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How six sigma impacts the development of operations in organizations

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research
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Advanced
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accounting
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westminster

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  1. Introduction.
  2. Supply Chain Management and Six Sigma.
  3. Developing the supply chain as a single entity.
  4. Relationship 1: Suppliers to Manufacturer.
  5. Relationship 2: Manufacturer and Distributor.
  6. Relationship 3: Distributor and Retailer.
  7. Relationship 4: Retailer to the End User.
  8. Conclusion.

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). [...]


[...] Conclusion Clearly, the development of a Six Sigma program for improving supply chain management in the organization is one that is notably complex. If the manufacturer is to be successful in improving this process overall, quantifiable data for decision making must be collected. Without this data, the organization will not be able to clearly justify the need for change or improvement. Although it is evident that manufacturers will some degree of control as the supply chain reaches the final end user, it is also evident that the organization can enforce some type of policy that determines which distributors and retailers are utilized. [...]

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