Question

Marking Scheme

1.What are the key factors for implementing a successful six sigma program for supply chain management? What are the obstacles and challenges of the six sigma method?

2.Critically review and elaborate on one of the Six sigma applications for logistics and supply chain management provided in topic three. References must be included within the text and the following must be included in your approach;

how the projects are specified

what methods/approaches/tools are selected

how the methods/approaches/tools are employed in the different phases of the application

how the improvement actions are implemented

what particular benefits are gained from the application

what weakness you may have noted in the application approach

1. Relevance of work to questions or problems ( e.g. addresses questions/focus or does the response answer the question?)
2. Quality of contents  
• Has the topic been addressed critically and with depth?
• Are the key issues addressed?
3. Quality of structure and presentation
• Structured layout
• Definition of key terms
• Outline of argument..
4. Reference list
- In text references (Harvard style of referencing preferred)
- Use of quotation (author, date, page)..

Answer 1

Six Sigma plan is based on quality control techniques required for improvements in manufacturing process that revolve around the whole process of supply chain. This make use of standard deviation and mean method to calculate the variations and separation of the good from bad output. The main goal is to diminish the defects from the process and increase the quality.

As the process of logistics is very complex, application of six sigma would improve and balance the overall supply chain process. While implementing the same, one must understand the core business area, the gap between the target and actual and accordingly go ahead. This quality control technique is so very crucial and having the impact on business growth. To understand the best technique is to think from the customer point of view and take the influence from them. Understand the customer’s complaints, map the problem, list out the possible solutions and work on the same. Monitor them continually to ensure the smooth performance.

Obstacles and challenges comes under way, when the company fail to find out the best person within the organization having good leadership skills to implement it. Another importance challenge is to understand the six-sigma technique technically considering the type of organisation before trying for implementation. At last, what all matters is execution which requires proper guidance and training for serving the purpose.

Six Sigma is the strategy management technique having the main motive to identify and correct the defects and errors occurring in the process of manufacture. It helps the company by following ways like it can improve the existing process, or re-design the new project or else can go on flow with on going project.

If the process needs improvement, here the main target would be to diminish the defects and error like mainly in shipments, customers feedback can be the ground or the company realizing on its own.

Depending on type of business, the goal of the company and expectations of the management, one can specify the project and thereafter the gap and variations are analysed.

Then the focus is to understand the organization culture, managers skills, leader, commitments and linking of the all these with lean six sigma and business strategy. Lean six sigma is the strategy having the purpose of quality control, improving the performance and customer satisfaction. It gives the assurance of sustained management commitments, focus on training of managers, open communication for understanding the concept.

From the first stage of buying of raw materials to last stage of selling the same to consumers, it makes sure the process employs don’t carry any risk and defects in it. So, at first it identifies the possible hurdles that may come, like inflation, sudden short supply of raw materials or increase of demand, etc. for this adequate inventory is maintained and stock up in best possible way for avoidance of damage and loss.

Benefits can be sustained growth, streamlined process, rectification of process defects, quality of performance improved, customers satisfied, productivity increases and reduction in cost of production and delivery system.

Weakness in aligning of the process with business strategy and that of the interest of managers and employees is difficult task which requires open communication for motivation, adequate training and guidance and involvement in decision making of other affected employees and make them understand the need of this quality control technique.