You can use DMAIC for other than Six Sigma:
D-Define; M-Measure; A-Analyze: I-Improve; C-Control
Let’s take Daily Cycle Counting for 98-100% Inventory Records Accuracy as the project at hand:
Define what our goal is: 98-100% Daily Inventory Records Accuracy
Measure where we are now: Take a sample Cycle Count of a mixture of A,B, C and D items
Divide the Total Count into the Amount Correct: Let’s say 10 items were counted and six (6) were correct=60% Inventory Records Accuracy for this trial count. This is far from good enough.
Analyze: Why were four (4) counts wrong? Analyze the transaction detail in the Warehouse Management System (WMS) to find the root causes for the four (4) variances: warehouse counts to computer counts.
Improve: Improve through Daily Cycle Counting of A,B,C and D items throughout the Warehouse. As you find root cause errors, do a root cause error frequency distribution and eliminate these root causes by writing Standard Operating Procedures (S.O.P.s).
You should be holding steady at 98-100% Daily Inventory Records Accuracy if you follow this proven system.
The key now is C=CONTROL. You must Maintain and Control this 98-100% Inventory Records Accuracy Level through Daily Cycle Counting and root cause analysis. This Control step is the most critical step. You can reach this point, but it has to be maintained and controlled.
When you do control this level of Inventory Records Accuracy, you can consider eliminating the Physical inventory.
We used DMAIC to implement and manage this Inventory Records Accuracy Program.