A conceptual model for the application of Six Sigma methodologies to

supply chain improvement

Graeme Knowles ,Linda Whicker,Javier Heraldez Femat &Francisco Del Campo

Canales
Pages 51-65 | Published online: 23 Jan 2007

This paper hypothesises that, whilst Six Sigma as a change and improvement strategy is
delivering significant business benefit to practitioner organisations, it has not been
successfully adapted to deliver similar benefits across supply chains. It demonstrates by
reference to the literature that most published applications of Six Sigma in supply chains
are related to the application of traditional internal Six Sigma methodologies to the internal
processes of a supplier to the “Six Sigma Organisation”. In this paper, the issues particular
to an application of Six Sigma in a broader supply chain context are discussed, with
reference to specific supply chain issues. It is concluded that Six Sigma does have
something novel to offer organisations over and above the contribution of existing
approaches to supply chain improvement, and a conceptual model is proposed that is
consistent with the literature and has potential to support such an introduction. The model
integrates the Balanced Scorecard, SCOR model (Supply Chain Reference model) and
Six Sigma DMAIC (define, measure, analyse and improve) methodology in a two-level
framework. This is a strategic-level cycle, developing focused projects to generate
maximum business benefit, and an operational-level cycle, applying Six Sigma and lean
tools in a DMAIC cycle to deliver supply chain improvements. Cautions and requirements
for the success in practice of such a model are discussed and it is concluded that the
model should be tested in practice to validate and develop further the methodology.

Using the six-sigma metric to measure and improve the performance

of a supply chain
The need for a comprehensive, flexible and adoptable framework for evaluating the
performance of a supply chain and its entities has long been felt. It is also recognized that
such a framework is more effective if the performances of various processes and entities
can be measured on a common scale and benchmarked against world-class standards.
In this paper, it is shown how the six- sigma metrics, immensely popular across the globe
today, can help an organization in this regard. The motivation behind the integration of
the two concepts comes from the versatility of the six-sigma metrics in performance
measurement, certain similarities in the two approaches and research results establishing
that supply chain management can be enriched through application of quality
management principles. A structured methodology, with which the performance of a
supply chain and its entities can be effectively measured, monitored and improved with
the help of the six-sigma metrics is presented. The method is also illustrated with a case
example.
The implementation of a Lean Six Sigma framework to enhance
operational performance in an MRO facility
Lean Six Sigma (LSS) has rapidly established itself as the key business process
improvement strategy of choice for many companies. The LSS approach provides
significant benefits to companies through its dual focus on reducing waste and increasing
value whilst resolving Critical to Quality (CTQ) issues that affect consistency and
repeatability in a product and process. The implementation of LSS is finding wider
application in many different environments. Through a case study approach, this paper
describes the novel implementation of an integrated LSS framework and outlines how it
was used to identify the factors that affect supply chain performance in an aerospace
Maintenance Repair and Overhaul (MRO) facility. The study outlines the application and
measures the effectiveness of the integrated LSS framework through its ability to achieve
new and enhanced performance through simultaneously reducing late material calls and
reducing and stabilizing Order To Receipt (OTR) times.
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While TQM is an organization-wide approach, aimed at improving the quality of products
and services and mainly focused on continuous improvement, Lean Six Sigma is an
approach focused on improving quality, reducing variation and eliminating waste in an
organization. The concept of combining the principles and tools of Lean Enterprise and
Six Sigma in a more synergistic manner has occurred in the literature over the last several
years. The majority of TQM and Lean Six Sigma applications have been in private
industry, focusing mostly on manufacturing applications. The literature has not provided
cases of Lean Six Sigma programs applied to local government. This paper presents
some efforts of implementing TQM tools in local government and a case study of applying
Lean and Six Sigma tools and principles to improving the quality and timeliness of
providing local governmental services.

Lean, Six Sigma and Lean Six Sigma: an analysis based on operations
strategy
There is a growing need for operations management models that contribute to the
continuous improvement of company processes, among them we highlight lean
manufacturing, Six Sigma and, more recently, Lean Six Sigma (LSS). This article aims
(1) to identify and analyse the differences and complementarities in the production
decision areas for each one of the three models; (2) to identify the competitive priorities
that lead to the best performance as a result of policies followed in the decision areas as
a result of the adopted model. First, a theoretical conceptual model was developed based
on a review of the literature, followed by a exploratory research questions applied to
manufacturing companies that use the lean, Six Sigma or LSS manufacturing models in
southern Brazil. The main results show that there are differences in the models in relation
to the importance of the decision areas and the performance achieved in the competitive
priorities. Individually, lean manufacturing, Six Sigma and LSS have varying degrees of
importance in the Facilities, Vertical Integration and Production Planning and Control
decision areas. The performance dimensions with the best performance are speed,
quality, reliability and cost.
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Six Sigma Deployment in Supply Chain Management: Enhancing Competitiveness

six-Sigma as a process improvement methodology for enhancing quality levels was
developed by Motorola in 1986 for its high volume manufacturing environment in order to
increase its competitiveness against Japanese companies. Six Sigma is a well structured
knowledge management approach that focuses on reducing variation, measuring defects,
and improving the quality of products, processes and services. It is a highly disciplined
process that helps organizations to calculate how well a process is performing and focus
on developing and delivering near-perfect products and services. Six Sigma deployments
in SCM is important for overall performance and growth of business as it leads to
improved productivity, competitiveness, superior value creation, and market
performance. Six Sigma offers a route to creating more robust supply chain processes
that reduce the risk of non-conformance and hence produce a more reliable and
consistent output.