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Procurement Processes

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Viewing 11 posts - 1 through 11 (of 11 total)
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  • #30153

    Sharif Sakhaee
    Member

    I need some information on how some of the well known companies such as Motorola, and GE succeeded to improve consistency in tender documents and purchase orders, using six sigma ?
    Sharif.

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    #78305

    john beaudoin
    Participant

    First, they looked at their transactional process by keeping a record with the documents to time them in and out as each department/person handled them.  This gave them data to know how much actual time was spent on the documents and how much Que time they took where they waited for someone to work on them.
    Next, they used an Input/Output diagram to identify all of the inputs and the output for the process.  Second, they flow charted their current process as it is.  Then they used the outputs of their Input/Output diagram, or now called SIPOC for Supplier Input Output Customer diagrams to make the objects of a Cause and Effect Diagram (Fishbone).  They made sure they used a team of individuals to make sure that they captured all of the sources of variation in the documents.  After that, they went through each step from their flow chart they created earlier and built an FMEA of all of the possible things that could go wrong, with their severity, rate of occurrence, and non-detectibility.  They used their RPN factors from a Pareto Diagram to go after specific improvements.  They also redesigned a flow chart process to try and speed up turn around time.  In some cases, the flow chart lead to changes in how the form was layed out, so make it flow smoother through the process.  Finally, new SOP’s were created and errors were tracked on a control chart to verify improvement.  Note:  They took samples to measure errors in documents and used routing to check turn-around time in advance.  You also need to define what your errors are based on customer expectations.

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    #78321

    diane bechel
    Participant

    How timely!  I, too, am working on a Procurement Process project.  Any learning you gain would be very very helpful.  I would also like to ask how people quantified savings –comparison of before state (with non-standard procurement systems) to after state (consistent use of corporate standard procurement systems and practices)?  THANKS

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    #78328

    Tierradentro
    Participant

    [Message removed by administrator for spam violations.]

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    #78329

    Perryman
    Participant

    John,
    Please refrain from promoting your product or service in this forum.
    Thanx,
    Patch

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    #81419

    Hi Dianne
    Participant

    I know of a company that is in the process of measuring process improvements in their Procurement department (for indirect spend, this is a service business).  They already built a model before the project began.  If you email me, I’ll be happy to pass their contact info along.

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    #81540

    Wilson
    Participant

    For the Kind Soul that Promised to email me the info on the company that measured process improvements in the Procurement Process, I’d be very interested in any info you can send.  THANKS

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    #84832

    Schafheutle
    Participant

    Hi!
    Can you give me further information about implementing Six Sigma in the ordering process? Please, are there case studies or somehting like that available.
    I’ll be glad about every link,
    thanks
    markus

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    #84857

    john beaudoin
    Participant

    Sorry on specifics.  Sometimes efficiencies in these areas may be the only competitive advantage a company has, and they are not willing to share specifics.  You may find some actual models through one of the university business schools, case studies.  Even then, many times the actual names of companies are left out because the professor acted as a consultant.  I have layed out a road map to realizing improvements to a business in general in the procurement area.

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    #104928

    Kubal
    Participant

    Hello
    Am onto a procurement process exercise. Could you please share some information on how you executed the project ?
    Looking forward to you response at [email protected]
    Regards

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    #104930

    BDG
    Participant

    Even I am looking for an insight on how to start.
     

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