Most companies and managers are aware of bullwhip effect and the damage it can produced. Yet, so many of them still fall into the trap and trigger bullwhip effect.
The best measure of overall process health is Process Cycle Efficiency or short PCE, the percentage of value added time. NOTE: Value added time is work that customer wants to pay and is desired by customer. PCE = Value-add Time / Process Lead Time You can either measure process lead time directly by measuring time it […]
The Analyze phase of DMAIC helps project teams identify problems in the production process that cause product defects. This phase of Lean Six Sigma methodology is loaded with tools to help spot the problems in the production process and to determine if these problems are the root causes of defects. Examine current process to figure out how it works. Your goal […]
By successfully balancing inventory with actual demand you will minimize the risks of losing sales to competition or leaving you with unnecessary inventory.
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