Six Sigma in Marketing-SS

7/31/2019 Six Sigma in Marketing-SS

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SIX SIGMA

PROJECT PRESENTATION

By

Mr. Brahmadeo Roy

Reduction in number of amendments to the contract


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PROJECT ID :

GB : Mr. Brahmadeo Roy

BB : Mr Puvendra D

MBB : Mr. Girish SR , Sr DGM/BEQI

CHAMPION : Mr Amol Newaskar, GM, MilCom

START DATE : April 2011

PROJECT : To reduce Number of amendments to the contract.

FOCUSSED PROJECT : Elimination of amendments from the contracts

CURRENT Z :

IMPROVED Z :

COMPLETION DATE : Nov 2011SAVINGS : Rs7,48,800

PROJECT CHARTER

6 DEFINE


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BUSINESS CASE

We receive enquiries for quotations from the various customers.Quotations are generated against RFQs through SAP and submitted to thecustomers. We receive orders from the customers. On receipt of orders ,Contract review is done. Finance, Marketing, Production Control, Testing,and Quality departments take part in the Contract Review meeting.

Concerned departments check the contract from their prospective and ifthey find any discrepancies, they give feedback to marketing departmentto seek amendments from the customers. The amendments may bepertaining to the various parameters like payments terms, Inspection,Part No. not correct, Description not matching as per drawing etc. Thesediscrepancies need to be corrected before the items are offered tocustomer for inspection.

PROJECT CHARTER

6 DEFINE


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PROJECT SCOPE:From Receipt of order to the completion of the dispatch of the material.

GOAL STATEMENT:From present status of many amendments to Zero amendments

SUPPORT REQUIRED:Bharat Electronics Quality Institute, Sr.DGM, Mktg&CS /MCE .

SCHEDULE:Complete within 6 months

PROJECT CHARTER

6 DEFINE


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SIPOC

Customers Supply Order /Contract

BEL Documents BEL Drawings

SAP DescriptionsSAP

Contract Review Army/Navy/Air forceDiscrepancies

Supplier Input Process Output Customer

ConductMeeting

FeedBack

Commn.For amdt.

Req. letter tocustomersfor amdt.

Receipt ofAmendments

6 DEFINE

Agenda formeeting


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BUSINESS NEED DRIVERS CTQ

BEL drawing

SAP Data Base

Customers Data Base

Project Officers Experienced officer

Correct Data Base

Correct Data Base

Correct Description

Zero amendments to

the supply order /

Contract

Other Departments Elimination of errors

CRITICAL TO QUALITY TREE

6 DEFINE


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CTQ DEFECTDEFINITION

OPERATIONDEFINITION OFMEASURE OF

DEFECT

KANO STATUS

Correct Description Description not

matching withDrawing

Method of

Designation

Must be

SAP Data Base Wrong description Wrong description Must be

Customer Data base Old Data base In correct data Base Must be

Project Officer Lack of Knowledge Mistake in typing Must be

Other Departments Errors in documents Errors in documents Must be

CTQ SPECIFICATION TABLE

6 DEFINE


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6 MEASURE

AMENDMENTS TO THE CONTRACT Date 10-Sep-11

Sl .No. CUSTOMER PROJECT ORDER AMENDMENT FOR AMD/ REQ/ DATE Types of Amdt

1 GRSE PRC6020A 4700000979 /N10 DT 16.04.11 BEL Inspection, Inclusion of Part.Nos for two items 7-Sep-11 Inspection

2 GRSE PRC6020A 4700000979 /N10 DT 16.04.11 BEL Inspection, Inclusion of Part.Nos for two items 7-Sep-11 Part No.

3 L&T PRC6020A HZW/317060/VJ DT. 22.12.2010 Amdt. For the change in the P.No. of data transfer software[ to 458610121218 frm 991910906692] 21-Aug-11 Part No.

4 ITBP LHP265D IV-17013/15/2009/24.03.2009 /PCT/395, Dt. 02.03.2009 Amdt.in P.No. 31-Jul-11 Part No.

5 ITBP LHP265D IV-17013/15/2009/24.03.2009 /PCT/395, Dt. 02.03.2009 Descp. For Sl.No. 1,4, 14, 18, 21[ LHP-265D set, Ni-Cd Bty, Carrying box, Antenna HF-BB Dipole, Data Cable.] 31-Jul-11 Description

6 MO(KAR) EK896 10WBLC004 DT 04.7.11, DT 06.7.11 1) TERMS OF PRICE, 2) CHANGE IN PART No. OF X'stor as 429300200123 28-Jul-11 Terms of price

7 MO(KAR) EK896 10WBLC004 DT 04.7.11, DT 06.7.11 1) TERMS OF PRICE, 2) CHANGE IN PART No. OF X'stor as 429300200123 28-Jul-11 Part No.

8 MO(K) PRC6020A 10KBLC012 DT. 22.06.2011 PO Value is not CORRECT 25-Jul-11 Order Value

9 BSF LHP265D IG/Comn/BSF/ 3087 dt 13.06.2011 and 3244 dt 16.06.2011 1) Antenna nomenclature , Ni Cd Bty & Charger Bty nomenclature 25-Jul-11 Description

10 BSF LHP265D IG/Comn/BSF/ 3087 dt 13.06.2011 and 3244 dt 16.06.2011 ED and VAT 5% 25-Jul-11 Tax

11 MO(V) EK896 10VBLC909 DT. 10.6.2011 CHANGE IN NOMENCLATURE FOR 04 ITEMS 16-Jul-11 Description

12 GRSE PRC6020A 4700001687/N10 dt. 09.06.2011 Part.No., Mistake 5-Jul-11 Part No.

13 GRSE PRC6020A 4700001687/N10 dt. 09.06.2011 TERMS OF PRICE 5-Jul-11 Terms of price

14 GRSE PRC6020A 4700001687/N10 dt. 09.06.2011 Payment Terms 5-Jul-11 Payment Terms

15 GRSE PRC6020A 4700001687/N10 dt. 09.06.2011 Wrong tax, Warrnty instead of Guarantee 5-Jul-11 Tax

16 GRSE PRC6020A 4700001687/N10 dt. 09.06.2011 BEL Inspec, 5-Jul-11 Inspection

17 MO(MB) EK896 09BBLC001 Dt. 10.5.10 Change in Nomen. For cable, coil RF VAR 25-Jun-11 Description

18 L&T PRC6020A HZW/317060/VJ DT. 22.12.2010 (1)Amdt. For the inclusion of all the P.Nos. in the PO [ wittn by Mktg-Milcomm] 21-Jun-11 Part No.

19 L&T PRC6020A HZW/317075/VJ, Dt. 12.02.11 Amdt. For the change in the P.No. of the Data Transfer software ( i.e. to 458610121218) 20-Jun-11 Part No.

20 L&T PRC6020A LTSB/SHYU/PO/1011/218 dt. 10.3.11 Amdt. For the change in the P.No. 20-Jun-11 Part No.

21 GRSE PRC6020A 4700000979/N10 dt. 16.4.11 BEL Inspection 10-Jun-11 Inspection

DATA COLLECETD


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6 MEASURE

22 MoD, New Delhi EK896 15/DNS Dt. 27.3.11 DD Extn till 31.12.2011 8-Jun-11 DD Extn

23 MO(V) LHP265D 07VBLC042 DT. 14.7.08 BSP Ni-Cd Part No. 1800 100 12331 8-Jun-11 Part No.

24 MO(V) LHP265D 07VBLC042 DT. 14.7.08 Nomenclat ure wrong. 8-Jun-11 Description

25 GSL, GOA PRC6020A 181614 DT. 26.3.07 DD Extn till 31.12.2011 7-Jun-11 DD Extn

26 MO(K) PRC6020A 10KBLC009 DT. 07.04.11 BSP Ni-Cd Part No. 1800 100 12331 27-May-11 Part No.

27 MO(K) PRC6020A 10KBLC009 DT. 07.04.11 Nomenclacure Mistake 27-May-11 Description

28 MO(K) PRC6020A 10KBLC009 DT. 07.04.2011 Amdt. for Ni-Cd P.No. & Descp. 27-May-11 Part No.

29 MO(K) PRC6020A 10KBLC009 DT. 07.04.2011 Amdt. for Ni-Cd P.No. & Descp. 27-May-11 Description

30 MO(V) EK896 10VBLC007 DT.28.6.10 DD Extn till 31.12.2011 10-May-11 DD Extn

31 SSB NEW DELHI LHP265D P/W-SSB-2009(17) Dt. 28.03.11 PRICE Amdt. It should be Rs. 107026958/- instead of Rs 106551036/- 10-May-11 Order Value

32 MDL PRC6020A 3030003509 DT. 16.4.11 1) Warranty instead of guarantee 2) ED , CD octroi exemption certificates 7-May-11 Tax

33 MO(KAR) PRC6020A 11WBLCOO1 DT. 05.4.11 PAYING AUTH. AND I-BOND 6-May-11 Payment Terms

34 MO(KAR) PRC6020A 11WBLCOO1 DT. 05.4.11 PAYING AUTH. AND I-BOND 6-May-11 Indemnity Bond

35 BSF LHP265D 9BRD/PROV/SO/18(09) DT. 18.12.09 MHM/LHP/LHP219/229 OBSOLETE 6-May-11 Part No.

36 CGHQ PRC6020A LC/438/CGS(MP)/75/SO-07/11-12 DT. 18.4.11 1) P.No NOT MATCHING WITH RESPECTIVE DESCRIPTION 5-May-11 Description

37 MDL PRC6020A 3030003509 DT. 16.04.2011 100% Payment on proof of despatch 7-Apr-11 Payment Terms

38 MDL PRC6020A 3030003509 DT. 16.04.2011 I-Bond 7-Apr-11 Indemnity Bond

39 MDL PRC6020A 3030003509 DT. 16.04.2011 DD minimum of 03 months frm the date of receipt of order 7-Apr-11 DD Extn

40 MDL PRC6020A 3030003509 DT. 16.04.2011 . 7-Apr-11 Terms of price

41 MO(V) EK896 08VBLC017 DT. 07.08.09 DD Extn till 30.04.11 15-Mar-11 DD Extn

42 MO(MB) EK896 06BBLC012/L-3537 DT. 23.8.07 SHORT CLOSURE : XF MRC coil .098 mic Henry VAR 496016252558 obsolescence 15-Mar-11 Part No.

43 COD-AGRA RRF IND/OS/Z1/RRF/60 DT. 16.04.09 SHORT CLOSURE: MICRO CKT. DIGITAL TYPE CLA 82039 OBSOLESCENCE 15-Mar-11 Part No.

44 COD-AGRA RRF IND/OS/Z1/RRF/76 DT. 16.6.09 SHORT CLOSURE: TRANSISTOR LTE 42012R AND CONTROL UNIT OBSOLESCENCE 15-Mar-11 Part No.

DATA COLLECETD


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6 ANALYSE

Year 2011 2010 2009 2008

Part No. 18 14 7 3

Description 17 20 6 2

DD extn 10 12 4 4

Inspection 3 1 1 0

Indemnity Bond 6 3 1 1

Terms of price 3 4 1 0

Payment Terms 2 2 1 1

Tax 6 10 1

Order Value 3 1 1 0

Types of Amendments year wise


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6 ANALYSE

Sl.No. Projects Nos. of Errors

1 EK896 44

2 PRC6020 83

3 LHP265D 23

4 RRF 2

5 Stars V 5

6 VRC6100M 7

7 1KW 3

Number of Amendments Project wise


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6 ANALYSE

EK896 PRC6020 LHP265D RRF Stars V VRC6100M 1KWNos. of Amdt. 44 83 23 2 5 7 3

44

83

23

25 7 3

0

10

20

30

40

50

60

70

80

90 Nos. of Amdt.

Nos. of Amdt.

Nos. of Amendments Project wise graph


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6 ANALYSE

0

10

20

30

40

50

60

D D E x

t n

D e s c r i p t

i o n

I n d e m n

i t y

B o n

d

I n s p e c t i o n

O r d e r

V a l u e

P a r t N

o .

P a y m e n

t T e r m s

T a x

T e r m s o

f P r i c e

Nos.

Nos.

Types of Amendment graph


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6 ANALYSE

Sl.No. Types of Amendements Nos.

1 DD Extn 302 Description 45

3 Indemnity Bond 11

4 Inspection 5

5 Order Value 4

6 Part No. 42

7 Payment Terms 4

8 Tax 179 Terms of Price 8


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Vital few: 80% of the Amendments are due to the following steps

1 : Description of the items

2 : Part No. of the items

3 : DD Extension

4 : Tax

6 ANALYSE


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EXISTING PROCESS MAP

6

Receipt of

Order

Send for

vetting by PCReceipt

from PC

Generation

of Enquiry in

SAP

Generation of

Quote in SAP

Submission of

Quote to Customer

Intimate to

customer

Creation of

Sale Order

Preparation

of Quote

Contract

Review

DecisionforAcceptance

PricingDecision

Management

Approval

Yes

No

Offering to

the customer

Valuation Type

by PC

MRP run &

Production

Generation

of OBD

Inspect

ion

Receipt of Enquiry

Dispatch of Items

ANALYSE


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6 ANALYSE

CAUSE AND EFFECT DIAGRAM

More Nos. ofAmendments

Commercial terms Method

PersonData Base

DrawingTitleC1

Data Base withthe customerC4

SAPdescription C2

C9

Duties and

TaxesC8

Terms of price

C7

Wrong Part No.C5

EntryPermit

C6Skill andExperience

CQAE/SQAE

Inspectors

CustomerProcess

DDextension

C3

C11Generation of

Enquiry & Quotation

C10

C12


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6 ANALYSE

Order processing

CONSTANTS

E X P E R I M E N T A L F A C T O R S

( N I L )

NOISE FACTORS (NIL)

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12

RESPONSE

More no. of Amendments

D r a w

i n g

t i t l e

W r o n g

P a r

t N o .

S A P D e s c r

i p t i o n

C Q A E / S Q A E i n s p e c

t o r

D a t a

B a s e w i

t h t h e c u s t o m e r

S k i l l a n

d E x p e r

i e n c e

T e r m s o f p r i c e

D u

t i e s a n

d T a x e s

D D e x

t e n s i o n

CNX Diagram for Amendments

E n t r y

P e r m

i t

G e n e r a t

i o n o

f E n q u

i r y /

Q u o t a t

i o n

C u s t o m e r p r o c e s s


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6 IMPROVE

C FACTORS ARE ADDRESSED AS FOLLOWS

C- FACTORS EARLIER PROCESS IMPROVED PROCESS

C1:Drawing Title

C2: SAP Description

C3: Data Base withCustomer

C4: Wrong part no.

Drawing Title and Method of designation do not match withSAP description

While Generating Quotations ,Description comes from SAPMaster data

Customer uses his own data

Base for Part No. anddescription

Due to wrong part no. availablewith customer or Typographi-cal error, customer gives wrong

part no. in the order

SAP description has beencorrected/Updated for PP/MP of deliverable items

SAP description and DrawingDescription match

Customer are communicated to

issue order exactly as per quotation

Requested to follow exactly as perquotation submitted


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6 IMPROVE



C5: CQAE/SQAEinspector

C6: Skill andExperience

C7: Terms of Price

C8: Duties and taxes

CQAL/SQAL Inspector inspectsthe items as per Drawing / Contract / Offering Letter

Skill and Experience of Purchaseoffices and sales officers playvital role in determiningcorrectness of Contract/ SupplyOrder

Many Customers place the order

without negotiating the Terms of price.

Many Customers place the orderwithout indicating correct Dutiesand Taxes. Excise , CST & VAT

No change

No changes

Customer are communicated to

issue order exactly as perquotation

Customer are communicated toissue order exactly as perquotation


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6 IMPROVE



C9: DD Extension

C10:Entry Permit/EndUse.

C11: Generation of Enquiry and Quote

C12:Customer Process

Delivery Date is indicated as perthe quotation. Due to someunavoidable reasons DD slip.

Sometimes customer does notindicate End use and does notprovide us Entry Permit. Octroiand Road Permit etc.

Partially done in SAP because of

many other reasons.

Customer process data in theirown method

Strict monitoring is done for ontime delivery of items.

Customer is requested to provideEnd Use and Entry Permit alongwith the order.

Enquiry and Quote are generatedthrough SAP. This makes surecorrectness of part No. anddescription

No control over customer process.


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6

SLNO PARAMETER EXISTING IMPROVEMENT

1 Description of Items Taken from Earlier quoteor SAP master data base

Master data base iscreated andmaintained the samein SAP

2 Generation of

Enquiry and Quote

Done manually with little

help from SAP

Enquiry and Quote

and generatedthrough SAP

3 Correctness of Description

Mis-match of SAPdescription and DrawingDescription

SAP Description andDrawing descriptionboth match.

4 Correctness of PartNumber Mistakes are croppingdue to manual typing Done through SAPwhere is validation isinbuilt in the system

IMPROVEMENT AFTER COMPLETION OF PROJECT

IMPROVE


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6 IMPROVE

SLNO

PARAMETER EXISTING IMPROVEMENT

5 DD Extension DD is not correctlyindicated in thePurchase Order

Realistic Delivery time isindicated in the quote . Atthe same time we alsomonitor strictly

6 Duties and taxes Some time duty and

taxes are notindicated properlyand later customergive End Use.

Order type is finalized in

the beginning to avoid anyavoid any custom, Excise,CST and VAT

7 Terms of price The customeralways wants FOR destination . We

always want FOR Bangalore .

This confusion is removedby bearing Freight andinsurance by BEL.

8 Entry Permit Normally customerdoes not provideEntry permit alongwith the order

Depending on consignee,Customer are requested toprovide Entry permit alongwith the order.

IMPROVEMENT AFTER COMPLETION OF PROJECT


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6 IMPROVE

DATA BASE MAINTAINED


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6 IMPROVE

Customer Communication


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6 IMPROVE

Customer Communication


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6 IMPROVE

SAP MASTER DATA BASE CORRECTED


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6 IMPROVE

SAP MASTER DATA BASE CORRECTED

6


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Data Base has been corrected for ever. Changes are

updated as and when communication is received from D&E

Quotations are generated by the well trained professional

Customer communications to generate the order exactly asper the quote submitted.

Method is channelized

6 CONTROL

IMPLEMENTATION AND CONTROL

6


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On an average 26 hours per operator per month saved

Time saving in generation of quotation from on an average 30

days to 13 days. (Additional benefits)

System is channelized

Customer satisfaction improvedQuotation generation becomes easy and fool proof

Less paper work and better utilization of time and resource

6

BENEFITS OF THE IMPROVED SYSTEM

CONTROL

6


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Saving

26 hours per operator per monthsRs.800 per hourFor 3 projects (at least)For 2 operators (at least)Total saving = 26x12x800x3= Rs.7,48,800

CONTROL

6


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Six Sigma in Marketing-SS

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