Supply Chain Strategic Management System
Project Description
This project utilized the Design for Six Sigma (DFSS) Process Development method to consolidate four distinctly different business unit supply chains into a new Global Supply Chain Strategic Management System
Problem Statement
A decentralized approach to sourcing has made it difficult for the global organization to leverage purchased component spend into maximum cost savings. Additionally, the current organization results in excess costs through duplication of efforts and a lack of standardization in the purchasing processes and practices used.
Goals and Objectives
Develop a centralized sourcing organization that is solely focused on reducing cost and improving supply chain performance across all business units.
Establish a uniform system for tracking the key supply chain metrics of commodity pricing, cost reductions, cost forecasts, and vendor quality, delivery, and warranty costs.
Develop and implement standardized sourcing processes for request for quotations, vendor qualification, supplier selection, master supply agreements, and the integrated strategic sourcing process.
Apply the DFSS Process Development Method (DMADV)
- Define – Development project definition
- Measure – Requirements definition
- Analyze – Conceptual design
- Design – Detailed design
- Validate – Test, Validate, and Implement
Summary of Results
This project took 5 months of elapsed time utilizing multiple Webinar on Demand collaborative meetings each week with the distributed team located globally. The process began with the Voice of the Customer. Functional requirements were defined and prioritized using FMEA and QFD. High level processes were conceptually designed using SIPOC and the detailed process maps were developed using the deployment, or swim lane, process mapping method. IT requirements were defined. All work instructions, policies, and procedures were developed to execute the new Supply Chain Strategic Management System. Dramatic cost savings continue to add up. The project began in mid October 2009 and was completed in mid January 2010.
