Today energy is directly related with progress or growth of any country and every event requires a huge amount of energy. In today’s global competitiveness, demand for energy is very high and India is facing a problem of very poor energy supply. So, researchers and planners are worried about very poor productivity of thermal power plant and the most critical cause for this problem is high capacity waste at these plants. This paper focuses on causes of capacity waste and for this, DMAIC approach is adopted. The study also clears some myths of Six Sigma compatibility at process industries (thermal power plant) for performance improvement. After implementation of the first phase i.e. “Define”, the study confirms the competence of Six Sigma in defining the issue of capacity waste.

Capacity waste management is highly essential because under utilization of capacity is often referred to as a major reason for lower productivity among industries around the world. For better estimation of capacity and its utilization and then for its improved management; newer techniques are being devised in industrial sector. The current case of capacity waste problem has been taken up as a Six Sigma project, where we try to analyze critical factors responsible for the capacity waste. Decisions on critical factor selection in analysis phase of Six Sigma are always very crucial. The paper discusses an approach for selection of capacity waste factors at an automotive industry using fuzzy logic based AHP method. The fuzzy AHP is a well recognized tool to undertake the fuzziness of the data involved in choosing the preferences of the different decision variables engaged in the process of capacity waste factors selection. In this context, we have explored six crucial parameters for selection of capacity waste factors. Final ranking is calculated through priority vector thus obtained and it is seen that conveyor malfunction is found to be the key factor for capacity waste among all alternatives at the selected site.

The companies in present challenging world are trying hard to improve their productivity and capacity utilization levels without actually increasing the sale price of their products. In India, in today combative world, the majority of automotive manufacturing industries are scuffling hard with their low levels of productivity. Possibly there are different reasons for this and capacity waste or under-utilization of productive capacity in industries appears to be one of the prime reasons. As corrective action, the present study makes an effort to check the efficacy of Six Sigma approach to improve capacity waste management. With a case study, through successful execution of Define phase, the study confirms the perception of Six Sigma for capacity waste management in Indian automotive industry.