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Lean Six Sigma in Leisure Goods Industry

As per the industry classification benchmark, this industry sector includes the following subsectors –

Consumer Electronics – Manufacturers and distributors of consumer electronics, such as TVs, VCRs, DVD players, audio equipment, cable boxes, calculators and camcorders.

Recreational Products – Manufacturers and distributors of recreational equipment. Includes musical instruments, photographic equipment and supplies, RVs, ATVs and marine recreational vehicles such as yachts, dinghies and speedboats. Toys – Manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Applications in Electronics Industry

Source –

If you thought Six Sigma was an IT buzzword, then there’s something amiss. Because a consumer electronics giant in India has got on to the quality initiative and look what it has achieved.

LG Electronics India has 60 six sigma projects running in the areas of production, purchase and HR. Some of the achievements are: The communication cost control project slashed the phone bills for the land line from Rs 13 lakh per month to Rs 5.5 lakh per month.

This was three months after the project was initiated.

Similarly, power and diesel bills which were amounting to about Rs 42 lakh per month now stand at Rs 31 lakh per month.

According to Mr Yasho V. Varma, Vice-President, HR and MS, LG Electronics India Ltd., “All the initiatives are business results-oriented. We’re probably the only consumer durable company in India to do so.

Mr Varma told Business Line that by next year, these processes should earn his company 100 green belts and about 20 black belts. “We want every department head to be a black belt.

The 910-employee company has gone online in all its processes.

E-training programmes for employees, dealers and vendors have already been initiated taking them closer to the target of 80 per cent localisation by this year-end. Even payments for vendors are made online, Mr Varma said.

Apart from the six sigma, the company also has a tear- down reengineering policy (TDRs) involving every employee.

TDRs are small projects that aim to improve productivity and save costs. One such project has helped increase production of CTVs from 800 per day to 2,000 per day.

  • Case Study Description
    • In a large fitness equipment manufacturing unit, it was found that customer seek assistance regarding online products, sales and services of the fitness equipments. Agents provide assistance with correct resolutions. If the issue is out of support boundary, issue is escalated or redirected to the appropriate department. Customer satisfaction levels were not at a level that inspired repeat or referral sales. A Six Sigma project resulted in improvement of customer satisfaction levels from 85% to 92% within a three month time frame. This helped in retaining key customers and increased referral business for the company.
    • In a DVD manufacturing unit, visual defects led to significantly high rejections. A Lean Six Sigma project was identified to improve the Net Yield of DVDRW as per targets defined in the balanced scorecard.

    The process includes injection moulding followed by Sputtering, Bonding, Initializing, and QC. The following root causes were found for visual defects – bonding stage releasing point, presence / absence of stacking holder, teaching of bonding arm, cycle time mismatch in bonding section, layer thickness in sputter chamber, loader tape change frequency.

    Experiments were carried out to find the best combination of inputs and the final design led to big reduction in downgrading from line 1. The learning was replicated in two more production lines resulting in good financial benefits.

Feedback from participants

Six Sigma is amazing technique which changes the approach of a human being to look at a situation. Radical change in thinking for breakthrough improvements.

-Sachin Anaspure, Videocon International Ltd.

Excellent Trainer with excellent communication skills.
-Sumit Chadha, Assistant Manager, LG India.

I liked the case studies (Real time) which enable us to use almost all tools as a revision and make sure we infer from them the right conclusion. This course though is being conducted in 6 days but it is extensively enriched with the most useful content and examples. I will say this is “applied Six Sigma “not only theoretical knowledge.
-Jagdeep Singh Tuli, Deputy Manager, Phillips.

Worth to attend, strong foundation to get long term benefits.
-Anuj Verma, Deputy Manager, Moserbaer.

The training is an eye opener for me and also a turning point as far as management course is concerned. Six Sigma is an excellent tool that every organisation should adopt to improve their performance.
-Anselem Offor, Panabiz International Limited.