Project Report On HR Process

REDUCTION IN SECONDS GENERATION
AT COLD ROLLED STEEL PROCESSING

PLANT, TSPDL RANJANGAON
USING SIX SIGMA METHODOLOGY
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CHAPTER 1: INTRODUCTION
1.1 THE CONCEPT OF STEEL SERVICE CENTRE
Steel Service Centre industry has been in existence in different parts of the world for more
than a century. Traditionally, Steel Mills used to produce in high volumes, in mill lot
quantities (in their standard sizes) and deliver to their customers either directly or through
their stockyards. Smaller Customers used to get the products from the steel mill channel
partners like authorized distributors, stockist, dealers or even independent group of traders.
Steel Service Centres (SSC) emerged to bridge the service gap between steel mills and end
customers, providing processing, inventory management and distribution services. However,
the presence of Steel Service Centres in the steel supply chain in India started only in the late
nineties. Before the advent of SSCs, large steel customers invested in non-core activities like
material handling, processing and inventory holding to ensure that the right steel was
available in the required sizes and quantities when they needed it. Smaller customers with
lesser resources had no option but to hold high inventories as per the mills' minimum order
lots. For processing, they used to depend on local unorganized 'cutters' who were indifferent
to customer service, quality, operational or business excellence and ethical practices. Steel
Mills also did not invest in downstream processing activities (like SSCs). In short, mills
produced volumes without catering to what customers actually wanted leading to gaps in
supply chain. A steel service centre acts as an intermediary between the steel mills and the
end users providing processing, inventory management and distribution services, thus,
making it the most vital link in the steel supply chain. It supplies steel in the right quantity,
right time and right form often processing and adding value to the material.
A steel service centre (SSC) procures steel in large volumes from steel producing mills, holds
the material as inventory and either processes it to supply it the the customer’s desired form
or simply trades it in smaller units to the customers. SSCs usually offer varying degree of
material pre processing techniques which involve slitting, shearing, cut to length, roll
forming, burn to shape, forming bending etc thus greatly reducing end users time by making
the steel readily usable by the end user. The type, quantity and the sophistication of the pre
processing techniques depends on the steel service centre’s products and customer mix.
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STEEL STEEL STEEL
MILLS SERVICE CUSTOME
CENTRE RS
Figure 1.1: Steel Service Centre
1.2 TSPDL – ORGANISATIONAL DESCRIPTION
Tata Steel Processing & Distribution Limited (TSPDL) is a 100 % subsidiary of Tata Steel
Limited. It was incorporated as a Limited Company in 1997, and began its operations in the
same year. At its inception in 1997, it was a 50:50 Joint Venture between Tata Steel, India &
Ryerson Tull of USA and was known as Tata Ryerson. It became a wholly owned subsidiary
of Tata Steel on 18th January, 2010 and hence it was given the name Tata Steel Processing
and Distribution Limited.
TSPDL has 14 distribution locations across India with manufacturing units at Jamshedpur,
Pantnagar (Uttrakhand), Pune, Faridabad & Tada.
1.3 PROCESSES, PRODUCTS AND MARKET OF TSPDL
TSPDL deals with the following processes of cold rolled and hot rolled steel:
o Slitting (at Pune, Pantnagar, Jamshedpur & Faridabad)

o Cut to Length (at Pune, Pantnagar, Jamshedpur & Faridabad)
o Pickling & Oiling (at Pune & Jamshedpur)
o Rebar cut and bend (at Faridabad)
o Corrugation (at Jamshedpur)
o Burn to Shape (at Tada)
Thus, the products of TSPDL are CR/HR slit coils and sheets, GC sheets, BTS components,
CRF components, GC sheets & Cut and Bend Rebar.
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TSPDL has two main business segments, namely, Tolling & Distribution. In Tolling, TSPDL
offers service of their processes such as slitting cut to length etc. i.e, the raw material (steel
coils) is owned by the customer. Customers send the raw material to TSPDL to process it to
their desired form and then TSPDL sends the custom processed steel back to the customer.
Whereas, in Distribution business TSPDL buys steel from steel mills and processes it as per
customer orders and then supplies its products to the customers.
TSPDL handles a total volume of approx. 1.3 million tons of steel in which 79% comes from
Tolling and 21% comes from Distribution business. Tolling generates a total revenue of 8%
while Distribution generates a revenue of 92%.
TSPDL supplies steel to Auto OEMs (Ex: Tata Motors, Toyota, Maruti, Honda, VE
Commercial), Auto Ancillaries (Ex: Caparo, Wheels India, Kalyani Lemmerz, etc. which
include Tier 1 and Tier 2 suppliers to Auto OEMs), White Goods industry (Ex: Whirlpool,
Godrej), General Engineering industry (Ex: Electrical Panel manufacturers, DG Set canopy
manufacturers), & Yellow goods industry (Ex: Caterpillar).
1.4 TSDPL – FINANCIAL HIGHLIGHTS
TSPDL has recorded revenue of Rs 1800 Crores with PAT of 62.54 Crores in FY 13. TSPDL
is India’s largest steel service centre in terms of processing volume and revenue.
1.5 TSDPL – CORE COMPETENCY
TSPDL’s core competency lies in:
o Manging the steel supply chain for customer

o Delivering high quality, custom processed steel in large and small lots.
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1.6 TSPDL – VISION, MISSION & CORE VALUES
Vision
“Our vision is to be a benchmark in the Steel Service Center Industry for Service
Excellence.”
Mission
“To be the trusted and irreplaceable bridge between steel customers and suppliers.”
Core values
 Credibility
 Customer focus
 Continuous Improvement
 Agility
 Teamwork
1.7 TSPDL PUNE BUSINESS UNIT
TSPDL, Pune is a separate SBU of TSPDL. Top line for its P&L statement is represented by
revenue and Bottom-line, not by PAT, but by EBIDTA. PAT is calculated for TSPDL as a
whole. Sales Volume (both in Tolling & Distribution) is measured in Metric Ton (MT) of
Steel.
TSPDL Pune, as an entity, comprises of a Sales office in Pune city, from where Sales officers
develop customers for Distribution Sales & Tolling. They collect orders which are executed
by manufacturing facility at Ranjangaon, which is located at about 60 km from Pune, on Pune
Nagar state highway.
Revenue breakup for TSPDL, Pune SBU
Base year : FY 11 (April 10 - March 11)
Total Revenue (Cr. Rs) Share of Distribution Segment Share of Toll Processing Segment
124.82 85% 15%
Table 1.1 Revenue Breakup for TSPDL, Pune
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Sell of Products
Product Sold in FY13 ( April’12 to March’13)
HR Slit, HR Slit, P&O,

CR Slits CR Sheets Grand Total
P&O, Coils CTL Sheets
MT 454 14969 1204 6541 23168
% Share 2 65 5 28 100
Table 1.2 Sell of products
1.8 TSPDL RANJANGAON PROCESSING FACILITIES
TSPDL Pune has two processing facilities at Ranjangaon.
1. HR steel processing facility:

o HR Slitting line
o Pickling & Oiling line
o HR Narrow Cut to length line
2. CR steel processing facility

o CR Slitting line
o CR Narrow cut to length line
o CR Wider cut to length line
Note: The scope of this project includes only the CR steel processing facility of TSPDL
Ranjangaon.
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CHAPTER 2: OVERVIEW OF OPERATIONS OF CR PLANT, TSPDL
RANJANGAON
2.1 INTRODUCTION
As discussed in the previous section, CR Plant Ranjangaon deals with the slitting and cut to
length operations of cold rolled steel coils. A very brief description of these is given in the
following section.
2.2 SLITTING OPERATION
In slitting operation the coil is cut along the width with the help of rotary cutters which are
setup in an arbour head. In this process both input and output is in coil form. The arbour head
is the heart of the slitting line where different combinations of output widths are setup with
the help of metal spacers, stripper rings cutters and shims. Once the coil is slit in to desired
width as per the customer order it is sent for cut to length operation where it is converted in to
sheet form, as it is sheared in to desired length. If the customer order is in coil form the
material after slitting is parted in required quantity and then packed and dispatched directly.
Figure 2.1 Slitting Operation
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2.3 CUT TO LENGTH OPERATION
After obtaining desired width through slitting process the steel coils are sent to cut to length
lines. Sometimes, raw material as received is directly sent to cut to length lines without it
going under slitting process, if its width fulfills customer requirements. As, the name suggests
in cut to length lines the coils are sheared in to blanks of desired length. Sheets are stacked
one over other on wooden pallets in a required quantity. Finally, these packets are packed
and dispatched.
Figure 2.2 Cut to Length Operation
2.4 CR PLANT, TSPDL RANJANGAON FACILITY
CR Plant has following three lines in order to accomplish above operations:
o CR Slitting line
o CR Narrow cut to length line
o CR Wider cut to length line
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2.4.1 CR SLITTING LINE
A schematic diagram of the slitting line is shown below.
Figure 2.3 Schematic Diagram of CRS
The Sequence of operations of CR Slitting line is as follows.
Cut the
Feed RM head end of
coil to tthe coil in Check Set loop and
uncoiler entry shear sample run the line
Guide it Setup arbor After After

through head to ensuring slitting,
pinch roll, required correct starp the
side guide up output width output coils and
to entry width guide take it out
shear the strip up of the
to recoiler recoiler
through with the
deflector roll help of coil
car
Figure 2.4 Sequence of Operations of CRS
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2.4.2 CR WIDER CUT TO LENGTH LINE
A schematic diagram of the wider cut to length line is shown below.
Figure 2.5 Schematic Diagram of CRWCTL
The Sequence of operations of CR Wider cut to length line is as follows.
Feed RM Cut the

or slit coil head end of
to tthe coil in Set Run the Pack the
uncoiler entry shear loop line bundle
Guide it Setup Set Take out

through leveller to desired cut sheet
pinch roll, get desired length bundles
side guide flatness and speed with the
up to help of
entry pallet car
shear
Figure 2.6 Sequence of Operations of CRWCTL
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2.4.3 CR NARROW CUT TO LENGTH LINE
A schematic diagram of the narrow cut to length line is shown below.
Figure 2.7 Schematic Diagram of CRNCTL
The Sequence of operations of CR Narrow cut to length line is as follows.
Feed RM Cut the

or slit coil head end of
to tthe coil in Set Run the Pack the
uncoiler entry shear loop line bundle
Guide it Setup Set Take out

through leveller to desired cut sheet
pinch roll, get desired length in bundles
side guide flatness grip feed through
up to unit conveyor
entry
shear
Figure 2.8 Sequence of Operations of CRNCTL
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2.5 PROCESS FLOW OF CR PLANT, TSPDL RANJANGAON
Raw material (coils)

recieved
Raw material storage
Slitting (CRS)
NOT OK
QA
Decision
OK
WIP storage
Cut to Length (CRWCTL) Cut to length (CRNCTL) Packaging of FG slit coils
OK NOT OK NOT OK OK
QA QA
Decision Decision
Storage of FG coils
Segregation
NOT OK
QA
Decision
Seconds
OK
Packaging of FG sheets
Storage of FG sheets Despatch (FG Slit Tender Seconds

coils and sheets)
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2.6 PROJECT OBJECTIVE
At CR steel processing plant, TSPDL Ranjangaon coils are slit and cut to length as per
customer order at CRS, WCTL and NCTL lines. Sheets or coils which are non conforming to
customer requirements are tendered as seconds material. The average difference in prices of
prime material vs seconds is Rs 16000 per ton. To get higher realization generation of such
process defectives needs to be reduced to increase the prime tonnage.
During the period Jan'13 to Mar'13 the average seconds generation at CR plant was 1.9% of
the total production resulting in total loss of 0.1 crores due to lower N.R..
The objective of the project is to decrease overall seconds generation of CR Plant (CRS,
WCTL and NCTL) to less than 1% by the end of Nov'13.
Expected Savings/Benefits:
(1) Increase in prime yield of CR Plant
(2) Additional N.R. of 0.4 crores per annum.
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CHAPTER 3: THE SIX SIGMA METHODOLOGY
3.1 INTRODUCTION
Six Sigma is a set of techniques, and tools for process improvement. It was developed
by Motorola in 1986. Six Sigma became famous when Jack Welch made it central to his
successful business strategy at General Electric in 1995. Today, it is used in many industrial
sectors.
Six Sigma seeks to improve the quality of process outputs by identifying and removing the
causes of defects (errors) and minimizing variability in manufacturing and business
processes. The term Six Sigma originated from terminology associated with manufacturing,
specifically terms associated with statistical modeling of manufacturing processes. The
maturity of a manufacturing process can be described by a sigma rating indicating its yield or
the percentage of defect-free products it creates. A six sigma process is one in which
99.99966% of the products manufactured are statistically expected to be free of defects (3.4
defective parts/million), although, as discussed below, this defect level corresponds to only a
4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing operations,
and this goal became a by-word for the management and engineering practices used to
achieve it
Six Sigma doctrines assert that:
 Continuous efforts to achieve stable and predictable process results (i.e., reduce
process variation) are of vital importance to business success.
 Manufacturing and business processes have characteristics that can be measured,

analyzed, controlled and improved.
 Achieving sustained quality improvement requires commitment from the entire

organization, particularly from top-level management.
Features that set Six Sigma apart from previous quality improvement initiatives include:
 A clear focus on achieving measurable and quantifiable financial returns from any Six
Sigma project.
 An increased emphasis on strong and passionate management leadership and support.
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 A clear commitment to making decisions on the basis of verifiable data and statistical
methods, rather than assumptions and guesswork.
The term "six sigma" comes from statistics and is used in statistical quality control, which
evaluates process capability. Originally, it referred to the ability of manufacturing processes
to produce a very high proportion of output within specification. Processes that operate with
"six sigma quality" over the short term are assumed to produce long-term defect levels below
3.4 defects per million opportunities (DPMO). Six Sigma's implicit goal is to improve all
processes, but not to the 3.4 DPMO level necessarily. Organizations need to determine an
appropriate sigma level for each of their most important processes and strive to achieve these.
As a result of this goal, it is incumbent on management of the organization to prioritize areas
of improvement.
"Six Sigma" was registered June 11, 1991 as U.S. Service Mark 74,026,418. In 2005
Motorola attributed over US$17 billion in savings to Six Sigma. Other early adopters of Six
Sigma who achieved well-publicized success include Honeywell (previously known
as AlliedSignal) and General Electric, where Jack Welch introduced the method. By the late
1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives
with the aim of reducing costs and improving quality.
In recent years, some practitioners have combined Six Sigma ideas with lean
manufacturing to create a methodology named Lean Six Sigma. The Lean Six Sigma
methodology views lean manufacturing, which addresses process flow and waste issues, and
Six Sigma, with its focus on variation and design, as complementary disciplines aimed at
promoting "business and operational excellence". Companies such as GE, Verizon,
GENPACT, and IBM use Lean Six Sigma to focus transformation efforts not just on
efficiency but also on growth. It serves as a foundation for innovation throughout the
organization, from manufacturing and software development to sales and service delivery
functions.
The International Organisation for Standards (ISO) has published ISO 13053:2011 defining
the six sigma process.
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3.2 METHODOLOGIES
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-
Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC
and DMADV.
 DMAIC is used for projects aimed at improving an existing business process.
 DMADV is used for projects aimed at creating new product or process designs.
3.2.1 DMAIC
The DMAIC project methodology has five phases:
 Define the system, the voice of the customer and their requirements, and the project
goals, specifically.
 Measure key aspects of the current process and collect relevant data.
 Analyze the data to investigate and verify cause-and-effect relationships. Determine

what the relationships are, and attempt to ensure that all factors have been considered.
Seek out root cause of the defect under investigation.
 Improve or optimize the current process based upon data analysis using techniques
such as design of experiments, poka yoke or mistake proofing, and standard work to
create a new, future state process. Set up pilot runs to establish process capability.
 Control the future state process to ensure that any deviations from target are corrected
before they result in defects. Implement control systems such as statistical process
control, production boards, visual workplaces, and continuously monitor the process.
Some organizations add a Recognize step at the beginning, which is to recognize the right
problem to work on, thus yielding an RDMAIC methodology.
3.2.2 DMADV or DFSS
The DMADV project methodology, known as DFSS ("Design For Six Sigma"), features five
phases:
 Define design goals that are consistent with customer demands and the enterprise
strategy.
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 Measure and identify CTQs (characteristics that are Critical To Quality), product
capabilities, production process capability, and risks.
 Analyze to develop and design alternatives
 Design an improved alternative, best suited per analysis in the previous step
 Verify the design, set up pilot runs, implement the production process and hand it over
to the process owner(s).
3.3 QUALITY MANAGEMENT TOOLS AND METHODS USED IN SIX SIGMA
Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many
established quality-management tools that are also used outside Six Sigma. An overview of
the important tools are as follows:
 5 Whys
The 5 Whys is an iterative question-asking technique used to explore the cause-and-

effect relationships underlying a particular problem. The primary goal of the
technique is to determine the root cause of a defect or problem. (The "5" in the name
derives from an empirical observation on the number of iterations typically required
to resolve the problem.)
It is interesting to note that the last answer points to a process. This is one of the
most important aspects in the 5 Why approach - the real root cause should point
toward a process that is not working well or does not exist. Untrained facilitators will
often observe that answers seem to point towards classical answers such as not
enough time, not enough investments, or not enough manpower. These answers may
be true, but they are out of our control. Therefore, instead of asking the
question why? Ask, why did the process fail?
A key phrase to keep in mind in any 5 Why exercise is "people do not fail, processes
do".
 Cause & effects diagram (also known as fishbone or Ishikawa diagram)
Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-

effect diagrams, or Fishikawa) are causal diagrams created by Kaoru
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Ishikawa (1968) that show the causes of a specific event. Common uses of the
Ishikawa diagram are product design and quality defect prevention, to identify
potential factors causing an overall effect. Each cause or reason for imperfection is a
source of variation. Causes are usually grouped into major categories to identify
these sources of variation. The categories typically include:
o People: Anyone involved with the process
o Methods: How the process is performed and the specific requirements for
doing it, such as policies, procedures, rules, regulations and laws
o Machines: Any equipment, computers, tools, etc. required to accomplish the

job
o Materials: Raw materials, parts, pens, paper, etc. used to produce the final
product
o Measurements: Data generated from the process that are used to evaluate its
quality
o Environment: The conditions, such as location, time, temperature, and culture

in which the process operates
 CTQ tree
A CTQ tree (critical-to-quality trees) are the key measurable characteristics of a

product or process whose performance standards or specification limits must be met
in order to satisfy the customer. They align improvement or design efforts with
customer requirements.
CTQs are used to decompose broad customer requirements into more easily
quantified elements. CTQ trees are often used as part of six sigma methodology to
help prioritize such requirements.
CTQs represent the product or service characteristics as defined by the

customer/user. They may include upper and lower specification limits or any other
factors. A CTQ must be an actionable, quantitative business specification.
CTQs reflect the expressed needs of the customer. The CTQ practitioner converts
them to measurable terms using tools such as DFMEA. Services and products are
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typically not monolithic. They must be decomposed into constituent elements (tasks
in the cases of services).
 Histograms
In statistics, a histogram is a graphical representation of the distribution of data. It is

an estimate of the probability distribution of a continuous variable and was first
introduced by Karl Pearson. A histogram is a representation of tabulated frequencies,
shown as adjacent rectangles, erected over discrete intervals (bins), with an area
equal to the frequency of the observations in the interval. The height of a rectangle is
also equal to the frequency density of the interval, i.e., the frequency divided by the
width of the interval. The total area of the histogram is equal to the number of data.
A histogram may also be normalized displaying relative frequencies. It then shows
the proportion of cases that fall into each of several categories, with the total area
equaling 1. The categories are usually specified as consecutive, non-
overlapping intervals of a variable. The categories (intervals) must be adjacent, and
often are chosen to be of the same size. The rectangles of a histogram are drawn so
that they touch each other to indicate that the original variable is continuous.
Histograms are used to plot the density of data, and often for density estimation:
estimating the probability density function of the underlying variable. The total area
of a histogram used for probability density is always normalized to 1. If the length of
the intervals on the x-axis are all 1, then a histogram is identical to a relative
frequency plot.
 SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers)
In process improvement, a SIPOC (sometimes COPIS) is a tool that summarizes the

inputs and outputs of one or more processes in table form. The acronym SIPOC
stands for suppliers, inputs, process, outputs, and customers which form the columns
of the table. It was in use at least as early as the Total Quality Management programs
of the late 1980s and continues to be used today in Six Sigma and Lean
manufacturing.
To emphasize putting the needs of the customer foremost, the tool is sometimes
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called COPIS and the process information is filled in starting with the customer and
working upstream to the supplier.
The SIPOC is often presented at the outset of process improvement efforts such
as Kaizen events or during the "define" phase of the DMAIC process. It has three
typical uses depending on the audience:
o To give people who are unfamiliar with a process a high-level overview
o To reacquaint people whose familiarity with a process has faded or become

out-of-date due to process changes
o To help people in defining a new process
Several aspects of the SIPOC that may not be readily apparent are:
o Suppliers and customers may be internal or external to the organization that

performs the process.
o Inputs and outputs may be materials, services, or information.
o The focus is on capturing the set of inputs and outputs rather than the
individual steps in the process.
 Pareto analysis
Pareto analysis is a formal technique useful where many possible courses of action
are competing for attention. In essence, the problem-solver estimates the benefit
delivered by each action, then selects a number of the most effective actions that
deliver a total benefit reasonably close to the maximal possible one.
Pareto analysis is a creative way of looking at causes of problems because it helps

stimulate thinking and organize thoughts. However, it can be limited by its exclusion
of possibly important problems which may be small initially, but which grow with
time. It should be combined with other analytical tools such as failure mode and
effects analysis and fault tree analysis for example.
This technique helps to identify the top portion of causes that need to be addressed to
resolve the majority of problems. Once the predominant causes are identified, then
tools like the Ishikawa diagram or Fish-bone Analysis can be used to identify the
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root causes of the problems. While it is common to refer to pareto as "80/20" rule,
under the assumption that, in all situations, 20% of causes determine 80% of
problems, this ratio is merely a convenient rule of thumb and is not nor should it be
considered immutable law of nature.
The application of the Pareto analysis in risk management allows management to

focus on those risks that have the most impact on the project.
 Process capability
A process is a unique combination of tools, materials, methods, and people engaged

in producing a measurable output; for example a manufacturing line for machine
parts. All processes have inherent statistical variability which can be evaluated by
statistical methods.
The Process Capability is a measurable property of a process to the specification,

expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance
index (e.g., Ppk or Ppm). The output of this measurement is usually illustrated by
a histogram and calculations that predict how many parts will be produced out of
specification (OOS).
Process capability is also defined as the capability of a process to meet its purpose as
managed by an organization's management and process definition structures ISO
15504.
Two parts of process capability are: 1) Measure the variability of the output of a
process, and 2) Compare that variability with a proposed specification or product
tolerance.
 Project charter
In project management, a project charter, project definition, or project statement is a

statement of the scope, objectives, and participants in a project. It provides a
preliminary delineation of roles and responsibilities, outlines the project objectives,
identifies the main stakeholders, and defines the authority of the project manager. It
serves as a reference of authority for the future of the project. The terms of
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reference is usually part of the project charter.
The project charter is usually a short document that refers to more detailed
documents such as a new offering request or a request for proposal.
In Initiative for Policy Dialogue (IPD), this document is known as the project
charter. In customer relationship management (CRM), it is known as the project
definition report. Both IPD and CRM require this document as part of the project
management process.
The project charter establishes the authority assigned to the project manager,
especially in a matrix management environment. It is considered industry best
practice.
The purpose of the project charter is to document:
o Reasons for undertaking the project
o Objectives and constraints of the project
o Directions concerning the solution
o Identities of the main stakeholders
o In-scope and out-of-scope items
o High level risk management plan
o Communication plan
o Target project benefits
o High level budget and spending authority
The three main uses of the project charter:
o To authorize the project - using a comparable format, projects can be ranked

and authorized by Return on Investment.
o Serves as the primary sales document for the project -

ranking stakeholders have a 1-2 page summary to distribute, present, and
keep handy for fending off other project or operations runs at project
resources.
o Serves as a focal point throughout the project. For example, it is a baseline
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that can be used in team meetings and in change control meetings to assist
with scope management.
 Quality Function Deployment (QFD)
Quality function deployment (QFD) is a “method to transform user demands into

design quality, to deploy the functions forming quality, and to deploy methods for
achieving the design quality into subsystems and component parts, and ultimately to
specific elements of the manufacturing process.”, as described by Dr. Yoji Akao,
who originally developed QFD in Japan in 1966, when the author combined his work
in quality assurance and quality control points with function deployment used
in value engineering.
QFD is designed to help planners focus on characteristics of a new or existing

product or service from the viewpoints of market segments, company, or technology-
development needs. The technique yields charts and matrices.
QFD helps transform customer needs (the voice of the customer [VOC])
into engineering characteristics (and appropriate test methods) for a product or
service, prioritizing each product or service characteristic while simultaneously
setting development targets for product or service.
 Root cause analysis
Root cause analysis (RCA) is a method of problem solving that tries to identify
the root causes of faults or problems.
RCA practice tries to solve problems by attempting to identify and correct the root
causes of events, as opposed to simply addressing their symptoms. Focusing
correction on root causes has the goal of preventing problem recurrence. RCFA (Root
Cause Failure Analysis) recognizes that complete prevention of recurrence by one
corrective action is not always possible.
Conversely, there may be several effective measures (methods) that address the root
causes of a problem. Thus, RCA is an iterative process and a tool of continuous
improvement.
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RCA is typically used as a reactive method of identifying event(s) causes, revealing
problems and solving them. Analysis is done after an event has occurred. Insights in
RCA may make it useful as a preemptive method. In that event, RCA can be used
to forecast or predict probable events even before they occur. While one follows the
other, RCA is a completely separate process to Incident Management.
3.4 STATISTICS ANALYSIS SOFTWARE TOOLS
Following are some of the statistics analysis software tools which are very helpful during
the course of a six sigma project.
o Arena
o ARIS Six Sigma
o Bonita Open Solution BPMN2 standard and KPIs for statistic monitoring
o JMP
o Mathematica
o MATLAB or GNU Octave
o Microsoft Visio
o Minitab
o Origin (software)
o SDI Tools
o SigmaXL
o SPC XL
o STATA
o Statgraphics
o STATISTICA
Note :- In our project we will use Sigma XL for analysis purpose..
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3.5 FEATURES OF SIX SIGMA
Six Sigma has many features that are useful in vital problem-solving processes and to drive
an organisation towards success. Some of the important features are as follows:
o Six Sigma shifts the paradigm quality as the cause of good business performance and
not the effect. Earlier all process and product improvement techniques were aimed at
continuous improvement of quality. Six Sigma propagates that all-round quality
performance is bound to result in the attainment of the desired business excellence in
terms of reduced cost, maximum customer satisfaction and return on investment.
o The philosophy of Six Sigma is to make fewer mistakes in all the organisational
activities and continue to reduce mistakes.
o The Six Sigma is a business strategy to reduce the cost by attaining good quality.
o It is a statistical process control technique aimed at achieving total confidence in the

company’s products and service performances for the customers as well as the
management.
o It is a philosophy of achieving the ultimate goal of “Do it right the first time every
time”.
o Sigma in statistics is used to indicate the standard deviation. A sigma value indicates
the ability of a process to perform defect-free work. The higher the sigma value, the
better the process performance and the lower the probability of defect.
o Six Sigma reduces the defect and variations in the product by improving the process
that produces and delivers the product.
o The Six Sigma is not delegable. The involvement of the top management is a must.
o The Six Sigma principles and philosophy are equally applicable to the manufacturing
and the service industry.
o The Six Sigma is not new. It makes use of the same problem-solving tools in a
structured manner.
o The Six Sigma’s main objectives are reduction of variation, defects, costs and cycle
time, aimed towards maximisation of customer satisfaction.
o The focus of Six Sigma is on the following areas:
25 | P a g e
o Independent variable to the process.
o Root cause of any problem and its elimination or prevention.
o The inputs to the process and not on the output.
o The problem and not on the symptom.
o In controlling the problem or the deviation and not on monitoring.
3.6 ADVANTAGES OF USING SIX SIGMA METHODOLOGY
o Six Sigma introduces rapid and almost radical improvements. Several of the quality
initiatives such as Quality Circles, Kaizens and QFD are necessary for an organisation
but these produce incremental improvements. In today’s fast changing business world,
six sigma is thus required to bring rapid improvements in order to match the pace of
changing technology and customer requirements.
o It transforms the entire organisation. When Six Sigma is implemented, the entire
organisation and all its constituents’ parts is geared for absorbing radical changes. Six
sigma initiative makes the management to take a closer look at the various functions
and departments and the inter relationships between them.
o It provides a consistent metrics. By its very nature, Six sigma provides measures and
targets that are quantifiable. A consistently uniform measurability is one of the
important distinguishing characteristics.
o The customer is always in focus. The benefits of constant measurement are that the
customer is always in focus with their requirements being the standard against which
the measurements are done.
o It is a continuous improvement process. Since sigma is a measurement- based
initiative, the organisation that implements this initiative would have to constantly
keep itself appraised of the customer’s requirements. In short six sigma initiative
never stops.
26 | P a g e
CHAPTER 4: APPLICATION OF SIX SIGMA METHODLOGY TO THE PROJECT
4.1 DEFINE
In the define phase we will chalk out the project charter, summarize threats/opportunities
using threat opportunity matrix and then draw the SIPOC diagram to understand the scope of
the project.
4.1.1 PROJECT CHARTER
REDUCTION IN SECONDS GENERATION AT COLD ROLLED STEEL PROCESSING PLANT,

TSPDL RANJANGAON
Project Name: USING SIX SIGMA METHODOLOGY
Date (Last Revision): 2nd April, 2013
Prepared By: TONMOY PAUL (DEPUTY MANAGER, OPERATIONS)
Approved By: MR SANTOSH SALUNKE (MANAGER, OPERATIONS)
Opportunity Statement (High Level Problem

Business Case: Statement):
At CR steel processing plant, TSPDL Ranjangaon coils are slit and During the period Jan'13 to Mar'13 the average
cut to length as per customer order at CRS, WCTL and NCTL lines. seconds generation at CR plant was 1.9% of the total
Sheets or coils which are non conforming to customer requirements production resulting in total loss of 0.1 crores due to
are tendered as seconds material. The average difference in prices lower N.R..
of prime material vs seconds is Rs 16000 per ton. To get higher
realization generation of such process defectives needs to be
reduced to increase the prime tonnage. Defect Definition: Seconds generation more than 1 % of
production is a defect.
Goal Statement: Project Scope:

To decrease overall seconds generation of CR Plant (CRS, WCTL Process Start Point: Receive raw material
and NCTL) to less than 1% by the end of Nov'13.
Process End Point: Packaging of finished goods.
Expected Savings/Benefits: (1) Increase in prime yield of CR Plant In Scope: CR Plant Operations
(2) Additional N.R. Of 0.4 crores per annum.
Out of Scope: Raw material Defects coming from mill.
Project Plan: Team:

Name: Role: Commitment
Project phase Apr May Jun Jul Aug Sep
(%):
Define Tonmoy Paul Team leader 100
Measure Rohit Awasthi Member 100
Analyse Nilesh khandekar Member 100
Green Bellt
Improve Santosh Salunke 100
(Guide)
Control
Table 4.1 Project Charter
27 | P a g e
4.1.2 THREAT / OPPORTUNITY MATRIX
Threat Opportunity
 Better yield
 High yield losses
 Additional profits in
Short term  Less profit margins in
distribution business
distribution business
 Increased tolling
 Loose orders in tolling
business
Long Term business
 Increased customer
 Decreased
satisfaction
profitability
 Reduced EBITDA  Increased EBITDA
Table 4.2 Threat / Opportunity Matrix
4.1.3 SIPOC DIAGRAM
Table 4.3 Threat / Opportunity Matrix
28 | P a g e
4.2 MEASURE
In the measure phase we will first make the data measurement plan, and collect data for three
months April’13 to June ’13. After this, we will calculate line wise second’s generation
during this period. Then we will take sample data and find out the process sigma level for
each line (CRS, WCTL & NCTL).
4.2.1 DATA MEASUREMENT PLAN
Table 4.4 Data Measurement Plan
4.2.2 LINE-WISE SECONDS GENERATION
Data was collected as per data measurement plan during the period of April ’13 to June ’13
for all lines (See Exhibit 1 for reference). Percentage of seconds generation was as follows
Total seconds generated in mt Total production in mt % of

(April '13 to June '13) (April '13 to June '13) seconds
CRS 222.7 11264 1.98%

WCTL 66.99 5596 1.20%
NCTL 16.56 1204 1.38%
Overall 306.25 18064 1.70%
Table 4.5 Line-Wise Seconds Generation
29 | P a g e
4.2.3 PROCESS SIGMA LEVEL CALCULATION
In order to calculate process sigma level for each line, we have taken sample data between
2nd April ’13 to 15th April ’13 (See Exhibit 2, 3, & 4) for reference. We will follow the
following steps to calculate process sigma level for individual lines.
Box plot
• In order to remove outliers (i.e, special cases)
Runchart
• For checking stability of the process
Histogram
• For normality test of the collected data
Process Sigma level
• To know the performance of the process

Table 4.6 Steps to calculate Process Sigma Level
4.2.3.1 PROCESS SIGMA LEVEL CALCULATION FOR CRS
Box Plot
The dotted line shows the mean of the process. We observe that there are no outliers.
-1 % seconds
Figure 4.1 Boxplot: CRS seconds generation
30 | P a g e
Runchart
CRS % Seconds Generation
12.00
Run Chart: % seconds
10.00
8.00
6.00 Mean: 4.28
4.00
2.00
0.00
Figure 4.2 Runchart : CRS seconds generation
Nonparametric Runs Test: % seconds
Number of Runs about Median: 21

Expected Number of Runs about Median: 25.490
Number of Points above Median: 24
Number of Points equal to or below
Median: 25
P-Value for Clustering: 0.0973
P-Value for Mixtures: 0.9027
P-Value for Lack of Randomness (2-Sided): 0.1947
Number of Runs Up or Down: 29

Expected Number of Runs Up or Down: 32.333
P-Value for Trends: 0.1249
P-Value for Oscillation: 0.8751
We observe that all the p-values are >0.05. hence, the process is stable.
31 | P a g e
Histogram
14
12
10
0
0.0
1.2
2.4
3.7
4.9
6.1
7.3
8.6
9.8
11.0
12.2
% seconds
Figure 4.3 Histogram : CRS seconds generation
Count = 49
Mean = 4.279
Stdev = 3.498
Range = 12.22
Minimum = 0
25th Percentile (Q1) = 1.203
50th Percentile (Median) = 3.874
Maximum = 12.22023
95% CI Mean = 3.27 to 5.28

95% CI Sigma = 2.92 to 4.37
Anderson-Darling Normality Test:

A-Squared = 0.931639; p-value = 0.0167
At the first instance we observe that p value is less than 0.05. Hence, the data fails the
normality test. We need to transform the non – normal data to normal data using Box – Cox
transformation and then re-plot the histogram.
32 | P a g e
10
0
0.6
1.9
3.2
4.5
5.8
7.1
8.4
9.7
10.9
12.2
% seconds
Figure 4.4 Revised Histogram : CRS seconds generation
Count = 41
Mean = 5.113
Stdev = 3.211
Range = 11.59
Minimum = 0.625261
Maximum = 12.22023
95% CI Mean = 4.10 to 6.13

95% CI Sigma = 2.64 to 4.11

A-Squared = 0.583842; p-value = 0.1202
Since, p-value is now greater than 0.05 the data passes normality test.
33 | P a g e
Process Sigma level
Now, we will use the standard deviation value and the mean to calculate process sigma level.
The upper specification limit (USL) will be 1 as our aim is to limit the seconds generation to
less than 1%. The lower specification limit (LSL) will be zero.
Figure 4.5 Process Sigma level : CRS seconds generation
The Sigma level is as low as -0.201, which indicates that there is huge scope for
improvement in the process.
4.2.3.2 PROCESS SIGMA LEVEL CALCULATION FOR NCTL
Box Plot
We observe that there is one outlier in the following box plot. So, we need to eliminate that
data and re-plot the box plot.
34 | P a g e
3.5
1.5
-0.5 % seconds
Figure 4.6 Box Plot : NCTL seconds generation
After removing the outlier, the revised box plot is as follows:
2.5
1.5
0.5
-0.5 % seconds
Figure 4.7 Revised Box Plot : NCTL seconds generation
Runchart
NCTL % Seconds Generation
2.50
2.00
1.50 Mean: 1.22
1.00
0.50
0.00
Figure 4.8 Runchart : NCTL seconds generation
35 | P a g e

Median: 20

We observe that all the p-values are >0.05. Hence, the process is stable.
Histogram
0
0.00
0.32
0.63
0.95
1.26
1.58
1.89
2.21
2.53
2.84
% seconds
Figure 4.9 Histogram : NCTL seconds generation
Count = 39
Mean = 1.224
Stdev = 0.812777
Range = 2.84
36 | P a g e
Minimum = 0
Maximum = 2.839654
95% CI Mean = 0.96 to 1.49

95% CI Sigma = 0.66 to 1.05

A-Squared = 0.627234; p-value = 0.0950
Process Sigma level
As above, we will use the standard deviation value and the mean to calculate process sigma
level. The upper specification limit (USL) will be 1 as our aim is to limit the seconds
generation to less than 1%. The lower specification limit (LSL) will be zero.
Figure 4.10 Process Sigma Level : NCTL seconds generation
Again, we see that the Sigma level is low 1.047, which indicates that there is scope for
37 | P a g e
4.2.3.3 PROCESS SIGMA LEVEL CALCULATION FOR WCTL
Box Plot
10
0 % seconds
Figure 4.11 Box Plot : WCTL seconds generation
We observe that there is one outlier in the following box plot. So, we need to eliminate those
data and re-plot the box plot.
3.5
3
2.5
2
1.5
1
0.5 % seconds
Figure 4.12 Revised Box Plot : WCTL seconds generation
Run chart
WCTL % Seconds Generation
3.154
Run Chart: %
2.654
seconds
2.154
Mean: 1.59
1.654
1.154
0.654
Figure 4.13 Run chart: WCTL seconds generation
38 | P a g e

Expected Number of Runs about Median: 22
Median: 21

We observe that all the p-values are >0.05. Hence, the process is stable.
Histogram
12
10
0
0.65
0.97
1.28
1.59
1.90
2.21
2.52
2.83
3.14
3.46
% seconds
Figure 4.14 Histogram: WCTL seconds generation
Count = 42
Mean = 1.592
Stdev = 0.734142
Range = 2.80
39 | P a g e
Minimum = 0.654167
Maximum = 3.453055
95% CI Mean = 1.36 to 1.82

95% CI Sigma = 0.60 to 0.94

A-Squared = 1.306; p-value = 0.0019
At the first instance we observe that p value is less than 0.05. Hence, the data fails the
normality test. We need to transform the non – normal data to normal data using Box – Cox
transformation and then re-plot the histogram.
0
0.65
1.00
1.35
1.70
2.06
2.41
2.76
3.11
3.46
% seconds
Figure 4.15 Revised Histogram: WCTL seconds generation
Count = 31
Mean = 1.829
Stdev = 0.755969
Range = 2.80
Minimum = 0.654167
Maximum = 3.453055
40 | P a g e
95% CI Mean = 1.55 to 2.11
95% CI Sigma = 0.60 to 1.01

A-Squared = 0.472728; p-value = 0.2268
Process Sigma level
As avove, we will use the standard deviation value and the mean to calculate process sigma
level. The upper specification limit (USL) will be 1 as our aim is to limit the seconds
generation to less than 1%. The lower specification limit (LSL) will be zero.
Figure 4.16 Process Sigma Level: WCTL seconds generation
Here also, we see that the Sigma level is low 0.367, which indicates that there is scope for
41 | P a g e
4.2.3.4 SUMMARY OF PROCESS SIGMA LEVEL
LINE PROCESS SIGMA LEVEL
CRS -0.201
NCTL 1.047
WCTL 0.367
Table 4.7 Summary: Process Sigma Level
4.3 ANALYSE
Now that we have collected data as per data measurement plan and measured the initial
process sigma level of seconds generation for all lines, we will analyse the reasons for
seconds generation line-wise using Pareto chart. After that we will explore the reasons using
Ishikawa diagram.
(Refer Exhibit 2,3 & 4 for data.)
4.3.1 PARETO ANALYSIS FOR CRS
25 100%
90%
20 80%
70%
15 60%
Count
50%
10 40%
30%
5 20%
10%
0 0%
DENT
RUBBING MARK
CLIP DENT
COIL SLIP
SCRATCH/DENT
SADDLE PATCHES
DENT,EDGE BEND
EDGE DAMAGE
Reason For Second
Figure 4.17 Pareto Chart: CRS
42 | P a g e
4.3.2 PARETO ANALYSIS FOR CRNCTL
16 100%
14 90%
80%
12
70%
10 60%
Count
8 50%
6 40%
30%
4
20%
2 10%
0 0%
DENT
SCRATCH/DENT
STICKER MARK
EDGE BEND
SHORT WIDTH
EDGE RUSTY
CUTTER MARK
RUSTY PATCHES
Reason For Second
Figure 4.18 Pareto Chart: CRNCTL
4.3.3 PARETO ANALYSIS FOR CRWCTL
14 100%
12 90%
80%
10 70%
8 60%
Count
50%
6 40%
4 30%
20%
2 10%
0 0%
DENT
SADDLE PATHES
SCRATCH/DENT
SHORT WIDTH
EDGE RUSTY
DIAGONAL DIFFERENCE
EDGE DAMAGE
Reason For Second
Figure 4.19 Pareto Chart: CRWCTL
43 | P a g e
4.3.4 SUMMARY OF PARETO ANAYSIS
From the above Pareto charts we conclude that Scratches and Dent contribute to 75% - 80%
of seconds generation at all lines. So, our focus would be to reduce the generation of
scratches and dents. Now, we need to further drill down the reasons of Scratches and Dent
generation with the help of Ishikawa diagram.
4.3.5 CAUSE & EFFECT ANALYSIS
Area of Focus
Figure 4.20 Ishikawa diagram: Dent & Scratch generation
As in operations, we need to improve the method to minimise the generation of dents and
scratches. Thus we will focus on the following causes:
1. Storage of WIP coils on floor

2. Unpacking of RM coils on floor
44 | P a g e
4.4 IMPROVE
4.4.1 Theme: Eliminate storage of WIP coils on floor
Idea: To fabricate saddles in house to store wider WIP coils.
Material Description: MS plate 5 mm thick with wooden blocks as per design.
Design of Saddle:
Frame
215 mm
300 mm
165 mm
Figure 4.21 Saddle frame Design
45 | P a g e
Wooden blocks
130 mm
90 mm
210 mm 160 mm
Figure 4.22 Wooden Blocks Design
Picture of completed saddle:
Figure 4.22 Saddles for WIP storage
46 | P a g e
Before & After Improvement
BEFORE AFTER
WIP coils were kept on floor. Due to WIP coils are now kept on saddles. Impact
impact while keeping the coil on floor, of keeping coils on floor is eliminated and
dents were generated on the wraps. It thus generation of dent on wraps of the coil
penetrated to inner wraps. Thus, increasing is minimised. Thus, the seconds generation
the quantity of rejection of material as is also reduced.
seconds.
Figure 4.23 Eliminated WIP coil storage on floor
4.4.2 Theme: Eliminate unpacking of RM coils on floor
Idea: To provide a saddle over which RM coils are kept while unpacking.
Picture of saddle:
Figure 4.24 Saddle for unpacking RM coil
47 | P a g e
Before & After Improvement
BEFORE AFTER
RM coils were unpacked after keeping the RM coils are now unpacked after keeping
coil on floor. Due to impact while keeping the coil on this saddle. Impact of keeping
the coil on floor, dents were generated on coil on the floor is eliminated and thus
the wraps. It penetrated to inner wraps. generation of dent is minimised. Thus, the
Thus, increasing the quantity of rejection seconds generation is also reduced.
of material as seconds.
Figure 4.25 Eliminated unpacking of RM coil on floor
4.4.3 PROCESS SIGMA LEVEL AFTER IMPROVEMENT
After doing the improvements we need to understand that is there any improvement in the
Process Sigma level or not. For doing this, sample data were collected for all the three lines
in the month of November’13 and then process sigma level was calculated using the same
steps. (Refer Exhibit 6,7 & 8 for data)
48 | P a g e
4.4.3.1 PROCESS SIGMA LEVEL AFTER IMPROVEMENT FOR CRS
Box Plot
4.5
3.5
2.5
1.5
0.5 % seconds
Figure 4.26 Box Plot: CRS Seconds Generation (After Improvement)
We see that there are no outliers. Hence we proceed to Run Chart.
Runchart
CRS % Seconds Generation
4.72
3.72
Mean: 2.42
2.72
1.72
0.72
Figure 4.27 Run Chart: CRS Seconds Generation (After Improvement)

Median: 17
49 | P a g e
P-Value for Lack of Randomness (2-
Sided): 0.4860

Since all the p values are greater than 0.05. Hence the process is stable.
Histogram
0
0.72
1.19
1.65
2.12
2.59
3.05
3.52
3.99
4.45
4.92
% seconds
Figure 4.28 Histogram: CRS Seconds Generation (After Improvement)
Count = 34
Mean = 2.425
Stdev = 1.117
Range = 4.19
Minimum = 0.719520
Maximum = 4.914286
50 | P a g e
95% CI Mean = 2.03 to 2.81
95% CI Sigma = 0.90 to 1.47

A-Squared = 0.577933; p-value = 0.1227
Since, p value is greater than 0.05 hence the data is normal.
Process Sigma Level
Figure 4.29 Process Sigma Level: CRS Seconds Generation (After Improvement)
Process Sigma level is 0.135.
51 | P a g e
4.4.3.2 PROCESS SIGMA LEVEL AFTER IMPROVEMENT FOR NCTL
Box Plot
2.5
1.5
0.5
-0.5 % seconds
Figure 4.30 Box Plot: NCTL Seconds Generation (After Improvement)
There are no outliers, so we proceed to Run Chart.
Run Chart
NCTL % Seconds Generation

2.50
2.00
1.50 Mean: 1.07
1.00
0.50
0.00
Figure 4.31 Run Chart: NCTL Seconds Generation (After Improvement)

Median: 23
52 | P a g e
Sided): 0.6532

All p values are greater than 0.05. Hence the process is stable.
Histogram
9
8
7
6
5
4
3
2
1
0
0.00
0.27
0.54
0.81
1.08
1.35
1.62
1.89
2.16
2.43
2.70
% seconds
Figure 4.32 Histogram: NCTL Seconds Generation (After Improvement)
Count = 45
Mean = 1.073908
Stdev = 0.666434
Range = 2.70
Minimum = 0
Maximum = 2.696078
95% CI Mean = 0.87 to 1.27

95% CI Sigma = 0.55 to 0.84
53 | P a g e
A-Squared = 0.526677; p-value = 0.1699
Since, p value is greater than 0.05. Hence, the data is normal.
Process Sigma Level
Figure 4.33 Process Sigma Level: NCTL Seconds Generation (After Improvement)
We find that NCTL Sigma Level is 1.254 after improvement.
4.4.3.3 PROCESS SIGMA LEVEL AFTER IMPROVEMENT FOR WCTL
Box Plot
2.5
1.5
0.5
-0.5 % seconds
Figure 4.34 Box Plot: WCTL Seconds Generation (After Improvement)
54 | P a g e
There are no outliers. Hence we proceed to next step.
Run Chart
WCTL % Seconds Generation
2.5
2
Mean: 1.44
1.5
1
0.5
0
Figure 4.35 Run Chart: WCTL Seconds Generation (After Improvement)

Median: 17
Sided): 0.2960

Since, all p values are greater than 0.05. Hence the process is stable.
55 | P a g e
Histogram
0
0.00
0.30
0.59
0.89
1.19
1.48
1.78
2.08
2.37
2.67
% seconds
Figure 4.36 Histogram: WCTL Seconds Generation (After Improvement)
Count = 34
Mean = 1.444
Stdev = 0.744718
Range = 2.67
Minimum = 0
Maximum = 2.667683
95% CI Mean = 1.18 to 1.70

95% CI Sigma = 0.60 to 0.98

A-Squared = 0.680993; p-value = 0.0687
56 | P a g e
Since, p value is greater than 0.05. Hence the data is normal.
Process Sigma Level
Figure 4.37 Process Sigma Level: WCTL Seconds Generation (After Improvement)
We find that process sigma level is 0.828.
4.4.4 SUMMARY OF PROCESS SIGMA LEVEL (AFTER IMPROVEMENT)
PROCESS SIGMA LEVEL PROCESS SIGMA LEVEL

LINE
BEFORE IMPROVEMENT AFTER IMPROVEMENT
CRS -0.201 0.135
NCTL 1.047 1.254
WCTL 0.367 0.828
Table 4.8 Summary: Process Sigma Level After Improvement
57 | P a g e
From the above table, it is clearly evident that there has been a considerable amount of
improvement in the process sigma level for seconds generation at all lines.
4.4.5 LINE-WISE SECONDS GENERATION (AFTER IMPROVEMENT)
Total seconds generated in mt Total production in mt % of

(Nov’13) (Nov’13) seconds
CRS 25.50 2833 0.90%

WCTL 18.60 1741 1.07%
NCTL 07.27 0651 1.12%
Overall 51.37 5225 0.98%
Table 4.9 Summary: Process Sigma Level After Improvement
(Refer Exhibit 5 for data)
The above figures in the table 4.9 clearly indicate that the improvement measures taken have
been successful and thus there is drop in the percentage of seconds generation at all lines.
Furthermore, the objective of the project has been met as the overall percentage of seconds
generation in the month of November ’13 stands at 0.98% of production which is lower than
1 %.
4.5 CONTROL
Now, we have reached to the final step of the DMAIC methodology of Six Sigma. It is very
important to sustain whatever improvements have been done. Thus this phase is equally
important to all other steps.
Following steps had been taken in this phase:
o Training imparted to the entire workforce regarding the improvements.

o Crane operators have been given special training on material handling.
58 | P a g e
o Control charts have been put at all three lines for daily monitoring of seconds
generation.
o Leveller cleaning schedule has been prepared and followed.
o Checklists has been given to housekeeping persons and concerned area owners need
to verify that proper housekeeping has been done.
o The wooden blocks of the saddle needs to be checked quarterly for any deterioration.
Procedure for that has been made and displayed.
59 | P a g e
CHAPTER 5: CONCLUSION
The six sigma methodology has proved to be a vital tool in this project. The objective of the
project - to reduce overall seconds generation of CR Plant TSPDL, Ranjangaon to less than
1% by the end of Nov'13 has been successfully met. This will not only generate more revenue
for the company but will also lead to more customer satisfaction in tolling business.
Six Sigma proved to be a very structured approach to problem solving in Operations

Management. During the course of the project I have not only learnt the DMAIC
methodology but have successfully implemented it to my project. The different phases of the
DMAIC methodology are equally important and together they form a powerful tool for
problem solving in operations management. The different quality control tools which I have
learnt like Histogram, Run chart, Pareto Analysis, Ishikawa diagram can be used in my area
of work for better understanding of the operations and improvement.
The completion of this project has boosted my confidence level to take up more six sigma
projects at my area of work in future.
60 | P a g e

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REDUCTION IN SECONDS GENERATION

AT COLD ROLLED STEEL PROCESSING

1.1 THE CONCEPT OF STEEL SERVICE CENTRE

Figure 1.1: Steel Service Centre

1.2 TSPDL – ORGANISATIONAL DESCRIPTION

1.3 PROCESSES, PRODUCTS AND MARKET OF TSPDL

o Slitting (at Pune, Pantnagar, Jamshedpur & Faridabad)

1.4 TSDPL – FINANCIAL HIGHLIGHTS

1.5 TSDPL – CORE COMPETENCY

TSPDL’s core competency lies in:

o Manging the steel supply chain for customer

1.7 TSPDL PUNE BUSINESS UNIT

Revenue breakup for TSPDL, Pune SBU

Base year : FY 11 (April 10 - March 11)

124.82 85% 15%

Table 1.1 Revenue Breakup for TSPDL, Pune

Product Sold in FY13 ( April’12 to March’13)

HR Slit, HR Slit, P&O,

MT 454 14969 1204 6541 23168

Table 1.2 Sell of products

1.8 TSPDL RANJANGAON PROCESSING FACILITIES

TSPDL Pune has two processing facilities at Ranjangaon.

1. HR steel processing facility:

2. CR steel processing facility

2.2 SLITTING OPERATION

Figure 2.1 Slitting Operation

Figure 2.2 Cut to Length Operation

2.4 CR PLANT, TSPDL RANJANGAON FACILITY

CR Plant has following three lines in order to accomplish above operations:

A schematic diagram of the slitting line is shown below.

Figure 2.3 Schematic Diagram of CRS

The Sequence of operations of CR Slitting line is as follows.

Guide it Setup arbor After After

Figure 2.4 Sequence of Operations of CRS

A schematic diagram of the wider cut to length line is shown below.

Figure 2.5 Schematic Diagram of CRWCTL

The Sequence of operations of CR Wider cut to length line is as follows.

Feed RM Cut the

Guide it Setup Set Take out

Figure 2.6 Sequence of Operations of CRWCTL

A schematic diagram of the narrow cut to length line is shown below.

Figure 2.7 Schematic Diagram of CRNCTL

The Sequence of operations of CR Narrow cut to length line is as follows.

Feed RM Cut the

Guide it Setup Set Take out

Figure 2.8 Sequence of Operations of CRNCTL

Raw material (coils)

Raw material storage

Cut to Length (CRWCTL) Cut to length (CRNCTL) Packaging of FG slit coils

Storage of FG sheets Despatch (FG Slit Tender Seconds

(1) Increase in prime yield of CR Plant

(2) Additional N.R. of 0.4 crores per annum.

Six Sigma doctrines assert that:

 Manufacturing and business processes have characteristics that can be measured,

 Achieving sustained quality improvement requires commitment from the entire

 An increased emphasis on strong and passionate management leadership and support.

 DMAIC is used for projects aimed at improving an existing business process.

The DMAIC project methodology has five phases: