Six-Sigma and Material Management

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    Hello Brian
    To follow the 6-Sigma principle you should check with the managers what they consider to be their biggest problems or issues in this area.
    Potential areas
    Lack of rawmaterial due to insufficient order process, might cause delayed production, might cause delayed deliveries/or costly overproduction.
    Finished goods storage, how accurate is this, can this cause customer disatisfaction, do you need to scrap parts due to bad storage….
    Best regards  Maria



    I’m a BB working in the Control phase of a project to improve Vendor compliance for Quality, Quantity and Delivery performance.  Typically we identify non-compliant materials either at Incoming Inspection (30% effective) or in WIP, (not where we want to find the problems).
    We looked at four measures: 1. NCQR’s issued to Vendors (non-conforming quality reports), 2.) Vendor related downtime, 3.) On-time delivery, and 4.) Pallet count accuracy.
     1.) We found our existing NCQR process needing improvement (data consistancy & multiple dbases, now being improved & consolidated into one system)
    2.) Downtime not a big problem due to inflated inventories used to avoid downtime.  Lean methods being implemented to correct this condition.
    3.) On-time delivery; JIT methods being looked at to reduce both early & late Vendor deliveries.
    4.) Pallet counts; Identified two Vendors who are chronic offenders, typically shipping short.



    Hi Brian,
    Our materials group just finished a project. Three of the key performance indicators (or outputs) that they measured were “on time delivery rate” (from vendors to our facility), “documentation accuracy %” and “line downtime in man-hours” caused by the materials group. It was a very successful project.
    That is a fun and interesting area! I am sure you guys will enjoy it.
    Elsa – MBB



    Hello!!  I’m in need of some help.  I’m a Black Belt at a manufacturing company and I would like to obtain some project ideas our Materials team.  Our Materials team does anything from ordering raw material, storing finished goods, and transferring finished goods from one location to another.  Since I’m no expert in the materials management part of the business, I would like to gather some potential project ideas from anyone that can help.  Thanks!!



    Hi Elsa,
    I’m interested in the project that you mentioned …”improve delivery, documentation accuracy, etc …” Am desperately thinking of a project that I can implement with 6 sigma … in a Purchasing dept. My Purchasing dept is rather efficient, POs are processed on time, however, the only problem is the number of POs cut in a month is trememdous! It’s abt 300/mth. And this is done by one person & this poor guy has to answer phone calls throughtout the day & bring the work home to do. Not sure if 6 Sixgma can help to improve this process. Blanket orders is one way I can think of, however, not too sure if this could be tie in with 6 Sigma.
    Comments from anyone is welcome.

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