Six Sigma improvement project in a concrete block plant

2016 ◽  
Vol 16 (4) ◽  
pp. 526-544 ◽  
Author(s):  
Salvador Noriega Morales ◽  
Adán Valles Ch. ◽  
Vianey Torres-Argüelles ◽  
Erwin Martínez G. ◽  
Andrés Hernández G.
Keyword(s):  
Customer Service ◽  
Six Sigma ◽  
Control Process ◽  
Concrete Block ◽  
Service Level ◽  
Improvement Project ◽  
Content Type ◽  
Customer Service Level ◽  
Concrete Blocks ◽  
Six Sigma Methodology

Purpose This paper aims to describe the application of several Six Sigma tools to explain the improvement changes needed in a company that manufactures concrete blocks. The paper explains the methodology and the tools of the Six Sigma system, their use in the project, the application of the DMAIC (Define, Measure, Analyse, Improve and Control) process for the identification and definition of the problems, the related performance variables and the results obtained. Design/methodology/approach The paper reports the research made to improve the production of concrete blocks, specifically, the application of the DMAIC process, which is part of the Six Sigma methodologies; DMAIC stands for Definition of the problem, Measurement of the performance, Analysis using specific statistical methods and tools, Improvement the factors that cause the problem and Control the processes to ensure that the problem will not occur again. Each of those steps is explained in detail in the paper, which also presents the application of other improvement techniques. Findings The results show the adaptability and relevance of Six Sigma for the improvement of production operations. It is clearly demonstrated that it leads to benefits such as the elimination of machine downtime, reduction of scrap from 18 to 2 per cent and the improvements made in plant layout and production facilities to increase the productivity. Research limitations/implications In improvement projects, the differential between the initial and final conditions varies, depending on the magnitude of the problems or potential opportunities. Although this paper describes only the application of Six Sigma, the methodology has a wide potential application in most manufacturing industries. Practical implications With the Six Sigma and DMAIC tools’ application and the improvement process, the agility obtained is driving a more mechanized perspective of production operations. The customer service level was increased, through fast deliveries of complete orders. This project shows that the application of the Six Sigma methodology is feasible and produces attractive financial and operational results in this segment of the construction industry. Originality/value The companies dedicated to the production of concrete blocks commonly reproduce the systems and standards of the industry, which are commonly designed around civil engineering and technical issues. Thus, the application of improvement tools is exceptional in manufacturing environments. Although this paper is just one application of the methodology, it explains in detail the DMAIC use for companies that are committed to the development of new competencies to increase their competitiveness.

What should be lean buffer threshold for the forward-reserve warehouse?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah
Keyword(s):  
Mathematical Model ◽  
Customer Service ◽  
Value Added ◽  
Service Level ◽  
Buffer Size ◽  
Value Stream Mapping ◽  
Content Type ◽  
Customer Service Level ◽  
The Impact ◽  
Just Right

PurposeThe assorted piece-wise retail orders in a cosmetics warehouse are fulfilled through a separate fast-picking area called Forward Buffer (FB). This study determines “just-right” size of FB to ensure desired Customer Service Level (CSL) at least storage wastages. It also investigates the impact of FB capacity and demand variations on FB leanness.Design/methodology/approachA Value Stream Mapping (VSM) tool is applied to analyse the warehouse activities and mathematical model is implemented in MATLAB to quantify the leanness at desired CSL. A comprehensive framework is developed to determine lean FB buffer size for a Retail Distribution Centre (RDC) of a cosmetics industry.FindingsThe CSL increases monotonically; however, the results concerning spent efforts towards CSL improvement gets diminished with raised demand variances. The desired CSL can be achieved at least FB capacity and fewer Storage Waste (SW) as it shifts towards more lean system regime. It is not possible to improve Value Added (VA) time beyond certain constraints and therefore, it is recommended to reduce Non-Value Added (NVA) order processing activities to improve leanness.Research limitations/implicationsThis study determines “just-right” capacity and investigates the impact of buffer and demand variations on leanness. It helps managers to analyse warehouse processes and design customized distribution policies in food, beverage and retail grocery warehouse.Practical implicationsProposed buffering model offers customized strategies beyond pre-set CSL by varying it dynamically to reduce wastages. The mathematical model deriving lean sizing and mitigation guidelines are constructive development for managers.Originality/valueThis research provides an inventive approach of VSM model and Mathematical algorithm endorsing lean thinking to design effective buffering policies in a forward warehouse.

scholarly journals A framework for designing backroom areas in grocery stores

2017 ◽  
Vol 45 (3) ◽  
pp. 230-252 ◽  
Author(s):  
Maria Pires ◽  
Joaquim Pratas ◽  
Jorge Liz ◽  
Pedro Amorim
Keyword(s):  
Customer Service ◽  
Methodological Approach ◽  
Service Level ◽  
Grocery Stores ◽  
Content Type ◽  
Customer Service Level ◽  
Storage Area ◽  
Research Stream ◽  
Retail Grocery

Purpose The design of retail backroom storage areas has great impact on in-store operations, customer service level and on store life-cycle costs. Moreover, backroom storage in modern retail grocery stores is critical to several functions, such as acting as a buffer against strong demand lifts yielded by an ever-increasing promotional activity, stocking seasonal peak demand and accommodating e-commerce activities. The purpose of this paper is to propose a framework to design retail backroom storage area. Furthermore, the authors aim to draw attention to the lack of literature on this topic, while clarifying the relationship between this promising research stream and the considerable body of research regarding the design and operations of conventional warehouses, as well as retail in-store operations. Design/methodology/approach The key literature on backrooms, grocery retail, in-store operations, warehouse design and operations was reviewed. This allowed an understanding of the gap in the literature regarding the design of backrooms. Moreover, a case study methodological approach was conducted in a Portuguese retailer to extend the literature review. Findings Despite having functions similar to conventional warehouses, backroom storage facilities have particularities that deserve a distinct analysis. Thus, the authors stress these differences and demonstrate how they influence the development of a novel backroom design framework. Originality/value This paper fills a gap by proposing a framework to design backroom areas. Furthermore, this research may help practitioners to better design backroom areas, since this process currently lacks a formal and standardized procedure.

Six Sigma for improving cash flow deficit: a case study in the food can manufacturing industry

2020 ◽  
Vol 11 (6) ◽  
pp. 1119-1140 ◽  
Author(s):  
Maria-Victòria Sánchez-Rebull ◽  
Ramon Ferrer-Rullan ◽  
Ana-Beatriz Hernández-Lara ◽  
Angels Niñerola
Keyword(s):  
Cash Flow ◽  
Six Sigma ◽  
Bargaining Power ◽  
Qualitative Methodology ◽  
Manufacturing Industry ◽  
Case Study Research ◽  
Control Process ◽  
Content Type ◽  
Six Sigma Methodology

Purpose Cash flow deficit situations and working capital control are major challenges for many companies, especially those whose suppliers and clients have strong bargaining power. This study aims to describe the application of the Six Sigma methodology for solving these problems in a large German food can manufacturing company. Design/methodology/approach This paper follows the qualitative methodology of case study research. During different define, measure, analyse, improve and control process phases, the problem and critical aspects are identified to improve the quality of the payment process and improvements are suggested and implemented. Findings The results provide evidence of how Six Sigma can be useful in administrative–financial processes that are carried out within a company. This result is particularly interesting because it is about processes that have not applied Six Sigma methodology. For the company studied, this methodology has balanced its cash flow and this meant large amounts of savings, especially in bank interest to avoid having to ask for bank credits. Originality/value This case can be extrapolated to other companies, regardless of the company size, that present similar symptoms of cash deficit, especially if their bargaining power with suppliers and customers is low.

Investigating the value of reducing errors in inventory information from a supply chain perspective

Kybernetes ◽  
2015 ◽  
Vol 44 (2) ◽  
pp. 176-185 ◽  
Author(s):  
Kazim Sari
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Lead Time ◽  
Service Level ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
Useful Knowledge ◽  
Lead Time Reduction ◽  
Customer Service Level ◽  
Time Reduction

Purpose – The purpose of this paper is to investigate the value of reducing errors in inventory information from a supply chain perspective. To this end, the benefits of reducing errors in inventory information are compared with those of lead time reduction and supply chain collaboration. Design/methodology/approach – A simulation model is constructed to perform the analysis. Findings – Results show that lead time reduction is the most important strategy for a supply chain in reducing total supply chain cost. In terms of customer service level, on the other hand, strategy of reducing errors in inventory information is observed as the most considerable strategy. However, the results for supply chain collaboration are somewhat unexpected. Namely, in spite of its popularity, supply chain collaboration provides very limited contribution to the supply chain. Practical implications – This research provides useful knowledge for the managers of a business enterprise in prioritizing various supply chain strategies. Originality/value – In supply chain management literature, greater emphasis is given to lead time reduction and supply chain collaboration than dealing with errors in inventory information. This research makes it clear that errors in inventory information should not be underestimated.

Retail supply chain service levels: the role of inventory storage

2016 ◽  
Vol 29 (6) ◽  
pp. 887-902 ◽  
Author(s):  
Asif Salam ◽  
Farhad Panahifar ◽  
P.J. Byrne
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Retail Industry ◽  
Inventory Level ◽  
Content Type ◽  
Service Levels ◽  
Product Availability ◽  
Customer Service Level ◽  
The Relationship

Purpose In today’s competitive retail industry the most critical success factor is customer service which is indicated by product availability. It is argued that in the retail industry, product availability is an important measure of quality. The single most vital decision that every retailer needs to make is, how to maximize service level while keeping minimum inventory level. The purpose of this paper is to explain and demonstrate the relationship between inventory level and customer service level. Design/methodology/approach This study examines an inventory system utilizing a simulation model based on company data obtained from a retail fast-moving-consumer goods chain operating in Thailand. Findings The results suggest that the achievement of a responsive service level is dependent on managing an efficient supply chain in addition to logistics cost reductions. The findings also reveal the effect the inventory level has on the service level. From the findings of this study, demand variability and service level have been found to have the most significant influence on the inventory level. From the findings, it can also be shown that real and accurate information is very important for service supply chains. Practical implications The paper promotes the importance of having an appropriate inventory management policy for a retail chain which should be driven by retail companies in order to better balance inventory and service levels. Originality/value The relationship between the inventory level and customer service level lead to different outcomes at different combinations of inventory and service levels. Significant relationships were found between inventory and service levels.

The influence of Internet banking services quality on e-customers’ satisfaction of Saudi banks: comparison study before and during COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Areej Abdulrahman Alarifi ◽  
Khalid Sami Husain
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Internet Banking ◽  
Service Level ◽  
Statistical Technique ◽  
Content Type ◽  
Customer Service Level ◽  
Significant Addition ◽  
The Impact

PurposeThe main purpose of this study is to compare e-customer satisfaction in Saudi banks before and during coronavirus disease 2019 (COVID-19) pandemic by assessing the e-service quality dimension before and during the pandemic.Design/methodology/approachTo examine e-customer satisfaction among Saudi bank e-customers, data were collected using convenience sampling methods utilizing two questionnaires before and during COVID-19, distributed to Saudi bank e-customers. The sample size of collecting data of 588 bank e-customers was analyzed through a well-known statistical technique, multiple regression and paired sample t-test, using Statistical Product and Service Solutions (SPSS) software and Excel.FindingsIt is found that efficiency is the major determinant of e-customers’ satisfaction with banks in Saudi Arabia. The Saudi context is different from other countries. There are differences between the impact of Internet banking e-service quality on e-customer service before and during the COVID-19.Practical implicationsThis research has a crucial inference for the managerial level practically. This study has important implications for the banks to satisfy their e-customers by increasing customer service level and enhancing the interaction in the site to solve the e-customers problem immediately by creating an effective support team to encourage the effect of responsiveness. In particular, website managers should review their website framework and create an easily organized site for e-customers.Originality/valueThe research improves past studies' methodology by testing the impacts between the constructs before and during COVID-19. This research is a significant addition to the current literature collection.

Credit card account opening excellence using six sigma methodology

2016 ◽  
Vol 7 (3) ◽  
pp. 294-323 ◽  
Author(s):  
Samsul Islam
Keyword(s):  
Process Improvement ◽  
Six Sigma ◽  
Credit Card ◽  
Current Knowledge ◽  
Case Study Methodology ◽  
Content Type ◽  
Study Results ◽  
Six Sigma Methodology ◽  
Six Sigma Approach ◽  
Opening Process

Purpose This study aims to expand the current knowledge of the Six Sigma approach in a period of time when there is little direct evidence of the need to improve the credit card account opening process. This is an important but neglected area of focus in the Six Sigma literature. This study explores the extent to which process improvement practices are extended to the credit card department. Design/methodology/approach A case study methodology is adopted in this study to facilitate an exploration of the implemented Six Sigma approach in the credit card department of a leading commercial bank. The process improvement tool used is the define, measure, analyze, improve and control (DMAIC) cycle. Findings The study’s results confirm that the Six Sigma approach improves the quality of the credit card account opening process. So, the Six Sigma approach can account for a reduced number of keying-in errors, resulting in better data accuracy and improved customer satisfaction. Research limitations/implications The authors, in an attempt to render the study results more feasible for data collection, have chosen to focus on the process of the new accounts unit of the credit card department. Therefore, the authors have not taken into account the other units (e.g. transaction processing) of the same department. Practical implications The results of this study will be useful in persuading bank management to evaluate and implement the Six Sigma approach. Hence, this research will assist bank managers with replies to questions, such as: “What impact will Six Sigma have on process-centric improvement, such as the new accounts opening process of a credit card department?” Originality/value Within the literature on the Six Sigma practice, there is little research that focuses on the implementation of this particular toolset especially for credit card departments. This indicates a gap in the field. A new contribution to bridging that gap comes from the analysis of the results for the Six Sigma concept, which addresses the new accounts opening process.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Multi-objective optimization model of waste tire recycling network

2020 ◽  
Vol 214 ◽  
pp. 03052
Author(s):  
Bin Wang ◽  
HeHua Li
Keyword(s):  
Environmental Protection ◽  
Customer Service ◽  
Service Level ◽  
Decision Variable ◽  
Multi Objective ◽  
Waste Tire ◽  
Multi Objective Programming ◽  
Customer Service Level ◽  
Logistics Enterprises ◽  
Waste Tire Recycling

To achieve sustainable development, logistics enterprises need not only to reduce costs, but also to save energy for environmental protection and improve customer service level. The improvement of reverse logistics management level of waste tires is of great significance to improve the efficiency of the automobile industry. In this paper, multi-objective programming is adopted to establish the waste tire recycling network model. The decision variable is whether the network nodes are set or not, the traffic flow between nodes. Constraints include meeting customer demand, balance of flow in and out of logistics nodes, etc. The model is solved by ε- constraint. Taking the actual data of the enterprise as an example, the operation results show that the operation cost, carbon emission and customer transportation distance can get an consistence within a certain range. Waste tire logistics enterprises can realize the simultaneous improvement of profit, environmental protection and customer service level.

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