Improving Quality & Productivity through Lean Six Sigma DMAIC Approach implementation: A case of ERCO Textile and Garment PLC
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Date
2025-09
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Addis Ababa University
Abstract
The thesis addresses issues in the textile industry like high defect rates and inefficiency by investigating improvements in quality and productivity at ERCO Textile and Garment PLC using a modified DMAIC approach known as DMAVIIC. It points out important gaps in the literature, namely the lack of problem confirmation and the inability to integrate lean systems across departments. The study focuses on the knitting department and employs both qualitative and quantitative methodologies. According to preliminary assessments, there was a 17.96% defect rate, a sigma level of 1.36, and a cost of poor quality (COPQ) of 2,338,789.38 birr over three months. Both value-added and non-value-added operations were identified using value stream mapping, with cycle times of 1,320 and 918 minutes, respectively.
After the suggested fixes were put into practice, the sigma level increased to 2.68, the COPQ dropped to 1,386,000.06 birr, and the defect rate dropped to 9.72%. Additionally, cycle periods for value-added operations were shortened to 861 minutes and for non-value-added activities to 250 minutes. Metrics of productivity increased, with worker productivity rising to 72.22% and machine efficiency reaching 76.3%.
Time to market was shortened and customer satisfaction rose as a result of these enhancements. According to the study's findings, the DMAIC approach greatly increases the efficacy and efficiency of improvement projects by incorporating functional department collaboration and root cause verification.
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Lean Six Sigma (LSS), DMAIC (Define, Measure, Analyze, Improve, Control), value stream mapping, root cause analysis, defect categories and cost of poor quality.