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10025 Inventory Turnover As Indicator of Health of Inventory and Business

Inventory management as well as Supply chain operations are often overlapping and hold the key to the success of sales operations. In all of the businesses be in automobile, manufacturing, pharma or retail industry, status of inventory reflects the health of the business. Inventory operations have two key elements namely Inventory System and Physical operations. […]

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Six Sigma is a process oriented methodology designed to improve business performance by improving specific areas of strategic business processes. There are 2 different methodologies available for carrying out improvements in processes or operations.

Improvements can be of two types: improving the existing process or designing a new process altogether. When we have an existing process and we want to improve the process we deploy the DMAIC methodology. While designing a new process or completely revamping the existing process the Design for Six Sigma or IDOV methodology is deployed.

Six Sigma Process

DMAIC v/s DFSS

DMAICDFSS
Structured and iterative process improvement methodologyRigorous approach to designing processes that will exceed customer expectations
Focus on defect reductionFocus on defect prevention

DMADV vs DMAIC

DMAIC Methodology

DefineDefine the problem.
Define the customer(s) and the requirements.
Define the current capability.
Define the key processes that will have the greatest impact on customer.
MeasureIdentify the statistical measures to monitor the key process.
Set up the data collection plan.
Measure the process
AnalyseDetermine the analysis tools and methods to be used.
Summarize the data measured.
Run the analysis and determine the root causes, effects, etc.
ImproveImprove and Implement.
Focus on developing process/technology to improve the root cause.
Test the method on sample process and validate the improvement.
ControlStandardize and document the process and implement the plan.
Monitor the process and feedback the results back to the process for continuous improvement.

Six Sigma Flow Chart

DFSS (IDOV) Methodology

IdentifyDevelop a team.
Create team charter.
Gather VOC.
Perform competitive analysis.
Develop CTQs and formally tie design to VOC.
DesignIdentify functional requirements.
Develop alternative concepts.
Evaluate alternatives and select a best-fit concept.
Deploy CTQs and predict sigma capability.
OptimizeDetermine process capability.
Develop detailed design elements.
Predict performance.
Optimize design.
VerifyTest and validate the design.
Share feedback with manufacturing and sourcing to improve future manufacturing and designs.

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