Using the Six Sigma DMAIC Methodology to Improve an Internal Logistic Process

Abstract

Six Sigma is a data-driven approach using specific tools and methodologies that lead to fact-based decisions. It employs a well-structured methodology to reduce process variability and eliminate waste within the business processes by applying statistical tools and techniques. This paper presents a case study highlighting how a manufacturer of domestic water heating equipment has used the Six Sigma Define-Measure-Analyze-Improve-Control (DMAIC) methodology to improve one of its internal logistical processes; the replenishment of supermarket in production lines. The paper describes how a company can use a systematic methodology to improve an internal logistical process, moving it toward a world class quality level. The application of the Six Sigma methodology resulted in a reduction of those routes taking more than 30 min to be completed from 25 to 3 %; a reduction in the coefficient of route time variability from 40 to 14 % and a reduction of the mean route time from 31 to 24 min. These results had a significant financial impact, allowing the elimination of one of the three existing routes—without any negative impact in the supermarket replenishment process—leading to a drop in man hours and costs through the elimination of two milk runs.