How Cummins Power Generation Used Lean Six Sigma to Achieve Significant Transportation Savings

Talking Logistics

This often requires a major shift in thinking – from the top down – and for many, implementing a formal process improvement methodology such as Lean Six Sigma (LSS). Lean Six Sigma is about not simply accepting the old way of doing things, but asking “Why do I do that?” A worldwide provider of electrical power generation systems, Cummins Power Generation (Cummins) uses Six Sigma (6S) as its primary continuous improvement methodology.

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

The Importance of Six Sigma. Six sigma pursues reduced variability in processes. There has been a natural interest in the convergence of lean and six sigma in manufacturing and inventory management so that fixed constraints like lead time and lot size can be continuously attacked while, at the same time, identifying the root causes of variability and reducing or eliminating them. The Emerging Role of Optimization in Business Decisions.

Multi-echelon Inventory Optimization and Lean/Six Sigma

Supply Chain Action Blog

The Importance of Six Sigma. Six sigma pursues reduced variability in processes. There has been a natural interest in the convergence of lean and six sigma so that fixed constraints like lead time and lot size can be continuously attacked and reduced while, at the same time, identifying the root causes of variability and reducing or eliminating them. The Emerging Role of Optimization in Business Decisions.

Using TOC, Lean and Six Sigma to Become More Demand-Driven


There are only two possible ways that actual impact to the bottom line occurs: 1) If you are able to ship more product because of the change. (It It must leave your shipping dock and the customer needs to be invoiced for it to count.)

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


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


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


Pull systems permit visual control of material flow in the supply chain.You can also use Ship-to-Use (STU) systems. Utilize Six Sigma’s DMAIC : Define, Measure, Analyze, Improve and Control to solve any problems or roadblocks.

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3 Inventory Control Techniques to Improve and Maintain Inventory Accuracy


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. There are various programmes of quality inventory control available for companies to adopt such as JIT , Lean Manufacturing, Six Sigma and Total Quality Management. Inventory accuracy is vital to an organisation’s long-term success.

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.

Examples of How Supplier Quality Management System Implementations Pay Off


The next step may be Six Sigma quality ( In order for a company to achieve Six Sigma, it cannot produce more than 3.4 New Product case study: I f a Supplier is producing a new component for you, before they ship the new product, always ask for a pre-shipment sample.

Warehousing and Logistics


For the perfect supplier order to come about in lean manufacturing environment, we need to ensure that suppliers are shipping the right parts in the right quantity and condition at the right time to the right place and at the right cost. Warehousing and Logistics – Quality at the Source.

5 Outstanding Transport & Logistics Book for Managers

Supply Chain Opz

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. Martichenko Lean and Six Sigma has become a megatrend in logistics and transportation industry. From our observation, the authors choose only basic lean six sigma tools that actually work without the need to study other statistics related materials.

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

Talking Logistics

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. He is a Six Sigma Green Belt specializing in process layouts and equipment implementation.

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


Use the Item Master of the ERP System to set inventory turns to six to eight turns, set minimum/maximum inventories, re-order points and lead times. Carrying slow-moving inventory or shipping damaged/incorrect product hurts customer relationships.

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.

VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

It took us three years to right the ship. Very early on, I made it mandatory for all supply chain leaders to study Six Sigma to a green belt level. Every time new housing starts stop, there is a pattern that the market will tank in six months.

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.

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 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.

Takeaways from the 2018 Gartner Supply Chain Executive Conference


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.

Lean initiatives and the Supply Chain

The Lean Supply Chain

Quality Assurance goes to your suppliers, qualifies them for their quality systems and enables them to ship to a point of use on the production floor to avoid sitting in a warehouse as wasteful inventory.

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Lean Warehousing


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. Lean Warehousing – From Paradox to Operational Excellence.

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


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.” They put everything on stop ship – would ship nothing.

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.

Judging Supply Chain Improvement: Campbell Soup Case Study

Supply Chain Shaman

We built these into continuous improvement programs such as Lean Six Sigma, while also setting goals to drive breakthrough cost savings to supplement continuous improvement savings. The good news is that the team was aware of the results and feel that they have righted the ship in 2014.

Logistics Process Mapping Basics

The Logistics of Logistics

Unlike, lean, six sigma, lean six sigma and other operational improvement methodologies, process mapping requires very little training so organizations can see results very quickly. To maximize productivity, the team should be limited to no more than five or six people. Logistics process mapping is a great way for improving the logistics process and performance.

Analytics Leaders Discuss the Internet of Things


Understanding the temperature of a package throughout transit provides significant value to customers seeking six sigma quality logistical processes, like food distributors and drug manufacturers. Analytics Leaders Discuss the Internet of Thingsg.

Like A Green Lump of Clay….

Supply Chain Shaman

For mature supply chain organizations, it is a natural extension of six sigma. The best way to evaluate agility is to simulate volatility through either event simulation or what-if analysis and see the impact on cost (Cost of Goods Sold), customer service (on-time delivery and orders shipped full and complete), and quality of output (first pass yield, recalls, etc.) My iphone buzzed on my nightstand. I groaned. I had gotten to bed late. It was 6:00 AM.

Confidence to Grow

Supply Chain Nation

MS: My full-time job after graduating was in a logistics company that was building its own ERP solution to handle Indian customs and shipping requirements.

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. Every warehouse strives for efficient order fulfillment.

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

If it takes a week or more for inbound shipments to move from the receiving dock to warehouse shelves (which it many times does…) and then out to the shipping door, you’re robbing other departments (R&D, Marketing, even IT) of capital that could make them more effective. Chuck Intrieri.

CommerceHub Hires John Hinkle as Executive VP of Production Systems

Supply Chain Network

He is a Six Sigma Black Belt, a Computerworld Premier 100 Honoree, and an avid theater-goer, especially when his daughter is performing. CommerceHub makes it possible to achieve 100% compliant integration to any product source, and provides all of the tools necessary to ensure total control over fulfillment, as if the goods were actually owned and shipped by the retailer.