Six Sigma is the most effective approach that helps improve the quality of processes through identification and elimination defects. Six Sigma aims getting processes close to perfect. Another goal of Six Sigma is to identify and reduce the probability of variation emergence causing defects.
Six Sigma has been implemented at Caterpillar since 2001. Caterpillar succeeded to build in Six Sigma into supply chain. Caterpillar has its own training program. There are more than 3,300 black belts and 300 master black belts on Six Sigma working for the Company worldwide. Six Sigma approach is represented by implementation of ACERT Technology pursuing several goals, namely: reduction of ozone, reduction of acid rain, and reduction of health hazards. Sis Sigma solutions helped more effectively manage value stream including inventory management, decrease of turns, control of customer delivery performance, and control manufacturing cycle times that make an impact on capacities and availability of materials.
Another Six Sigma solution related energy saving. Caterpillar Six Sigma solution includes application of the tools to core engine systems – fuel, air, electronics, and after treatment. The solar turbines solution included work-in-process caps, elimination of waste products, replenishment of materials with the help of pull systems, and introduction of safety stock.
Implementation of Six Sigma at Caterpillar (solar turbines) helped increase capacities up to 58%, the time of manufacturing cycle improved up to 50-80% depending on manufacturing area, inventory was significantly reduced, and performance of delivery was improved up to 74%.
Implementation of Six Sigma allowed significantly reducing the time of final assembly and tasks processes from 10-20 days to 4-5 days. The companies that implement Six Sigma are usually in a better position when meeting the challenges of the future.
Works Cited
MacLean, Bruce, ex.prod. Focus On: Six Sigma. McGraw-Hill Irwin, 2007. Film.
