Research On Raw Material Costing Control Of C Company Based On Lean Six Sigma

It is well known that one of the major objectives for manufacturing enterprises is to control production cost by reducing unnecessary consumptions and waste. To achieve this goal, it needs elaborate planning, statistics and management for involved production operations, materials and potential wastes. Under the background of aircraft batch production, this paper explores the basic theories of lean production and discuss about several methodologies of raw material cost control for aircraft manufacturing enterprises. Then those methodologies are applied to solve practical problems in Company C.First of all, this article first summarizes the global cases of Lean Production and Six Sigma Management, whose advantages are analyzed in detail to motivate the application in Company C.Then we demonstrate the current status of lean production in Company C, especially the raw material management. Existing problems and their causes are deeply explored. A root cause analysis is applied to screen influence factors of 4M1 E. After all the control factors are clarified, risk is calculated by FMEA. The final result shows that baiting procedure and processing technique could be critical factors in terms of the utilization rate of raw material.Thereafter Six Sigma tools are applied in this case. After the stages of planning, measuring and analyzing, four strategies of technique design, purchasing, baiting and part processing are proposed to improve the utilization rate of raw material. What's more, several measures such as quality control, technique optimization, SOP design and material recycling mechanism are also suggested to be taken.At last the improvement result is evaluated and assessed, based on which several control measures are designed to maintain continuous improvement.In a word, to solve a practical problem in Company C, this paper explores and locates the critical factors towards the cost control of raw material utilization. A Six Sigma project is conducted through DMAIC scheme to improve utilization rate, leading to a cost cut. The continuous improvement measures also provide precious reference for the Six Sigma application in Company C.