What Is Six Sigma In Supply Chain Management

Mellat-Parast and Spillan (2014) defines supply chain management as the method of handling material and information moves from the beginning, through the organization, and to the end-user. This is a very important factor of organizational strategy.

All activities, functions, and facilities involved in producing and delivering a product or service from suppliers to customers (Russell & Taylor, 2014). The term Supply Chain Management varies across the academicians. Supply chain management is the integration of trading partners’ key business processes from initial raw material extraction to the final or end customer, including all intermediate processing, transportation and storage activities and final sale to the end product customer. (Wisner, Tan, & Leon, Supply Chain Management. A Balanced Approach, 2012)

Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).

Six Sigma is a set of tools, processes and techniques that aid in the improvement of any

The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).

What is Supply Chain Management (SCM)? Supply Chain Management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand. To provide the highest degree of customer satisfaction at the lowest possible cost is the flow in supply chain in management of material and information. The commitment of supply chain partners is important and requires to work together to coordinate order generation, order taking, and order fulfillment in Supply Chain Management. To maximize customer value and gain a competitive advantage in the marketplace is the active streamlining of a business’ supply-side activities in Supply Chain Management. Development and implementation supply chains by suppliers is the effort represents Supply Chain Management that are as efficient and economical as possible. To product and development, the information systems are needed to direct these undertakings which is

“Lean Six Sigma is an organized, parallel-meso structure to (a) eliminate waste and streamline all organizational processes (on the basis of Lean Management) and (b) reduce variation in critical organizational processes (on the basis of Six Sigma) by using improvement specialists, a structured method (project management), and performance metrics with the aim of achieving strategic objectives and generating savings to the bottom line of an organization” (Jacob, 2014)

Originally developed from a Japanese quality control process for manufacturing electronic semi-conductors, six sigma developed the potential of reducing issues or problems effecting customer expectations on key business processes. Six sigma has provided the chance to drive forward vital customer focused initiatives across the Cummins global organization.

Supply chain management (SCM) is the maximization of customer value and effective management of supply chain activities to ensure a sustainable competitive advantage. Supply chain firms strive to develop and manage their supply chains as efficiently as possible. Supply chain activities include everything from product development, procurement, production and logistics to all the information systems necessary to coordinate these activities.

Six Sigma means a measure of quality that strives for near perfection. Six Sigma is a disciplined and data-driven approach or methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process , from manufacturing to transactional and from product to service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A defect is defined as any process output that does not meet customer specifications. The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

Supply Chain is a system of organizations, people, activities, information and resources related to the transfer of products or services from suppliers (supply chains) to customers. Supply chain operations involve converting natural resources, raw materials and components into a finished product to be delivered to the end customer. In complex supply chain systems, the products used can re-enter the supply chain at any point where the residual value can be recycled. Supply chain links the value chain. Supply chain management includes all planning and management related to supply, procurement, conversion, and logistics management activities. Equally important is that it also involves coordination with partner channels such as vendors, intermediaries, third-party service providers, and customers. Essentially, supply chain management integrates supply and demand management within and outside the company. Supply chain management is an integrated function with the primary responsibility for connecting the core business functions and business processes within companies into a high-performance and engagement business model. It covers all of the logistics management activities outlined above, as well as manufacturing activities, and it promotes collaborative processes and activities with marketing, sales,

Supply chain management (SCM) is the process that is utilized by a company to ensure that its supply chain is efficient and cost effective. They are aiming at providing the highest degree of customer satisfaction at the lowest cost through management of material and information flow in the supply chain. It requires the commitment of supply chain partners to work closely to coordinate order generating, order taking and order fulfillment. To balance customers' demands with the need for profitable growth, many companies have moved aggressively to improve supply chain management.

Six sigma is a business process that allows organisations to improve their bottom line dynamically by designing and monitoring everyday business activities in a way that minimizes waste of resources while increasing customer satisfaction (Henderson & Evans, 2000).

Supply Chain Management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. It is related with efficiency of a company’s supply, the goal of SCM is, to reduce cost caused by bullwhip effect, or other dummy cost in supply chain.