Logistics: Six Sigma, Lean Management, 4P Logistics, Fishbone Analysis and Solutions

Running head: Logistics 0
Logistics

Logistics 1
Contents
Introduction...........................................................................................................................................2
Six sigma and Lean management..........................................................................................................3
Six Sigma..........................................................................................................................................3
Lean management..............................................................................................................................3
Difference between Six sigma and Lean management.......................................................................3
4P logistics............................................................................................................................................5
Fishbone Analysis.................................................................................................................................7
Actions to solve problem in manpower and machine............................................................................8
References...........................................................................................................................................10

Logistics 2
Introduction
The benefit of six sigma tool is uniform process which reduces defect, cost and most
importantly improves productivity to satisfy customer and increase the market share. The
lean management reduces the cycle time or production time of product (Snee, 2010). The lean
requires less equipment and less human efforts. Six sigma analysis is undertaken to
understand which area of the production can be affected by waste and which part can be
affected by variation. So that, right tools can be used to solve right problems. The 4PL
provider brings value and manages the logistics process, also concerning how warehouses are
used. Organisations hire 4PL to increase profits and to properly manage to provide access to
greater base of potential suppliers. The logistics company is facing immense problems in
regards to managing supply chain. The fishbone analysis in itself is a problem solving tool
especially comparing, testing and interpreting. Undertaking the most appropriate system,
equipment and properly utilising them to regulate maintenance in the business operation.
Dynamic market situations demand changes in various policies in the operation of every
business. Automatic order picking facilities reduction in time of deploying and appropriating
every worker at right place.

Logistics 3
Six sigma and Lean management
The practical approach states that six sigma and Lean management both work towards
the same ultimate goal- eliminating waste and creating efficiency. While both Lean and six
sigma are business methods that aims to improve efficiency and effectiveness in the
organisation. Both seek to reduce waste and increase the productivity as far as possible.
Every organisation works to earn more and more profit. This can be achieved by two ways-
targeting more and more customers and eliminating useless expenses and waste.
Six Sigma
Six sigma is an extension of number of quality tools available to the organisation
results in improvement. Six Sigma is a quality tool that focuses on reducing the number of
errors in a process. It focuses on identifying variation. It looks at root cause analysis to
determine the source of errors.
Lean management
Lean is a system which tries to reduce or delete activities related to value loss. It is
more focused towards removing waste and creating more value for products. Lean
management focuses on keep production standards. If the production standards are high then
each step results in very little waste.
Difference between Six sigma and Lean management
Six Sigma Lean Management
To satisfy the client`s requirement.
Implementation of Six Sigma techniques
will lead to reduction of flow time of the
operation.
To improve production by increasing
efficiency by cutting down the waste
created by rework, errors, idle time.
Six Sigma can be done by applying proper Lean is an organised process helps in