Measuring business performance in a SCN using Six Sigma methodology - a case study

Abstract

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 mediating role of innovation culture on the relationship between Six Sigma and organisational performance in Dubai police force

“…Six Sigma was found to have a significant and positive impact on the organisational performance of the DPF. This result is consistent with that of past studies (Ahmed et al, 2018;Ali et al, 2016;Gunawan and Karimah, 2017;Hilton et al, 2008;Hwang et al, 2018;Jacobs et al, 2015;Mishra and Sharma, 2017;Nayeri and Rostami, 2016;Patyal and Koilakuntla, 2017;Sin et al, 2015;Singh et al, 2017;Swink and Jacobs, 2012;Uluskan et al, 2017;Zu et al, 2008). Results suggested that Six Sigma is critical for the DPF to achieve its goals and attain the planned performance.…”

“…The bulk of evidence revealed that Six Sigma was positively and significantly related to organisational performance (Hilton et al, 2008;Zu et al, 2008;Swink and Jacobs, 2012;Jacobs et al, 2015;Sin et al, 2015;Ali et al, 2016;Nayeri and Rostami, 2016;Gunawan and Karimah, 2017;Hwang et al, 2018;Mishra and Sharma, 2017;Patyal and Koilakuntla, 2017;Singh et al, 2017;Uluskan et al, 2017;Ahmed et al, 2018). Six Sigma also has a role in enhancing quality management (Al-Aomar and Chaudhry, 2018;Raja et al, 2016), saving time and cost (Pande et al, 2000) and increasing innovation (He et al, 2015).…”

ICT Validation in Logistics Processes: Improvement of Distribution Processes in a Goods Sector Company

“…Consequently, LSS represents a data-driven approach, which uses specific methodologies to reduce variability, eliminate waste within business processes, and lead to fact-based decisions through statistical tools and techniques. DMAIC consists of understanding the root causes of a problem through exhaustive analyses to propose assertive solutions and prioritize premature decision making to improve the process [54], representing one of the methodologies ensuring the implementation of supply chain management practices in companies [55,56], reducing security risks in container transport within the supply chain [57], developing improvement models for the analysis and interpretation of performance indicators [58], improving logistics replenishment processes, the efficiency of the transportation process, and business performance in terms of on-time in-full orders, quality level in the supply chain network [59]. DMAIC methodology provides labor costs savings, eliminates replenishment routes without generating negative impacts in the process, and increases employee and customer satisfaction.…”

Preferred customer status, supplier satisfaction and their contingencies

“…Next to the aforementioned studies, which put supplier satisfaction at the focal point of analysis, recent studies in different research areas mention the importance of supplier satisfaction for successful collaborations, or recognized its importance in creating organizational performance matrices (Brink;Jennings, Narayanan, Nepal, & Clark, 2017;Kumar & Routroy, 2017;Kumar & Routroy, 2016;Luu, 2017;Mishra & Sharma, 2016;Setu, Hossain, Hossain, & Sarkar, 2016). The notion of having satisfied suppliers for achieving competitive advantages is gaining momentum even outside dedicated supplier satisfaction research.…”