Lean Six Sigma


What is Lean Six Sigma Logistics? Lean Six Sigma is the combination of two methodologies that complement one another when applied to logistics and supply chain management. Lean Six Sigma Logistics: Lean and the Logistician.

Do Lean and Six Sigma have a place in tomorrow’s supply chain?

The Network Effect

Before I answer the title question, let’s have a quick refresher on what exactly Lean and Six Sigma are. Six Sigma owes its roots to the Statistical Process Control developments made by Dr. Walter Shewhart of Bell Laboratories in the 1920′s and later expanded upon by Dr. W.

Six Sigma Tools and Inventory Management


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.

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. One example that I’ve seen several times is around inventory targets. The supply chain team then ramps down the inventory to the new target and responds to the inevitable stock-outs by expediting short materials and shipments.

Lean Inventory: Using Lean Initiatives To Manage Inventory


What is Lean Inventory Management? More firms are implementing lean inventory management techniques to reduce costs, improve flexibility and have more time to focus on their customers. What is Lean Inventory Management? Attributes of Lean Inventory Management.

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Lean Manufacturing Driven by Rapid Return on eKanban Technology Investment


Through the use of supplier quality certifications and blanket (long-term) purchase orders, a manufacturer can accurately and effectively calculate the optimal level of inventory needed to fulfill demand requirements through the duration of replenishment lead time. Eliminating inventory waste.

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Lean, QRM or DDMRP after all?

Supply Chain Movement

For many years our options were limited to MRP, LEAN and TOC, but these have been augmented by TPM, TQM, WCM and Six Sigma and now we can even choose QRM and DDMRP. Shorter lead times, higher efficiencies, less inventories,… How will we realise this?

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Using Lean to Manage Inventory!

Supply Chain Game Changer

What is Lean Inventory Management? More firms are implementing lean inventory management techniques to reduce costs, improve flexibility and have more time to focus on their customers. What is Lean Inventory Management? Attributes of Lean Inventory Management.

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3 Inventory Control Techniques to Improve and Maintain Inventory Accuracy


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.

Applying Lean 6 Sigma Principles to the Supply Chain


Fifteen years ago, I worked for a company that embraced Lean 6 Sigma as a core operating fundamental. Just about every member of the management team was a Lean 6 Sigma Black Belt and many had attained a level of Master Black Belt.

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


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.

7 Supply Chain Transformations at SAMSUNG

Supply Chain Opz

2) Adopt Six Sigma Methodology : based on "quality movement" in the electronics industry, Samsung believes they can improve the internal operations drastically using Six Sigma. Then they study various Six Sigma approaches from GE, Dupont and Honeywell.

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


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.

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.

The Most Reliable Supply Chain…Without Technology?


Do you carry too much inventory? They have it down to a science, and they really must all work together to maintain their six sigma performance. They have managed to achieve (not fully knowingly), six sigma rates with very little technology—and no automation.

Back to Supply Chain Basics: Transforming Inventory


And when today’s consumer expects full visibility into where their product is—until the moment it reaches their front door—inventory management grows in complexity. In my last post, I paraphrased “Bull Durham” to boil down supply chain to its simplest parts: You buy the inventory. You transform the inventory. You sell and service the inventory. We’ve covered the first stage, buying inventory, and how greater visibility can prevent rework, downtime and returns.

Robots in the Building: The Positive Influence of AI for Supply Chain Planners


A recent, typical job ad for a demand planner lists technical criteria including APICS and Six Sigma certification, alongside “negotiation, communications, and presentation skills”. . Have you looked at a job listing for a supply chain planner recently?

Operational Excellence: Streamlining the Warehouse Layout Process

Talking Logistics

Understand how the inventory moves. The first step in the process is to dig into the data on your current operations to determine the “behavior” of your inventory. This includes characteristics like: The volume of inventory on pallets vs. cartons. Can inventory be racked?

Why the ‘Internet of Things’ is disrupting the ‘Internet of Fingers’

Logistics Viewpoints

Inside the walls, lean and six-sigma thinking prevails, while outside, beyond the dock, yard checks are commonly performed by scribbling notes on yesterday’s printout. Guest Commentary Inventory Management Yard Management

9 Key Topics to Understand to Frame A Shipper’s Mind for Effective KPI Management with a 3PL


For example: Inventory Record Accuracy has to be 98-100% accurate daily. Six Sigma’s DMAIC , PDCA and VSM should be used as well to solve problems and gain opportunities. Continuous Improvement, Kaizen, Kaizen Blitz, Value Stream Mapping, Value Engineering and Six Sigma skills are necessary to have by both parties , IT system knowledge is imperative for data analysis , visibility to assets, like inventory, tracking shipments, communication, customization and integration.

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How vehicle customization will drive the supply chain of the future


A certified Six Sigma black belt as well as various quality certifications, Mirza moved into the wind turbine industry, working for manufacturers in the US as well as in Europe. Planning and managing inventories.

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


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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7 Strategic Performance Business Practices with 3PL KPIs and 4 KPI Problems to Solve


Sales, Inventory, and Production Planning (SIOP) should be used for business planning and strategy in the shipper, 3PL relationship. At times, both parties agree to remuneration for Kaizen Blitz events, Six Sigma problem solving. Six Sigma Quality and problem solving are necessary for Continuous Improvement.

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Make Your Supply Chains Less Complex – and Less Wasteful!

Talking Logistics

Inventory : Having raw materials, work-in-progress (WIP) or finished goods that are not having value added to them. Adam Russell, former group leader and Six Sigma master black belt for Eastman Chemical Company, highlights this problem in a March 2012 article in Chemical Processing : The chemical industry boasts plenty of people with good analytical and problem-solving skills. Take, for instance, Six Sigma black belts.

How the Internet of Things Can Help You Lower Inventory Levels


They support key manufacturing philosophies like Lean, Theory of Constraints, and Six Sigma. The High Cost of Excess Inventory. One of the best (but not always the easiest) ways to lower costs is to lower inventory levels. But how much of my current inventory is “excess”?

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

The Network Effect

Included in this evolution will be simultaneous efforts focused on organizational change, process reengineering, and lean/six sigma program management. Note: this is part 2 in a series of posts.

Arkieva COO Shapes Discussion on Demand Planning in the Bioscience & Pharmaceutical Industries


Arkieva Chief Operating Officer and demand planning expert – Sujit Singh, will be on the panel for discussing demand planning in the Bioscience and Pharmaceutical Industries, moderated by Janice Gullo, Supply Chain Consultant for Lean Six Sigma, SCM Consulting.

Why Lean Fails in Manufacturing, Distribution or Service Industries

The Lean Supply Chain

This is Six Sigma. If you add Lean to Six Sigma (Lean Six Sigma or LSS) you obtain quality at a faster throughput to the customer. The company has to get closer to the Customer’s actual needs to avoid inventory buildup.

Lean Manufacturing


A Systems Approach to Inventory Management. Inventory Management. Inventory is not isolated to raw materials and finished goods. Companies will carry inventory masquerading as service parts, repair items, administrative suppliers, automobile fleets, and a host of other types of assets that are managed by setting and maintaining certain levels. The problem is that almost every function inside an organization can affect inventory levels. Inventory Strategy.

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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). 3 Tips in Choosing Supply Chain Management Services.

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Guest Blog: Real-world Advice for Getting Started on eKanban


reduced inventory waste and carrying costs and more) asking people to change the way they work is also real. Efficiency programs, whether Lean, Six Sigma or Theory of Constraints (ToC), require that teams understand the impact change can have on an environment. by Jim Shore.

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.

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