Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study


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Structure of Indian food-processing industries Deloitte The commercial food-processing industry has a strong link to quality practices. However, the food-processing industry has also been characterized as being conservative and slow to change. Understanding the quality practices in food processing requires an understanding of how the consumer, the nature of food, and the regulatory environment interact to affect the industry. Food industry managers must thus consider how to maintain profitability in a shrinking market, while providing increasingly sophisticated customers with high-quality products and efficient service.

In attempting to achieve this seemingly impossible objective, firms can pursue two strategic avenues. First, they can focus on ways to improve the operational efficiency of the system. Second, they can take actions to enhance its operational quality Hung and Sung Different from general industry, the food and beverage industry faces its own challenges.

Fierce competition, high variable material costs, regulatory requirements, and quality management are just a few examples Cutler Successful stories of Lean Six Sigma implementation are common in general industry. Unfortunately, the implementation of Lean Six Sigma in the food industry is still limited. However, in the Lean Six Sigma case studies, they showed the possibilities of continuous quality improvement in the food industry Kovach and Cho In the article written by Cutler he pointed out that developing a Six Sigma program will benefit a food company substantially and lead to the success in the food and beverage industry.

In a thesis titled Food Safety and Lean Six Sigma Model Zhen demonstrated that Lean Six Sigma tools will contribute to the implementation of the food safety system to minimize risk, improve productivity and quality of products, and reduce unnecessary waste and time.

Case Study: Reducing Purchase Order Cycle Time, Part 1

There are some publications of Six Sigma applications in supply chain of food products. Nabhani and Shokri explored the possibilities of implementation of a quality initiative system, especially Six Sigma to improve the objectives in supply chain management for a food distribution small- and medium-sized enterprise SME. They concluded that food distribution SMEs have got the potential to implement the quality initiatives if there is an integrated and collaborative approach in alignment with SC objectives and if there is enough knowledge of the terminology, the principles and the tools in quality initiatives.

Chakrabortty et al. They noticed five major types of defects which normally occur. To reduce this spread of the process, the process needs to be improved. They used the Six Sigma approach to reduce process variability.

Five phases of the model have been structured step by step, respectively. The process variability have been tried to reduce by identifying the root cause of defects and reducing it. In a study conducted by Zhang et al.

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The study reported that focus area of implementation of LSS mainly has been Process improvement. The organization adopted LSS either to improve their processes or modify them to increase efficiency and productivity. But food-processing industries emerged at a very lower position in Six Sigma implementation. However, the industry wiz focus area reported for LSS implementation in food processing was found as process improvement.

One of the studies Nabhani and Shokri revealed implementation of Lean Six Sigma concepts in a food distribution company. After establishing a baseline for the performance, the team analyzed the causes of the problem and started investigating solutions to alleviate it.

Exploration and prioritization of lean techniques in a hotel supply chain | Emerald Insight

After implementation of the solutions, the number of defects reduced resulting into the increase in sigma of the process from 1. As reported by Jonathan Chong, Director of Business Development, TBM Consulting Group—Mexico, the DMAIC process using Six Sigma tools can be effectively used in the food and beverage industry and other continuous process manufacturing environments to improve raw-material utilization, thereby providing a significant contribution to the bottom line.

He further emphasized that often many food and beverage manufacturers collect and archive a mountain of process data but do not analyze them or use them to improve their processes. Usually, the data collected is in an incorrect format or cannot be used because it was collected using inadequate measurement system. Application of Six Sigma is also reported at the back-end of food-processing industries, for example, dairy farm. National Productivity Council, New Delhi has demonstrated productivity, quality, and food safety improvement in a cooperative body in the public sector.

As a matter of fact the project has helped Sikkim Dairy in turning around to a profitable venture. The project exemplifies various interventions that can be a good learning experience for dairy industry particularly in the Hilly Region of the India NPC Evidences are also there from Asian Productivity Organization working on the safety and quality of food-processing units. As revealed from the literature survey that application of Six Sigma improvement methodology appears rare among the large-scale food-processing sectors in India.

Thus, the basic objective of this study is to implement Six Sigma at one of the leading food-processing units and illustrate the benefits drawn out of the same. The DMAIC methodology was applied to one of the chronic problems having considerable impact on the quality and productivity of the unit in question. The methodology adopted was case-study-based research.

A single well-designed case study can provide a major challenge to a theory and provide a source of new hypotheses and constructs simultaneously Cooper and Schinddler The paper discusses one complete implementation case of Six Sigma pilot project. The case study place more emphasis on a full contextual analysis of fewer events or conditions and their interrelations.

A case study is an empirical inquiry that investigates a contemporary phenomenon within its real-life context, when the boundaries between phenomenon and context are not clearly evident, and in which multiple sources of evidence are used Yin The case-study method allows an investigator to retain the holistic and meaningful characteristics of real-life events. Further, As per Simon , case study is a method of choice when the researcher wants to obtain a wealth of information about the subject. Following text demonstrates complete phase wiz implementation of DMAIC methodology at a large-scale food-processing unit resulting in improvement in productivity and quality.

The company in question is one of the leading cooperative sectors of India engaged mainly in milk products. The Six Sigma methodology was applied to the milk powder packaging unit having almost all the variety of the products running on mechanized packaging line. Though the unit was operating on automation, deviations were observed in the weight of milk powder packets being produced which resulted into loss of production and revenue. The unit was trying to dilute these rejections, through different trial and errors but not satisfied with the results.

The unit executives were appraised regarding the basics of DMAIC methodology and they comprehended that the problem being faced by them needs the systematic treatment involving exact definition of the problem, analysis of facts and figures, detection of the real root causes and then arriving at the appropriate solution. Packaging of dairy products has excellent potential and growth areas.

Package has become the competitive tool to reach the consumer. This has opened the sector for introduction of modern technology for processing and packaging. Six Sigma is a project-driven approach and by which the organization can achieve the strategic goal through effectively accomplishing projects. Notably, project generation and priority performs the most critical parts while carrying out Six Sigma initiations. The project selection decision, under a resource constraint, is the early stage of implementation for a Six Sigma intervention Bilgen and Sen Six Sigma projects can be defined as the process through which companies are able to reduce defects and improve the quality of business processes Dedhia The success of any Six Sigma project depends on a number of factors such as clearly defined objectives, the support and leadership of top management, and a comprehensive training programme Lucas Along with this prime objective, following secondary objective are also considered:.

The following text elucidates the phase wiz application of DMAIC methodology on the selected problem. This phase helps define the problem in minute details and thus making the way ahead more clear in terms of actions required to be taken. The project charter in this case includes defining problem statement and drawing CTQ tree.

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The business case is created keeping strategic objective of the concern in view and that is to increase profitability by attacking on waste reduction in milk powder pouch packing. Since the final outcome of the process is packaging, the entire process mapping in the form of SIPOC is not included here for simplicity. Resources to the following titles can be found at www. What are VitalSource eBooks? For Instructors Request Inspection Copy. Explanations of theory, lists of rules, and discussions of procedure are the basis of learning the lean Six Sigma, however without a visceral understanding of the application of this powerful system in various circumstances the knowledge remains, at best, conjecture.

Detailed examination of case studies that take real-world variables into account is the only way to truly master Lean Six Sigma. Going far beyond the brief overview found in current texts, this interactive case study presents all of the data used by a team as they implement Lean Six Sigma in a distribution center. It details their decision-making rational, thus allowing the reader to extrapolate and implement the same analyses and conclusions in their own settings.

Lean Six Sigma case study

An interactive CD accompanies the book and contains all of the numerous graphs, charts, tables, and data analyses provided in the text. It provides PowerPoint training slides and easily accessible data sets that correspond to the figures in the book, as well as a full Glossary and reference guide to commonly used Lean and Six Sigma terms.

Providing a clear link between all of the Lean Six Sigma tools and their application in a real-world setting, indispensible training tool gives the all-important, rubber-meets-the-road understanding needed to start you on your Lean Six Sigma journey. Learn more about Elizabeth "Beth" A. Elizabeth A. We provide complimentary e-inspection copies of primary textbooks to instructors considering our books for course adoption.

In addition, when looking at the problems in the Define and Measure phases, it became clear that the actual time spent producing the PO was irrelevant because even if we were able to speed that up, it would still bottleneck at the distribution phase from how the requisitions were assigned to each associate for processing into a PO. Once the baseline data was collected, it became apparent the step process was breaking down in the distribution of the requisitions to the buyers. While the mean number of days for and was relatively low 3 and 2, respectively , the standard deviation was another story.

The standard deviation for was at 12 and 4. This meant that the USL — upper specification limit, which was defined in this project as the number of days acceptable to issue a PO by our internal customers — was exceeded a whopping 47 percent and 33 percent Said another way, almost half of the POs that were being issued went beyond the five-day acceptable service level set by the internal customers Figure 5.

Once the numbers provided insight to the significance of the problem, a fishbone diagram was created Figure6 after a brainstorming session to highlight potential areas to test. The circled items represent areas the team wanted to test to determine how likely each issue was to affect the overall cycle time of the PO process. Click here to read Part 2. You must be logged in to post a comment.

Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study
Implementing Lean Six Sigma throughout the Supply Chain: The Comprehensive and Transparent Case Study

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