Question

Analyse at least 5 results which can be achieved in a process of Logistics Services by using Lean Six Sigma Technique. Your explanation should contain proper examples and details.

Answer 1

Answer: Lean Six Sigma Technique :

-Six Sigma is a data-based methodology that seeks to eliminate defects, improve processes, and reduce variations in any process.

-Examples of Six Sigma methods are DMAIC (define, measure, analyze, improve control) and DMADV ( define, measure, analyze, design, verify.)

-DMAIC is used as " an improvement system for existing processes falling below specification and looking for incremental improvements."

-While, DMADV is "an improvement system used to develop new processes or product at Six Sigma quality level.

-Lean is often used along Six Sigma (i.e ,"Lean Six Sigma Methodology."). The main difference between Six Sigma and Lean is that they identify the root cause of waste differently.

* Logistics:

Logistics has become the backbone for any business these days as it provides that important competitive advantage in the market, for any company. The Six Sigma approach of eliminating the defects or minimizing the variations in a process can be very handy if applied to logistics. This is because, such an approach can increase the satisfaction level of both external and internal clients and , in turn , can result in financial benefits.

- Analyse 5 results which can be achieved in a process of logistics services by using Lean Six Sigma techniques:

-Six Sigma is all about getting the root of the variations and finding the most suitable solution to eliminate them so that the system can run at " near zero defects". Six Sigma is more of a program to attain continuous improvement over a long period of time.

Application of DMAIC in logistics:

DMAIC stands for (define, measure, analyze, improve and control) let describe these stages in brief:

1. The define phase: It comprises of-

-Defining the problem through a precise problem statement.

-Defining the business goal through a goal statement.

-Defining the customers and their specific requirements.

(The problem statement may include things such as error percentage or the number of delayed orders last month ,impact on the business etc.)

( The goal statement will be a result of the problem statement. for example, if the delay happened in 10% of the orders last month, the goal should be to reduce it down to 5%)

( The customer is the very focus of any project. The team must take the opinion of the customers in order to better understand their requirements.)

2. The Measured phase:

The aim of this phase is to determine and measure how the process is actually performing.For Example, if improving the reliability of delivery is the problem statement for a DMAIC logistics project then 'transit time ' may be the primary measuring unit for it. Proper care should be taken in this phase so that the wrong things are not measured or right things are not measured in the wrong way.

3. The Analyse Phase:

The objective of these phase is to identify the root cause of the problem and also to identify the cause and effect relationship. This phase is critical to logistics as it can identify the issues that can lead to unwanted costs, dissatisfied customers.

The analyse phase consists of: -Time analysis

-Value-added analyses

- Value streaming mapping

4. The improve phase:

The objective of this phase is to find out and implement the solutions to eradicate the causes of problems recognized in previous phases. Lean six sigma is an effective tool to make effective changes in a logistics process, which can be really challenging for an organization.

5. The control phase:

The improvements implemented in the previous phase are controlled in this phase through a sustained efforts. Here, actions are defined to ensure that the process is under continous monitoring and the key variables are within the specified limits.

This phase is also focuses on the corrective actions to be taken when the project is affected by the environmental forces.

From the above discussion ," it is evident that for six sigma to be successful in logistics ,it should be driven with a sustained focus on quality improvements and customer relations."

These are the results which we can achieved through Lean Six Sigma Techniques in Logistics services.