WHIRLPOOL

Group 2

Badhrudeen

Catherine Jovita

Chithra

Deep Patel

Deepak

Devishree

ABOUT WHIRLPOOL The Whirlpool Corporation (NYSE: WHR)

is an American multinational manufacturer of major home appliances headquartered in Benton Charter Township, Michigan, United States, near Benton Harbor, Michigan

 The company is listed in Fortune 500 and has annual revenue of approximately $18.4 billion, more than 70,000 employees, and more than 70 manufacturing and technology research centers around the world

ABOUT WHIRLPOOL After acquiring the Maytag Corporation

 on March 31, 2006, the Whirlpool Corporation surpassed Electrolux to become "the largest home appliance maker in the world." Notably, almost all of Whirlpool's appliance line undergoes some manufacturing within the United States, as opposed to other durable good manufacturers such as General Electric.

SIX SIGMA IN WHIRLPOOL Whirlpool started to investigate Six Sigma

shortly after GE and at least a full year ahead of Maytag.

The six sigma plan in Whirlpool was named “OPERATIONAL EXCELLENCE”

The initiative went corporate-wide in 1997 and involves a blend of methodologies. Just like clothes need a washer and dryer to get clean, Whirlpool has been using Six Sigma and Lean to scrub away inefficiencies.

The latest savings report totaled $175 million in the first three years.

SIX SIGMA IN WHIRLPOOL Operational Excellence at Whirlpool

does more than just cut costs, it has also been known to shorten cycle-times while increasing quality and productivity

Today, Whirlpool focuses on Customer Centered Operational Excellence (ccOPEX).

All of whirlpool employees also know about the ccOPEX.

SIX SIGMA IN WHIRLPOOL Since 1997, whirlpool has successfully

applied Six Sigma and Lean Manufacturing processes across their global operating platform, and certified over 1,500 black belts and master black belts.

 Consequently, they are also generating millions of dollars in annual cost savings.

SIX SIGMA TOOL USED Global competition in the appliance

industry is placing ever-increasing pressure on manufacturers to decrease costs while maintaining high quality.

With worldwide industry revenue in 2006 reported at $6.2 billion and a sluggish market to contend with, the stakes are high.

Whirlpool used ANSYSand other six sigma tools in its six sigma project called “Operational Excellence”

ANSYS IN WHIRLPOOL

ANSYS ANSYS (Analysis System), is an 

engineering simulation software (computer-aided engineering, or CAE) developer that is headquartered south of Pittsburgh in Canonsburg, Pennsylvania, United States.

It is very efficient in designing machines and it also shows the performance and defects in the machine still when it is in a computer generated form this helps in reduction of error before manufacture of the product

ANSYS AT WHIRLPOOL By using ANSYS Mechanical software

and Six Sigma tools, analysts at Whirlpool now have the ability to develop complex finite element cabinet models calibrated with real data, enabling the optimization of first-round physical prototypes.

This procedure has resulted in a reduction of development time and manufacturing costs, helping Whirlpool meet increasingly competitive market requirements

ANSYS – SIX SIGMA At Whirlpool, Six Sigma initiatives are used

to investigate the impact of sources of variation on key critical outputs of product and process, such as quality or performance, and the initiatives are often lauded for huge reductions in defects.

A phrase often associated with Six Sigma philosophy is “Y = f(X)” (Y is a function of X.)

This overly simplified equation reflects the observation that behaviour in critical

product or process performance characteristics (Y) is due to certain process factors or inputs (X).

The cabinet wrapper thickness (X) can potentially affect cabinet stiffness and door drop (Y).

A crucial part of Six Sigma work is to define and measure variation in Y with the intent of discovering the cause and developing efficient, operational means to control, mitigate or reduce the variation.

“Y = f(X)”

THE HINGES DEVELOPED IN ANSYS

WHIRLPOOL DOUBLE PARTITION MODEL IN ANSYS

1998 ANNUAL REPORT Continued to benefit from Operational

Excellence program, while also significantly enhancing productivity, reducing costs and shortening cycle times across the enterprise.

More than 70 people have been certified as “experts” in Operational Excellence, which uses sophisticated analytical methods to drive fundamental improvements. This program has already produced significant cost and quality results in North America, and during 1998, they began to expand its use at the other regional businesses.

1999 ANNUAL REPORT By working from a global platform, the

company can drive key operational initiatives for maximum impact. This includes the company’s customized Six Sigma methodology, known as Operational Excellence, which ensures that they consistently improve our quality levels, even as they lower the costs and shorten cycle times.

“By creating breakthrough solutions for their most difficult challenges, Operational Excellence has generated more than $175 million in global manufacturing savings during the last three years.

2002 ANNUAL REPORT To sustain the productivity savings that are

being achieved by their operations, they have embedded Operational Excellence process – based on Six-Sigma and lean manufacturing skills and capabilities – within each of their worldwide manufacturing facilities.

Their operations turned in a record improvement in total cost productivity in 2002. A parallel process is being instituted across the entire enterprise in an effort to eliminate additional costs and to create as many resources as possible to invest in innovation that builds customer loyalty to their brands.

2003 ANNUAL REPORT “Whirlpool’s tradition of driving

continual improvements in quality and productivity remains a key focus of their operations and a vital competitive lever.

In 2003, productivity improvements by the North American and European operations reached record levels. Operating Excellence, Six-Sigma process, is the tool they use to improve and sustain these cost savings.”

2004 ANNUAL REPORT “Quality and productivity remain vital

value creating levers for the company and are a key focus of their global operations. Operational Excellence, Six Sigma process, and Lean Manufacturing are the tools they use across the enterprise to continually improve productivity and sustain cost savings.”

SIX SIGMA IN WHIRLPOOL INDIA Whirlpool India initiated the Six-Sigma

programme in 1999 as a quality initiative to transform the organisation to a globally competitive entity.

It has helped the organisation streamline operations, improve quality and eliminate defects by increasing customer satisfaction and enhancing its bottom line.

Apart from sales and marketing, Whirlpool has extended the Six-sigma initiative to customer focus.

WHIRLPOOL – SIX SIGMA IMPACT Whirlpool’s commitment to innovation

was recognized in 2002 with a National Design Award for Corporate Achievement from the Smithsonian Institution.

Whirlpool is a six-time winner of the ENERGY STAR Partner of the Year award from the U.S. Environmental Protection Agency (EPA) and Department of Energy, demonstrating the company’s commitment to environmental protection.

WHIRLPOOL – SIX SIGMA IMPACT More than 3,500 Whirlpool employees

are involved in a five-year, $25 million commitment to Habitat for Humanity International. The partnership has provided more than 65,000 appliances to Habitat homes built in North America. In addition, Whirlpool has raised over a million dollars to support the fight against breast cancer through the “Cook for the Cure” program, sponsored by KitchenAid.

PROBLEMS FACED BY WHIRLPOOL Sustaining brand value in the Global

market Improve speed to market for CW

deliverables destined for multiple outputs, including collateral such as specification sheets, flyers, posters, and Web content.

Protect, sustain and expand brand value through the availability and distribution of consistent brand imagery.

Increase competitive advantage through unrivaled support to trade customers.

THANK YOU