SIX SIGMA : Gaining Competitive Advantage in the Oil Industry: A Case Analysis

Iran is one of the world leading oil producing countries with GDP of 26.5%, which is contributed by the oil industry and therefore, managers believe that waste management could increase revenue using Six Sigma technique. This is referred as one of the effective and advanced quality engineering systems that would increase quality level at 3.4 parts per million defectives produced. The study aimed to examine the application of Six Sigma in a larger oil company in Iran and evaluate its effect with respect to its performances. The study used DMAIC model for understanding the oil company which has specialized for the oil caning and filling processes. The tools and techniques in each of the phases of Six Sigma has been specialized with respect to the characteristics of the oil industry. The study outcomes illustrate the oil industry to focus on more energy savings and consumption from waste managment through six-sigma applications.