Lean six sigma process improvement tools and techniques by donna summers chapter 16

Lean Six Sigma: Process Improvement Tools and TechniquesDonna C.. Lean Six Sigma: Process Improvement Tools and TechniquesDonna C.. Lean Six Sigma: Process Improvement Tools and Techniqu

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved. Supply Chain Management

Chapter 16

Supply Chain Management

• Companies don’t compete against other

companies; they compete against each

others’ supply chains.

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• What is a supply chain?

– A supply chain is the network of organizations involved in the movement of materials,

information, and money as raw materials flow

from their source through production until they are delivered as a finished product or service

to the final customer

Supply Chain Management

• Who are the participants in supply chains?

– Multiple suppliers

– Wholesalers

– Manufacturers

– warehouses

– Distribution centers

– Retailers

– Customers

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• What drives supply chains?

– Money

– Materials

– Information

Supply Chain Management

• What should supply chain design

consider?

– The products travelling the supply chain

– The services travelling through the supply

chain

– The information travelling through the supply

chain

– The structure of the supply chain

– How each segment of the supply chain be

managed and optimized

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• What are the benefits of effective supply

chains?

– Effective supply chains optimize the value

creation process by improving processes,

implementing lean principles, optimizing asset allocation, and monitoring quality assurance

Supply Chain Management

• What are the critical elements of supply

chain management?

– Inventory management

– Information sharing

– E-commerce

– Logistics,

– Purchasing

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• Why is information sharing critical when

creating an effective supply chain?

– organizations need to know what is needed,

how much, and when

Supply Chain Management

• How does e-commerce support supply chain

management?

– Faster purchasing cycle times

– Reduced inventory

– Fewer order processing people

– Faster product or service search and ordering

– Greater information availability

– Automated validation and pre-approved spending

– Less printed material like order forms or invoices

– Increased flexibility

– On-line communication

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• What is logistics?

– Logistics is the process of determining the

best methods of procuring, maintaining,

packaging, transporting, and storing materials and personnel in order to satisfy customer

demand

Supply Chain Management

• What role does purchasing play in supply

chain management?

– Purchases are driven by several factors,

including quality of the goods or services,

timing of the deliveries of the goods or

services, and the costs associated with

purchasing the goods or services

Lean Six Sigma: Process Improvement Tools and Techniques

Donna C Summers

© 2011 Pearson Higher Education, Upper Saddle River, NJ 07458 • All Rights Reserved.

Supply Chain Management

• What challenges face the development of

an effective supply chain?

– Synchronization

– Fluctuations in demand

– Long supply chains

– Great distances between supply chain

members

– Lack of communication

– Lack of information sharing