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Six Sigma DMAIC: a Case Study in Resolving Profit Loss for a Cheese Manufacturing Company

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Six Sigma DMAIC: a Case Study in Resolving Profit Loss for a Cheese Manufacturing Company 1 Author: Roman-Nelson, Grace A. Title: Six Sigma DMAIC: A Case Study in Resolving Profit Loss for a Cheese Manufacturing Company The accompanying research report is submitted to the University of Wisconsin-Stout, Graduate School in partial completion of the requirements for the Graduate Degree/ Major: Master of Science in Operations & Supply Management Research Advisor: John Dzissah, Professor Submission Term/Year: Winter 2020 Number of Pages: 53 Style Manual Used: American Psychological Association, 6th edition I have adhered to the Graduate School Research Guide and have proofread my work. I understand that this research report must be officially approved by the Graduate School. Additionally, by signing and submitting this form, I (the author(s) or copyright owner) grant the University of Wisconsin-Stout the non-exclusive right to reproduce, translate, and/or distribute this submission (including abstract) worldwide in print and electronic format and in any medium, including but not limited to audio or video. If my research includes proprietary information, an agreement has been made between myself, the company, and the University to submit a thesis that meets course-specific learning outcomes and CAN be published. There will be no exceptions to this permission. I attest that the research report is my original work (that any copyrightable materials have been used with the permission of the original authors), and as such, it is automatically protected by the laws, rules, and regulations of the U.S. Copyright Office. My research advisor has approved the content and quality of this paper. STUDENT: NAME: Grace A Roman-Nelson DATE: January 12 , 2020 ADVISOR: (Committee Chair if MS Plan A or EdS Thesis or Field Project/Problem): NAME: John Dzissah, Professor DATE: January 5, 2020 --------------------------------------------------------------------------------------------------------------------------------- This section for MS Plan A Thesis or EdS Thesis/Field Project papers only Committee members (other than your advisor who is listed in the section above) 1. CMTE MEMBER’S NAME: DATE: 2. CMTE MEMBER’S NAME: DATE: 3. CMTE MEMBER’S NAME: DATE: --------------------------------------------------------------------------------------------------------------------------------- This section to be completed by the Graduate School This final research report has been approved by the Graduate School. Director, Office of Graduate Studies: DATE: 2 Roman-Nelson, Grace A. Six Sigma DMAIC: A Case Study in Resolving Profit Loss for a Cheese Manufacturing Company Abstract Company XYZ has experienced stock variations and an estimated 1% loss in its annual projected profit due to partially filled cases of processed canned cheese. Most of these cases are not captured on the company’s inventory system, thus were accumulated in stock and eventually reprocessed or dumped. The objective of this assessment was to determine the root cause of the problem and identify solutions. Two sets of questionnaires were administered, one to the stakeholders and the other to the warehouse staff. The summary results identified five primary causes which were lab sampling, marketing, dented tins, staff sale and incomplete cases at the end of production run. Using the Cause and Effect Diagram, seven root causes were identified. These were quality assurance, competitive marketing, preventative maintenance, improper handling, concentration lapse by forklift operators, process variations and unavailability of assigned products for staff welfare. The root causes were linked to human and mechanical factors, thus can be prevented or mitigated. Recommended solutions included, implementing a structure that is more restrictive, accountable and consistent, thus reducing human errors and mechanical issues; as well as, using such products for staff sale, donation and promotion. 3 Acknowledgments I would love to take the opportunity to express a special thanks to persons who had assisted me in any way to complete this project. Firstly, I want to thank God to give me the health , strength and courage to undertake the challenges that were faced. A big thank you to my loyal husband Richard , who dedicated so much of his time to assist me in the simplest to the most difficult obstacles that I encountered with the project . I would like to express a special thanks to Gersham Palmer who worked alongside me regarding this project of the partially filled cases in the warehouse. I would also like to thank members of the Warehouse, Quality Assurance, Finance and Marketing teams who dedicated their time to facilitate me during my investigation of the problem and during my brainstorming of potential solutions to the problem. 4 Table of Contents Abstract ...................................................................................................................................... 2 List of Figures ............................................................................................................................. 7 Chapter I: Introduction ................................................................................................................ 9 Statement of the Problem ............................................................................................... 10 Purpose of the Study ...................................................................................................... 10 Assumptions of the Study .............................................................................................. 10 Definition of Terms ....................................................................................................... 10 Chapter II: Literature Review .................................................................................................... 12 The DMAIC Method ..................................................................................................... 12 Define ............................................................................................................... 15 Measure ............................................................................................................. 15 Analyse .............................................................................................................. 15 Flowcharting .......................................................................................... 15 Ishikawa Diagram................................................................................... 16 5 Whys Technique .................................................................................. 17 Cause Mapping ....................................................................................... 18 Critique .................................................................................................. 20 Improve ............................................................................................................. 21 Grid Analysis ......................................................................................... 21 SWOT Analysis...................................................................................... 22 Control ............................................................................................................... 22 Force Field Analysis ............................................................................... 23 5 ADKAR Model ...................................................................................... 23 Chapter III: Methodology .......................................................................................................... 25 Research Goals and Objectives ...................................................................................... 26 Instrumentation.............................................................................................................. 26 Data Collection Procedures ............................................................................................ 27 Data Analysis ................................................................................................................ 27 Limitations .................................................................................................................... 27 Summary ....................................................................................................................... 27 Chapter IV: Results ................................................................................................................... 29 Data .......................................................................................................................... 29 Table 1: Summary of Responses Provided by Stakeholders to Issues Raised in Questionnaire on Partially Filled Cases .............................................................. 30 Table 2: Summary Of Responses Provided By Warehouse Staff To Issues Raised In Questionnaire On Partially Filled Cases ............................................................. 31 Data Analysis ................................................................................................................ 31 Chapter V: Discussion, Conclusion and Recommendation ......................................................... 37 Discussion ..................................................................................................................... 37 Conclusion .................................................................................................................... 40 Recommendations ........................................................................................................
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