ExoLytic, Inc.

Quality management and project outsourcing

Right people. Right solutions.

A Discussion on Supply Chain

ExoLytic, Inc. offers an array of consultancy services in supply chain management from initial value proposition, strategic vision, practical application, basic and advanced training to expedite and quality performance implementation. We will help make your project a success from Six Sigma ERP to lean manufacturing along with our industry-acclaimed implementation services in quality and ISO consultancy.

The supply chain is a relatively simple concept. The complexities frequently experienced are typically due to the misunderstanding of its component modules and how to manage/utilize them to effectively fulfill the business goal of economically delivering customer satisfaction. In this series, we will discuss Six Sigma, a major piece of the “Supply Chain”, in layman’s terms to take away some of the mysteries involved. However, even knowing about and having the tools alone will not ensure a successful implementation. Knowledge and how to navigate the pitfalls is the key. The ExoLytic method provides those insights and process checks to make our customers successful.

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By Peter Tang

What is Six Sigma?

To mention a quote from Mr. Miyagi (Karate Kid), “belts are good for only one thing; they keep your pants from falling down.”

When we talk of six sigma, first thing I hear is “are you a master black belt, black belt, gold belt or green belt?” I answer with the Miyagi quote. What does six sigma mean any way? Six sigma is +/- 3 standard deviation from the mathematical average mean, nothing more nothing less. It is a strategy to achieve quality output. In 1986, Motorola coined the buzz word for their process improvement project and when achieved should deliver a 99.9997% defect free output, or 3.4 defects per million units produced. This also applies to the business process as a whole, not just production.

Six sigma is not for everybody, if you are in the drug, food, space aeronautic or medical device industries, six sigma may not be enough. (I hate to be one of the three customers who receive a defective output from them. After all, dead is dead. ;-) ) However, if you are in the mass advertising circular delivery industry, do you need six sigma?

As with all strategies, it must be brought to a plan, tactics and tools for practical implementation. To put a plan together, we must understand what the expectations are and how to achieve them. Once this is in place, we must identify the tools and their proper deployment.

There are many tools for six sigma. They are set up in two conventions, first is DMAIC. This is useful for improving existing business process. The second convention is DMADV. This is useful for new products/processes. Most tools are tools currently in common use for quality and financial management. A listing of the tools will take up more space then this entire article. The following is a simplified key.

The keys to success in six sigma are;

Know your process capability
Know how to do root causal analysis Design for quality and manufacturing
Qualify your vendors
Maintain your process equipment
Train your workforce
Use the proper tools for implementation, analysis/measurement and remedial actions
Statistical analysis tools such as regression analysis, probability analysis and correlation analysis.

A clear commitment to making decisions on the basis of verifiable data, rather than assumptions and guesswork is the key to success. Implementation based on Deming’s Pland-do-check-act cycle repeated as many times as necessary is a key path to achieving six sigma. Many consultants have turned towards “toyotism” as a method of doing causal analysis, the five “Ys” (whys) prorogated by Toyota Motors. Teaching of Taguchi, Ishikawa and W. Edwards Deming has highly influence the current practice which lead many consultants to coin the belts as signs of expertise.

ExoLytic, Inc. provides full service training, implementation and remedial action support for our client without the need to buy a full package. We would also be happy to offer a full package deal if the client prefers.

For more information, call Peter at 781.548.1803 or Jim at 781.929.5008. You can also e-mail your inquiry.