Using Six Sigma statistical thinking to improve business processes
A Cummins case study

Page 1: Introduction

It is easy to identify key competitors in a market by their goods or services. These products clearly meet customer needs in terms of the range of benefits they offer. However, an organisation has to develop, manage and integrate many different processes from across its business prior to launching the product into the marketplace. To achieve a competitive advantage it has to manage this process...
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Page 2: Cummins - a global organisation

Operating in B2B markets, Cummins is a leading world-wide designer and manufacturer of high performance diesel engines, electrical power generation systems and related products - including Holset turbochargers, Newage AvK SEG alternators, Fleetguard filtration and emissions solutions. The Cummins UK organisation includes six major manufacturing facilities employing almost 5,000 people and...
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Page 3: Cummins Operating System business model

The focus for any business model is a vision that shows a clear idea of where an organisation is going. The company's vision is 'making people's lives better by unleashing the Power of Cummins'. This vision is then translated into objectives such as: motivating people to act like owners working together exceeding customer expectations by always being first to market with the best...
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Page 4: The role of data

There is a range of data that provides the raw information about business processes. Data, for example, might illustrate how a process is running, include accounting information, technical process data and customer information. This performance data can be entered into spreadsheets, although this data might help to provide a better understanding of the business, it does not always contribute to...
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Page 5: Improvement methodology

Quality is therefore customer driven, with a link between customer expectations and the processes that provide the results that customers require. Cummins has therefore moved from a results orientation to a balanced results and process-driven method of working, focused upon the customer. The starting point for Six Sigma is to understand the critical inputs that determine the quality of...
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Page 6: Conclusion

Six Sigma looks at all work as a series of processes with inherent variations, which can cause waste or inefficiency. Focusing on those processes with greatest impact on business performance, as defined by leadership teams, the methodology involves statistical analysis to quantify repeated common cause variations - which can then be reduced by the Six Sigma team. Six Sigma becomes a continuous...
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