A Production System Analysis to Reduce the Cost of Non- Conformity in a Paper Bag Process using Six Sigma DMAIC Methodology

A systematic way of assessing and analyzing the process helps effectively identify the right problem that leads to establishing appropriate and cost-justified solutions to the root causes of the problem. The current study focuses on a local manufacturing firm that produces different paper bags commonly used for packaging consumer products. Other types of defects occur at each stage of the paper bag production. The study intends to meet the company's allowable rejection rate of 1.00% for the entire production process and reduce the cost of non-conformity. The study applies a Six Sigma DMAIC approach which involves various tools and techniques such as Process Map, Non-conformity Analysis, Pareto Diagram, Fishbone Diagram, 5-Whys Analysis, FMEA, and Cost-Benefit Analysis. Based on the significant findings of the system analysis, the study generates alternative solutions to reduce the rate of defects in the production process. The results show a 27% reduction in defect rate, which may give the company significant annual savings from the cost of non-conformity.