Six-Sigma project for Reduction in Break Down Cost of Rotating Equipments
 
Company : Tata Chemicals, Babrala
Industry : Chemicals
Year of Submission : 2006
Status : Finalist
 
Abstract
Tata Chemicals, Barbala is India’s most energy efficient fertilizer complex where urea is manufactured. This plant was facing losses due to breakdown of rotating equipment estimated at Rs 52 lakhs per year and the cost of loss of energy due to plant downtime resulting from the breakdown was Rs 35 lakh per year. Therefore they undertook a project to improve the efficiency of their maintenance process. The mission of the project was to reduce breakdown cost of rotating equipment by 30 percent and reduce energy loss because of failure of rotating equipment by 70 percent. The team embarked on a six sigma project to achieve their goal. They used a structured methodology to identify the causes of breakdown. Based on their findings appropriate preventive and corrective measures were undertaken. The quarterly benefits to the company were an indirect savings of Rs 8,75,000 by reducing energy losses and reduced break down costs contributed Rs 11,50,393. The non-financial benefits to the company were sigma level improvement in vibration of rotating equipment from 3.08 sigma to 4.16 sigma and number of breakdowns reduced by 80 percent.
 
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