Smooth the rough spots with TOC, then Lean – and fine-tune with Six Sigma


Here we are at the final installment of our four-part, Sandpaper blog series about when to use the tools of Lean Manufacturing, the Theory of Constraints (TOC) and Six Sigma to address constraints, drive flow and promote continuous improvement. Refine with Six Sigma.

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.


Reason #6 Not effectively managing inventory. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric.

Employing this S.M.A.R.T. Technique with a Logistics Company to Create Total Stakeholder Satisfaction


Let's talk about the outputs, or desired metrics worth measuring, in each category of what a logistics company might provide. Warehousing can have numerous outputs, but here are the core outputs to expect to measure: receiving turnaround, Six Sigma quality checks, put-away time, input-output warehouse rack time, cycle counting, shipping time, re-slotting times, labor times, human resource performance. Consider Six Sigma quality will be used and measured.

Eliminating Your Excess Inventory

Loop Supply Systems

Eliminating Your Excess Inventory. Excess inventory is experienced by nearly every manufacturer – and it’s a big problem. Inventory is one of the 7 Lean Mudas (Japanese term for ‘waste’). COST OF EXCESS INVENTORY. Now think about all of your inventory.

Managing a Third Party Logistics Partnership

The Logistics of Logistics

This SLA/KPI has to be negotiated and agreed upon by you and your 3PL partner.This negotiation time can take three (3) to Six (6) months. When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account.

Why Demand-Driven Manufacturing is Focused on Metrics for Action


There are two subordinate measurements: Inventory and Operating Expense. These three measurements cover the gambit of what needs to be measured because they are directly related to customer orders, cash captured inside the organization, and the cash it takes to turn inventory into sales.

9 Steps to Establish the Lean Supply Chain: A System of Interconnected & Interdependent Partners


There should be metrics involved to monitor these objectives to ensure success across the supply chain. These metrics should be reviewed frequently to ensure supply chain success. o Space—holding places for unnecessary inventory. Inventory velocity and inventory reduction.

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What’s the biggest cause of poor performance in every supply chain?

The Network Effect

In part one I laid out the 5 stage maturity model that shows how organizations can turn their “big data” into “big visibility” The stages are 1) Representation; 2) Accessibility; 3) Intelligence; 4) Decision Management; 5) Outcome-Based Metrics and Performance.

How to Sustain a Lean Culture in Manufacturing & Supply Chain


Developing Standard Work is one of the more difficult Lean Six Sigma disciplines; however, if efficiently developed, it should allow virtually anyone to perform the work without any variance in the desired output. These metrics would, of course, be aligned and are updated every hour.

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Make Your Supply Chains Less Complex – and Less Wasteful!

Talking Logistics

Mariotti states that you first have to measure it, and he outlines several metrics and techniques in the book, including ranking customers by annual sales, profit, and gross margin percentage. Inventory : Having raw materials, work-in-progress (WIP) or finished goods that are not having value added to them. Take, for instance, Six Sigma black belts.

Supply Chain Management Services


Do they embrace a methodology like lean, six sigma, or operational excellence? Focus on total logistics cost reduction (transportation, warehousing, and inventory). Choosing the right target means defining your metrics, such as measuring carrier performance.

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Real-World Scenario: Best Practices for Warehouse Contracts: Part One


Currently they incur a annual spend of USD 380-420 Million for their warehousing needs, of which ~60% spend is for brand new six warehouses (average space of 1.5 All these warehouses are used for storage and distribution of finished goods, the six new warehouses are brand new and involves complex operations (full pallet in and mixed pallet out or case deliveries)while the 25 warehouses have more standard /generic operations (full pallet in and full pallet out). Customer metrics.

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A perfect supply chain?


by Matt Benson If your 3PL supply chain problem was to deliver 400,000 items daily from supplier to customer and your on-time in full metric was a six-sigma target standard of 1 failure per million, how would you do it?

VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. Inventory Turns. Better performance in inventory turns than the peer group average for the period studied. Our phrase, at the time, was “inventory kills.”

Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

The answer is that they use the multi-echelon inventory model to solve the problem. The key ingredients of Dell''s supply chain are the partnership with suppliers, part modularity, vendor managed inventory program, demand management and mass customization.

Guest Blog Part 2: Start Your eKanban Implementation with Value-stream Mapping and Engaging Your Suppliers


With eKanban implementations, this can be any number of problems including excess materials on hand, slow inventory turns, too much scrap and more. If you’re not using a manual Kanban system, map the current inventory replenishment process.) Monitor your metrics. by Jim Shore.

What Going Digital Can Mean for Your Warehouse Operation


Many Lean Manufacturing or Six Sigma Methodologies champion this while calling for process improvement and business optimization through faster, safer and more comprehensive approaches. 1) Master Your Supply Chain.

Lean initiatives and the Supply Chain

The Lean Supply Chain

There should be metrics involved to monitor these objectives to insure success across the supply chain.These metrics should be reviewed frequently to insure supply chain success. o Space—holding places for unnecessary inventory.

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Judging Supply Chain Improvement: Campbell Soup Case Study

Supply Chain Shaman

We have found that supply chain metrics are gnarly and complicated.During The balance factor tracks progress on both year-over-year growth and Return on Invested Capital (ROIC), and the strength factor is based upon improvement in both operating margin and inventory turns.

4 Common Supply Chain Cost Blowouts

Logistics Bureau

How to fix the problem: Some measures that your company can take to prevent supply chain cost blowouts as a result of inefficiency include: Implement a continuous improvement program, such as lean or Six Sigma. Implement performance metrics and monitor a selection of key performance indicator. Inventory. The problem is usually created by holding too much static inventory. Naturally, there is the direct cost of procuring and holding the inventory.

Like A Green Lump of Clay….

Supply Chain Shaman

For mature supply chain organizations, it is a natural extension of six sigma. Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP? There are seven primary agility levers: Analysis of Form and Function of Inventory: Form of inventory is the decision of what form to hold the inventory in: raw material, semi-finished good or finished good. My iphone buzzed on my nightstand. I groaned. I had gotten to bed late.

You Have To Start Somewhere


The other option is to take inventory of the crucial concepts as they relate to your team members and your drive towards continuous improvement and developing the training internally. Implementation: Continuous Improvement Training.

What Entrepreneur Media Wouldn’t Publish about ThroughPut: Why Industrial Operations Bottleneck Elimination is the World’s Greatest Mission


Inventory as a liability and not an asset was a big epiphany for impacting cash flows. This was as true as in hydraulic fracturing in 2011 as it was in managing telecommunications finished goods inventories in 2019. They think in terms of lean six sigma, which is a more generalized accreditation that mistakenly encourages its practitioners to primarily focus on the quality side, instead of the process step elimination side.

The Current State of Bottleneck Management and What Companies Need to Do to Improve


Inventory as a liability and not an asset was a big epiphany for impacting cash flows. This was as true as in hydraulic fracturing in 2011 as it was in managing telecommunications finished goods inventories in 2019. They think in terms of lean six sigma, which is a more generalized accreditation that mistakenly encourages its practitioners to primarily focus on the quality side, instead of the process step elimination side.

Seasoned Leadership in Action! An Interview with Paul Kretz, Head of SCM at Church & Dwight!

Supply Chain Game Changer

We installed new racking with over 32k locations, installed a new WMS using the latest technology created all new processes with pick faces and over flow locations, used six sigma tools to drive fool-proof processes and trained up the local team on RF guns and the new processes.

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What is a Service Level Agreement (SLA)? How does an SLA work with Key Performance Indicators (KPIs)?

The Lean Supply Chain

A service-level agreement (SLA) is a contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish. Many logistics service providers will provide their customers with an SLA.

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Warehouse Audit and Survey

The Lean Supply Chain

First, look at the inventory: Is it pallets? Typically, 80% or more of a company’s inventory, and sometimes accounts for more than half of its working capital , would get plenty of attention. Is your inventory turning 6-8 + times/year? Chuck Intrieri. Paso Robles, CA.