Introduction

A Tier 1 supplier faced persistent defects in parts dispatched to a major OEM, despite having a CSL2 inspection line. Defective components disrupted OEM production, prompting Catalydd to deploy Six Sigma methodologies to achieve permanent, defect-free solutions.

Challenges

• Recurring defects (e.g., nut shift, weld miss) bypassing CSL2 inspections.
• High Cost of Poor Quality (COPQ): ₹79.9 lakhs to ₹32.55 lakhs monthly.
• OEM dissatisfaction due to production downtime and rework.

Project Milestones

1. Define Phase (Mar 2021): Scoped the problem and set defect-free dispatch goals.
2. Measure Phase (Apr 2021): Analyzed defect rates, downtime, and COPQ.
3. Analyze Phase (Apr 2021): Root cause identification via Fishbone diagrams and Pareto analysis.
4. Improve Phase (May 2021): Implemented process optimizations and supplier training.
5. Control Phase (June 2021): Established monitoring systems for sustained results.

Our Solution

Catalydd’s Six Sigma team executed the DMAIC framework:

• Define:
  ● Goal: Eliminate defects causing OEM production disruptions.
  ● Stakeholders: Supplier production, quality, and supply chain teams.
• Measure:
  ● Tracked pre- and post-inspection defect rates (e.g., 21 recurring claims).
  ● Quantified COPQ at ₹79.9 lakhs monthly.
• Analyze:
  ● Root causes: Poor process controls, material inconsistencies, and communication gaps.
• Improve:
  ● Corrective actions: Standardized welding parameters, upgraded inspection protocols, and real-time supplier-OEM feedback loops.
• Control:
  ● Sustained results via audits, updated SOPs, and continuous improvement dashboards.

Results

1. 68% Reduction in COPQ: Savings of ₹68.44 lakhs within 2 months (May–June 2021).
2. Defect Elimination:
   ● Nut Shift: Reduced by 85%.
   ● Weld Miss: Eliminated entirely.
   ● Off-Cut & Part NG: Reduced by 92%.
3. OEM Benefits: Near-zero defective parts in supplies.