Title: Measuring business performance in a SCN using Six Sigma methodology - a case study

Authors: Pratima Mishra; Rajiv Kumar Sharma

Addresses: Department of Management and Social Sciences, National Institute of Technology, Hamirpur, India ' Mechanical Engineering Department, National Institute of Technology, Hamirpur, India

Abstract: The purpose of this study is to propose a methodology based upon Six Sigma to improve the business performance in terms of: 1) perfect order fulfilment (POF); 2) quality level (QL) in a supply chain network (SCN) encompassing various entities such as suppliers, manufacturer, warehouse, distributors, retailers etc. POF is measured in terms of: 1) no of orders delivered in full; 2) delivery on customer commits date; 3) accurate documentation; 4) perfect condition of the product and QL is measured in terms of: 1) supplier satisfaction index; 2) production performance index; 3) warehousing performance index; 4) customer satisfaction index. From the results, it is observed that with the application of the DMAIC methodology in a SCN helps to improve POF and QL. The imperfect condition of POF in network has been reduced to 1.03 from 11.75 orders respectively and on the quality front an improvement of about 53% in DPMO level.

Keywords: supply chain management; SCM; six sigma; supply chain networks; SCN; perfect order fulfilment; POF; supply chain quality; business performance; performance measurement; case study; order delivery; on-time delivery; accurate documentation; product condition; supplier satisfaction; production performance; warehousing performance; customer satisfaction; DMAIC.

DOI: 10.1504/IJISE.2017.080689

International Journal of Industrial and Systems Engineering, 2017 Vol.25 No.1, pp.76 - 109

Received: 15 Feb 2014
Accepted: 15 Feb 2015
Published online: 04 Dec 2016 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article