Supply Chain Optimization by applying Lean and Six Sigma

A company’s supply chain is its lifeblood.  The opportunities for improvement and change are numerous once identified.  To dramatically improve the speed, flexibility, and cost of the supply chain requires a structured and systematic approach.  Our proven approach follows the DMAIC Six Sigma operations improvement process, integrates Lean principles, and includes the DMADV Design for Six Sigma process as well.
The following outline describes at a high level how to achieve Supply Chain Continuous Improvement.

1. Mobilize for Improvement and DEFINE the Opportunities
   
   1. Systematically evaluate and select opportunities focusing on tangible improvement
   2. Build and train teams assigned to specific improvement projects
2. MEASURE, Monitor, and Analyze Performance
   
   1. Performance Measurement Indentification
   2. Performance Measurement Tracking
   3. Performance Measurement Monitoring and Analysis
3. ANALYZEand Diagnose the Supply Chain
   
   1. Design of Products and Processes DFSS (Excellence, Assembly, Manufacturability, Installation, Service, and Reliability)
   2. Supply of Raw Materials and Components
   3. Conversion and Production
   4. Fielded Product Reliability and Customer Feedback
4. IMPROVEthe Processes, Products, and Service Delivery
   
   1. Establish and Implement the Required Actions
5. CONTROLthe Processes, Products, and Service Delivery
   
   1. Quality Management System
   2. Monitor the Steady State

Process Predictability Management has applied this process to numerous supply chains with dramatic results.  We can both teach and guide your team to apply these methods to your supply chain.  If you are serious about dramatic and continuous improvement contact us.  We are here to help.

DMAIC or DMADV, Which Process to Choose?

To choose the proper process for the improvement project requires a brief understanding of each of the acronym based processes of DMAIC and DMADV.  DMAIC is namely Define, Measure, Analyze, Improve, and Control. Its five phases are geared toward breakthrough improvements in products, processes, and service delivery.  DMADV is namely Define, Measure, Analyze, Design, and Validate.  Its five phases are geared toward development of new products, processes, or service delivery.

Choosing which process to follow can be a little confusing at the outset of an improvement project where the names of the first three phases for each of the processes is exactly the same.  To clarify the differences in the first three phases in DMAIC it’s clearly spelled out as Define, Measure, and Analyze with no hidden meanings.  In DMADV the definitions need clarification:

• Define - Development Project Definition


• Measure – Product, Process, or Service Delivery Requirements Definition


• Analyze - Product, Process, or Service Delivery Conceptual Design

If the project’s goal is to develop a new product, process, or service delivery than clearly the process to follow is DMADV, which is a five phased development process.  If the project’s goal is to improve an existing product, process, or service delivery than clearly the process to follow is DMAIC, right?  In most cases it is, but if the existing situation is so broken and just fixing it won’t provide the ability to meet or exceed customer requirements a course correction to DMADV from DMAIC is in order.

Was time wasted by starting off with DMAIC?  The Define and Measure phases in the DMAIC process generate deliverables that will be essential in the development project.  The Analyze phase provides great detail about the failure modes that a new product, process, or service delivery will have to mitigate to be successful.  Time wasn’t wasted, but the conversion from DMAIC to DMADV should take place during the Analyze phase at the latest.  Often after the Measure phase it is clear that a new development is required to meet customer expectations.

From the outset if the project is a new development it is DMADV.  Otherwise, start with DMAIC and course correct if it is determined that redesign is required for the product, process, or service delivery.  Time will not have been wasted unless you don’t course correct.

Gemba Kaizen – Are We Patient Enough?

Gemba Kaizen is the philosophy of small incremental improvements every day, every week, and every month. It all adds up to significant benefits at the end of the year, but are we patient enough?

Gemba in Japanese means “Real Place”, which is where products are produced and where customers meet service providers. Kaizen means “continuous improvement” which is defined as small, incremental improvements, where if we spend any money it is minimal, and the improvement results are measured in hard cost savings, higher quality, and better productivity.

There are three cornerstones that support the Gemba Kaizen philosophy of continuous improvement.
1. Eliminate Waste
2. Housekeeping
3. Standardization

Eliminate waste is based upon the seven wastes as defined by Taichi Ohno, the father of the Lean Philosophy, which was originally known as “Just in Time”.
1. Overproduction – minimize producing more than is necessary to meet customer demand.
2. Inventory – minimize the quantity of raw materials, components, semi-finished, and finished goods on hand at any time.
3. Scrap, Rejects, and Repairs – minimize the time and cost associated with evaluation, disposition, repair and materials, scrap disposal, material handling, storage, expedited shipping, overtime, and non standard labor
4. Motion – minimize the motion and wear and tear on the employees through workplace design, ergonomics, and safety
5. Processing – minimize processing steps, travel distance, cycle time, and inventory levels
6. Waiting – minimize the downtime of equipment, changeover and set-up time, lack of parts, and synchronization between process steps and processes.
7. Transport – minimize transportation of materials and components on trucks, forklifts, and conveyors

Housekeeping is based upon the philosophy that order, organization, and cleanliness fosters pride and efficiency in the workplace.
1. Sort the Tools and Objects that are Used from those Not Used
2. Straighten the needed items so they are easy to find, use, and put away
3. Scrub and clean the work area, which includes shelves and cabinets
4. Systematize the times and frequency for cleaning and putting all items back in order
5. Standardize your efforts and report progress on the work group’s Visual Management System

Standardization is based upon repeatability and reproducibility of the best, easiest, and safest way to do a job or provide a service. Repeatability means that I will be consistent time after time and reproducibility means that the entire work group will be consistent time after time.

To drive small incremental improvements every day, every week, and every month is best accomplished following a simple four step cycle. This cycle, often referred to as PDCA, was originated by Walter Shewhart and promoted in Japan by W. Edwards Deming. PDCA is the acronym for Plan, Do, Check, and Act. The following is the continuous cycle.
1. Study the Process (Check)
2. Determine Corrective Actions (Act)
3. Plan and Prioritize the Actions (Plan)
4. Implement the Improvements (Do)

The cycle is then repeated to validate that the improvements are actually working and new opportunities are identified every day, every week, and every month. Just think of the result at the end of the year if a ½% improvement was made every week. It all adds up to significant benefits at the end of the year, but are we patient enough?

Gemba Kaizen training is available at EducateVirtually.com complete with all the tools needed for the continuous improvement journey.