LEAN SIX SIGMA AND SUPPLY CHAIN

Lean Six Sigma is a continuous improvement methodology that uses different tools and techniques based on the research of a business process to eliminate or reduce defects as much as possible and increase efficiency for better outcomes. It improves the production process in many ways. Lean majorly focuses on the eradication of all types of wastes while Six Sigma reduces variations and therefore, Lean Six Sigma together makes a powerful tool for facilitating continuous process improvement.

Organizations are now using Lean Six Sigma to eliminate waste and reduce variance in their supply chains. Lean Six Sigma helps the companies improve the performance of their supply chains and an efficient supply chain provides a sustainable competitive advantage and increases revenue. A supply chain is a network including different activities, people, information and resources. It is a chain between a company and its suppliers to produce and distribute a specific product to the final buyer. This chain is developed so that the companies can reduce their costs and remain competitive. It is crucial because an optimized supply chain results in a faster production cycle. Various entities are involved in the supply chain including- distribution centers, producers, transportation companies, vendors, retailers, and warehouses. Moving and transforming raw materials into finished products, transporting those products and distributing them to the users are the steps that must be followed to get any product or service to a customer. Supply chain management is a very important part of any business process. A lot of skills and expertise is required to manage the supply chain effectively. If managed properly it can lower a company’s overall costs and boost profitability.

Supply chains made inefficiently with errors need Lean Six Sigma and the 5S Lean principle can reduce theses errors by eliminating unnecessary wastes. Using DMAIC and DMADV methodologies can reduce the order fulfillment cycle time. A Lean Six Sigma review will help in identifying the problems that are hindering a company’s growth and needs to be addressed ASAP. Improvement may require automated shipment verification, reduced paperwork, system integration, automated picking and shipping planning. DMAIC can help in improving the current processes and DMADV can help implement new processes. Supply chain performance requires that all the changes in the supply and demand are looked and acted upon quickly to avoid any crisis due to the careless judgment of the situation. Companies with the most agile supply chains are the ones that are tailored according to the needs and wants of the customers. Therefore, applying Lean Six Sigma principles to the supply chains of any organization can create a competitive advantage, improve employee morale and increase revenue.

For KPMG Lean Six Sigma Training registrations mail to in-fmsixsigma@kpmg.com or call at +91 9555688555 or +91 9022033666.

Lean Six Sigma Black Belt Training Programme
Lean Six Sigma Green Belt Training Programme