The creation of Six Sigma Methodology is understood to be traced back to Carl Friedrich Gauss and introduced as a measurement in variation in organizations. Six Sigma name comes from the Greek alphabet “Sigma” which mathematician or statisticians uses in statistics to find a standard deviation. Motorola was the first company to use Six Sigma, to measure the quality of products and services from within. In the process of Motorola using Six Sigma, it helped them to pinpoint mistakes such as finances and operations. Six Sigma’s core philosophy was based on business process and customer requirements, extensive training to employees, focus on the organization, and creating an improved system.… Read the rest
There have been many different definitions of supply chain risk, but it can be broadly defined as the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values. However, this definition has since been expanded upon to account for all the different departments and functions that operate within a supply chain. This leads to an overall definition of supply chain risk as any risks for the information, material and product flows from original supplier to the delivery of the final product for the end user. Simply put, supply chain risk refers to the probability of a risk event occurring the supply line and when the product goes on sale.… Read the rest
Design for Manufacturing and Assembly (DFMA) method was introduced by Geoffrey Boothroyd since 1960s on automatic handling. This enables the use of gathered data of previously done mistakes, speeding up the development process and accomplishing new philosophies and technologies to further ensure that the activities that are quicker and more precise in generating results can really reach this target. All aspects of design, development, manufacturability, total parts, assembly time, cost and modularity are considered in this analytical process. This process mainly focuses on enhancing the product to allow improvements in the manufacturing, quality, reliability, cost, time to market, and many other fields.… Read the rest
Modularity is a degree to which a system’s component maybe separated and recombined. However, it can be used in different contexts and its definition changes accordingly. For example. In Biology, it is the concept that organisms or metabolic pathways are composed of modules. In Nature, modularity refers to the construction of a cellular organism by joining together standardized units to form larger compositions. In cognitive science, the idea of modularity of mind holds that the mind is composed of independent, closed, domain-specific processing modules, etc. But here we will be concentrating on Modularity in operations management, which refers to an engineering technique that builds larger systems by combining smaller subsystems.… Read the rest
A typical Value Stream Mapping (VSM) tool classifies the various industrial processes into value adding and non-value adding with a goal to identify and eliminate the non-value added (waste) activities. Based on the concept of Value-Stream Methodology, Energy Value-Stream mapping (EVSM) is being developed where energy components along with cost are added to evaluate with respect to time.
Energy Value-Stream mapping (EVSM) identifies the level of energy utilization and wastage in each step and hence determines the opportunities for energy conservations. Implementing this tool by incorporating electrical energy and fuel consumption provides with an ability to view the impact that process improvements have on reducing energy consumption and vice versa.… Read the rest
Supplier Relationship Management (SRM) is a concept in the Supply Chain Management, which considered in the aspect of establishing and sustaining the business relationship along the supply chain. Supplier Relationship Management (SRM) concerns the practical processes to integrate the communication and coordination between organizations and their suppliers.
Supplier chain relationship was considered to be one of the important factors in most business, since it can influence the potential of supply chain concept. Now, the modern business seems to be more complex with high competition. Due to the information has more valuable in the supply chain management, firms then need to re-design the ways of managing and sharing information among each others.… Read the rest