The Problem of High Yarn Waste in Weaving Unit

MIKE Textiles is a leading manufacturer of sheet fabric that is used as raw material for home and

personal textile products. The organization has always focused on high efficiency of operations,

which has led to increasing profitability year on year.

Over the past $68$ months, the cost of operations has been rising leading to plummeting profitability.

An initial investigation revealed that the quantity of Yarn Wastage in the Weaving Unit has been

increasing over this period and currently the percentage wastage of yarn is approximately $5\%$ of the

total yarn consumed. This is the highest percentage of yarn wastage recorded in the last $5$ years.

Yarn wastes have a direct negative impact on yield percentage of the process and increases the cost

of product manufacturing. Every $1$ percent of yarn waste led to loss of USD $500,000.$

In an industry sector where profit margins are thin, any escalation in manufacturing cost has

significant negative impact on profitability.

The management at MIKE Textiles want the team of Six Sigma experts to use the DMAIC methodology

of Lean Six Sigma to reduce the Yarn Wastage by at least $50\%$ without any capital expenditure.