PDF | Supply chain management (SCM) is essential for any company to survive the increasing pressures of global competition. There have. PDF | SCM is essential for any company in order to be able to survive the increasing pressures of global competition. There have been. PDF | Global Supply Chain Management is the management of supply chains located globally. Quality control methods such as Lean and Six Sigma are used for.

Lean Six Sigma For Supply Chain Management Pdf

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tent improving of the supply chain process by applying the lean six sigma concept will affect Delivery and speed, Quality processes and the search for new management con- cepts are .. TR_V9_N4_CD_Version/ tranarkiptinan.gq Case Study on Integra ng SCOR and Lean Six Sigma During Analysis Supply Chain Management links func onal execu on processes. Six Sigma Projects in Supply Chain Management. Suppliers. (International) . +. +. +. +. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Sample. UCL. LCL.

AccessEngineering Full view. More options. Find it at other libraries via WorldCat Limited preview. James William , author. Bibliography Includes bibliographical references and indexes.

Contents Ch 1: Nielsen Book Data Publisher's Summary A unique, step improvement process for identifying and solving the root causes of supply chain problems using the latest lean manufacturing principles Fully revised to cover the dramatic developments in supply chain improvement methods, Lean Six Sigma for Supply Chain Management, Second Edition provides the guidelines, tools, and techniques required to eliminate supply chain issues and boost company performance.

This updated edition offers new coverage of enterprise kaizen events, big data analytics, customer loyalty metrics, security, and sustainability. This practical guide demonstrates how lead time and demand impact customer service and inventory investment levels and provides a blueprint for supply chain continuous improvement.

Nielsen Book Data Subject Business logistics. Six sigma Quality control standard Quality control. Bibliographic information. Note Electronic reproduction. Chicago, Illinois: Mode of access: World Wide Web.

System requirements: Web browser. The objective for all part- ners in the supply chain, not just an individual participant, is to increase market share through quick response to customers' needs.

This can only happen when information, materials and products flow smoothly and quickly, in sync with demand.

The second reason is operational in nature and a prerequisite for establishing an inte- grated, mutually dependent relationship between company and selected customers. Cus- tomer and supplier operations must be streamlined for lean.

This is best done by devel- oping ways to quickly share relevant information to support synchronized material flow for quick response to customer needs.

No matter what company is, its success in achiev- ing these objectives may well determine its future. Many companies now recognize that an entire lean supply chain is critical to their success. The fact is that customers are going Lean Production and Six Sigma Quality in Lean Supply Chain Management to work more and more with "lean supply chains" that consistently and reliably meet their quick-response needs. Dell Computer provides a good example of a successful lean supply chain strategy.

Many are envious of how Dell's management team made the company into a short-cycle, configure-to-customer-demand product while improving all other significant measures of business performance at the same time.

[PDF] Lean Six Sigma for Supply Chain Management Second Edition: The 10-Step Solution Process

Dell Computer is one of few that have success- fully tied the entire supply chain into short-cycle, synchronized flow of customer demand, material from suppliers to manufacturing and on to the customer, creating a truly lean supply chain. Importantly, it also includes coordination and collaboration with channel part- ners, which can be suppliers, intermediaries, 3PLs, and customers.

In essence, supply chain management integrates supply and demand management within and across compa- nies [10]. Supply Chain Management has matured from a compelling method of deriving competitive advantage, to a "ticket to ride".

It is now a baseline expectation for any com- pany wishing to compete in the 21st century, and with that the professions and occupa- tions comprising Supply Chain Management are now firmly entrenched in the armory of essential business executives [16].

Supply chains tend to accrue waste and non-value added activities for many reasons, both internal to the company and external. Regaining lean supply chain efficiencies may mean addressing many of the same issues that created the problems of extra and unneces- sary time, inventory and costs. Supply chain management, especially developing and implementing lean supply chain management, has challenges that must be acknowledged.


These are in addition to the "usual" company issues with lean, such as lack of implementation know-how, resistance to change, lack of a crisis to create urgency, gaining resources and commitment, and back-sliding. Lean has become a strategic method for gaining competitive advantage and even for survival, not just for manufacturers, but also for retailers and wholesalers.

Adding value and removing waste are no longer options for companies.

Non-lean practicing companies face competition from foreign made goods—competition which can have significant im- pacts on their business and industry. Even lean practitioners understand that the effort to be lean is ongoing. When the focal firm, its suppliers, and its customers begin to work together to identify customer requirement, remove waste, reduce cost, and improve quality and customer ser- vice, it marks the beginning of lean supply chain relationships [35, pp.

Lean supply chain management gained popularity in the manufacturing area as this is where significant improvement can be achieved. Manufacturing processes can be improved to reduce waste and resources while maintaining operational performance.


Companies who have adopted lean supply chain practices have examined each of their routings, billed of materials and equipment to identify where improvements can be achieved. Supply chains are meant to pull, not push, inventory through the supply chain.

This is exactly what lean logistics is also about—removing waste and variation from supply chains; it is what Kanban, Pull, is about with Lean Lo- gistics. Lean logistics [13] presents a business with several challenges due to the many differ- ent hand-offs that are involved when moving items along the supply chain.

Lean logistics has many challenges for global-oriented companies which are operating in the global market with many different organizations. Some reports state that it requires the involve- ment of as many as 17 different organizations to deal with one single shipment.

These organizations would be the suppliers, terminals, truckers, freight forwarders, customs brokers, railroads, air and ocean carriers, etc. So bringing lean logistics into such a large and extended multi transactional supply chain is not an easy task. It often means that some of those organizations involved are sometimes working together and at odds at the same time with each individual shipping transaction.

This leads to additional non-value added activities being generated throughout the supply chain which creates waste muda. There are seven basic types of waste that were defined by Toyota managers. Such systematization can be applied in any company, for any process and it is the basis of LEAN concept — enterprise without waste.

Lean Supply Chain Management: A Handbook for Strategic Procurement

Any product that is not immediately sold, or built into the final product, takes space, reduces the financial resources that a company has and disrupts the flow of production. The term DEFECTS includes errors in documents, giving false information about the prod- uct, late delivery or making too much waste during processing. All this increases the cost of storage as well as the percentage of defects in production.

Ideal situation which the manu- facturers are striving for is when a material is transferred to the next machine im- mediately after the processing was finished on the previous one.

This happens because of bottlenecks, bad compliance or delay in transportation. Also, poor workplace ergonomics or unprepared workplace affects preliminary-finishing time of machines, which reduces effi- ciency. This is usually related to the limitations of the procedures, or their inaccessibility and the result is often the production bottleneck or defects on products.

Although Lean and Six Sigma programs were initially separate initiatives in most organizations, today's firms see that Lean and Six Sigma do not compete with each other, but rather the two complement each other and provide for dovetailing of continuous improvement activities.

Further we would like to stress the importance of lean production and Six Sigma for the lean supply chain management. The focus of the 'lean'' concept, as we noted, is to eliminate all waste i. Waste can be measured in time, inventory and un- necessary costs.

Value added activities are those that contribute to efficiently placing the final product at the customer. The supply chain and the inventory contained in the chain should flow. Any activity that stops the flow should create value. Any activity that touches inventory should create value. Lean concept can be easily applied in relatively stable and therefore predictable environment where the requirements demands of cus- tomers are similar.

But when demand is in variable and when the requirements of their customers are very diverse, more important, is to quickly respond to changing customer demands rather than eliminate wastes. Supply chain agility is the chain that is able to re- spond to changing market demands and market [2, ]. Lean supply chain management, we would like to stress gained popularity in the manufacturing area, where significant improvement can be achieved.

Manufacturing N. Companies who have adopted lean supply chain practices have examined each of their routings, bill of materials and equipment to identify where improvements can be achieved [13]. Actually, the term lean production did not originate at Toyota.

The IMVP conducted a global automobile quality and productivity benchmarking study which culminated in the book, The Machine that Changed the World wherein the elements of lean production and the benchmarking results were presented [36]. The IMVP is the oldest and largest international research consortium aimed at understanding the challenges facing the global IMVP researcher Matthias Holweg, right, discusses line innovations during a Nissan factory automotive industry.

IMVP, founded, has mapped lean methodologies, established benchmarking standards, and probed the entire automotive value chain. The program's data-driven methods set the standard for industry research. However, Toyota understood that they as an organization had a larger obligation than preserving the resources of Japan while building automobiles. Limiting the company's impact on Japan's resources, they were also obligated to the country to maximize the use of organizational resources to sustain the organization long-term.

By doing so, Toyota became a leader in corporate citizenship by providing jobs to the Japanese and supporting the local community.

Toyota achieved this through its value of social responsibility. Chang-Ran Kim on December 25, [17] writing for Reuters reported that Toyota Motor Corporation will charge further into emerging car markets to achieve another year of record sales in , likely cementing its title as the world's biggest automaker ahead of General Motors Corporation.

Lean production [7, 38] is all about creating process and work area improvements to ensure the job is being done efficiently. One of the most important issues is the decision about how much effort and time the company is willing to spend in the area of lean im- provements. The company must understand both its business needs and customer de- mands. Lean improvements can cause a slowdown in production if any reorganization of workstations or machinery is required.

Overall, a business should not begin implementing lean improvements without first creating goals and objectives [12]. In a recent survey of manufacturing, distribution, and warehousing managers, respondents said the most im- portant practices in manufacturing were continuous improvement and lean manufacturing, while the most important practices in warehousing were continuous improvement, value- added services, and lean inventories [6, p.

Lean production is a set of methods and techniques that aim to reduce any waste that occur during the manufacturing process and all processes in the enterprise to the fullest. At the beginning, Lean terminology was connected exclusively to the production. After several years of attempting to bring Lean concept into the production processes of Ameri- can car companies, there came the conclusion that such thing was impossible.

It was nec- essary to adjust the entire company to the philosophy of continuous improvements of pro- duction processes and eliminating redundant costs in order to have the full effect of Lean. It is necessary that everyone, from top management to employees at the facility, knows the essence of Lean and is committed to its implementation [27]. As of , it is widely used in many sectors of industry, although its use is not without controversy.

Maryland-based aeronautics firm Lockheed Marttin,s Missiles and Fire Control Operation in Arkansas combine Lean and Six Sigma program was re- sponsible for reducing the lead time for Patriot missiles from 18 down to 12 months and over a 5-year period, 91 Lean Six Sigma projects saved more than 23 million [26, p.

Six Sigma seeks to improve the quality of process outputs by identifying and remov- ing the causes of defects errors and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization "Black Belts", "Green Belts", etc. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets cost reduction or profit increase.

The term six sigma [7] originated from terminology associated with manufacturing, specifically terms associated with sta- tistical modeling of manufacturing processes.

With Lean Six Sigma [34] your business will take a look at the way it is organized and how all the processes work together. Product development can save your company a lot of money if you spend enough time on it to do it right.

With the product development phase you will take a look at the raw goods and all the other necessary supplies and equipment you need to produce and ship your products. The idea is to fuse Lean production speed with elimi- nation of variations by statistical and other methods and techniques from Six Sigma [7, 31].

When implementing Lean system in an enterprise, the main elements of Lean have priority, and then Six Sigma would run in parallel with other methods and techniques of Lean concept. The production gives signals to the workstation which stands N. This way, all the employees are involved in this continuous process.

When Lean principles are implemented enterprise-wide using the value stream maps that have been developed, waste is eliminated across all departments within an organiza- tion. It is important to remember that to be truly "Lean" and eliminate waste these princi- ples must be implemented throughout the organization in order to experience lasting change.

This requires focus on Lean principles from the product and service area, suppli- ers, distributors, customers and the various departments in the organization.

To truly experience the great benefits of a Lean organization and greater profits, or- ganization must be completely committed to the full implementation and execution of Lean principles throughout the organization, eliminating waste and improving quality - regardless of the department. The impact of Lean on a logistic is significant, as the goal of Lean is eliminate waste inventory which will decrease work in process inventories which in turn will decrease process and cycle times and ultimately increase supply chain velocity and flow.

Lean also has a vital cultural element to it that is crucial to a logistic. This is the con- cept "Total Cost ". The Lean practitioner does not focus on individual cost factors such as transportation or warehousing, but rather focuses on "total cost of ownership".

Unfor- tunately though many organizations never fully embrace total cost concepts, poor deci- sions are continually made based on traditionally visible cost drivers like transportation, warehousing and ill-fated sourcing practices. The two basic principles, con- tinuous flow and pull system must be fully met, while others can be acquired through the LEAN philosophy in an enterprise, and everything must be focused on continuous im- provement.

Methods and techniques of LEAN con- cept could be schematically presented as a house - a stable creation of human labor.

If we had to explain LEAN as parts of that house, supporting pillars would be "Just in time" and Jidoka or creating quality at the source. Foundation of the house would be easy visual system management, increased standardization, process stability and bal- anced production.

Such a house would be maintained by teams of people through teamwork, aiming towards the continuous improvement of business Figure 3. The value is defined from the customer's point of view. That is why all methods and tech- niques in LEAN production aim to continuous waste removal. Just in time — the concept of production and supplying guided by the following prin- ciple: a compound part that should be installed during the manufacturing process is N. This mode of production and logistics support can be accomplished as a result of accurate planning of production and the planning of distributive chain management.

Standardized work — means that the production processes and procedures that de- scribe the production stages must be detailed and precise. Procedures must describe how each operation should be performed in a clear and visually simple way. This reduces variations in the manufacturing process. If the procedures are not clear, workers can mis- interpret them and make errors during processing products.

High level of the process standardization enables the company to expand its capacities without impairing produc- tion. He also has to obey the rules of standardized movements.

This was precisely specified so that all workers can do their job in a similar way. This reduces variations in the process, and thus the spoilage.

Takt time was introduced to accurately deter- mine and supervise the rhythm of products manufacturing in different parts of manufacturing plants. Standardized work explanation for the workers — procedures that explain the way in which they should perform tasks in their workplaces, must not include only text, but also figures, schemes and examples.

Workers are not always willing to read the text, and it is much easier for them to accept drawings, examples and figures. Procedures must be clear and detailed, but easy to understand at the same time. Standardized work and flexibility — although the procedures are very strict and pre- cise, LEAN manufacturing promotes improvement in production process by the workers.

Tools & Media

It is necessary to update the procedure when some mode of improvement appears in the process. To smoothly implement the improvement of the production procedure by the workers, certain responsibility for preparing and distribution of the necessary documentation and required equipment must be delegated.

Also, all changes in the process should be pre- sented to the workers in time by their supervisors.They tend to treat each tool of lean as an independent improvement potential. Large displays in the production halls are far better means of communication than written reports, and should be used as much as possible.

Bibliographic information. Sustain — sustain the Five S culture among workers. Straighten — straighten the important things to make them easily accessible.

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