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Six Sigma Process Improvement in the Supply Chain using SCOR

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Six Sigma Process Improvement in the Supply Chain using SCOR MAESC 2006 March 31, 2006 Paul Babin Mimeo.com Doug Geyer Mueller Industries – PowerPoint PPT presentation

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Title: Six Sigma Process Improvement in the Supply Chain using SCOR


1
Six Sigma Process Improvement in the Supply
Chain using SCOR
  • MAESC 2006
  • March 31, 2006
  • Paul Babin Mimeo.com
  • Doug Geyer Mueller Industries

2
Six Sigma Process Improvement in the Supply Chain
using SCOR
  • Six-Sigma
  • Supply Chain
  • SCOR model
  • Model
  • Measures
  • Balanced Scorecard
  • Integration

3
Six Sigma Process Improvement in the Supply Chain
using SCOR
  • Abstract Six Sigma is an important quality tool
    for driving business results through process
    improvement. Using project teams that focus on
    reducing process variation, the Six Sigma
    approach has been used successfully across a wide
    spectrum of engineering and business problems.
  • When applied to Supply Chain improvement, the
    Supply Chain Operations Reference (SCOR) Model
    provides a framework to identify and select the
    most influential Six Sigma projects that can
    drive important operational and strategic
    benefits.
  • This presentation will provide a practical
    explanation of how SCOR is used, and how it
    relates to other tools including Six Sigma and
    the Balanced Score Card.

4
What is 6-Sigma? 3.4 ppm
3.4 PPM
5
6-Sigma Process Improvement Methodology
Control the process to assure that important
improvements are sustained.
Define the key processes that affect customers.
Analyze the data, converting it to insightful
information.
Measure
Define
Analyze
Improve
Control
EXECUTION
Measure the performance of key characteristics.
Improve the process to achieve the results
desired.
6
Comparing Six Sigma, Lean, TOC ref Dave Nave,
Quality Progress, March 2002
Program Six Sigma Lean Thinking Theory of Constraints
Theory Reduce variation Remove waste Manage constraints
Application Guidelines Define Measure Analyze Improve Control Identify value Identify value stream Flow Pull Perfect Identify constraint Exploit constraint Subordinate constraint Elevate constraint Repeat cycle
Focus Problem focused Flow Focused System constraints
7
6-SigmaTools by DMAIC Phase

ref Implementing 6-Sigma, Breyfogle
2003
  • Define
  • Project Selection Matrix
  • Cost of Quality
  • Project Charter
  • Measure
  • Key process output variables
  • Financial Metrics
  • Voice of the Customer
  • Analyze
  • Box Plots, Pareto Charts, Control Charts
  • Scatter plots, Comparison Tests
  • Regression Analysis
  • ANOVA (Analysis of Variance)
  • Improve
  • Key process input variables
  • DOE (Design of Experiments)
  • Full Factorial DOEs
  • 2k Fractional Factorial DOEs
  • Robust Designs
  • Response Surface Methodology
  • Improvement Recommendations
  • Control
  • Process Maps, SOPS,
  • Failure Mode and Effects Analysis,
  • Mistake Proofing
  • Control Plan
  • Change Management

8
Supply Chains
  • Cross Functional vs. Departmental
  • Customer Focused vs. internal process focused

9
SCOR - Model
  • Supply Chain Operations Reference Model
  • Tool for Supply Chain Improvement
  • Analysis Methodology Opportunity Identification
  • Hierarchical Levels
  • Common Definition of process elements
  • Measures appropriate to each level and element
  • Applicable to Make-to-Order and Make-to-stock

10
SCOR Management Processes
Supplier Internal or External
Customer Internal or External
Your Company
11
SCOR Supply Chain Example
  • Level 1 scope for copper fittings wholesale
    supply chain

12
Balanced Scorecard
  • Strategy Deployment Tool
  • Measures
  • Initiatives
  • Strategic Thrust Compete based on Supply Chain
    Excellence

13
Balanced Scorecard
Perspective Strategy Measurement Targets Initiatives
Financial
Customer
Internal Business Perspective
Learning Growth
14
Integrating
  • BSC
  • SCOR
  • Six Sigma


15
References
  • Breyfogle, Forrest W. III, Implementing Six
    Sigma Smarter Solutions Using Statistical
    Methods, 2nd Edition, Wiley, 2003.
  • Nave, Dave, How to Compare Six Sigma, Lean and
    the Theory of Constraints. Quality Progress,
    March 2002.
  • Supply Chain Council, Supply Chain Operations
    Reference Model, version 7.0, www.scc.org

16
Questions?
17
Extra Slides
18
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