The Effect Of Applying The Six-Sigma Approach On The Costs Of Activities Of The General Company For Textile And Leather Industries

Abstract

The General Company for Textile and Leather Industries, a subsidiary of the Ministry of Industry and Minerals, plays a prominent role in reviving the national economy given its specific status. However, it is currently suffering from several problems, including the high costs of its activities, and a decrease in the accuracy of its production processes. These issues were reflected in the high percentage of defective production and a decline in the rate of proper production. Accordingly, the method of Six-Sigma came to help analyse production activities through the application of the Define, Measure, Analyse, Improve and Control (DMAIC) approach to identify cost-depleting activities that are not offset by the benefit and to prevent the defective production from the beginning instead of addressing it later and at a level of (3.4) defect per million opportunities.

Employing the abovementioned company as the research sample, several conclusions have been reached, the most important of which is the presence of several sources of waste and loss such as value-adding activities and processes, whichresulted in high costs. This is in addition to the company's failure to use modern cost-effective methods that help in i)continuously improving production processes and its outputs, ii) identifying the root problems of high costs, iii) eliminating sources of waste and loss, and iv) decreasing the quality of its products.