Defect reduction in an electrical parts manufacturer: a case study

Purpose: Defective parts in manufacturing is a serious issue faced by every manufacturer. Even after proper care in design, material selection and manufacturing of product, there exists a defective part. The purpose of this paper is to explore the quality of the manufacturing, and find the use of effective quality tools to reduce the part defect rate in an electrical parts manufacturing unit, thereby, reducing the replaced cost of defective parts. Design/methodology/approach: With the help of quality initiatives, like total quality management (TQM) and Lean Six Sigma (LSS), the firms can produce quality product in each stage of production. The paper focuses on the primary data collected from the XYZ electric manufacturer. Findings: The main finding of this case analysis is that by the effective use of quality tools, the defective part return rate can be reduced, because of which the firm can observe reduction in replaced cost of almost INR24 lakh. In addition, 10A switch part contributes more in replacement cost. Further, it adds to the 35 percent of the overall part rejection. Research limitations/implications: The study is more focused on particular type of switch product and can extend to other types of products. In addition, the analysis reveals the results of only 88 percent of the defective products. Practical implications: The study provides results of the improved quality by effective use of quality tools and discusses the different types of defects in the electrical parts manufacturing. Introducing TQM and LSS to manufacturing can reduce the customer return rate to 1,300 parts per million (PPM) and even to 1,000 PPM in future. Originality/value: The paper discusses the quality issues in the electrical manufacturer. Moreover, the case analysis briefs effective ways to improve the product quality and reduce the rejection rate.