ISSN: 1817-5880

Keywords : Reducing Costs

The Impact of Using Sigma on Reducing Cost : A Case Study in the Public Company for Fertilizer Industry – Khor Al Zubair Plant

Kifah Jabbar Hassan

Gulf Economist, Volume 33, Issue 34, Pages 64-87

Six sigma is a modern approach that helps to achieve high quality because it aims to get as close as possible to workmanship and reach the zero defect by reducing the percentage of loss and reduce the chances of the appearance of defective units thus it Working on verification to satisfaction of the customer, The increase in the level of sigma decreased the number of defects thus reduced costs in general and quality costs in particular. However, the problem lies in the fact that a large number of Iraqi companies, especially industrial ones, have not adopted this method and may not have an awareness of its importance and how it works.
The general company for petrochemical fertilizers in Basra was selected as a field to demonstrate the feasibility of applying this method. It was found that by applying six sigma the percentage of defects in production will be 6.67% and 92.4% accuracy. This will reduce the cost of failure because it is directly related to the company's sigma .