Title: Implementation of Lean Six Sigma in industrial manufacturing applications: a case study

Authors: Harkrit Chhatwal; Nishant Bhasin; Aditya Bassi; Shubham Sharma; Ruchika Gupta

Addresses: Amity University, Noida, Uttar Pradesh Sector 125 Noida, 201301, India ' Amity University, Noida, Uttar Pradesh Sector 125 Noida, 201301, India ' Amity University, Noida, Uttar Pradesh Sector 125 Noida, 201301, India ' Amity University, Noida, Uttar Pradesh Sector 125 Noida, 201301, India ' Amity University, Noida, Uttar Pradesh Sector 125 Noida, 201301, India

Abstract: This paper presents a case study where the implementation of Lean Six Sigma tools in the inventory control and management of raw material were investigated to study its impact. During this investigation, the problem with large inventory levels and non-moving items were examined through the define, measure, analyse, improve and control (DMAIC) concept of Lean Six Sigma. The study includes the analysis of the current system depicting the existing problems within the company. The methodology aims to analyse the root cause of existing problems and then based on the root cause helps to design an improvement plan through proper process mapping. At the end of the investigation, a few solutions were proposed for implementation. The results demonstrates that with the steps taken to optimise the inventory, an increase in the inventory turnover ratio (ITR) by 33% from a level of 4 to an improved level of 6 can be achieved which will save the inventory cost for sustainable use in future.

Keywords: inventory turnover ratio; ITR; cost of goods sold; COGS; day sales inventory; DSI; define, measure, analyse, improve and control; DMAIC.

DOI: 10.1504/IJSSCA.2022.124298

International Journal of Six Sigma and Competitive Advantage, 2022 Vol.14 No.1, pp.70 - 83

Received: 26 Jan 2021
Accepted: 10 May 2021
Published online: 21 Jul 2022 *

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