I N T E R N AT I O N A L M A N A G E M E N T I N S T I T U T E , N E W D E L H I

APPLICATION OF 6-SIGMA FOR

ERROR REDUCTION-
AT
ADVANCE INFORMATICS PVT
Ltd.

SUBMITTED TO: Prof. RAJEEV BHATIA

SUBMITTED BY : GROUP-8
Karan Kapoor (08PGDM-86)
Biswadeep Sahoo (08PGDM-82)
Prakhar Singh (08PGDM-100)
Nishant Agarwal (08PGDM-34)
Rakesh M (08PGDM - )

ACKNOWLEDGEMENT

We hereby regard our sincere thanks to Prof. Rajeev Bhatia , IMI New Delhi under

whose guidance this project was undertaken.

We sincerely acknowledge the employees of Advance Informatics for their valuable

assistance throughout the production of this project.

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 Table of Content

Table of Content......................................................................................................................3
Executive Summary............................................................................................................................4
1 Overview: Project Selection.............................................................................................................5
1.1 Background Information.......................................................................................................5
1.2 Problems and its Symptoms..................................................................................................5
1.3 Goals and Expected Results..................................................................................................6
1.4 Framework.............................................................................................................................6
1.5 Project Charter.......................................................................................................................8
1.6 Constraints.............................................................................................................................9
2 Measurement.....................................................................................................................................9
Process Diagram.........................................................................................................................9
3 Analyze...........................................................................................................................................10
3.1 Cause and Effect..................................................................................................................10
3.2 Correlation & Pareto...........................................................................................................10
..........................................................................................................................................................12
It can be seen that the majority of the errors are of the category ‘wrong grade’. But another thing
to identify from the two given pareto charts is that even though wrong grade accounts for the
highest number of errors and also the highest percentage in value terms but then too it when we
consider the value parameter, it is quiet evident that counting error and compilation error also take
significant proportions with 20% and 12% respectively...................................................................12
Therefore the pareto chart in value terms is quiet significant as it shows that even though other
errors are not so significant in terms of sheer numbers on which it occurred but the amount of
rework other error cause is quiet significant as well.........................................................................12
4 4. Improvement...............................................................................................................................13
5 Conclusion & Outlook....................................................................................................................13

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 Executive Summary

6-sigma is a powerful tool to detect errors within a process regardless

whether it is a manufacturing process or service process. We applied the 6-
sigma Methodology with its roadmap DMAIC (Define – Measure – Analyze –
Improve – Control) on the serving process of the IMI canteen in order to
reduce the service time per customer and therefore the waiting time.
During the define step we drew our project scope, specified our goal
concerning the improvements we want to make and made assumptions
concerning the process. A CTQ tree and a rough process diagram were drawn
to illustrate the process understanding. Constraints were set limit the range of
the task and Variables (decision and dependency) were defined to give
additional insight into the whole field of the project.
The measurement step contains a time-motion study of the service
process at the canteen and a revised and improved process diagram with
times measured for each single action. Furthermore a questionnaire was
designed in order to find out more about the average number of ingredients
ordered by students and their satisfaction with the present situation
concerning waiting time and serving time. In addition to that suggestions were
collected to find out the factors that need to be changed in order to achieve a
higher customer satisfaction.
The analyze step deals with a cause and effect diagram to find many
factors that might have an influence on the output – the long waiting time.
After a qualitative selection of the most important ones a correlation matrix
helped to find an order of the main factors and their importance.
In the Improvement stage a DOE was conducted to reveal the impact of
those factors which are considered as the most important in a process.
Simulation was done using data from the measurement phase provided
additional data for another DOE to test the other factors

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1 Overview: Project Selection

1.1 Background Information

Advance Informatics are recognized as a forerunner in the development

and deployment of business process outsourcing solutions by providing CAD
services for Engineers, Architects and Manufacturers for over last 10 years. Its
state of the art facilities at New Delhi, India is covering an area of over 5,000
sq ft and having about 100 employees. They are catering to CAD outsourcing
requirements of a varied segment of clients from USA & European Union
countries. Their customer process solutions encompass end to end solutions,
back-office operations and support. It extends to a partnership where our
structured program is designed to exceed your expectations of turn around
time and quality.
They are well bonded team of more than 100 experienced professionals
consisting of Design Engineers, Architects, Engineers, CAD operators & 3D
Modellers. It offers services in your desired format. They can also analyse and
suggest other solutions. Their cost effective solutions are best in the industry..
In this research project, DMAIC (Define – Measure – Analyze – Improve -
Control), the implementation steps for 6-sigma Projects are followed to reduce
rebar estimating errors at Advance Informatics.
6-sigma provides a blueprint for implementation of total quality system. Its
roadmap – DMAIC (Define-Measure-Analyze-Improve-Control) means: Define
the problem of the process; Measure the performance of the process; Analyze
the cause if the process, Improve the process, reduce waste; Control the
process, eliminate the occurrence of the same problem.

1.2 Problems and its Symptoms

The level of accuracy of rebar estimates is below the customer

satisfaction level. This is resulting in customer loosing out on money and work
due to errors in estimates. An estimate being too low gets the customers the
job (tender) but the customer ends up paying from his own pocket to complete
the job hence reducing its profits. An estimate being too high results in
customers not getting jobs at all.

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 Define

1.3 Goals and Expected Results

The 6-sigma team aims to decrease errors in estimating of the rebar team
at Okhla to 3% on average in the first stage which will go on for two months.
In the following two moths the aim is to reduce errors to 1% on average.
There are 2 CTQs: level of error and delivery time.

1.4 Framework

Figure shows the SIPOC framework of our project and the scope of
improvements

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 Q u ic k T im e ª a n d a
d e c o m p re s s o r
a r e n e e d e d t o s e e t h is p ic t u r e .

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1.5 Project Charter

Q u ic k T im e ª a n d a
d e c o m p re s s o r
a re n e e d e d to s e e th is p ic tu re .

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1.6 Constraints

Actual accuracy of estimating is known only when the contractor actually

completes the job. However, this information is rarely shared with us and it
also involves a big time lag and data set would be much smaller.
Due to these difficulties it was considered best to use the accuracy of a
much more experienced and more accurate estimator for checking the
accuracy and using his results as a proxy measure.

2 Measurement

Process Diagram

The analysis of the procedures shown in the time-motion study made us

redraw the process diagram. From the time-motion study we could determine
the times needed for each action step during the whole service process. Our
observations from the new process diagram with process times were:
This process contains a lot of branches and therefore is has a lack of
standardizations;
Much time is spent in the region between input two and output two of the
operation sub process;
"Replenish sub process" takes almost 1 minute. Proper configuration of
the ingredients in front to reduce the frequency of replenishment, the total
efficiency will improve a lot.

Figure 3-1: Process diagram version 2, 1/3

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 Figure 3-2: Process diagram version 2, 2/3

Figure 3-3: Process diagram version 2, 3/3

3 Analyze

3.1 Cause and Effect

A fishbone chart, also called ‘Cause and Effect’ diagram, is helpful to

brain storming many reasons that can lead to an outcome and is the first step
to identify the key-reason and most crucial factors that have the highest
influence on the outcome.

Figure 4-1: Cause and Effect Diagram

3.2 Correlation & Pareto

After the Selection of the most crucial factors from the Cause and Effect

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Diagram a correlation analysis of these main causes was mode. After serious
consideration, some factors were not taken into further consideration since it
is not possible or hardly possible to change the factors in order to achieve
improvements.

A Pareto-chart has been drawn to illustrate the crucial factors to

concentrate on during further project process.

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It can be seen that the majority of the errors are of the category ‘wrong

grade’. But another thing to identify from the two given pareto charts is that even

though wrong grade accounts for the highest number of errors and also the

highest percentage in value terms but then too it when we consider the value

parameter, it is quiet evident that counting error and compilation error also take

significant proportions with 20% and 12% respectively.

Therefore the pareto chart in value terms is quiet significant as it shows that even

though other errors are not so significant in terms of sheer numbers on which it

occurred but the amount of rework other error cause is quiet significant as well.

12
 4 4. Improvement

Improvement in estimating was carried out by imparting training to the employees and
providing them feedback of where they were committing mistakes. After the initial
thirteen-day data-gathering period, employees were shown, where they were
individually committing mistakes, as well as where mistakes were happening most
often and where they were most dangerous. Employees were also asked to visualize
how they approached estimating, and an improved approach was suggested to reduce
errors.

Recommended approach or process of estimating

The first step is to read the instructions and notes that came along with the project.
The next step is to list the different items that are being used on the sheet. Note: this
does not involve counting the number of each of those items. The next step is to
compile a separate list of the items on the sheet(s) along with their multipliers for
calculating weight. The next step is to count the items and enter the numbers into the
excel sheet. Finally a person would compile the various sheets and send them for
checking.

Use of digitizers

To aid estimators in reducing and avoiding counting errors as well as reducing the
time spent of them digitizers were provided to all of them. Through digitizers
estimators can mark different items with a dot and the digitizer does the counting
automatically. Different items can be marked with different colors to distinguish them.
Moreover, an estimator can easily see if he has missed an item by searching for any
unmarked item on the sheet.

5 Conclusion & Outlook

.A six sigma project is as much about getting all stakeholders to buy into
the project as it is about data gathering. Although not apparent from the
report, there were many concerns of employees that needed to be addressed.
Estimating 100% accurately is extremely difficult and doing so all the time
nearly impossible. The employees were concerned that the data gathered
might be used to punish them for the mistakes they made. They argued that
mistakes will be made now and then as a part of estimating and it should not

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be held against the estimator as it can be made by anyone.
Employees were made to realize that the data is not to punish anyone but
to help each of them improve their estimating by ensuring that they get
individual feedback on their performance. There would be a reward system
and their performances would be measured only against their own and very
realistic and slightly conservative targets would be set.
The importance of data gathering and proper mapping of resources is
very apparent as it led to very quick and significant improvements in
estimating.

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