Is Ssgc Implementing Six Sigma Or Not

Published Date: 02 Nov 2017

INTRODUCTION

From the past two decades Six Sigma business strategy has become the most acceptable quality improvement methodology used by various organizations. Six Sigma is a fact based, data driven philosophy of quality improvement that gives importance to prevention of defects over detection. It helps organizations in achieving customer satisfaction and give improve bottom-line results by reducing variation, miscalculation or waste, therefore implementation of six sigma support competitive advantage of a company.

Six Sigma was initially developed by Motorola in the 1980’s. It was a project to reduce defects in production process. After the success of sig sigma in Motorola, the methodology become popular in the industry and implemented by many other companies like General electric’s, Honda and ford and enjoyed profitable results.

The base of the Six Sigma is statistics. The term sigma stands for deviation from a mean of a data set by which we can calculate the variation whereas "Six Sigma" stands for six standard deviations from the mean. After implementation when a process achieve the Six Sigma level, it entails that the process is running close to the perfection and only making defects of 3.4 per million units, hence by using this statistical tool companies are able to minimize the amount of variation by recognizing and elimination problems that result in variations in the process and enhance the output quality and at the same time save money as a bottom-line results.

The reason for keeping Six Sigma as bases for our thesis is the current struggle of every industry toward quality. These days in every industry quality management is considered imperative in achieving competitive advantage. Because of the growing competition each and every organizations are experiencing pressure to improve quality while decreasing cost and increase production volumes with limited resources.

Traditionally the quality initiatives like Statistical Quality control (SQC), zero defects and total quality management were used for many years while Six Sigma is the most recent quality improvement initiatives that are accepted by the industries across the globe. The reason of its popularity is implementation of Six Sigma brings more constructive results to organizations as compared to all traditional quality improvement tools.

Our research aim to apply the principle Six Sigma methodology known as DMAIC (Define, Measure, Analyze, Improve, Control) to the Sui Southern Gas Company Ltd (SSGC), as it is facing several issues these days our research will help to identify how implementation of Six Sigma is beneficial or will benefit the performance of SSGC. How SSGC can bring perfection to its process by reducing fat, increase quality of its service and reduce defects.

THE PROBLEM STATEMENT

The topic of our research is "Implementation of Six Sigma in SSGC". The problem statement derived from the topic is:

"Is SSGC implementing Six Sigma or not?"

RESEARCH QUESTIONS

What are the potential benefits of implementing Six Sigma in SSGC?

What are the tools and techniques of Six Sigma prevailing in SSGC, if being implemented?

How can Six Sigma be implemented in SSGC?

What factors should be considered while implementing Six Sigma in SSGC?

What is achievable with Six Sigma?

OBJECTIVE OF THE STUDY/PURPOSE OF THE STUDY

To find out if SSGC is implementing Six Sigma or not?

To find out tools and techniques of Six Sigma prevailing in SSGC, if being implemented?

How to make Six Sigma implement in SSGC if not been implemented?

To identify the critical factors which contribute to the successful implementation of Six Sigma implementation in SSGC?

JUSTIFICATION:

With a relatively long history in the manufacturing industry, Six Sigma is gradually gaining attention in every sector in recent years.

Six Sigma helps to reduce waste and increase customer satisfaction by focusing on results that can be measured.

It is evident that the companies that are following Six Sigma are disciplined and are pioneers of quality initiatives.

We have selected SSGC because it is a semi government company and mostly government companies do not implement Six Sigma.

LIMITATION

Our research is limited to SSGC Karachi as collecting data from interior Sindh and Balochistan is impossible due to time limitation.

We will conduct our research mainly through primary data like questionnaires that’s why we have limit our study mainly to primary data.

SCOPE

Six Sigma is a new addition to the menu of powerful concepts which has gained significant attention through its dramatic results.

This research mainly deals with the emerging importance of Six Sigma in every sector which can be used to reduce defects and improve customer satisfaction.

Our study includes finding out implementation of Six Sigma in SSGC.

ASSUMPTIONS

The previous researches conducted by different authors will be easily available and very much relevant to our study.

Findings of our research can be applicable in SSGC as well.

All economic and political indicators will remain stable during our research.

KEY DEFINITIONS

Sigma (ó): A symbol that comes from the Greek Alphabet and it is known as a standard deviation in statistic.

Six (6): Refers to the number of standard deviations from the target value to the specification limits, at each side of the normal distribution curve of a process, producing almost no products out of specification limits.

Six Sigma: A quality improvement philosophy that incorporates management strategies and statistical techniques in a well structured and disciplined fashion to optimize business activities.

SSGC: Sui Southern Gas Company limited is Pakistan's leading integrated gas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems.