Application Of Lean Six Sigma (Dmaic) To Improve The Production Quality Of Hien Dat Investment Company Limited

Abstract

The thesis studied the case of, a company located in Ho Chi Minh city. Purpose: The paper determines its purpose as a solution that assists Hien Dat Investment Joint Stock Company to maintain its reputation in the competition among several garment companies and address its difficulties when dealing with Nisshin Clothing. CO. LTD, who is Hien Dat loyal customer of 30 years with the application of Lean Six Sigma. Design/methodology/approach: The thesis utilised several Lean Six Sigma tools to support its explanation, namely P control charts, DPMO, Sigma levels, fishbone diagrams, and so on. Findings: After implementing fishbone diagrams and impact-effort mattrix, the root cases were to the issues determined, namely the outdated training materials, alteration in machine due to lack of mainternance, etc., Hien Dat managed to boost its performance and achieved positive outputs, such as the increase of sigma level from 4.2 to 4.6, efficency from 61% to 78% and defect rate has finally reached 3%. Practical Implications: The thesis is conducted to assist Hien Dat Investment Joint Stock Company to tackle its inability to complete Hien Dat Investment Joint Stock Company’s orders. It can be used as a reference to tackle similar issues that other garment companies my encounter and wish to address them using Lean Six Sigma. Originality/value: This thesis serves as a unique work that addresses the problems that Hien Dat Investment Joint Stock Company is currently facing using DMAIC cycle. Furthermore, this paper can also be used for other garment companies that are experiencing the same problems, thus contributes to the development of garment industry in Vietnam.