Comprehensive Analysis of Six Sigma in Supply Chain Management

This report provides a comprehensive analysis of Six Sigma applications in supply chain management, beginning with an overview of the Six Sigma concept and its importance in reducing waste and increasing customer satisfaction. It delves into the QFD matrix, detailing its benefits, usage, parts, and...Read More

SIX SIGMA FOR SUPPLY CHAIN MANAGEMENT
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Table of Contents
1.0 Topic one questions: Six sigma for supply chain management.................................................3
1.1 Six Sigma Concept for supply chain management................................................................3
1.2 QFD matrix benefits and usage.........................................................................................3
1.3 QFD matrix parts and its creation..........................................................................................4
1.3 The steps for benchmarking..............................................................................................5
1.5 Six Sigma tools and their placements;...................................................................................5
Affinity diagram.......................................................................................................................5
Kano model..............................................................................................................................5
Pareto analysis..........................................................................................................................6
Brainstorming...........................................................................................................................6
Fishbone analysis.....................................................................................................................6
Process flow charts...................................................................................................................7
Failure mode analysis...............................................................................................................7
Design of experiment...............................................................................................................7
1.6 DMAIC cycle, the final stage “control” accomplishment.....................................................7
1.7 Lean thinking advantages in integrating with six sigma & process improvement................8
1.8 Importance of creating value stream process maps...............................................................8
2.0 Topic Two questions: Design for six sigma for supply chain design........................................9
2.1 DFSS and its benefits in supply chain design and management............................................9
2.2 Redesign a supply chain process using DFSS.......................................................................9
3.0 Topic three questions: Six sigma applications in the supply chain.........................................10
3.1 Key factors for implementing a successful six sigma program for supply chain
management along with the obstacles and challenges of the six sigma method........................10
3.2 Six sigma applications for logistics and supply chain management....................................10
4.0 Topic four questions: SCOR and Six sigma............................................................................11
4.1 SCOR model with its strengths and weakness.....................................................................11
4.2 SCOR Six sigma (Lean) convergence, SCOR add to six sigma and vice versa, give an
example of an application..........................................................................................................12
REFERENCES..............................................................................................................................13
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1.0 Topic one questions: Six sigma for supply chain management
1.1 Six Sigma Concept for supply chain management
Six Sigma is a process that allows companies to drastically improve their processes by designing
and managing daily activities to reduce waste while increasing customer satisfaction (Pepper &
Spedding, 2010). Earlier, quality management programs were centered on on detecting and
correcting production and design defects. The Six Sigma method focuses on techniques that
prevent errors at any stage of the process. Statistically, Six Sigma means six standard deviations.
In order for the process to be six sigma, there must be six standard deviations between the
specific limit and the nearest specific. This allows errors of 3.4 in millions of options (DPMO).
The increase in the value of the process increases by decreasing the average change. The goal of
Six Sigma's performance is not applied to individual products. Instead, it refers to important
quality characteristics.
1.2 QFD matrix benefits and usage
Quality performance change (QFD) is an essential aspect of the quality of the organization's
administrative policies. Each organization strives to produce high quality products and services.
In the current competitive environment, the quality requirement corresponds to the customer's
expectations. It is a process that translates customer needs into production standards. QFD is
used to develop new products. It is very effective because it integrates customer needs into
design parameters, so the end product can be better designed to measure customer expectations
(Carnevalli & Miguel, 2008). The QFD ratio is the customer's need; customer needs define
different business functions, such as production, production and sales. Two benefits of creating
and using QFD matrix;
Buyer-centric process: The main advantage of QFD is that it is a customer and is not
technologically controlled. It is not always useful that only technical innovations dictate the new
political product. For example, technology makes it possible to use smaller keypads for mobile
phones, which makes the final product even more compact. On the other hand, prospective
phone users need a certain level or keypad to use the phone effectively. QFD helps you identify
your customer's wishes and use that information when developing new products.
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Improve production: QFD requires the product design and production standards of the concept.
Since you know the characteristics of the final product, you can check if production is going in
the right direction with standard revisions. Some problems can be solved in the early stages of
production, which greatly increases the efficiency of production. A natural consequence of
greater efficiency reduces all costs that can be delegated to the customer.
1.3 QFD matrix parts and its creation
The method of implementing quality work is a four-step process that covers the entire product
development (Almannai, Greenough & Kay, 2008). At each step, for each system design,
subsystem and component, a series of customizable tone tuning patterns are used. Parts of QFD
and its creation;
Definition of a product: The product definition phase begins with the collection and translation
of requirements and product specification requirements. It may also include an analysis of
competition, which assesses how a competitor's product meets the wishes and needs of the client.
The original design concept is based on the requirements and functions of the product.
Product Development: Key components and collections are defined during the product
development phase. Critical product properties are cascaded and translated into functions or
definitions that are essential or important for components and assemblies. Functional
requirements or specifications are defined for each level of function.
Development process: During the development phase of a process, the manufacturing and
assembly processes are developed in accordance with the specifications and components of the
product. The process flow is developed and the main characteristics of the process are
determined.
Process Quality Management: The QFD process recognizes important processes during
production. Process parameters are defined and developed, and the process is properly managed.
In addition, all control and test specifications were developed. Full production begins at the end
of the technological capacity in the pilot structure.
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1.3 The steps for benchmarking
Benchmarking is an integral process in supply chain and provides adherence to quality standards.
The steps in benchmarking in supply chain management processes include planning, analysis,
integration, action and maturity. During the process of planning, it is decided what benchmarks
is expected to perform, finding of benchmarking partners is decided upon as well as collection of
data is ascertained at this stage (Anand & Kodali, 2008). In the second phase of analysis,
determination of current gaps in performance is analysed and project future performance levels is
ascertained. In the third phase of integration, findings for the project are communicated in order
to gain acceptance and functional goals is established. In the fourth stage for action, plans are
developed and implementation for specific actions is undertaken. The progress is monitored so
that in case needed, the benchmark can be recalibrated. At the last stage for maturity, leadership
positions is ascertained and integration of practices in undertaken into processes.
1.5 Six Sigma tools and their placements;
Affinity diagram
Affinity diagram is a tool that brings together many ideas, opinions, questions and groups those
(Takai & Ishii, 2010). The process is often used to gather ideas and this corresponds to a large
amount of data. The data is organized in groups. They are used to search solutions searching
solution to complex problems in supply chain.
Kano model
The Kano Model is an intelligent way to understand and classify 5 different customer
requirements for new products and services. The main objective of the model is communication
with 5 universal customer requirements to know or keep all developers of products and services
competitive. It shows how each of these five general categories can influence happiness and
dissatisfaction (Xu, Jiao, Yang, Helander, Khalid & Opperud, 2009). It also displays how the
value is created and the value creates a new value. Helps organizations understand their needs
better than their customers. Provide a mechanism to help organizations understand and
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understand the needs or functions of all potential customers in five categories to support
development work.
Pareto analysis
Pareto analysis is a useful formulation in which many observed activities are competed. The
problem solver basically counts the benefits paid for each action and then selects some of the
most effective actions that are closest to the maximum (Talib, Rahman & Qureshi, 2010). Pareto
analysis is a creative way to examine the causes of problems by stimulating thinking and
organizing thoughts. However, it may limit the exclusion of potentially important topics. It must
be linked to other analytical tools.
Brainstorming
Brainstorming to solve creative problems is one of the most well-known methods. In this method
preparation to organize effective gathering of ideas is undertaken, to try to find a solution to the
problem (Litchfield, 2008). This group is a very effective way of ensuring creative ability, and
also of developing successful ideas in a particular area of interest that can be identified by many
ideas.
Fishbone analysis
Fishbone Chart is one of seven quality management tools to diagnose the problem and identify
potential causes (Phillips & Simmonds, 2013). This is the so-called Causes and Effect or
Ishikawa diagram. The cause of the problem can be determined on the basis of various factors
depending on the circumstances. The concept uses elements like person, machine, material,
method, measurements, and the environment. It can be used in services, finance and marketing as
well.
Process flow charts
Administration of the supply chain may involve systematic flow of chemicals, products and
related information between suppliers, companies, retailers and consumers (Damelio, 2016).
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There are three different flows in the supply chain which includes material flow, information
flow and financial flow, which is determined through the process flow charts.
Failure mode analysis
Supply Chain Risk Management (SCRM) is a key element for successful delivery and great
success, and in choosing the right supply partner. Companies mark risk in the supply chain,
focusing on the use of analytical methods and failures (FMEA) (Liu, Liu & Liu, 2013). The
determination of the FMEA is rarely used to assess supplier risk, but uses a powerful tool for the
proactive SCRM. FMEA is a long-standing technique used to assess risks in product and process
design. All errors that can be assessed in terms of probability, weight and ability to detect.
Higher FMEA results lead to higher risk. The general variables used to measure the risk in this
situation are Operating frequency damaged, Number of parts related to defects, the possibility of
detecting errors, probability of bankruptcy and weight of the accused.
Design of experiment
DOE is a method of analyzing the relationship between the factors that affect the process. To
establish a relationship, different experiments were performed and the value of the output
variable was analyzed and interpreted (Marzbanrad, Mohammadi & Mostaani, 2013). It is used
in determining the best option between two options during the trials, Administrator Input Data
Knowledge, Non Control, Reduce the variable in the output, Minimization, optimization or
targeting of output, Improve the power, efficiency and efficiency of the process and Balance
more votes and complete the compromise.
1.6 DMAIC cycle, the final stage “control” accomplishment
The verification time ensures proper use, documentation, measurement and maintenance of the
solution. But that does not meet the challenges. Control is often called blocking of bad things.
The purpose of the audit is to make sure the systems work so that employees and all
organizations can make changes (Qureshi, Janjua, Zaman, Lodhi & Tariq, 2014). The level of
control includes: actual changes, whether physical, behavioral, or both; redesign of procedures
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and staffing for new processes that allow systems to measure and monitor new processes such as
management maps; and write an action plan.
1.7 Lean thinking advantages in integrating with six sigma & process improvement
Lean and Six Sigma have been determined over the last two decades that cost, quality and time
can be greatly improved by focusing on process. Although Six Sigma focuses on changing and
improving the processes with the help of statistical tools, Lean focuses on improving waste and
limiting flow through the following principles (Pepper & Spedding, 2010). Six Sigma eliminates
the error, but does not solve the problem and Lean principles of statistical devices, which are
often necessary for the procedural ability to achieve that. Therefore, many experts believe that
the two methods create one another. While each approach can be greatly improved, with the help
of two methods at the same time the ability to solve all proses problem is the most appropriate
tool.
1.8 Importance of creating value stream process maps
Purpose of systematic reduction of waste, which in most cases involves economical savings in
terms of economic costs. Most of the continuous development (kaizen) is a clear process and
usually there is no need to re-evaluate the current practice of good investment. Companies
controlling the cost flow offers its customers many high-quality benefits. Given that delivery
times are shorter and more reliable, the reputation of the service increases (Serrano Lasa, Ochoa
Laburu & de Castro Vila, 2008). Managing growth issues is more important. The organization
apparently tries to improve and maintain the coherence of value flows. Collaborate with others to
maximize the efficiency of larger / larger streams. This common concept is evident in the
Japanese industry. Value flow mapping is used as a tool by which JIT policies can diversify
supply chains. There are benefits if your organization wants to introduce new products.
Developed skills allow the team to change the value of the supply chain. Good bargaining can
create a new cost base for new products. In addition, organisations can choose highly qualified
partners to deliver a new product. The Value Stream Process map is a strategic project that sells
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and improves design operations, panel operations, human resources, development staff,
classification of IT resources, and so on.
2.0 Topic Two questions: Design for six sigma for supply chain design
2.1 DFSS and its benefits in supply chain design and management
Six Sigma Design (DFSS) is another way of developing new products or processes. Traditional
Sigma uses DMAIC or definition, measurement, analysis, development and control. This method
is most effective to improve the current process or change product plan by step. On the contrary,
Six Sigma's design is mostly used for the complete transformation of a product or process (Lee
& Chang, 2010). The methods or steps used for DFSS depend on the organization or
organization that governs the process. This information is the product and process design. The
DFSS team must be versatile to ensure that all aspects of the product are calculated, from market
research to completion. The purpose of DFSS is to create products and processes that minimize
the cause of errors and varieties. It seems that the process developed with DFSS is 4.5 sigma or
more.
2.2 Redesign a supply chain process using DFSS
Accurate and reliable information is needed to support decision-making. Due to the high number
of participants in the supply chain, it is often difficult for organizations to communicate
information within the term (Thomas, Barton & Chuke-Okafor, 2008). Therefore, this study
suggested improving information on varied activities. Six Sigma Design Methodology (DFSS),
designed to develop a strong information technology that effectively returns the supply chain of
mobile materials through three internal containers. In the case of the supplier participating in the
chain, improvement of communication and dignity during the period allowed new access to
information and redesigning of supply chain processes.
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3.0 Topic three questions: Six sigma applications in the supply chain
3.1 Key factors for implementing a successful six sigma program for supply chain
management along with the obstacles and challenges of the six sigma method
The key factors through which a successful six sigma program for supply chain management can
be implemented are;
o Strong leadership and top management commitment (Jeyaraman & Kee Teo, 2010)
o Organisational infrastructure
o Cultural change
o Training
The obstacles and challenges of six sigma method are;
o Lack of leadership commitment
o Incomplete understanding of six sigma methodologies (Snee, 2010)
o Poor execution of six sigma processes
3.2 Six sigma applications for logistics and supply chain management
Lean Six Sigma improves the manufacturing process in different ways. The disadvantage of
destroying all types of waste and the promise of Six Sigma's delay in defining mistakes,
changing processes and effectively combining the ongoing development of the DARS process
(Hazen, Boone, Ezell & Jones-Farmer, 2014). Companies now use Lean Six Sigma to eliminate
waste and reduce its spread. Lean Six Sigma improves efficiency in different ways. Six Sigma
DMAIC proposes an existing command process and helps DMADV create a new process. The
following are the benefits of applying six sigma.
 Becoming reactive: Organizational engagement must be flexible and responsive to
changing customer needs. The company tailored to changing customer needs introduced
the first step to create a bidding chain that meets the requirements. In the Six Sigma
definition phase, organizations need to assess their growth through quality-conscious
customers (CTQ).
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 Redirects the error to zero: An unsuccessful supply chain requires a high leverage for
Lean Six Sigma. This is a troubleshooting procedure that prevents human errors by
removing the user from performing the task. The Lean 5S principle reduces waste
disposal waste. 5S is a tool for separating, adjusting, lifting, standardizing and
synchronizing. This helps create a clean, safe, efficient and clear environment that will
change the risk of human error.
 Order optimization: Orders will lead to full, complete and correct documentation and
damage to transportation. Six Sigma is one that optimizes performance because system
problems can be considered as efficient and temporary planning and implementation.
Lean will play for waste disposal and road conditions.
 Reduction of waste: Lean carries out activities that do not give value to customers, such
as waste. Lean eliminates invalid processes to deliver a more efficient delivery.
Lean Six Sigma helps businesses improve their transport needs. A good supply chain offers
lasting competitive advantages and higher incomes.
4.0 Topic four questions: SCOR and Six sigma
4.1 SCOR model with its strengths and weakness
The supply chain reference model (SCOR) is a management tool for managing, improving and
disseminating decisions regarding supply chain management in the company, supplier and
customers. The model describes the business processes needed to meet the needs of customers
(Estampe, Lamouri, Paris & Brahim-Djelloul, 2013). This helps to explain processes in the
supply chain and serves as a basis for streamlining these processes.
The SCOR process can process details at multiple levels to help the company analyze the supply
chain. Companies should evaluate the development of their supply chain. This process helps
companies understand that five steps are repeated several times between suppliers, companies
and customers. Each step is part of the delivery key, which is a label for the implementation of
the product at all levels. The SCOR model can be edited for companies that recognize supply
chain problems. This model makes full use of venture capital investments, only the supply chain
model, adjusts business operations and generates an average of 2 to 6 times more than cyclical
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investments. The weaknesses of the SCOR model include its applicability in accordance to
modeling.
4.2 SCOR Six sigma (Lean) convergence, SCOR add to six sigma and vice versa, give an
example of an application.
The SCOR power supply is based on a specific hierarchy (Lee & Chang, 2010). The size of the
supply chain is based on the ability to handle the size, size, and size of the hinge. The SCOR
model can only be a consideration for all types of the supply chain. The supply chain adjustment
or delivery is important for the organization. Convergence of Six Sigma (lean) and SCOR allows
benchmarking of performance and quality management. An ideal example of such convergence
can be seen in Amazon’s supply chain, where efforts are made to add six sigma processes and
SCOR model for enhancing efficiency and effectiveness.
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