Complete six sigma analysis of a small bakery in Pakistan as well as solution of the problem discovered. Each phase has been discussed in detail.

1. Submitted by:
Team Pearl Jam
Six Sigma on Burning
Brownie:

2. Burning Brownie:
• First conceived when cupcakes delivered at
a petrol pump were well received
• Offers a wide variety of cakes and
specializes in customized cakes
• Owner plans to expand soon and is looking
for ways to minimize costs

3. Identification/Selection
Phase:

4. Our project specializes in the cost minimization
of Burning Brownie’s production processes. This
phase of selection is carried out through a set of
tools and results are concluded on practical
implications.

5. Brainstorming:
• Get rid of excess workforce
• Cut out home deliveries
• Order fewer amount of inventory
• Plant energy savers
• Get rid of excess inventory
• Automate processes
• Manage complaints and feedback through online
portals

6. • Manage complaints and feedback through
online portals
• Employ Just-In time-Inventory system
• Go for local suppliers
• Online order verification
• Make use of bicycles instead of motorcycles
• Appoint skilled labor

7. AFFINITY DIAGRAM:
Fuel costs:
1)Energy savers
2)Local suppliers
3)Cut out door-to-door
deliveries
4)Bicycles to replace
motorbikes
Training costs:
1) Get rid of excess
labor
2) Appoint skilled labor
Storage costs:
1)Employ Just-In-Time
inventory system
2)Order fewer amounts of
inventory
Automate processes:
1) Online order placement
2) Verification emails
3) Online
complaint/feedback portal

8. DECISION SELECTION MATRIX:
Criterion Weights Storage costs Automate processes Fuel costs Training costs
Impacts 5 2*5 =10 5*5 =25 4*5 =20 3*5 =15
Ease of implementation 2 4*2 =8 3*2 =6 2*2 =4 2*2 =4
Benefit 5 3*5 =15 5*5 =25 4*5 =20 4*5 =20
Speed of implementation 3 4*3 =12 3*3 =9 2*3 =6 2*3 =6
Effort 3 1*3 =3 3*3 =9 4*3 =12 4*3 =12
Probability of success 4 4*4 =16 4*4 =16 3*4 =12 3*4 =12
Total rating - 64 90 74 69

9. Conclusion of Decision Selection Matrix:
As the second alternative, which is to automate
processes, has the greatest weight, therefore
we’ll take this alternative further.

10. FUNCTIONAL TREE DIAGRAM:
Automate
Processes:
Production
Make up
machines
Topping
applicator
Retrofit
automated
processes
Right batching
methods
Reliability
Consistency
Customer
specific online
portal
Orders
Placement
Tracebility
Compliance
management
Complaints
Feedback
DBMS for
inventory
handlin
% used up
Items/
Amount
ordered
Dispose off
excess

11. Define Phase:

12. R0 Form:
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document without a watermark .
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13. TOOL: Voice of Customer (VOC):
• I ordered the BBQ sandwich and seems like the recipe
has been changed
• Cookies need to be back on the menu
• I wanted to order more but I ran out of my budget
• The price is too high
• What is the minimum price you charge for cupcakes?
• What is the price of simple white fondant cake per
pound?
• Product is not worth the price charged
• Quantity is less as compared to the price charged

14. • Thanks a lot for ruining Mother's day! Are these the
cupcakes that I ordered????? I placed the order a
week ago with a reminder yesterday AND THIS IS
WHAT I GET??? FROM WHAT ANGLE DO THESE
CUPCAKES LOOK LIKE THE ONE THAT I ORDERED?
WORST CUSTOMER SERVICE EVER!! YOU CHARGE SO
MUCH FOR THIS. IF YOU CANT DELIEVER SOMETHING
ATLEAST DONT MAKE A COMMITMENT FOR IT!!!!
• Where can I inquire about the prices other than
visiting in person?
• Service charges included are not reflected anywhere in
the service

15. CTQ Drill –Down Tree:
Price
Affordable
Rs. 1000 -
1500/pound
Worth the quality
1200-1500 per pound
for fondant cakes
More quantity
2 cupcakes /Rs.400

16. Kano Analysis:
The price factor is a satisfier for the customers. The
current price is higher than the expected price. So we
need to lower the price in order to avoid dissatisfied
customers.
0
1
2
3
4
5
6
Current Price Expected Price

17. Problem Restatement:
Problem:
As a company we are experiencing problem with costs. the area
where this problem is occurring is the production dept. (kitchen).
the magnitude of the problem is: Rs.1600000 per month and the
expected performance is < Rs.1000000
Business Case:
The effect this is having on our business is: increased production
costs. This is costing us Rs.600000 per month
Goal:
To reduce the costs to < Rs.1000000 by the end of December
2015

18. Include and Excludes:
Includes
• Price
• Cost
Excludes
• Ingredients
• Taste

19. CoPQ:
Hard Costs
• Inventory costs
• Marketing costs
• Cost of excess quantity
Soft Costs
• Customer loyalty

20. SIPOC:
Supplier
• Valrhona
• Americolor
• NyCake
• Kraft
• Tate
• Iyle
Input
• Dairy
• Flour
• Chocolate
• Vegetables
• Meat
Process
• Raw
materials
• Mixing
• Baking
• Designing
• Finished
Product
Output
• Cakes
• Cupcakes
• Brownies
• Sandwiches
Customer
• People
who want
customized
bakery
products

21. Measure Phase:

22. STEP 1: SELECT PROJECT KPI
CONTINUOUS DISCRETE
Average completion time and delivery of an
order
Scrap parts in each order
Percentage of overdue processes Cost-effectiveness of resources
Sum of costs of stopped active processes Accountability and responsibility of every
action
Volume of tasks per member of workforce Most profitable customer segments
No. of hours to complete the process Human errors and process errors
Variation in planned budgets No. of orders delivered each day

23. Process Map:
NEED FOR COST
MINIMIZATION
REPORTED
CHECK FOR NON-VALUE ADDING INVENTORY
PROCUREMENTS AND SUPPLIERS
IS THERE ANY NON-VALURE ADDING
INVENTORY PROCUREMENT OR
SUPPLIER INVOLVED?
ELIMINATE IT
CHECK FOR VARIATIONS IN PLANNED BUDGETS AND
PROCTION TIMES
STUDY AND MANAGE RESOURCES TO MINIMIZE % OF
REMAINS DISPOSED OFF AT THE END OF A SLOW DAY
FIX ERRORS IN SYSTEMS ANDS PROCEDURES
LABOUR COSTS
REDUCED?
DIFFERENCE BETWEEN FORCASTS
AND ACTUAL COSTS MINIMIZED?
ADJUST CHANGES MADE INTO
THE SYSTEM AND CLOSE
MONITOR KITCHEN STAFF EFFECTIVENESS AND SALES LEVELS;
MOTIVATE INEFFICIENT WORKFORCE
AUTOMATE PROCESSES TO REDUCE NO. OF WORKFORCE IN
ORDER TO INCREASE EFFICIENCY AND EFFECTVENESS
NO
YES
NO

24. STEP 2: PERFORMANCE STANDARDS:
CONTINUOUS DISCRETE
Y- (DEFINE THE KPI) Percentage of affordable
items
Price affordability
USL 100% N/A
LSL 95% N/A
UNIT N/A 1 item’s price
OPPORTUNITY N/A 5 features

25. MEASUREMENT SYSTEM ANALYSIS (MSA)
TOOL: DATA COLLECTION PLAN
OUTPUT MATRIX:
OUTPUT OPERATIONAL
DEFINITION
TARGET LSL USL
Cost
minimization
Reducing costs to
maximize the gap
b/w revenues
and expenses,
thus increasing
profits
RS. 210000 RS. 160000 RS. 260000

26. INPUT MATRIX:
INTPUT OPERATIONAL
DEFINITION
TARGET LSL USL
Cost-effective
Processes/activities/r
esources
To get an
output that
provides good
value for the
amount of
money paid
95% 95% 100%

27. R1 Form: Tool usage: Notes/ Graphs
1) Process mapping: This is based on checking
for and correcting non-value adding activities,
processes and resources, and increasing overall
effectiveness and efficiency of the business, to do
more with less in the planned time and budget.
This is to achieve the project’s KPIs.
2) Data collection plan: This is based on attaining
cost-effective processes and inputs in order to
achieve output with minimized costs.
Date: 04/05/15
Project Y (Name of KPI): Affordability
Explanation for selecting this KPI: Cost minimization impacts the
overall price of a product to make it more affordable as it becomes
easier to cover the minimum costs. Also affordability for greater
value means higher customer satisfaction (CTQ), hence
profitability will also increase.
Performance Standards:
(Continuous Data)
USL: 100%
LSL: 95%
Target: 95%
(Discrete Data)
Units Definition: 1 item’s price
Opportunity Definition: 5 features
(quality, service, value, price, time)
Defect Definition: 1 feature (price)
Measurement System Analysis on Y:
(How do we know the data is credible?)
Data’s precision and accuracy shows its credibility which has been
measured by ensuring its:
1) Repeatability: measured at different times
2) Reproducibility: by different people
3) Resolution: by different methods

28. Analyze Phase:

29. Establishing Process Capability:
Determining sigma level for the process
Tool used is DPMO
Days Supply Sale Inventory Excess
Resources
Equipment Defective Defects
1 Yes 3
2 Yes 2
3 Yes 2
4 No 0
5 Yes 2
6 Yes 1
7 No 0
8 Yes 1
9 No 0
10 Yes 1
11 Yes 1
12 Yes 2
13 No 0
14 Yes 2
15 yes 3

30. •D=20 total defects
•O=5 opportunities
•U=15 days
•TOP=U*O
=15*5=75
•DPU=D/U
=20/15=1.33
•TDPTO=D/TOP
=20/75=0.26
•DPMO=266,666
•Current sigma level= between 2 and 3

31. Define Performance Objectives:
Tool used is Benchmarking.
Internal To operate at low cost by using materials less
expensive and using automated processes.
Direct Competition Tehzeeb has got many branches all across Rawalpindi
and Islamabad. It offers products at affordable price to
all classes of people. They do not compromise on their
taste as well as quality. Tehzeeb, due to its multiple
branches is easily accessible. The price of Kitchen
Cuisine products is almost same as that of Burning
brownie but they are now expanding. Cinnabon offers
high priced products with great taste but it serves only
to high end customers. Burning Brownie offers high
quality product at comparatively high prices. It does
not have any branch and hence, is not easily accessible.
Also, the place where it is located, it serves only a
limited segment of customers.
Industry Burning Brownie has to meet the standards set by the
National food safety regulatory authority.

32. Root Cause Analysis and Value Added
Analysis:
Several tools are used in this step to determine the
causes for defective performance.

33. CNX:
Potential
effect
Categories 1. Why(cause of
investigation
result)
1. Why(cause of 1) Type of
Cause
C/N/X
Cost is high Environment  Location
 Electricity/utilities
High rent N
Cost is high System  Equipment
 Automation
Faulty/old
Less automated process
X
Cost is high People  Wages
 Training costs
 Hiring costs
C
Cost is high Material Inputs (raw material) Expensive X
Cost is high Procedure  Time consuming process
 Resources
More fuel(gas)
consumption
C

34. Pareto Chart:

35. Run Chart:

36. Histogram:

37. GRPI:

38. Quality Function
Development:
Tool used is HOQ:

39. Value Stream Map:
2min 2min 1min 5min
3min 3min
5min 40min
Customer
places an
order
Confirmation of
order
Order sent to
kitchen
Fetch
ingredients
from pantry
Start
making
order
Send order to
the counter
Prepare billDeliver the
order to
customer

40. Customer places an order VA
Confirmation of order NVA
Order sent to kitchen VA
Fetch ingredients from pantry NVA
Start making order VA
Send order to the counter NVA
Prepare bill NVA
Deliver order to customer VA

42. Improve Phase:

43. R Form presented
to the
CEO at the start
of Phase:

44. Anti-solution:Anti-solution Ideas: Opposite ideas:
1 Reduce number of employees to reduce costs More productivity with same number of employees
2 Stop delivering to other restaurants because
there’s a chance they may copy this café’s cakes
Expand delivery to a wider variety of restaurants
and other cafes
3 Decide against opening up another branch of the
bakery
Open up more branches in different parts of the
city
4 Stop making customized products Start making customized cupcakes and savory
products along with sweet products
5 Don’t allow customers to sit in café to eat Open up a bigger café where customers can sit and
eat their orders
6 Stop importing inventory from abroad Import only that inventory which is only available
abroad, purchase the rest locally
7 Stop offering savory products along with sweet
products
Offer an even wider variety of products such as
burgers, paninis etc.
8 Reduce amount of products produced each day Produce only on order to avoid wastage

45. 9 Stop making products on order Allow customers to place orders beforehand
10 Delivery guy refuses to deliver products Ensure delivery guys deliver on time by providing
proper training to them. Use supply chain management
11 Select a place known to be have problems like rats etc. in
order to minimize rental costs
Select a good place for renting with no rats and a clean
area
12 Inventory is spoiled and produces bad product Guarantee the inventory is re-stocked on time
13 Workers are demotivated and don’t perform tasks efficiently Offer incentives to workers to ensure they perform
tasks efficiently
14 Machines malfunction and hinder production Machines are checked every week for malfunctioning
parts and are repaired immediately if there’s a
hindrance.
15 Inventory store or warehouse isn’t cleaned properly or gets
flooded due to excess rain
Assure that inventory area can safely hold all goods
without spoiling them
16 Inventory time is increased due to late delivery of products Use just-in-time inventory to save time
17 There is some disagreement between employees Take measures to avoid conflict between employees by
keeping in check if they are satisfied or not
18 Product is delivered late Delivery people are strictly instructed on the correct
address and given working vehicles to ascertain
product is delivered on time

46. 5S:
Sustain: To increase
efficiency, these
tasks must be
followed in the
same order
everyday.
Sort: Allocate a special
space for every
equipment needed for
baking in the kitchen and
every employee must
have a clear task
Straighten: Every
equipment must be
within hand's reach
to avoid clutter and
chaos
Shine: Every
equipment and the
kitchen must be
pristine to avoid
contamination of the
products
Standardize: Employees must
be aware of their allocated
tasks and should follow them
diligently everyday. The
assigned space for the
equipment should remain
same everyday.

47. MGP:
MGP Generation 1 (Step) Generation 2 (Stretch) Generation 3 (Leap)
Vision Price minimization Production time reduction Cost minimization
Solution Just-in-time inventory Automated equipment purchase local goods,
decreasing
dependency on
employees,
Platform & Technology Advanced computer
technology e.g. an
improved Data base
Automated assembly line TCS products

48. FMEA:1 2 3 4 5 6 7 8 9
Mode of
Failure
Cause of
Failure
Effect of
failure
Frequency
of
occurrence
(1-10)
Degree of
severity (1-
10)
Chance of
detection
(1-10)
Risk
priority (1-
1000)
(4*5*6)
Design Action
Design
Validation
Product
delivery was
delayed
Inventory
delivery got
delayed
Customer
loses time/$
2 8 8 128
Ascertain
delivery on
time
Set 2 days
maximum for
delivery of
inventory
Delivery guy
got held up
and arrived
late
Customer
loses time/$
4 9 6 216
Delivery guy is
assigned a
fixed time to
arrive at
Should not be
more than 30
minutes late
or else would
be penalized
Delivery
vehicle broke
down
Customer
loses time/$
6 9 3 162
Extra vehicle is
kept at hand
At least 1
extra vehicle is
present
Inventory got
spoiled
Product had
to be re-
made
4 7 5 140
Inventory
checks, proper
temperature
of 25°C, clean
area
Inventory is
checked at
least once a
week

49. Product didn’t
bake correctly
Product had
to be re-
made
1 6 10 60
Oven
temperature is
set correctly,
correct
ingredients are
used,
ingredients are
checked twice
before being
added
Product is
checked every
hour to avoid
errors
Misshap
occurred such
as wrong icing
on cake etc.
Product had
to be re-
made
2 6 7 84
Product
made was
costly
Resources
used were
very expensive
Company
loses
profit/incurs
loss
5 8 3 120
Resources that
cost too much
are purchased
locally or
expensive
resources are
used only when
necessary
Reduce over all
cost of
resources to
less than 15 lac
Too many
resources
were required
Company
loses
profit/incurs
loss
6 9 2 108

50. Assigned values for
columns 4-6 1 2 3 4 5 6 7 8 9 10
4
Frequency (errors/100
customers) <2 4 6 8 10 12 14 16 18
>20
5 Severity for customer
Trivial
Complai
nt
Major
time/$
Loss of
customer
6
Probability of
Detection Certain Possible None

51. Regression:
Costs Units Labor hours
2383899 2750 215
2166105 2350 210
1886739 1600 196
1976976 1750 199
2581143 3000 227
1774347 1520 188
2013931 2100 202
1682050 1250 182

52. SUMMARYOUTPUT
Regression Statistics
Multiple R 0.993857734
R Square 0.987753196
Adjusted R Square 0.982854474
Standard Error 39938.05501
Observations 8
ANOVA
df SS MS F Significance F
Regression 2 6.43235E+11 3.21617E+11 201.6348899 1.6598E-05
Residual 5 7975241190 1595048238
Total 7 6.5121E+11
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -866915.4836 808375.2216 -1.07241719 0.332542207 -2944910.145 1211079.177 -2944910.145 1211079.177
X Variable 1 196.8311912 122.4365421 1.607618019 0.168830093 -117.9019599 511.5643424 -117.9019599 511.5643424
X Variable 2 12469.56691 5195.915097 2.399878881 0.061630019 -886.9580582 25826.09188 -886.9580582 25826.09188

53. Financial Analysis:
• Try to purchase more local items
• Reduce excess inventory costs of 10-20
grand/month
• Reduce resource costs of 15-25 lac/month

54. Control Phase:

55. Poka Yoke:
Method/ Type Control or Shut out Warning or Attention
Contact Check the raw material used in
baking cakes once a week to
ensure it is not spoiled.
A sensor detects the raw
material used in baking or
drinks are perfect or not. If it is
spoiled the buzzer activates.
Fixed-Value Check whether the raw
material you ordered has
arrived or not. Check if it is less
or more.
A Counter used to count the
raw material used in
production. It tells the amount
by which it is less or not.
Motion Step A checklist required to ensure
that each order has been
produced through a correct
number of steps.
A sensor detects that each
order passes through all steps
and if a step is being missed a
buzzer or lighter is activated.

56. Visual Management: