Chapter 08 3rd ed

Chapter 8

PROCESS MANAGEMENT:
LEAN & SIX SIGMA IN
THE SUPPLY CHAIN

Prepared by Mark A. Jacobs, PhD
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

LEARNING OBJECTIVES
You should be able to:
 Discuss the major elements of lean & Six Sigma
 Describe why lean production & Six Sigma quality are integral parts of
SCM
 Discuss the Toyota Production System & its association with lean production  Discuss the linkage between lean & the environment
 Describe the historical developments of lean & Six Sigma
 Describe & use the various tools of Six Sigma
 Understand the importance of using statistical process control

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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CHAPTER OUTLINE
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Introduction
Lean Production & the Toyota Production System
Lean Thinking & Supply Chain Management
The Elements of Lean
Lean Systems & the Environment
The Origins of Six Sigma Quality
Comparing Six Sigma & Lean
Six Sigma & Supply Chain Management
The Elements of Six Sigma
The Statistical Tools of Six Sigma

©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Introduction
In 1990s, supply chain management combined:
 Quick response (QR) - speed & flexibility
 Efficient Consumer Response (ECR) - speed & flexibility  JIT - Continuous reduction of waste
 Keiretsu Relationships - Including suppliers in
JIT/TQM efforts

These approaches have emerged as philosophies
& practices known as Lean Production (or Lean
Manufacturing) & Six Sigma

Lean Production & the
Toyota Production
System
JIT (now Lean) emphasizes –
 Reduction of waste
 Continuous improvement
 Synchronization of material flows within the organization  Channel integration- extending