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

synchrono

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.

Lean Six Sigma

LeanCor

Lean Six Sigma is designed to be a comprehensive program. This creates a challenge when trying to describe what Lean and Six Sigma have to offer when combined. Many training courses and books will attempt to separate the Lean tools from the Six Sigma tools.

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

Kinaxis

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. Why do companies focus on reducing a specific metric?

5 Keys to Implementing Improvement Initiatives

The Logistics of Logistics

My particular improvement soapbox is Lean Management with some Six Sigma thrown in for good measure. The principles can be applied to anything, just like Lean and Six Sigma. It will be tricky to drive change because they are likely the CEO’s “dashboard metrics”. Many measurements are sacred to the board or other metric owners. Feel free to refer the metric owner to point number 3, after you have developed a meaningful alternative.

Managing for Daily Improvement: Bridging the Gap Across Teams and KPIs

Talking Logistics

Lean Six Sigma (LSS) thrives on the notion that there is always room for improvement, and it looks to eliminate defects that can hinder the flow of a process from moving toward its performance end goal.

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

Cerasis

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.

5 Skills Necessary For Maximizing Logistics Effectiveness

Cerasis

Be ready to rationalize the process of Six Sigma within your organization. The tools and techniques of Six Sigma put team’s heads together and stimulate innovation. With the correct application of Six Sigma, an enterprise shall not forfeit modernization to maintain high quality. . . Editor's Note: Today's blog is from our friend Robert Everett who gives us some fantastic tips for managing logistics effectiveness.

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.

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

Cerasis

All KPIS have metrics to measure. 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.

KPI 246

7 Best Supply Chain Books of All Time

Supply Chain Opz

Therefore, the challenge to establish the ranking method is to find a more economical data source and the unbiased metrics. Books We Recommend - Purchasing Book - Six Sigma Books - Operations Management Book - Inventory Control Book - Lean Books - International Business Book Last review and update: January 30, 2020In this article, we rank books based on their influence, popularity, recency and practicality and then we come up with the list of the best supply chain books.

How Shippers And Logistics Providers Can Keep The Relationship Fresh

Talking Logistics

What key metrics should they be driving for as an organization? Implement a Continuous Improvement Methodology: To help support the pursuit of optimizing performance in both the short-term and long-term, the 3PL should employ a continuous improvement approach, such as Lean Six Sigma (LSS).

7 Supply Chain Lessons from Lenovo

Supply Chain Opz

6) Use Lean Six Sigma: to improve the operational efficiency and reduce time to market, they implement lean concept. These high-level metrics are monitored and controlled by a cross-functional team.

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

Cerasis

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.

Lean 343

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.

10 Signs You Should Reboot Your Lean Program!

Supply Chain Game Changer

And they had also merged Six Sigma with their Lean program. When I would ask the facilities for some summary of metrics showing progress the results were very inconsistent. Lack of Metrics and Reporting. Tools Complicated With Lean and Six Sigma Combined.

Lean 72

Preparing Your Supply Chain for Capacity Challenges

Transplace

At Transplace, Lean Six Sigma’s PDCA (Plan, Do, Check, Act) model is ingrained within our DNA—and shippers can use this same method to keep ahead of obstacles in their own supply chain operations. Data, Metrics and Communication.

How to Sustain a Lean Culture in Manufacturing & Supply Chain

Cerasis

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.

Lean 234

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. 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.

Preparing Your Supply Chain for Capacity Challenges

Transplace

At Transplace, Lean Six Sigma’s PDCA (Plan, Do, Check, Act) model is ingrained within our DNA—and shippers can use this same method to keep ahead of obstacles in their own supply chain operations. Data, Metrics and Communication.

Supply Chain Management Services

LeanCor

Do they embrace a methodology like lean, six sigma, or operational excellence? Choosing the right target means defining your metrics, such as measuring carrier performance. 3 Tips in Choosing Supply Chain Management Services.

3PL 223

The Essential Reference Guide for a Supply Chain Leader

Cerasis

2) Implement Continuous Improvement Projects ( Lean, Process Capability, Six Sigma ) with Key Strategic Suppliers to Drive Cost-Out and Supply Base Capability. . 5) Ongoing Assessment of Key Supplier Site Metrics to Ensure Business Continuity with Companies' Requirement and Proactively Identify Potential Risk Factors. Every business has their set of metric which they want to focus on.

Examples of How Supplier Quality Management System Implementations Pay Off

Cerasis

The first post in this series broke down what is supplier quality management and the steps to evaluate suppliers and the second post gave you insight into the metrics to look out for by 6 major industries.

A perfect supply chain?

Kinaxis

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?

Using Managed Analytics to Build a Next-Generation Supply Chain

Talking Logistics

The advent of transportation management systems (TMS) in the 1990s introduced near-infinite metrics and data points into the supply chain yet brought with it more questions than answers: How do we centralize the data?

Navigate Internal Improvement Programs With A Strategic Roadmap

USC Consulting Group

These assemblies come from the well-known Six Sigma process improvement methodology, which emphasizes iterative, efficient operational advancement.

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

Cerasis

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.

KPI 203

Finding the Best Negotiation Book

Supply Chain Opz

To compare both books to find the best book for beginners, we will use 6 performance criteria under 3 categories as below, - Book Performance: this is the same as an article-level metric. Sales Performance: two metrics are used to judge the sales performance of both books, namely, "Amazon Sales Rank" and "Best Seller Award." The best book about negotiation and persuasion will be chosen based on overall performance across 6 metrics.

LEAN throughtout the Supply Chain

The Lean Supply Chain

Include the need for Continuous Improvement and implementation of Lean initiatives: 5S, Kaizen, Kanban and Six Sigma… The consumer phase is a significant stage in the wine’s life cycle.

Lean 73

Consumer Demand Helping Drive 3PL Industry Growth

Talking Logistics

3PLs are being asked by shippers to create better metrics to provide both added understanding and a deeper perspective as to what’s occurring inside their business both yesterday, in real time and tomorrow. 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.

3PL 151

Logistics Management

LeanCor

Lean and six sigma teach us these terms as the basis for achieving high quality service to our customers in logistics management. If your current performance metrics show 90% – pet yourself (and your team!) Set the right metrics. Be very honest and think critically when setting your metrics in logistics management. The Key to Customer Satisfaction in Lean Logistics Management. Welcome to Los Angeles, the local time is 3:05 pm.

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

synchrono

Beyond the pilot program, it’s time to start measuring progress toward what you set out to accomplish – and the metrics that will influence those outcomes. Metrics typically associated with eKanban projects include: Inventory turns/Inventory cost. Monitor your metrics.

Takeaways from the 2018 Gartner Supply Chain Executive Conference

Kinaxis

Dana stated that leading supply chain organizations such as Amazon are looking for disruptive skills such as Lean/six-sigma, SQL, project management, R, Perl, and Python in addition to the core supply chain skills, as compared to lagging organizations primarily looking for ERP and excel skills.

Manufacturers, Technology, and the Digital Age

Enterra Insights

… Real-time integration, applying Six Sigma to know process bottlenecks, and re-engineering systems to be more customer-focused improve this metrics’ performance. Cycle Time is a predictor of the future of manufacturing as this metric captures improvement made across systems and processes immediately.” … This metric is often used for ranking which suppliers are the most valuable to a factory and production network as well.”

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. In Table 1, the company is slightly above average on improvement and outperforms on the Supply Chain Metrics That Matter in all categories but inventory turns.

Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

The secret behind its supply chain success is the use of Six Sigma approach. They studied how General Electric (GE), DuPont and Honeywell implemented six sigma.