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Lean 6 Sigma

Borusan Lojistik is the first and only logistics company in Turkey to date employing the 6 Sigma methodology.

6 Sigma in the Borusan Group

Embraced and implemented by some of the biggest corporations in the world, 6 Sigma is a highly disciplined business management strategy that seeks to remove the causes of defects and errors in manufacturing and business processes, and to continuously improve productivity, profitability and customer satisfaction.

Borusan Group has been applying 6 Sigma throughout the group companies since the year 2002.

A vital component of Borusan’s strategic management model, 6 Sigma methodology not only boosts financial growth and profitability in Borusan Group companies, it is also the driving force behind a significant cultural transformation.

6 Sigma projects are carried out by trained Green Belts who work part-time on the project, as well as by Borusan employees at every level, under the full-time supervision and guidance of expert Black Belts.

6 Sigma has two key methodologies: DMAIC that is used to improve an existing business process; and DMEDI employed to create new product or process designs.

By year’s end 2006, we have finished 715 projects with the participation of a total of 2043 Borusan employees. Together, these projects have created US$ 66 million worth of value for Borusan.

Lean 6 Sigma at Borusan Lojistik

The mission of Borusan Lojistik Lean 6 Sigma Organization is;

"To propagate a data based philosophy of work across the company, and to create processes that will ensure maximized customer satisfaction and company profitability with minimal use of resources."

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Project teams roles and responsibilities;

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Lean 6 Sigma at Borusan Lojistik by the figures

Number of Black Belts : 7

Number of Expert Green Belt Projects (cumulative) : 67

Number of Black Belt Projects (cumulative) : 82

Number of employees involved in the Lean 6 Sigma Organization : 110


Project Methodologies DMAIC & DMEDI

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Define : Define and/or take advantage of opportunities for development, improve business processes, identify key customer needs, and prepare to be an efficient project team.

Basic Phase Outputs : : BRM, Team Bulletin, Fast Return, Added Value Analysis, Stakeholder Management, Project Bulletin, Project Plan, SIPOC, Process Map

Measure : Identify relevant criteria to assess how well key customer needs are being met, and begin to develop a methodology to efficiently measure process performance. Master the elements of 6 Sigma calculation and define the minimum sigma for the process being analyzed

Basic Phase Outputs : Identification of Input, Process and Output Indicators, CapabilityAnalysis, Control Diagram, Operational Definition and Measurement Plan, Sigma Level, Variation Chart

Analyze : Find and statistically verify potential root causes of variations in the process Basic Phase Outputs Root Cause Verification, Pareto Chart, Potential Root Cause Identification

Improve : Identify, evaluate and select correct development solutions. Develop a transformation management approach to help the organization adapt to the changes the implementation of the solution entails

Basic Phase Outputs : Action Plan, Solution Evaluation Matrix, Solution Report, Development of Improvement Ideas

Control : Empasize the importance of planning and plan implementation, chart a course to reach targeted results. Identify ways to transfer the lessons learned, the possibility and processes of standardization; develop necessary plans

Basic Phase Outputs : FMEA, Standards and Procedures, Process Control Systems

  • A "Gateway" meeting is held each time we proceed to a new phase, to assess whether the concluded phase achieved progress towards our objective.
  • Each time we proceed to a new phase, project risks are evaluated with the help of the risk management template, and correct moves are defined.

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Define : Define the clients and content of, as well as the opportunities for, the product or process to be designed

Basic Phase Outputs : Project Bulletin, Multi-generational Project Plan, Product Service Concept

Measure : : Identify customer requirements, define these in measurable CCR terms, list CCRs in terms of priority for the customer

Basic Phase Outputs : Requirements(CCR), Competition Analysis, Quality House

Explore : Basic Phase Outputs:Sophisticated Product/Service Concepts

Develop : on the optimal concept identified in the Explore phase, make sure the concept will meet customer requirements at a 6 Sigma level of performance

Basic Phase Outputs : Elaborate Product/Service Design, Solution Report

Implement : Conduct pilot test for the designed process, verify that control parameters work on target.

Basic Phase Outputs : : Implementation Plan, Standards and Procedures, Process Control Systems

Lean 6 Sigma Glossary

6 Sigma Statistically, 3,4 error rate per million – 99,99966 % perfection; in business terms, management model aimed at meeting customer needs through high quality and error-free processes.
Sigma The Greek letter used to represent the standard deviation of a statistical population. It measures the variation or distribution of data.
Variation Fluctuation in process output
Common Cause Variation Fluctuation caused by unknown factors resulting in a steady but random distribution of output around the average of the data.
Special Cause Variation Fluctuation caused by known factors that result in a non-random distribution of output.
Master Black Belt Full-time 6 Sigma Quality Experts who train and mentor Black Belts and coach Black Belt projects.
Black Belt Full-time team leaders responsible for measuring, analyzing, improving and controlling key processes.
Expert Green Belt Part-time project leaders responsible for Expert Green Belt Projects.
Green Belt Part-time project team members participating in execution of 6 Sigma processes.
Project Sponsor The “owner” of the project. Takes the lead in identifying potential projects and defining priorities.
DMAIC 6 Sigma projects aimed at improving existing processes.
DMEDI 6 Sigma projects aimed at designing new processes, or restructuring a broken process.
Kick off Project initiating meetings
Gateway Meetings held each time a new project phase begins
Project Bulletin Document stating the purpose and target of the project, limits and opportunities, resources to be used, and the project plan.
SMART Specific, Measurable, Achievable, Relevant, Time-bound
SIPOC The primary elements of a process – Supplier, Input, Process, Output, Customer.
Quick Win Profitable actions that can be implemented quickly and easily, are low cost and controllable.
VOC Voice of the customer
CCR Critical Customer Request.
VOB Voice of the business.
CBR Critical Business Requests.
BRM Business risk management. Enables the team to anticipate the likely impact of project results on existing processes.
Operational Definition Exact description of how to derive a value for the characteristics to be measured.
Pugh Matrisi Analytical hierarchy process based on relative analysis of selection criteria
AHP Analytical hierarchy process based on relative analysis of selection criteria.
5S Process and method that enables the creation and maintenance of a well-organized, clean and high-perfromance work environment.
Capacity Maximum volume of products/services a process can yield in a given time.
Takt Rate Volume of products/services demanded by customers in a given time.
Time Trap Any step in a process causing a delay in the overall process
Restriction Time trap that prevents meeting the customer demand.
Value Stream Mapping Advanced process map including material and information flow as well as other key parameters.
Histogram Bar graph illustrating the shape, centering, and spread of data distribution and indicates whether there are any outliers.
Run Chart A performance measure of a process over a specified period of time used to identify trends or patterns.
Control Chart Monitors variance, control limits and averages in a process over time.
Scatter Diagram Depicts how the Y output reacts to the X input
Hypothesis Testing Process used to determine whether a statistical parameter (average, standard deviation, etc.) matches chosen values.
ANOVA Calculation procedure that compares the averages of more than two samples.
t-Test Test conducted to determine the degree of difference between any two groups.
Regression
(Linear & Multiple)
Statistical analysis defining, assessing and quantifying the association between two variables.
Logistic Regression Statistical analysis defining, assessing and quantifying the association between two variables.
EMEA Error Mode and Effect Analysis.
FMEA Failure Mode and Effect Analysis.

Lean 6 Sigma Links

5S

5S is a methodology designed to improve workplace organization and standardization. Standardization in the workplace simplifies everyday activities leading to time-saving improvements. Borusan Lojistik has adopted 5 S to ensure a clean, well-ordered and productive working environment in its offices and warehouses.
5S elevates workplace morale and efficiency, and instills a sense of responsibility as well as ownership of the process in each Borusan Lojistik employee.

5S benefits in brief :

  • Saves time.
  • Reduces error rate.
  • Prevents work accidents.
  • Improves productivity and quality.
  • Reduces cost.
  • Motivates employees.
  • Boosts employee self-concidence.