Supply Chain Management-Six sigma-Kaizen-The 5S Japanese Practice

A supply chain includes all operations connected to the movement and transformation of products and services from the stages of the raw materials to the final consumer (customer), as well as information flows. The entirety of the resources, data, and operations is the "supply". It is made up of numerous interconnected constituents, beginning with the suppliers of the raw materials, subassemblies, producers of the goods and services, and distributors, and concluding with the users of the final product. To put it another way, a supply chain is a network of businesses and the resources, tasks, and activities they use to produce and deliver a good or service.

Beginning from the most fundamental raw material providers, a sequence continues all the way to the last client. Factories, processing centers, warehouses, distribution hubs, retail stores, and offices are examples of facilities. Forecasting, purchasing, inventory management, information management, quality assurance, scheduling, production, distribution, delivery, and customer service are similar roles and activities. Due to the size, nature, and activities of various businesses, as well as whether or not they are largely manufacturing or service operations, different organizations may have varied supply chains.

The management of supply changes is both crucial and popular in business today. The goal is to adopt a comprehensive system approach to manage the full flow of data, goods, and services from suppliers of raw materials via manufacturers and storage facilities to the final consumers. It is the coordination of the processes that involve the acquisition of resources and services, their conversion into intermediate products and finished commodities, and their delivery to clients. Its main goal is to create a supply chain that concentrates on giving the final client the most value. Nowadays, rivalry is between supply networks, which are frequently worldwide, rather than between enterprises.

Because it covers so many connected responsibilities, supply chain management is one of the most crucial and strategic parts of operations management. A large portion of an organization's strategy planning is deciding who to buy materials from, how to move goods and services, and how to distribute them in the most affordable, efficient way possible. The improper supplier for the job can lead to late deliveries and low-quality supplies. If the wrong carrier or means of transportation is chosen, customers may not receive their orders on time, necessitating large, expensive stocks to make up the difference. The supply chain is given more attention as businesses attempt to become more competitive through product customisation, high quality, cost reductions, and speed to market.

Suppliers who are managed effectively become "partners" in the company's strategy to adapt to the marketplace. A close short-term and long-term strategic partnership with a select few suppliers may be necessary to get a competitive edge. The company must choose a supply chain strategy before sourcing the goods and services from outside vendors. The following supply chain strategies are available:

• One negotiation tactic is to use numerous different suppliers, pitting them against one another.
• To satisfy the end customer, a second tactic is to establish long-term "partnering" agreements with a small number of suppliers.
• A company may choose to apply vertical backward integration by actually purchasing suppliers as part of a third method, which is called vertical integration.
• A fourth model, referred to as the "Keiretsu network," combines vertical integration with a small number of suppliers. Suppliers join a company coalition in "Keiretsu."
  A final tactic is to create virtual businesses that hire suppliers as needed.

Six sigma

The philosophy of quality improvement known as six sigma is fact-based and data-driven and emphasizes defect prevention over defect discovery. This defect-reduction program, which is a crucial quality management approach, was invented by Motorola in the 1980s. In essence, it is a philosophy and a method of measurement. The foundation of six sigma is the design, measurement, analysis, and control of the input side of a production process to reach the target of no more than 3.4 faults per million parts or procedures (or 99.99 percent). In other words, six sigma tries to design quality into a product as it is being built, as opposed to measuring a product's quality after it has been produced.

The six sigma process employs statistical models in conjunction with particular quality tools. Prior to six sigma, quality management was primarily practiced on the factory floor and was a separate field for statisticians. The six sigma expert of today derives process improvement through quantitative and quantitative approaches. The implementation of six sigma can be helpful in the service sector of a company, particularly in identifying cost savings.

Kaizen

The reduction of waste is the main tenet of kaizen, a Japanese concept. This method emphasizes that managers and other employees should be trained to analyze every area of their company's production system critically, find any sources of waste, and offer solutions to get rid of it. This analysis is frequently carried out by self-managed work teams. They take a break once a week or once a month to consider the layout of their jobs and provide the functional manager a suggestion for improvement.

The 5S Japanese Practice

One of the most effective Lean Manufacturing tools is 5S, which is used to organize the workplace in a neat, safe, and effective way in order to increase productivity, assure visual management, and enable the introduction of standardized functioning. The employees in the working area should carry out the procedure as a team while adhering to the 5s principles. In other words, a deliberate approach to setting up our office and working procedures. Without the knowledge and cooperation of the people in the working area, this cannot be carried out by outsiders.

It is split into 5 phases, in a different Japanese term beginning with the letter “S”. They are: Seri, Seaton, Seiko, Seekers, Shinseki, therefore, the name 5 S. These terms has following meaning in English. They are:

• 5S Seiri: Clearing, Sort, Classify
• 5S Seiton: Configure, Straighten, Set in order, Simplify
• 5S Seiso: Shine, Scrub, Sweep, Clean and Check
• 5S Seiketsu: Stabilize, Standardize, Conformity
• 5S Shitsuke: Self-discipline, Sustain, custom and practice

Some companies add 6th (6S) i.e. Safety for completeness.

• 5S Seiri /Sort:
  • It is the first step in the 5S process, and it deals with separating unnecessary clutter from other items in the workspace. Sort is another name for it. The staff is now forced to eliminate anything from the workspace that is unnecessary and only leave the objects that are actually needed.
• 5S Seiton or Straighten / Set in order:
  • It is the procedure by which the necessary goods are removed from the debris once it has been cleared away, and they are then efficiently arranged. It is accomplished by applying ergonomic principles, which guarantee that "everything has a place" and is situated appropriately. It also goes by the name Straighten.
• 5S Seiso or Shine/Sweep:
  • To ensure that everything is restored to "almost new" condition, a complete cleaning of the tools, machines, area, and any surviving equipment is required. This makes sure that any deviation from the norm is obvious. It is sometimes referred to as sweep.
• 5S Seiketsu or Standardize:
  • We use it to ensure that every work completed during the first three stages of 5S is standardized. Here, we make sure that we have agreed-upon working procedures and standards. The most crucial Lean manufacturing tenet is standard work. It also goes by the name standardize.
• 5S Sorting or Seiri:
  • This is 5S's last stage. This guarantees that the business will continue to use the earlier 5S stages to improve continuously. It upholds the core 5S philosophy of encouraging a productive and secure work environment. Every employee in the work area should adopt 5S as part of their responsibilities and the company organization's culture. Sustain is another name for it.

Reference:

leanmanufacturingtools.org/192/what-is-5s-seiri-seiton-seiso-seiketsu-shitsuke/. 05 06 2016.

Prem R. Pant, Ph. D. "PRINCIPLES OF MANAGEMENT." Kathmandu: Buddha Academic Publisher and Distributors Pvt. Ltd., 2010. textbook. 17 jun 2016.