APPLICATION OF LEAN SIX SIGMA IN ELECTRIC POWER DISTRIBUTION COMPANY: (A CASE STUDY OF BEDC).

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ABSTRACT

This research presents a Lean Six Sigma approach for reducing the interruption in electric power distribution. The objective is to improve the overall service, reduce operating costs, and to increase customer satisfaction. A case study of current interruption in electric power distribution at BEDC is used to illustrate the Lean Six Sigma application.

 

The Lean Six Sigma DMAIC process was utilized to investigate the problem, analyze its various variables, and recommend specific action plan for improvement. The research also presents the tools and techniques used in the DMAIC process to reduce power interruption and improve the overall service level. BEDC as a distributor of electricity should be able to provide service quality that meets customer wants and needs. Service improvement can be done by analyzing identification of the causes of critical to quality and making improvements. The methodology used in improving service quality is lean six sigma with the DMAIC principle (Define, Measure, Analyze, Improve and Control).

 

Define stage is used to determine critical to quality, measure to calculate gap service quality, baseline variables and attributes, sigma level and DPMO (Defects Per Million Opportunities), analyze is done to find the root cause that becomes waste. After determining the attributes that become the highest waste three gaps and the largest DPMO, the small sigma level is then improved in improving the quality of service to customers. Sigma level measurement using the lean six sigma method shows that the level is at 2.94 and is far from the 6 sigma target with a DPMO value of 74920.

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