complaint given by external
customer should be reduced.
VI. CONCLUSION
The proposed methodology greatly facilitated the
deployment of 6σ in the Automatic Specialties Inc. as this
methodology provides the necessary elements to design and
implement organizational changes that would enable it
effectively to develop 6σ projects processes. The improvement
process is focused to identify key problems and have a clear
procedure for implementing and evaluating the process. While
improvement provides positive effect in the financial and
operational values, evaluation of the results of the
improvement project shows that still need to be change in
fundamental aspects, to achieve better results, these changes
are generating greater commitment of management and staff
of ASI. To implement systems for measuring key variables,
which eliminates subjectivity in the inspection of products is
the subject of deepening the cultural change towards
continuous improvement and operational excellence. As can
be seen in the proposed changes, the human factor plays a key
role in the implementation of 6σ.
At least in calculation the hypothesis generated by us in the
beginning is true for this company. But to establish strong the
relation between profitability and implementation of 6σ need
some more company to research. This gives the way for our
future work related to this research proposal.
ACKNOWLEDGMENT
The author would like to thank XXXXX for discussions and
the scholarship support.
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APPENDIX
The budget of 6σ for the case ASI, where only 20 employees Time
is working in a company, is as follows, Activity (Weeks)
Group Identification 1
Table 3 - Budget for Six Sigma Implementation Champion Workshop 1
Proof of concept 1
For Green Belt Project
Preventive cost (For training team selection
members and planning 6000 Candidate selection 1
Appraisal cost (Stationary items) 2000 Project selection 1
Internal cost (release of staff) 3000 Training and project coaching
External failure cost (Customer Pre-work 1
complain) 4000
Training and project coaching 1
Miscellaneous 5000
Black Belt-Online Training 2
Total 20000
Project work Phases of DMAIC
Define 1
The number of people required is 1 person in 100 staff, but Measure 1
here for small company, 2 members of green belt is required.
Analyse 1
Generally, for small company, Green belt project required is Improve 1
about 15 weeks, the details are as follows Control 1
Project Presentation 1
Total 15