It is well understood that a customer finally pays money for the efficiency of not just the manufacturer/ service provider but the efficiency of the entire supply chain (also called value chain in the service sector). This means we expect high efficiency to be delivered through the entire Chain.

A Manufacturer can provide a quality which is highly dependent on -

• The Suppliers and the suppliers of suppliers (reaching sometimes up to mining or extraction of a natural product)

• Clients and clients of clients. (going through value addition by clients, and moving through Distributors, Stockists and Retailers finally reaching the end user)

Somebody who is managing the supply chain has to manage the issues of quality and delivery across the supply chain. This means he has opportunities if doing DMAIC and DFSS projects involving suppliers and intermediaries.

 

Some industries impose certain certification programs on suppliers - for example, an automotive component supplier needs to have TS 16949 certification and his suppliers need to be ISO 9001 certified. Similarly, some other companies (as in electronic industry) have supplier approval and supplier assurance programs. Some other industries are keen to know about labour practices, ethics, environmental and safety consciousness of their suppliers (example - pharmaceutical industry)

 

All such programs can be complemented by Lean Six Sigma because Continual Improvement is a requirement in all such programs. Lean Six Sigma has now become synonymous with continual improvement.

 

Any Comments?

how this is going to help continual improvement in supply chain

Good point Ravi. I have not been very clear in the previous message.

Big improvements happen when we convert improvement opportunties into well defined projects, assign the right team members, have the right management support and approval and use a structured methodology (like DMAIC)

After tasting success with Six Sigma and setting their own house in order, many companies induce/ recommend/ suggest Six Sigma implementation in upstream and/or downstream companies.

Companies like GE induced many suppliers to use Six Sigma. Similarly automotive companies are training and developing their suppliers on usage of Six Sigma techniques, Banks are forcing their service providers to use Six Sigma in their BPO environments.

Common projects taken up are -

• Reduce delivery time without increasing cost.
  
• mprove quality without increasing delivery time.
  
• Reduce delivery time without reducing quality.
  
• Reduce cost without increasing delivery time.
  

Implementing Six Sigma is too costly is it wirte?

Dear Muthu,

Six Sigma is the only approach that is based on ROI (return on investment). Like every improvement initiative, it has its costs (Costs in terms of time and effort people spend while doing projects in addition to obvious training costs). 

The key lies in having a good mechanism for project selection. Only those projects which promise a good annualized ROI should be selected. (for example one company had a criterion of 1:5 ROI for project approval). If 8 out of such 10 projects succeed, the company would make profits to the tune of more than 4 times investment within first year. The benefits accrue year after year and overall impact can be huge when many projects are carried out. 

Thanks Mr. Vishwadeep.

 

 

Dear Viswadeep,

It is known fact that more tan 60% of the times our Q,C,Ds to our customers depend on the Q,C,Ds of our suppliers. When we have a "Q" problem, the first comment is "there is a problem in the part supplied??Same for "D" We are not able to deliver because of parts not available in Time??. Plenty of reasons and scope for Six sigma projects in this Area!! Cost projects should be initiated as joint projects with suppliers, instead of forcing them to reduce prices year on year.

Sripathy

Dear Sripathy,

I agree - instead of thinking about them as suppliers, maybe we should consider them as process partners. We need to limit the number of partners we work with and jointly work with them to improve their (and our) performance.

SJ

ya its a really good point.

Hi Vishwadeep,

As i mentioned in my previous mail that i am working in Supplychain management and am expertizing my self in the same domain. I would like to start doing a GB, but how to start or what is the initial step that i need to pursue in order to start ........

Hi Vishwadeep, I beg your pardon in starting to answer this question from Rakesh, however, please correct me anywhere I go wrong. Thanks.

Hi Rakesh,

I am in the supply chain field in a Telecom company, and currently working on a project for improving timelines for order completion. I can very well understand your dilemma and would like to share my experiences before starting my project.

As we know, in supply chain, the more crucial points are what things to be delivered where and when, i.e. :

1. Target delivery dates

2. Correctness of the related information like cost centers, delivery centers, revenue centers and profit centers.

3. List of items to be delivered

Considering such scenarios, I find supply chain has a huge scope of GB and BB projects as there are innumerable roadblocks and chances of mistakes along with customer specifications in the entire order life cycle. Hence, I chose the VOB (Voice of Business) as the starting point in my hunt for a potential GB project. Currently my project on meeting target delivery dates is at Analyze stage as that has the maximum impact on the C-SAT as well. I begun with the 8-D format and then converted into a GB project.

I guess if we can enlist and categorize our activities under VA/NVA and VOC, VOB etc, it would answer our questions on where to start with.

I'd be glad to help you (if you think I can and hope have been able to somewhat answer your question on the same.

Cheers,

Shreshtha.

Hi Shreshtha,

What is C-SAT & 8-D format?

J. Samuel

Hi Joseph,

I am sorry about the jargons, C-SAT mean Customer Satisfaction and 8-D is 8 Discipline methodology.

The 8D Problem Solving Process to identify, correct and eliminate the recurrence of quality

problems. The 8D is a methodology for product and process improvement. It is structured into 8-disciplines, emphasizing team synergy.

The 8 steps being :

1. Establish team

2. Describe the problem

3. Implement and verify interin containment actions.

4. Identify RCA

5. Chose and verify corrective actions.

6. Implement and validate Permanent correct actions.

7. Prevent recurrence.

8. Congratulate the team.

Although it appears similar to 6-sigma, however, it is lot statistically diluted and can be used to solve easier issues.

Thanks,

Shree.

Hi Shreshtha,

Do you have any 8-D format?

Dear Muthu,

Can you please check the link for your 8D format requirement...

www.thequalityportal.com/forms/8D.doc

Cheers/edward...

 

Thanks Edward.

Hello guys,

Could you please anyone explain how does Six sigma will help supply chain process and GB and BB will help SCM professionals.

 

 

Dear Raghavendra

To have an overview of application of Six Sigma in logistics, you may click on the following link

http://forum.benchma...s-supply-chain/6

Warm regards

AbhishekM