Purpose – The purpose of this paper is to introduce a hybrid framework (suppliers, inputs, process, output and customers+define, measure, analyze, improve and control (SIPOC+DMAIC)) aimed at improving supply chain management (SCM) process dimensions in a supply chain (SC) network. Design/methodology/approach – Based upon the critical review of literature, process dimensions (average outgoing quality limit (AOQL), average outgoing quality (AOQ), process Z, defect per million opportunity) critical to SCM performance were identified. A framework consisting of three phases, i.e., design, implementation and results has been conceptualized and a case from paint industry is investigated. Implementation framework makes use of SIPOC model and Six Sigma DMAIC methodology. The goals of the study were achieved by using Six Sigma tools such as brainstorming sessions; root cause analysis, histograms, statistical tools such as control charts and process capability analysis. Findings – Authors made an attempt to propose a conceptual framework for improving process dimensions in a SC network. It is observed from the results that selection of appropriate strategies for improving process performance based upon experiences, and use of statistical tools by cross-functional teams with an effective coordination, guarantees success. Metrics such as AOQL shows the maximum worst possible defective or defect rate for the AOQ. Process Z helps to know about sigma capability of the process. Research limitations/implications – The framework so developed is tested in a single company manufacturing batches of paint. The study has important implications for the industry since it tries to integrate SCM process dimensions which would help in successful implementation of SCM practices in firm by following the DMAIC process. The framework enables the practitioners to investigate the process and demonstrate improvements using DMAIC which makes use of statistical tools. Originality/value – Although process dimensions related to SCM are critical to organization competitiveness, research so far has tended to focus on supply chain operations and reference model, balanced scorecard, total quality management, activity-based costing, just in time, etc., but in literature hardly any description of the SIPOC-DMAIC model to improve SCM process performance is provided. The use of statistics in DMAIC provides better insight into the process performance, and process control.

Abstract:The purpose of this study is to propose a methodology based upon Six Sigma to improve the business performance in terms of: 1) perfect order fulfilment (POF); 2) quality level (QL) in a supply chain network (SCN) encompassing various entities such as suppliers, manufacturer, warehouse, distributors, retailers etc. POF is measured in terms of: 1) no of orders delivered in full; 2) delivery on customer commits date; 3) accurate documentation; 4) perfect condition of the product and QL is measured in terms of: 1) supplier satisfaction index; 2) production performance index; 3) warehousing performance index; 4) customer satisfaction index. From the results, it is observed that with the application of the DMAIC methodology in a SCN helps to improve POF and QL. The imperfect condition of POF in network has been reduced to 1.03 from 11.75 orders respectively and on the quality front an improvement of about 53% in DPMO level.

The real challenge for managers is to develop and implement a suitable supply chain performance framework that not only helps in making right decisions but also facilitates the benchmarking of their internal supply chain. The main purpose of this study was to develop a framework based on the performance metrics such as (1) total length of the supply chain, (2) supply chain inefficiency ratio and (3) supply chain working capital productivity. Case study approach is used to benchmark the SCM performance of two paint companies. Further, in order to examine the relationship between SCM practices and SCM performance measures, an empirical analysis has been done by formulating research hypothesis. Results show strong support for linkage between SCM practices and selected performance metrics.

To achieve competitiveness and to improve supply chain performance, supply chain coordination (SCC) is considered as a key challenge by the companies to satisfy their customers. In today's turbulent economic environment, SCC is a topic of great significance among business houses because SCC creates understanding, molds human behavior and improve competitiveness. As observed from literature that the dynamics of global market has resulted in serious pressure and distraction to activities of various supply chain entities i.e. suppliers, manufacturer, distributors, wholesaler, retailers and customers, which ultimately affects the SC performance. Thus, supply chains are exposed to risks due to uncertain and turbulent economic environment. To overcome these challenges, authors in this study developed a conceptual framework based on Six Sigma and ISM which can be used to study various supply chain dimensions be it human, process or quality dimensions. The main advantage of this framework is that it not only helps to understand information regarding the strength and weaknesses of various supply chain entities in a supply chain but also helps to determine the structural relationship among key dimensions of interest. The proposed framework can be applied by industries to model and analyze their processes effectively, compare their performance both within and outside their industry segment and thus improve competitiveness by following various supply chain management practices.

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