Six Sigma Tools and Inventory Management

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Growing up in the 1990s, you might have heard the term “Six Sigma” at the dinner table or in the news. In reality, Six Sigma aims to keep product variation and thus defects to a minimum. What is Six Sigma? Six Sigma Methodologies.

Multi-echelon Inventory Optimization and Lean/Six Sigma

Supply Chain Action Blog

One of the most predominant lean tools used for identifying waste is Value Stream Mapping which helps identify eight wastes, including overproduction, waiting, over-processing, unnecessary inventory, handling and transportation, defects, and underutilized talent. In inventory management, this often happens through a reduction of lead times and lot sizes. The Importance of Six Sigma. Six sigma pursues reduced variability in processes.

Multi-echelon Inventory Optimization and Lean/Six Sigma

Supply Chain Action Blog

Seiri (Sort) – sorting, i.e., proper arrangement of all items, storage, equipment, tools, inventory and traffic. The Importance of Six Sigma. Six sigma pursues reduced variability in processes. Physics and economics of reducing lot size and lead time place limitations on lean efforts and six sigma is limited by physics and market realities (the marketplace is never static). The Emerging Role of Optimization in Business Decisions.

3 Inventory Control Techniques to Improve and Maintain Inventory Accuracy

Unleashed

Inventory accuracy is vital to an organisation’s long-term success. Profits depend on the sale of inventory stock and if you don’t know what or how much you are selling then you could be missing an opportunity to maximise sales. Having poor and inaccurate inventory control can be costly because it causes issues such as unplanned stock-outs, the shipping of wrong products to customers, wasted resources trying to locate misplaced items and inventory shrinkage.

Warehouse Cost Reductions: 3 Understandings Driven By Inventory Management & Lean Principles

Cerasis

Today, I will now address how a focus on inventory will allow for warehouse cost reductions as well. A Focus on Inventory Control Begets Warehouse Cost Reductions. First, look at inventory as MONEY/CASH. Inventory cost is defined as the cost of holding goods in stock.

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

Cerasis

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. Implementing and sustaining LEAN initiatives : 5S, Kaizen, Kanban and LEAN Six Sigma to bring value to the customer and go beyond their expectations.

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

Cerasis

o Space—holding places for unnecessary inventory. o Inventory—inactive raw, work-in-process, or finished goods. When you create your Sales, Inventory, Operations and Production Plan (SIOP) monthly, or more frequently, invite your top Suppliers and Customers to the SIOP meeting.

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5 Outstanding Transport & Logistics Book for Managers

Supply Chain Opz

Then, a synchronization of inventory management, warehouse management and transportation management is essential. 2) Essentials of Inventory Management by Max Muller To the best of our knowledge, this is the most practical book about inventory management. This book covers pretty standard topics in warehouse operations such as receiving, putaway, storage, pick, pack and ship. 4) Lean Six Sigma Logistics: Strategic Development to Operational Success by Thomas J.

Do You Have a Proactive Supply Chain Design or a Reactive One?

Talking Logistics

Thankfully, digitization of inventory and technology like real-time shipment tracking from 3PLs are taking the pinch out of switching for these companies. While civil unrest could slow down production or shipments in a foreign country, natural disasters can accomplish just as much shipping disruption in North America. Even Canada, a country that’s not exactly famous for shipping disasters, was virtually cut in half by a single unexpected bridge collapse in 2016.

2018 Parcel Oversize Changes: Tightening of the Vise

Talking Logistics

minimum term in their agreement (which is nearly EVERYONE who ships FedEx). Ship to residences (where LTL isn’t generally an option). The consumer will ultimately pay for these changes in higher shipping costs at checkout. Mark also has a Lean Six Sigma Green Belt certification.

Preparing for the Future of Supply Chains

Talking Logistics

Much like the most successful business philosophies (lean, six sigma, Total Quality Management (TQM)) a handful of individuals acting alone won’t—and can’t—affect company-wide changes for the better—it takes an organizational shift. On-demand manufacturing, ordering, shipping, and even custom creations are the final frontier for impressing jaded customers; speed and precision are more important than ever before.

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. 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. 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.

The Evolution of the Direct-to-Consumer Supply Chain

Talking Logistics

All signs point to the rise of direct-to-consumer (DTC) shipping. What’s evolving is that consumers are going further down the SKU stream to have more shipped to their houses – both regularly and on-demand. Mr. McGuigan has certifications as a GE Six Sigma Green Belt and in GE Project Management, and in 2012, he was recognized as a “Pro to Know” by Supply and Demand Chain Executive.

VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

Inventory Turns. Better performance in inventory turns than the peer group average for the period studied. Orbit Chart of VTech for the Period of 2006-2015 at the Intersection of Operating Margin and Inventory Turns . It took us three years to right the ship.

Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

Moreover, products can be shipped to stores in-time then lost sales is minimal. The answer is that they use the multi-echelon inventory model to solve the problem. The secret behind its supply chain success is the use of Six Sigma approach.

Lean Warehousing

LeanCor

In a perfect world, when we receive an order from our customer, we order what we need from our suppliers, build the product, and ship it to the customer. It all starts with our inventory strategy, and I can’t stress this enough. And let’s not over complicate inventory strategy.

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Outsourcing: The Good, the Bad, and the Ugly – Lessons from Nortel Networks

NC State SCRC

PCB’s were outsourced in the 1990’s, and final assemblies not long after, but the system house where it was all consolidated, putting it through your systems test and shipping it – was all outsourced to Penang.” When they declared chapter 11 – they left Flex with $400M of inventory.

Lean initiatives and the Supply Chain

The Lean Supply Chain

o Space—holding places for unnecessary inventory. o Inventory—inactive raw, work-in-process, or finished goods. Utilize Six Sigma’s DMAIC: Define, Measure, Analyze, Improve and Control to solve any problems or roadblocks.

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Judging Supply Chain Improvement: Campbell Soup Case Study

Supply Chain Shaman

We believe that a supply chain leader is defined by both the level of performance on the Effective Frontier (balance of growth, Return on Invested Capital, Profitability and Inventory Turns) and driving supply chain improvement.

Navigating Automotive Disruption: Eliminate Bottlenecks in your Supply Chain and Lean-out Operations to free-up Working Capital for R&D

ThroughPut

For example, certain business concepts have been around so long and are captured in such well-known, catch-all phrases, like the ever-present, all-encompassing “Supply Chain” or “Six Sigma”, that they seem to lose their relevance in everyday business, such as automotive.

23 warehouse pros reveal the best ways for warehouses to control & reduce fulfillment costs

6 River Systems

It’s also very efficient, meaning it will allow your employees to process more orders on a hourly basis with virtually impossible odds of shipping the incorrect products to your customers. Define normal parameters and fine-tune the physical inventory system.

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.

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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Third Party Logistics Companies Checklist for Choosing and Qualifying a 3PL

The Lean Supply Chain

Compliance: • Who is responsible for routing, packaging, and shipping guidelines? • Who is responsible for charge-backs?

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.

CommerceHub Hires John Hinkle as Executive VP of Production Systems

Supply Chain Network

In addition to procuring and supporting hardware, software and cloud services for the company, Hinkle will also be managing and negotiating all licensing and handle the company’s inventory of hard and digital assets, including ensuring the viability of enterprise disaster recovery plans and capabilities. He is a Six Sigma Black Belt, a Computerworld Premier 100 Honoree, and an avid theater-goer, especially when his daughter is performing.