Process Excellence / Lean / Six Sigma

Process Excellence / Lean / Six Sigma

Supply Chain Operational Excellence is the first pointer of improved performance. Every enterprise with a diverse supply chain regularly updates its playbook and optimizes its processes to stay ahead of the curve. Process Excellence is an ongoing journey and not a destination. In simple terms, it means striving to create a supply chain network that does the best work within the given constraints. Naturally, that involves reducing downtime and wastage as much as possible and an effective disruption mitigation strategy.

Process Excellence is a metric that reflects the improved performance of a supply chain. A network that can eliminate the most unwanted factors from its working will find itself leading the race. Therefore, it is in the best interest of any enterprise to build a lean supply chain network. A thin supply chain network implies how well a supply chain operates in terms of delivering on time and reducing downtime. This is achieved by several measures taken to improve the individual links as well as the overall performance.

Establishing a lean supply chain is the key to peak operational excellence. This begins with eliminating wastage in the supply chain and reducing lead time, complexity, and other factors that cause blockages and bottlenecks. Adapting modern technology can accelerate many tasks without compromising precision. GPS Tracking, Cloud Computing, Data Analytics, and other IT innovations are potent tools in this regard. These measures will help create a streamlined supply chain, increasing the velocity while minimizing strain and wastage. They should also be goal-oriented and willing to collaborate. Exceeding customer expectations is the primary objective, and all members of the supply chain must operate in tandem towards this goal.

The Six Sigma method is widely used for Process Excellence and is based on statistics. The simplest explanation for this concept is that variance is terrible. Products must be of uniform quality, and the output must be consistent, which is achieved through minimal process variation. This is achieved through the five-step approach to Define, Measure, Analyze, Improve, Control. It is a mathematical approach, and requires Data Collection and Analysis, as seen in the steps. Another method (Define, Measure, Explore, Develop, Implement) is used for new products.

Combining these two methodologies forms the powerful Lean Six Sigma approach, which simultaneously eliminates wastages and maximizes the uniformity of production. Such supply chains can deliver high quality, consistent outputs during an extended period, maximizing product excellence. This innovative hybrid approach allows companies to stay ahead of the curve.