Using DMAIC aside from Six Sigma:

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.

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About cmintrieri

A credible and proactive Logistics, Imporrtation, Supply Chai and International Purchasing Consultant. I have been with top tier companies; The Schwinn Bicycle Company, General Binding Corporation (GBC) and Gardenway, TROY-BILT Rototillers, as a Materials Management, Supply Chain Director I have been an ERP Project Leader (GBC) for the successful implementation of MSA software in 14 months with a great cross-functional ERP team. I was the Value Analysis Administrator with cross-functional teams looking at various GBC binding and shredding equipment Cost Reduction. This was a veru successful program thanks to the various VA teams who made Cost Savings happen. I did the same as a Consultant for Grand Transformer in Grand Haven, MI. The varius Value Analysis cross-functional teams experienced great Cost Reductions on transformers and Top Management was able to visit their largest customer, Otis Elevator, and offer them Cost Reduced transformers. In turn, Otis gave Grand Trasfornmer a five (5) year contract. I have specialized in Daily Cycle Counting for Inventory Records Accuracy. I have coached many manufacturing and Distribution companies in reaching a 98-100% Daily Inventiory Records Accuracy and the ability to eliminate costly, time consuming, Physical Inventories. I have implemented SWOT in companies, created S.O.Ps in others and assisted in Ship-to-use implementations. I am very people oriented. Bottom line, it is the people, who once trained and educated, make it happen with discipline and effective implementation of new concepts.
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2 Responses to Using DMAIC aside from Six Sigma:

  1. Pingback: Using DMAIC Aside From Six Sigma | Consulting Career Quest

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