WASET
	%0 Journal Article
	%A S. Homrossukon and  A. Anurathapunt
	%D 2011
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 56, 2011
	%T Six Sigma Solutions and its Benefit-Cost Ratio for Quality Improvement
	%U https://publications.waset.org/pdf/5755
	%V 56
	%X This is an application research presenting the
improvement of production quality using the six sigma solutions and
the analyses of benefit-cost ratio. The case of interest is the
production of tile-concrete. Such production has faced with the
problem of high nonconforming products from an inappropriate
surface coating and had low process capability based on the strength
property of tile. Surface coating and tile strength are the most critical
to quality of this product. The improvements followed five stages of
six sigma solutions. After the improvement, the production yield was
improved to 80% as target required and the defective products from
coating process was remarkably reduced from 29.40% to 4.09%. The
process capability based on the strength quality was increased from
0.87 to 1.08 as customer oriented. The improvement was able to save
the materials loss for 3.24 millions baht or 0.11 million dollars. The
benefits from the improvement were analyzed from (1) the reduction
of the numbers of non conforming tile using its factory price for
surface coating improvement and (2) the materials saved from the
increment of process capability. The benefit-cost ratio of overall
improvement was high as 7.03. It was non valuable investment in
define, measure, analyses and the initial of improve stages after that
it kept increasing. This was due to there were no benefits in define,
measure, and analyze stages of six sigma since these three stages
mainly determine the cause of problem and its effects rather than
improve the process. The benefit-cost ratio starts existing in the
improve stage and go on. Within each stage, the individual benefitcost
ratio was much higher than the accumulative one as there was an
accumulation of cost since the first stage of six sigma. The
consideration of the benefit-cost ratio during the improvement
project helps make decisions for cost saving of similar activities
during the improvement and for new project. In conclusion, the
determination of benefit-cost ratio behavior through out six sigma
implementation period provides the useful data for managing quality
improvement for the optimal effectiveness. This is the additional
outcome from the regular proceeding of six sigma.
	%P 997 - 1005