Module 2 - Background

Quality Management

The following information will give you a good background on the how six sigma programs can be applied to logistics. Please review the information presented below to assist you with the assignments. You will also need to find your own articles to support your case and SLP papers based on the organizations that you are writing about.

First take a look at this article on six sigma and its application to logistics:

Witt, C. E. (2002, May). Achieving Six Sigma logistics. Material Handling Management, 57(5), 10. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Six Sigma is an organizational methodology for achieving total quality throughout the company. The goal of Six Sigma is to enable business processes to produce results with no more than 3.4 defects per million. Emerging new technologies in the supply-chain-visibility area - supply chain process management - allows companies to apply Six Sigma methodology to the extended supply chain.

Here is another article on six sigma and its application to logistics:

Whalen, J. (2002, May). Logistics embraces Six Sigma quality. Warehousing Management, 9(4), 11. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

Six Sigma, the quality initiative spearheaded and made famous by companies like General Electric and Motorola, is taking the distribution industry by storm. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities.

Now take a look at this article on how Sun Micro Systems is applying six sigma process to its logistics program:

Shah, J. B. (2002, October 21). Applying Six Sigma process – Sun Micro continues to refine merge-in-transit logistics program. EBN, 1335, 22. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

For the last couple of months, Sun executives have been applying the company's version of Six Sigma quality and business process standards, called Sun Sigma, to its merge-in-transit program and looking at how the program can serve as a steppingstone to broader customer fulfillment objectives, said Jim Currie, director of global logistics processes at Sun's worldwide customer fulfillment organization.

Take a look at this article that discusses the importance of quality in your logistics system.

Inglis, P. F. (1992). Quality logistics: A key competitive advantage. Canadian Business Review, 19(2), 29-32. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.

Abstract:

The key business process that will differentiate companies that manufacture or distribute products is logistics. Improving the service quality provided by the logistics process increases customer satisfaction and engenders customer loyalty. At the same time, focusing on customer needs eliminates the cost of services that are not valued. While companies may want to use service quality to differentiate themselves from competitors, there are 4 major gaps between suppliers' perceptions and customers' expectations: 1. between the company's understanding and the real needs of the customer, 2. between suppliers' perception and customers' view of what constitutes value added, 3. between internally focused customer service goals and long-term goals, and 5. between the customer and the supplier in the area of measuring and communicating performance. Successful companies improve service quality and productivity in 2 ways: 1. They carry out a process of continuous improvement. 2. They pursue breakthrough improvements when the time is right.

Case Assignment Reading

Morgan, J. P., (2002, June 6). Cessna aims to drive SCM to its very core. Purchasing, 131(10), 31-35. Retrieved on December 12, 2014, from ProQuest in the Trident Online Library.