Abstract
In this IDC study, we discuss how low-cost manufacturing economies are
increasingly adopting continuous improvement initiatives such as Lean
manufacturing and Six Sigma. However, the traditional approach within the "four
walls" of the organization has for many manufacturing companies already yielded
the easy win improvements. Increasingly, companies are looking to the entire
supply chain for the next "big wins" in the areas of time, cost, and quality
improvements. In this study, we suggest a method of combining Lean and Six
Sigma methodologies with the Supply Chain Operations Reference (SCOR) process
reference model. This convergence of the various process improvement
methodologies provides an integrated framework for companies to coordinate
their improvement efforts.
"Companies have traditionally focused on improvements within the ' four walls of
their factory.' With the relentless drive for improvement in time, cost, and
quality, the next big area of manufacturing process improvements is going to be
from looking at the entire supply chain. Through the combination of the SCOR
model, Lean manufacturing approach, and Six Sigma methodologies, companies can
now embrace the different processes to formulate a process improvement strategy
that links strategic goals with shopfloor improvements across the entire supply
chain," says Dr. Chris Holmes, vice president, Asia/Pacific Manufacturing
Research, Manufacturing Insights.
Through three case studies, examples are given as to how companies are
expanding their improvement efforts. The success of a SCOR implementation is
discussed, with significant gains in lead time, coupled with two companies that
are expanding their improvement initiatives into the supply chain, one having
adopted Lean practices and then progressed to SCOR implementation, and one
expanding its lean initiative out to suppliers.
Table of Contents
- Table of Contents
- Manufacturing Insights Opinion
- In This Report
- Situation Overview
- Current Environment
- Process Improvement Initiatives
- Lean Manufacturing
- Six Sigma
- Supply Chain Operations Reference Process Reference Model
- Figure: SCOR: Process Reference Model
- Figure: SCOR: Supply Chain Definition
- Figure: SCOR: Process Detail
- Lean, Six Sigma, and SCOR Convergence
- Figure: Lean, Six Sigma and SCOR Convergence
- Table: Comparison of Methodology Strengths
- Method Specifics
- Case Study 1: SCOR Adoption: Fonterra Brands (Asia Holding) Pte Ltd
- Driver for Continuous Improvement
- Continuous Improvement Initiatives
- Figure: 7 Step SCOR Implementation Process
- Figure: As-Is Geographic Map for Cans from Raw Materials to Distribution to End Markets
- Figure: AS-IS SCOR Process Flow (Level 2) Map for Sachets from Raw Materials to Distribution to End Markets
- Figure: SCOR Notation
- Results from Continuous Improvement
- Extending Supply Chain Initiatives to Suppliers
- Extending Supply Chain Initiatives to Customers
- Collaborative Planning, Forecasting, and Replenishment
- Vendor-Managed Inventory
- Schedule Sharing
- Future Plans
- Key Learning Points
- Critical Success Factors
- Key Lessons Learned
- Implementation Lessons
- Case Study 2: Lean to SCOR, Thales Aerospace Asia Pte Ltd.
- Driver for Continuous Improvement
- Continuous Improvement Initiative
- Results from Continuous Improvement
- Future Plans
- Key Learning Points
- Critical Success Factors
- Key Lessons Learned
- Implementation Lessons
- Case Study 3: Lean Adoption, Amtek Engineering Pte Ltd.
- Driver for Continuous Improvement
- Continuous Improvement Initiatives
- Figure: Continuous Improvement Organization
- Results from Continuous Improvement
- Table: Results from Continuous Improvement, 2002-2007
- Figure: Example of a Continuous Improvement Project
- Extending the ACE Program to the Supply Chain: Key Customers
- Extending the ACE Program to the Supply Chain: Key Suppliers
- Future Plans
- Key Learning Points
- Critical Success Factors
- Key Lessons Learned
- Implementation Lessons
- Future Outlook
- Implementation Strategies
- Essential Guidance
- Learn More
- Related Research
- Synopsis
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