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Lean Six Sigma

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Lean Six Sigma processes are used by many businesses without it being realized. Many companies today are adopting the Lean Six Sigma processes to aid in cost reduction and waste management. The Six Sigma program aids in eliminating the negative effects caused by variations within the supply chain. The Lean process is all about the speed, flow and elimination of waste concerning inventory. Although Lean and Six Sigma are separate programs, they complement each other. Together these two programs provide supply chains with a tool that eliminates, “unnecessary inventories through disciplined efforts to understand and reduce variation, while increasing speed and flow in the supply chain.”(Lean Logistics Understanding) Lean and Six Sigma …show more content…

Manufactures have adopted the reusable container and save on disposal cost, as well as, improved product protection. So, even thought packaging is not the number one concern of supply chains; it is a valid area to evaluate. Applying Lean Six Sigma to packaging in supply chains will reduce product damage, improved flow within the supply change, promote efficiency and overall save money. Logistics is the management of inventory at all levels. “Inventory can represent any where from 5 to 30 percent of a manufacture’s total assets and may represent half of a retailers assets.” ()Inventory is one of the more visible forms of waste within supply chains. The driving factor behind inventory is customer demands. The goal of any company who wants to stay in business is to have the product in the right place at the right time for the right cost. This leads to companies trying to forecast for future demands. Forecasting is never exact and demands are always over or under what was forecasted. In my job as a command Readiness Spares Package manager we utilize past fiscal year demands to forecast for the future fiscal year. Although I utilize several different analysis systems to forecast demands; it is never accurate. The goal is to get the forecast as close to the future demands to eliminated customer wait time and save money. Many wholesalers

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