A Case Study of Applying Six Sigma to Reduce Failure Cost - An Example of Electronic Manufacturer

• Main Author: 陳坤鍵
• Other Authors: 葉凱莉
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/12554225512838031993

碩士 === 國立彰化師範大學 === 會計學系企業高階管理 === 97 === Under highly industrial competitive circumstance, high quality product and low cost have been the competitive advantage of each enterprise corporate-level strategy trend. The related operation of quality and profitability contains certain level efficiency at basic cost management and quality cost control. Currently most international industries have set quality cost control as one of the industrial main strategy, but how to lower down the failure cost has become the headache of numerous companies. Since Motorola promoted Six Sigma in 1987, they obtained an excellent effect on raising quality, lowering the cost and customer’s satisfaction. The quality increases from four Sigma to five and half and saving twenty-two hundred million dollars. Basically, the research by Six Sigma had dropped the internal failure costs of the failure costs most through improving process First Pass Yield (The first number of good units produced by the number going in to the start of the process which does not include rework portion); it also proves that external failure costs should keep or reduce comparatively current level after internal failure costs decreased. The First Pass Yield negatively correlated with Internal Failure Costs. The higher FPY is, the lower Internal Failure Costs will be. On the contrary, the lower FPY is, the higher Internal Failure Costs will be. The FPY can be the objective reference data of the improvement of Internal Failure Costs. The increasing Prevention Cost will decrease External Failure Costs under same appraisal cost. 6 sigma passes thought a limitary on job training cost and apply DMAIC method to enhance employees thinking capability who can work on hard and critical events for continuous improvement , then could have limitary investment of preventive cost to bring the butterfly effect for quality improvement , process optimization , failure cost reduction and company competitiveness enhancement. A case study of applying 6 sigma upgrade the FPY to reduce the failure cost in A electric manufacturer. After implemented of 6 sigma , the FPY upgraded 1.15% , the failure cost reduced 0.185% including internal failure cost 0.171% and external failure cost 0.014%. There spent 13K NTD on preventive cost and kept the same cost on appraisal then got 189k NTD for final cost saving. From this case study , there is obvious effect on failure cost reduction by 6 sigma applying for FPY upgrade.