Continual Improvement In Small Soaps Company

Abstract: In this paper, using quality management tools, we track root causes and principal causes of the rising manufacturing cost of the bar soaps and propose solution to solve the problem. First, we identify and analyze the roots causes of problem with the Fishbone Diagram. We use multivoting approach to reduce roots causes to main causes, from which we identify, classify and analyze principal causes using the Pareto Diagram. We then perform a deep analysis of these principal causes using the 5 whys analysis technique. Three principal causes were found high level of overtime, poor machine performance and poor employee�s performance and were weighing 55% of the problem. For that reason, working on these areas was necessary to address the problem of the rising manufacturing cost of the bar soaps. With the result, we then use the PDCA/ 7 steps of TQM method to solve the problem of the rising manufacturing cost by testing whether expanding production capacity leads to performance improvements of these areas. We decide to expand production capacity by adding two more machine groups. Six months after implementation of the proposed solution, the result shows an enhanced workload and schedule, an increased production capacity, an elimination of the overtime issue, an increased machines performance and an improved workers performance. Two main savings were achieved as wage costs and maintenance costs. As a result, while competitor�s bar soaps prices increased, the company bar soaps price decreased by 50%, making the company bar soaps more attractive on market, as this performance permitted the company to apply price reduction at the retailer level.

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