Lean Six Sigma for Supply Chain Performance

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LEAN SIX SIGMA FOR SUPPLY CHAIN PERFORMANCE

Author: Panchami Mugthihalli Shadakshari
Student Registration No: 201193757
Module: DM941
Program: Supply Chain & Operations Management
Submitted to: Professor Jiju Antony
Submitted on: 19/04/2012
Word count: 3407

TABLE OF CONTENTS
Abstract| 3|
Introduction| 4|
Literature review on LSS| 4|
Importance of measuring SCP| 5|
SCOR model| 6|
KPI’s within SCOR| 7|
Benefits of LSS| 7|
Importance of LSS on SCP| 8|
Impacts of LSS on SCP| 9|
Outcomes of LSS implementation on SCP| 10|
Limitations| 11|
Conclusion| 11|
Appendix| 12|
References | 16|

ABSTRACT:
Purpose – The purpose of this paper is to clearly understand the functions of Lean Six Sigma, Supply Chain Performance, KPI’s and implementation of LSS to observe the effects on supply chain performance. Design/methodology/approach – Various journals and papers on six sigma, lean six sigma and supply chain performance were read/searched. Around 25 papers were searched. Most of them were on lean six sigma, on sig sigma methodologies, on supply chain management. There were very few papers that titled lean six sigma for supply chain performance or, even lean six sigma methodologies. So this journal has been written by researching on the topics separately and then interlinking the researches based on the requirements that have been demanded by the journal topic. The methodologies on lean and six sigma were interlinked and tried to implement on supply chain to understand the implementation effects on supply chain performance . A separate study on the key performance indicators of a supply chain performance was done to be able to measure the improvements in a supply chain on implementing lean six sigma methodologies Findings – It was found that both lean and six sigma when integrated as a single methodology, they complement each other and act as a powerful methodology in influence enhancements in supply chain performance. The KPI’s that were identified from successful supply chain performance were found to be also the products of LSS implementations. So if LSS is implemented, it brings changes into the processes and improves them. Practical implications –Originality/value – The work in the paper is stretched in three field viz., LSS, SCP, Implementation. It provides the research from existing literature and an insight into the implementation of LSS for improved supply chain performance which has not been discussed frequently. The paper is of information to academics and also to the practitioners. Paper type – Research paper

Keywords – Lean , Six Sigma, LSS, KPI’s, Supply chain performance, SCOR. Research Limitations The frequency of publications on LSS is very low and most of the research has been done recently. So it is comparatively a new entrant into the industry with the scope of introducing improvement methodologies. The research publication frequency has considerably improved from 2011. Most of the journals titled LSS discussed Lean philosophy and its advantages separately and six sigma methodology separately. It is not an integrated approach, and it is always left to the reader how well both the improvement methodologies are integrated and used to fit in what the existing supply chain and its performance demands for. Since LSS is applicable in all the sectors, the papers available do not discuss in particular LSS for supply chain performance. They usually discuss keeping the general reader in mind with respect to the business improvements and performance.

Introduction:
In today’s dynamic market with ever changing customer requirements, organisations and companies should be quick in their operations. This is where the supply chain performance comes to the picture. Managing a flexible, reliable and robust supply chain is very important. There are various methodologies that will ensure this and also provide continuous improvements. One such methodology...
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