Enhancing Cost of Quality in Manufacturing Through Lean Six Sigma: A Case Study
DOI:
https://doi.org/10.55578/jdso.2605.004Keywords:
Cost of Quality, Lean Six Sigma, Manufacturing Operations, Quality Management, Operational Performance, Continuous ImprovementAbstract
The Cost of Quality (CoQ) is a critical determinant of competitiveness and operational efficiency in manufacturing. However, CoQ measurement is often disconnected from improvement initiatives, limiting its effectiveness in driving sustained performance gains. This fragmentation—along with inconsistent measurement practices, weak alignment with strategic objectives, sector-specific complexities, and limited data analytics capabilities—restricts the use of CoQ as a strategic decision-making tool. This study proposes an integrated Lean Six Sigma (LSS)-based framework that bridges CoQ measurement and continuous improvement execution. The framework combines standardized CoQ metrics, strategic alignment, and LSS methodologies within a data-driven structure that enables systematic identification, analysis, and reduction of quality-related costs. It further embeds continuous improvement into operational routines, supporting proactive and evidence-based decision-making. The framework is validated through a case study of an Egyptian electrical control panel manufacturer. Implementation aligned strategic objectives with measurable key performance indicators (KPIs) and targeted interventions, achieving substantial improvements: internal failure costs decreased by 33–42%, external failure costs by 33–40%, and overall CoQ by 41.7%. Additionally, process reliability improved by 20.6%, first-pass yield increased by 18.3%, lead time decreased by 28.6%, and unit production costs declined by 20.8%. These results demonstrate that the proposed framework offers a scalable and empirically validated approach for integrating CoQ management with LSS, enhancing cost efficiency and strengthening data-driven decision-making in manufacturing operations.
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