A precursory overview of the modern organization demonstrates that there are a host of inefficiencies in various departments and areas. Although most organizations accept some degree of inefficiency as part of the operational process, the reality is that there are notable steps that can be taken the reduce inefficiency and improve outcomes for the organization. In particular, Six Sigma has been identified as one of the most salient tools for improving efficiency in operations carried out by the organization.With the realization the Six Sigma can have such a notable impact on the development of operations in the organization, there is a clear impetus to examine the methodology and discern how it could realistically be applied.
[...] By analyzing the past and current performance of this type of purchasing process, the manufacturer will have a better understanding of how the timing of supply purchasing impacts the bottom line for the organization. This information can then be used to substantiate purchasing decisions made by the manufacturer in the future. Improve Once an optimized purchasing schedule has been developed, the organization must work to ensure that this schedule remains valid. Although the manufacturer will seek to minimize risk, the reality is that there are unforeseen changes in the market that may impact demand for the organization's final product and/or the cost of the supplier's raw materials. [...]
[...] According to these authors, “improving the quality of all supply chain processes lead to cost reductions, improve resource utilization and improved process efficiency” (p. 1218). These authors go on to note that many of these objectives are similar to those that are employed in the development of Six Sigma approaches to increasing organizational efficiency. is our belief that the Six Sigma can used to develop a model for assessing, improving and controlling quality in the supply chain network” (p. 1218). [...]
[...] Improve Much like the process of tracking purchasing timing, the process of improving incentives for distributors may be impacted by external forces in the market. As such, the manufacturer must consider what external factors will impact the ability of the distributors to move product. In some instances, the organization may find that regardless of the incentives used, distributors are not able to move product. For this reason, the manufacturer may find that financial incentives to the distributor are not helpful, costing the organization money. [...]
[...] Without the necessary data to demonstrate how decision making could improve sales or profitability of the organization, decision making cannot take place. A strict adherence to statistical metrics will ensure that the organization is able to optimize sales to retailers. Relationship Retailer to the End User Define In order for retailers to look appealing to both manufacturers and distributors, they must improve the level of products and services provided to customers. Researchers note that, “Today's customers demand higher levels of service, better products, and more recognition” (Retail , 2006). [...]
[...] In an effort to demonstrate how the Six Sigma program can be utilized to improve supply chain management in the organization, Wang, Du and Li provide a conceptual model of how this process would occur. This general model is presented in Figure 1 below: Figure Six Sigma in the Supply Chain Model as Proposed by Wang, Du and Li What this diagram effectively demonstrates is that Six Sigma improvement must occur between each critical step of the supply chain—i.e. between suppliers and manufacturer, manufacturer and distributor, distributor and retailer, and retailer and the end user. [...]
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