Sunday, October 16, 2022

Supply Chain Industrial Engineering Module - Supply Chain Cost Reduction - Productivity & Quality Improvement - Bibliography


Lesson 171. Supply Chain Industrial Engineering - Bibliography

Supply Chain Operational Excellence


Supply Chain First Design - Adopting Evolving Technologies - Continuous Productivity Improvement - Capacity Adjustments -  Operations (Quantity) Planning - Operations Execution

Supply Chain Industrial Engineering


Supply Chain Industrial Engineering Focuses on adopting evolving technologies, continuous productivity improvement apart from contributing in first design of the supply chain to ensure high productivity in the first design itself.


Supply Chain Industrial Engineering -  Presentation Video
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Large number of articles are available on supply chain cost reduction and productivity improvement. The subject of supply chain industrial engineering can be developed out of them. Subjects like manufacturing systems industrial engineering, product design industrial engineering, maintenance systems industrial engineering, information systems industrial engineering have to be developed by IE academicians to give clarity to the profession of industrial engineering. 

Adopting new technologies and improving productivity of those technologies is an important function that gives powerful scope to industrial engineers to contribute to the growth of companies and that of economies.

The collection of articles, books and papers will give you the idea of importance of the issue of cost reduction, productivity improvement and industrial engineering in supply chains. But the industrial engineering profession has not yet recognized this area as an important task of industrial engineers and they still talk in terms of supply chain management only and use books written for supply chain managers in the subject of industrial engineering curriculum. Industrial engineering profession has to develop a unique area for it in the supply chain management area.

Interesting Contribution from Schroeder

Operations Management in Supply Chain - Decision and Cases

SCHROEDER
Tata McGraw-Hill Education, 2013

Contents

5 Parts

Product Design
Process Design
Quality
Capacity and Scheduling
Inventory



Supply Chain Cost Reduction - Articles, Books and Papers



2022

Why organizations should transform their supply chain through cost reduction?
Global disruptions and growing pressure on operational and financial performance are forcing organizations to redesign their supply chain.
The role of supply chain is more strategic than ever and cost transformation becomes vital for companies to thrive.
There are 6 focus areas: Portfolio Simplification, Procurement, Supply Planning, Manufacturing Optimization, Operations Network Footprint and Target Operating Model.


How can today’s supply chain disruption cut costs and improve control?
Supply chain teams should examine their end-to-end value chains and identify levers to improve costs and controls – now, next and beyond
Digital enablers may require early outlay but offer significant gains in terms of cost, efficiency and control

16.10.2021

Search term: "supply chain" cost reduction

Cost Reduction Strategies in Supply Chain Management
Small Business
By Cathy Habas Updated August 21, 2020

Top 10 Tips to Reduce Your Supply Chain Costs
BY TOM K /  FRIDAY, 15 MARCH 2019

Tap Your Supply Chain For Cost Savings And Efficiency 2021/02/10 
10-Feb-2021 — Supply chain efficiency, such as warehousing and distribution, can reduce your overall expenses for your firm

 7 ways everyone can cut supply chain costs 

Reducing supply chain costs- supplier substitution, outsourcing, supplier refinancing and inventory changes.
https://www.gartner.com/en/supply-chain/insights/supply-chain-costs

To Evaluate Cost Savings in a Supply Chain : Two Examples 
by A Pettersson · 2013 
https://www.diva-portal.org/smash/get/diva2:977185/FULLTEXT01.pdf


01-Jul-2021 — The supply chain is becoming more strategic than ever before, with cost-cutting a priority amid growing financial pressure and volatility.
https://www.ey.com/en_ch/supply-chain/how-can-todays-supply-chain-disruption-cut-costs-and-improve-control

(PDF) Supply chain cost reduction using mitigation & resilience
https://www.researchgate.net/publication/318490396_Supply_chain_cost_reduction_using_mitigation_resilient_strategies_in_the_hypermarket_retail_business

Lean and mean: How does your supply chain shape up
by K Alicke  — As in warehouse operations, companies that focus on transportation cost drivers gain. They can control cost overruns or reduce current costs.

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/operations/pdfs/lean_and_mean-how_does_your_supply_chain_shape_up.pdf


Supply chain management as a competitive strategy for costs. POMS conf. paper. 
by H Pozo — for costs reduction: a case study in two small manufacturing companies
https://www.pomsmeetings.org/confpapers/043/043-0536.pdf

Research on supply chain cost reduction based on process - ieee.org 
Supply chain cost reduction becomes a new source of achieving competitive advantage. Although interests in reducing supply chain cost are growing.
http://ieeexplore.ieee.org/document/4738147/

Mini Case Studies: Supply Chain Cost Reduction and Management
Rob O'Byrne Feb 20, 2020
https://supplychainchannel.co/mini-case-studies-supply-chain-cost-reduction-and-management/

Cost Drivers in Supply Chain Management
By Daniel Stanton
https://www.dummies.com/business/management/cost-drivers-supply-chain-management/


Reducing Costs Through Collaborative Working in the Supply Chain.  - MDP
https://blog.som.cranfield.ac.uk/execdev/reducing-costs-through-collaborative-working-in-the-supply-chain

Identifying and prioritizing cost reduction solutions in the  supply chain.
by JH Dahooie · 2020 · — The present study aims to provide a coherent framework for utilizing a value engineering approach to supply chain cost management.
https://journals.vgtu.lt/index.php/TEDE/article/view/13534


Supply chain cost research: a bibliometric mapping perspective  (Paper downloaded)
Edgar Ramos , Steven Dien , Abel Gonzales , Melissa Chavez , Ben Hazen 
Benchmarking: An International Journal
Citation Ramos, E., Dien, S., Gonzales, A., Chavez, M. and Hazen, B. (2021), "Supply chain cost research: a bibliometric mapping perspective", Benchmarking: An International Journal, Vol. 28 No. 3, pp. 1083-1100. https://doi.org/10.1108/BIJ-02-2020-0079
https://www.emerald.com/insight/content/doi/10.1108/BIJ-02-2020-0079/full/html

Supply Chain Analytics for Cost Reduction - KPMG International
Understand undiscovered connections in supply chain to optimize cost. Supply chain analytics helps organizations gain a holistic view of the entire supply.
https://home.kpmg/tr/en/home/services/advisory/strategy/management-consulting/business-intelligence-data-analytics/data-analytics/supply-chain-analytics-for-cost-reduction.html

Cost Management in Supply Chains — Different Research 
by S Seuring · 2002 · Cited by 19 — Cost reduction is among the most cited objectives in supply chain management. 
https://link.springer.com/chapter/10.1007/978-3-662-11377-6_1


Inventory management and cost reduction of supply chain  (Paper downloaded)
by U Praveen · 2019 · Cited by 5 — Reducing waste, and therefore cost, within a supply chain can be a very challenging process due to the large number of variables involved.
https://www.sciencedirect.com/science/article/pii/S2351978920300354


SUPPLY CHAIN COST MANAGEMENT AND VALUE-BASED  
by M Christopher · 2005 · Cited by 272 — Whilst some of this price deflation can be explained as the result of normal cost reduction through learning and experience effects (1), the rapid fall in
https://core.ac.uk/download/pdf/138414.pdf

How to Reduce Costs through Supply Chain ... - IndustryWeek 
08-Jul-2013 — Supply chain network design is a powerful modeling approach proven to deliver significant reduction in supply chain costs and improvements.
https://www.industryweek.com/supply-chain/planning-forecasting/article/21960681/how-to-reduce-costs-through-supply-chain-network-optimization

Evaluating cost-reduction alternatives and low-cost sourcing opportunities for aerospace castings and forgings
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2008.
https://dspace.mit.edu/handle/1721.1/44381

Best practices for managing cost in the healthcare supply chain 
by JP Dittmann · Cited by 3 — This part is designed to help you take the next step and identify specific cost reduction projects in your firm.
https://www.ups.com/media/en/managing-costs-part-2.pdf


Supply chain costs and customer satisfaction - PwC 
This also represents one of the greatest opportunities for both cost saving and faster, more reliable delivery to customers.
https://www.pwc.com/us/en/industries/private-company-services/business-perspectives/supply-chain-costs.html


E-Commerce Enterprise Supply Chain Cost Control 
by H Mao — ... products products to reduce supply chain costs. The research in this study has achieved a breakthrough in the cost management
https://www.hindawi.com/journals/complexity/2021/6653213/


Reinventing the CPG Supply Chain with Zero-Based Budgeting   bcg.com 
15-Nov-2019 — CPG companies have traditionally sought to reduce supply chain costs by 2% to 5% a year. Incremental reductions are no longer sufficient
https://www.bcg.com/publications/2019/reinventing-consumer-packaged-goods-supply-chain-with-zero-based-budgeting

Optimizing the retail bank supply chain - Deloitte 
In fact, the worldwide cost of handling cash already exceeds $300 billion per year. To reduce these costs and improve efficiency, retail banks need new methods.
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Financial-Services/gx-fsi-ca-optimizing-the-retail-bank-supply-chain-2013-10.pdf

10 tips for reducing supply chain logistics costs    mhlnews.com  
09-Aug-2005 — 10 tips for reducing supply chain logistics costs · 1. Understand the true costs of sourcing overseas. · 2. Focus on eliminating the variability. 
https://www.mhlnews.com/transportation-distribution/article/22051660/10-tips-for-reducing-supply-chain-logistics-costs

Cost Reduction Measures
May 5, 2004  |  SCRC SME
According to a study by the Center for Applied Purchasing Studies (CAPS) Research, the primary goal of most purchasing executives is to reduce total costs (1). Supply managers in general are under an increasing amount of pressure to assure the accuracy and validity of their cost reduction measures. Their goals are often directly linked to promotions and bonuses as an incentive help their purchasing department reach its goals. As such, cost reduction measures must be able to withstand rigorous questioning from top management (2).
(1) Hendrick, T. and Ogden, J. (2002). Purchasing and Supply Managers’ 2001 Compensation Benchmarking and Demographics CAPS Research Focus Study. CAPS Research.
(2) Smeltzer, L. and Manhsip, J. (July, 2003). How good are your cost reduction measures? Supply Chain Management Review.
https://scm.ncsu.edu/scm-articles/article/cost-reduction-measures

Our Quick Notes On Supply Chain Cost Reduction

Vivek Sood
Global Supply Chain Group, 18-Nov-2020 - Business & Economics - 22 pages

Part of our new "Quick Notes" series - this report answers your most pertinent questions of the topic.
Included are quick notes and some of the frequently asked questions (FAQs) on supply chain cost reduction that we have encountered in our workshops, seminars, and other forums.
https://books.google.co.in/books?id=-G8JEAAAQBAJ

Supply Chain Cost Control Using Activity-Based Management
Matthew Zander
CRC Press, 19-Jul-2006 - Business & Economics - 224 pages

Having an accurate assessment of company expenditures is a key to staying in business. Activity-based management (ABM) is the only system that offers the tools to correctly assess the outflow involved in a tightly knit supply chain and enables understanding not only of the total cost of ownership (TCO), but also how these costs should be allocated.
https://books.google.co.in/books?id=cdvLBQAAQBAJ


Measuring the Value of the Supply Chain: Linking Financial Performance and Supply Chain Decisions
Enrico Camerinelli
Gower Publishing, Ltd., 2009 - Business & Economics - 218 pages

In a company ecosystem the supply chain manager is tasked with duties and objectives primarily aimed at controlling and reducing costs, while optimizing the material flows. Yet, in many organizations, common perception limits supply chain management to product logistics, materials handling and warehouse management. The supply chain manager must learn how to communicate the results of his work to show the importance and impact supply chain management operations have on a company. In this book, Enrico Camerinelli provides the supply chain manager and the chief financial officer with the means to link the value of the supply chain to an organization's bottom line. He explores the problem with current supply chain metrics, shows how to close the gap between financial decisions and supply chain performance, suggests a model to provide a lingua franca for supply chain, financial and other managers throughout the company and points to ways in which new technology can help measure the value of the supply chain. Using case studies and interviews with supply chain and financial experts, Measuring the Value of the Supply Chain will help financial and supply chain managers achieve strategic advantage through effective supply chain management.
https://books.google.co.in/books?id=d_LhBol2674C






7.4.2018

HOW TO COLLABORATE WITH SUPPLIERS TO REDUCE PRODUCT COSTS
Abe Chaves January 21, 2016
https://www.apriori.com/blog/how-to-collaborate-with-suppliers-to-reduce-product-costs/

Cost reduction tips for your strategic sourcing contracts
https://searchcio.techtarget.com/tip/Cost-reduction-tips-for-your-strategic-sourcing-contracts

Manage your suppliers
Reducing supplier costs - McMillan-Scott
https://www.nibusinessinfo.co.uk/content/reducing-supplier-costs-mcmillan-scott

Cost Reduction Strategies in Supply Chain Management
by Kevin Johnston
http://smallbusiness.chron.com/cost-reduction-strategies-supply-chain-management-69509.html

Reducing operating costs through procurement transformation and strategic sourcing
http://www.genpact.com/insight/case-study/reducing-operating-costs-through-procurement-transformation-and-strategic-sourcing

Article February 2013
The power of successful supplier collaboration
By Jehanzeb Noor, Aurobind Satpathy, Jeff Shulman, and Jan Wüllenweber
https://www.mckinsey.com/practice-clients/operations/the-power-of-successful-supplier-collaboration

Three Major Areas for Supplier Cost Reduction and Management
Posted on April 10, 2013 by Floyd Talbot
http://costmgmt.org/supplier-cost-reduction-part-1/

The 100 biggest U.S. manufacturers spent 48 cents out of every dollar of sales in 2002 to buy materials, compared with 43 cents in 1996, according to Purchasing magazine’s estimates. Businesses are increasingly relying on their suppliers to reduce costs, improve quality, and develop new processes and products faster than their rivals’ vendors can.

The Japanese supplier-partnering model is alive, well, and flourishing—not just in Japan but also in North America.

Building Deep Supplier Relationships
Jeffrey LikerThomas Y. Choi
HBR THE DECEMBER 2004 ISSUE


Purchasing and Supply Chain Management
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Cengage Learning, 17-Mar-2015 - Business & Economics - 888 pages

Providing a solid managerial perspective, PURCHASING AND SUPPLY CHAIN MANAGEMENT, 6e draws from the authors' firsthand experiences and relationships with executives and practitioners worldwide to present the most current and complete coverage of today's supply management process. The text includes critical developments from the field, such as cases from emerging healthcare and service industries, procure-to-pay redesign, supply risk, innovation, sustainability, collaboration, and much more. Students examine key changes in supply management and the impact of the global economy and ongoing business uncertainty on continuous cost and value management across the supply chain. Numerous real-world cases and captivating examples help students gain contextual insights and knowledge into the strategies, processes, and practices of supply management--giving these future managers a thorough understanding of the impact that purchasing and supply chain management have on the competitive success and profitability of today's organizations.
Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.
https://books.google.co.in/books?id=cAJoBwAAQBAJ

strategy+business: Corporate Strategies and News Articles on Global Business, Management, Competition and Marketing
January 1, 1997 / First Quarter 1997 / Issue 6 (originally published by Booz & Company)
Setting Supplier Cost Targets: Getting Beyond the Basics
https://www.strategy-business.com/article/8996?gko=1f952

Oil companies scrutinizing suppliers to cut costs
BY KATRINE GRØNVALD RAUN
Published  13.04.15
https://shippingwatch.com/Offshore/article7620498.ece

Surviving Supply Chain Integration: Strategies for Small Manufacturers

Committee on Supply Chain Integration - Board on Manufacturing and Engineering Design,
Commission on Engineering and Technical Systems, National Research Council, NATIONAL ACADEMY PRESS, Washington, D.C.
https://www.nap.edu/read/6369/chapter/1

5 ways to improve suppliers value and performance
Monday, December 1, 2014 , business management, by Rich Rafdahl
http://costreductionspecialistssite.com/5-ways-to-improve-your-suppliers-performance-and-value/


Supply Chain Productivity Improvement




Productivity, Efficiency and Global Effectiveness
By Lora cecereFebruary 1, 2017
Supply chain productivity

In this episode of Straight Talk with Supply Chain insights, Lora and Helen discuss the halt of the Third Industrial Revolution and how innovating processes along with technology will drive the effectiveness of value networks as related to the Supply Chain Shaman blog post: Late Night Thoughts on Productivity, Efficiency, and Global Supply Chain Effectiveness.

Straight Talk With Supply Chain Insights – Podcast episode #206
http://supplychaininsights.com/podcast/productivity-efficiency-and-global-effectiveness/



The 3 Pillars of Supply Chain Productivity
https://www.youtube.com/watch?v=WbyAHGWmYeM

Supply chain interface problems affecting productivity
Article (PDF Available)  in International Journal of Logistics Systems and Management 18(4):pp. 415-435 · July 2014
https://www.researchgate.net/publication/263738754_Supply_chain_interface_problems_affecting_productivity

Supply Chain Management and Productivity Improvement Cluster
Introduction
The Supply Chain Management and Productivity Improvement (SCMPI) Cluster develops emerging technologies and capabilities in crucial areas of global logistics network operations.
https://www.rp.edu.sg/industry/working-with-us/technology-clusters/supply-chain-management-and-productivity-improvement-cluster

The Impact of Supply Chains on Firm-Level Productivity
Juan Camilo Serpa, Desautels Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada
Harish Krishnan, Sauder School of Business, University of British Columbia, Vancouver, British Columbia V6T 1Z2, Canada
https://pubsonline.informs.org/doi/abs/10.1287/mnsc.2016.2632

The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power
https://www.retailoperationsinsights.com/doc/the-drive-to-improve-supply-chain-productivity-and-efficiency-0001

Logistics ‐ a productivity and performance perspective
Author(s):
Alan Stainer (Head of Engineering Management, Middlesex University, London, UK)
Abstract:
Provides a critique of the present state of the art of productivity and performance measurement and management in logistics. The nature of logistics makes normal measures of productivity, based on an output/input concept, not always appropriate. Indicator or proxy approaches can be more suitable and would relate the quality of the system to total cost, complementing conventional total productivity thinking.
https://www.emeraldinsight.com/doi/abs/10.1108/13598549710166104


Calculating the True Cost of Productivity
Labor is frequently the dominant cost of a facility, no matter where it is located within the U.S.
August 3, 2017
This white paper demonstrates two calculations that contribute to calculating the true cost of productivity—labor costs and throughput—and details the potential costs of worker liability insurance and downtime. It also shows how an investment in dynamic storage and retrieval systems can impact productivity in three areas: reduced labor costs, improved throughput and decreased liability.
http://www.scmr.com/article/calculating_the_true_cost_of_productivity

5 ways to boost productivity in your Supply Chain
ByMarc Wins
November 3, 2016
http://www.supplychain-academy.net/5-ways-to-boost-productivity-in-your-supply-chain/

How to Maximize Supply Chain Productivity and Management of Freight Costs
by Joseph DeBenedetti
Supply chain efficiency has the power to make or break a business, with fine-tuned systems translating into a competitive advantage in the marketplace.
http://smallbusiness.chron.com/maximize-supply-chain-productivity-management-freight-costs-77688.html

The Deceptive Simplicity of Boosting Productivity in Supply Chains
May 6, 2016 | Articles, Supply Chain | 0 comments

Productivity is a deceptively simple concept. For a supply chain, as for other functions, productivity is the ratio of what you get out to what you put in. This “output versus input” definition covers achievements of the workforce, results from the use of equipment, time spent (as in the hours needed to manufacture a product) and return on capital. However, output must also be valuable, generating value in its own right or helping an organization to achieve a valid objective.
https://www.logisticsbureau.com/the-deceptive-simplicity-of-boosting-productivity-in-supply-chains/

5 STEPS TO INCREASE YOUR SUPPLY CHAIN PRODUCTIVITY
http://www.balloonone.com/5-steps-increase-supply-chain-productivity/

Interesting Article - HBS
Achieving Supply Chain Productivity


3/7/2005
Forget traditional supply chain management. Managers must be responsible for the earning power and productivity of the assets in their trust, not just cost control, argues Jonathan Byrnes.
https://hbswk.hbs.edu/archive/achieving-supply-chain-productivity

Who Knew Increasing Supply Chain Productivity Was This Easy?
03/08/2016 - 12:09pm
https://www.mbtmag.com/article/2016/03/who-knew-increasing-supply-chain-productivity-was-easy

Tips for Navigating Productivity-inhibiting MRO Supply Chain Silos
By George E. Krauter
November 09, 2017 at 10:24 AM
http://www.mypurchasingcenter.com/purchasing/blogs/tips-navigating-productivity-inhibiting-mro-supply-chain-silos/

Enhance productivity using supply chain management in automobile industry
Author:  Neeraj Kumar Sharma
Subject Area:  Physical Sciences and Engineering
http://www.journalcra.com/article/enhance-productivity-using-supply-chain-management-automobile-industry

The impact of RFID technology utilisation on supply chain productivity and organisational performance
Kenneth W. Green Jr. Related information1 College of Business Administration, Department of Management and Marketing, Sam Houston State University, Box 2056, Huntsville, TX 77341?2056, USA.
, Dwayne Whitten Related information2 Mays School of Business, Information and Operations Management Department, Texas A&M University, Mail-stop 4217, College Station, TX 77843, USA.
, R. Anthony Inman Related information
https://www.inderscienceonline.com/doi/abs/10.1504/IJIL.2009.02281

MH&L Staff | Apr 11, 2017
Big-data analytics and other technologies are dramatically improving productivity in the global supply chain, according to a recent survey by Clear Peak Supply Chain Advisory Council.

http://www.mhlnews.com/global-supply-chain/data-driven-culture-creates-advantages-global-supply-chain

Logistics Productivity Indicator – Assessing Supply Chain Performance
08/11/2017, 3:05 pm
http://supplychainasia.org/logistics-productivity-indicator-assessing-supply-chain-performance/

Cost Management in Supply Chains pp 213-232 | Cite as

Improving Supply Chain Productivity Through Horizontal Cooperation — the Case of Consumer Goods Manufacturers
https://link.springer.com/chapter/10.1007/978-3-662-11377-6_13

Supply Chain Commentary: Boost Productivity, Efficiency, and Security in Your Warehouse
2
April 03, 2018 | Isaac Kohen
http://www.inboundlogistics.com/cms/article/boost-efficiency-productivity-and-security-in-your-warehouse/

Case Study Search
Welcome to Supply Chain Database
Search through the case studies by using the filters below according to category, the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerhsips. You can also scroll down to see the entire collection of supply chain case studies.Start browsing the database to find out how large corporates such as General Electric, BASF, or IKEA are partnering with their suppliers to improve energy productivity.

Search through the case studies by using the filters below according to category (i.e. activity type, such as audits or purchasing approaches), the organisation leading the initiative, supply chain sectors targets and linkages to any programs or partnerships (e.g. the Value Chain Scope 3 standard). You can also scroll down to see the entire collection of supply chain case studies.

Activity types
http://www.iipnetwork.org/databases/supply-chain

HFC Technology
Guest Column | November 22, 2017
The Drive To Improve Supply Chain Productivity And Efficiency
Supply Chain Transparency: How Food Makers Help Empower Consumers
By Andy Marsh, President and CEO, Plug Power
https://www.retailsupplychaininsights.com/doc/the-drive-to-improve-supply-chain-productivity-and-efficiency-0001

TOP 10 QUESTIONS TO ASK OF YOUR SUPPLY CHAIN PRODUCTIVITY
https://gilmourindustrial.com/best-practises/top-10-questions-to-ask-of-your-supply-chain-productivity/

Best practices to improve Supply Chain productivity
ByMarc Wins
April 5, 2018
http://www.procurement-academy.com/best-practices-to-improve-supply-chain-productivity/




Year Wise Articles and Papers



2016
Increasing Productivity Through Your Supply Chain
http://www.columbusglobal.com/nn-NO/Retail/Supply-Chain-Solutions/Fra-virkeligheten/~/media/9F67956F34EE42F9B0973380438A18E4.pdf

Boosting Innovation and Productivity through Supply Chain Management in Highway Construction
http://www.cpf16.co.uk/wp-content/uploads/2016/06/DAVID-ONEIL.pdf



2013

LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today's VUCA World


Josef Packowski
CRC Press, 26-Nov-2013 - Business & Economics - 493 pages

Delivering excellent service to all customers is the key imperative for many sustainable businesses. So why do so many supply chains struggle to fulfill customer requirements at competitive costs? The answer is simple: traditional supply chain planning, which was tailored to a predominantly stable and predictable business environment, cannot handle the new challenges in the world of variability, uncertainty, complexity, and ambiguity—the VUCA world.

Companies can either accept the drawbacks that often result in high inventories, poor asset utilization, and unsatisfactory customer service or, they can change their view of the fundamental approach to supply chain management. LEAN Supply Chain Planning: The New Supply Chain Management Paradigm for Process Industries to Master Today’s VUCA World introduces a new paradigm and a new approach to managing variability, uncertainty, and complexity in today’s planning processes and systems.

Introducing a cutting-edge supply chain management concept that addresses current problems in the process industry's supply chains, the book presents powerful methods developed by leading research institutes, process industry champions, and supply chain experts. It explains how readers can change their approach to the fundamental planning paradigms in a manner that will help their organizations achieve higher levels of responsiveness, improved levels of customer service, and substantial increases in cost-efficiencies.

This holistic practitioner’s guide describes how to establish the right accountabilities for performance management and also provides a set of meaningful metrics to help measure your progress. Supplying detailed guidelines for transforming your supply chain, it includes first-hand reports of leading organizations that have already adopted some of the facets of this paradigm and used the relevant instruments to achieve unprecedented improvements to customer service, supply chain agility, and overall equipment effectiveness.
https://books.google.co.in/books?id=PXDOBQAAQBAJ



5 Ways to Increase Productivity and Performance in Your Supply Chain


Focusing on tactics that will increase a supply chain’s productivity is essential to earn adequate profits through achieving positive customer satisfaction. Apart from improving products and processes, there are some other very effective ways to do this.


Efficient Communication: Communicate with your supply chain partners  in a clear and concise manner that defines supply chain goals and the methods to achieve those goals. This communication is crucial to a supply chain’s operations and productivity. By scheduling meetings devoted to collaborative problem-solving, management is able to make essential changes regarding performance. This diligent problem-solving ensures a unified understanding of productivity and operations that will facilitate open communication between supply chain partners.


Development of Procedure Standards: The development of procedure standards reduces error within the supply chain and saves both time and money. Focus on the reduction of probable variation in areas such as receiving, quality control, shipping, shift scheduling, and facilities management. This is one of the many ways to increase collective productivity and establish procedure standards.

Determination of Importance: Continuous improvement to supply chain productivity depends on the areas where attention is given.  Measuring outcomes in critical areas that drive business, for example: Safety, Service/On-Time Delivery, Inventory Accuracy/Turns, Productivity, Cost per Unit/Total Landed Cost, Product Damage/Claims, Customer Satisfaction

Engage, Align, and Empower Workforce: Encourage supply chain partners to focus on the core skills of employees and empower them. This focus will foster confidence and result in a continuous increase of productivity. Gaining the buyin of workforce makes it possible to create new ways to engage and align, to ultimately increase productivity. Be sure to define supply chain’s goals in a clear and concise method that will allow employees and management of supply chain partners to take advantage of existing and future opportunities for improvement.

Construct a Powerful Training Program: First, formulate a comprehensive plan to increase productivity, reduce costs, and improve customer service and satisfaction levels. Then tie an incentive plan into the supply chain’s core mission, a critical element to building a performance-based approach. Train supply chain partners and their employees in implementing the new plan.  This constructive training will drive a successful organization and improve supply chain productivity.


Increasing productivity within the supply chain is achieved through a top down approach – everything rises and falls on the supply chain leader. Leaders must practice effective communication, create procedure standards, determine a hierarchy of importance, encourage empowerment of  the workforce of supply chain partners, and arrange powerful training programs. Management and employees of the supply chain leader have to first create and establish a performance-based culture within their company and then in its supply chain partner companies.
Adapted from https://legacyscs.com/5-ways-increase-productivity-performance-supply-chain-2/

2011


Labor management systems: Labor is a significant expense item in warehousing costs. A robust warehouse labor management system (LMS) can help you understand this expense. An LMS lets you  examine tasks such as receiving, put-away and processing at the individual level. You can evaluate performance elements more closely, isolate problem areas and make better decisions about training, staffing and management. It also enhances accountability for all employees, which often brings out their best performance.


Picking devices and technologies: Sometimes, the best order-picking alternative is an employee’s hands. At other times, a device that picks a whole layer of cases at a time could be economical  and much faster,  Some of these machines can double or triple picking volumes for the same time.  Hands-free voice picking devices are another fiscally friendly upgrade.

Cut down lighting costs: Warehouse energy bills can exceed $100,000 annually.  Today’s energy-efficient  lighting technologies offer brighter, greener and less expensive electricity alternatives.


A relighting project may demand upfront investment,  but provide saving up to 50 percent as soon as new lights are installed. These projects also could earn tax breaks or incentives from local governments and utilities. They also could reduce the expense of any carbon offset purchases your company plans to make.

Interleaving: In the average warehouse, forklift operators move between a couple of points such as a loading dock and storage racks. On the initial trip, these vehicles usually are full — and fully utilized. But they’re empty while returning, a process known as deadheading. Deadhead journeys can add up to countless empty miles and wasted operator time.

Interleaving rearranges workflow so forklift operators travel in a circular motion or some other route configuration, better using the traveling time between racks and loading docks. Interleaving designs vary significantly from facility to facility. And since most all facilities use forklifts, this growing practice deserves a closer look. Granted, it requires robust systems capacity and cooperative operators who will embrace the change. However, the ultimate payoff can be significant

There are some  more money-saving warehousing investments such as thermal-shrinking machines, financial gainsharing incentives and space utilization tools.

Adopted from

Supply Chain by Rajiv Saxena
Industrial Engineer's quarterly column about supply chain and logistics solutions (July 2011)


Ken Ackerman's Warehousing Fourm
http://www.warehousingforum.com/TheTopShelf/index.html

Supply Chain Industrial Engineering -  Presentation Video
_______________

_______________



Updated 16.10.2022,   16.10. 2021,  8 April 2018,  12 August 2016, 8 April 2013

Saturday, October 15, 2022

Industrial Engineering through Process Mining


Process and task mining helps organizations discover and visualize all business processes across the enterprise, and analyze the traces of process related data recorded by IT systems, providing greater business process transparency and optimization.

The analytics tools of process mining helps users to analyze vast amounts of data in real-time, providing  end-to-end operational intelligence in real time. 

Process experts often design processes expecting that their execution will be faithful to the design. However, designs tend to be incomplete and not executable in practice, and people tend to develop workaround to bypass designed processes or to compensate for the inconveniences. Process mining highlights the deviations and helps designers and managers to modify the designed processes in light of actual working of processes or to train the operating staff in designed processes.

These challenges are more prevalent than ever as rapid changes are occurring and getting introduced in the processes due to digital transformation programs, adoption of global business services, and the introduction of bots and other AI into the business processes.

Process and task mining offer a set of novel tools and techniques for the factual analysis of business processes. Based on system logs and/or screen recordings, they automatically map and visualize how processes have been executed in reality, and help companies to improve processes and standardize to much a greater extent.


Topic of Computer Aided Industrial Engineering (CAIE) - Proposal by Prof. Narayana Rao K.V.S.S.

IISE 2021 Annual Conference Paper.


Process Mining is a  new area of study grounded in a long tradition of businesses striving to optimize business outcomes by improving the efficiency, effectiveness and productivity of their critical workflows.

Frederick Taylor Winslow was  the first person to study and optimize workplace productivity. His publications, 1895 (Piece rate system), 1903 (shop management) 1911 (The Principles of Scientific Management) pioneered the idea that a business’s core operations should be analyzed, standardized and improved on.


Evolution of Process thinking: Taylor - Ford's Mass Production - Toyota Production System - Six Sigma

Process Mining happens in four distinct stages 

• Collection of time-stamped event log data from key transactional systems

• Discovery within that data of real processes taking place

• Enhancement of those processes to increase and optimize  efficiency, effectiveness and productivity

• Monitoring these changes for further adjustments required to make them standard operations. 


 “Process Mining is analyzing processes based on event data... i.e., based on what’s really happening." 

For based on the event logs,  process discovery and conformance checking is done. Process improvement engineers re-engineer processes. 

Process Mining software systems are  purpose-built to handle the inherent complexity and dynamism of the modern process environment. It delivers deep visibility and control into the minutiae of individual processes, the relationships between them, and the outcomes they deliver.


Reference

Celonis, The Ultimate Guide to Process Mining: A handbook for process excellence

What is Process Mining?

24 Feb 2022

IBM Technology

Process mining is technique that applies data science to discover, validate and improve workflows by extracting available knowledge from event log systems in an organization. 

In this lightboard video, Jamil Spain with IBM, explains how process mining can help a business better understand the performance of their processes, find bottlenecks and other areas the need improvement. 

https://www.youtube.com/watch?v=YNxpGimyCt0


Process Mining Manifesto


Process mining is sits between computational intelligence and data mining and process modeling and analysis on the other hand. 

The idea of process mining is to discover, monitor and improve real processes (i.e., not assumed processes) by extracting knowledge from event logs readily available in today’s (information) systems  

Process mining includes (automated) process discovery (i.e., extracting process models from an event log), conformance checking (i.e., monitoring deviations by comparing model and log), social network/organizational mining, automated construction of simulation models, model extension, model repair, case prediction, and history-based recommendations.

Process mining is an enabling technology for continuous process improvement (CPM), BPI, TQM, Six Sigma, and the like.

Starting point for process mining is an event log. It is possible to sequentially record events that happen in a process such that each event refers to an activity (i.e., a well-defined step in some process) and is related to a particular case (i.e., a process instance). Whenever possible, process mining techniques provide  extra information such as the resource (i.e., person or device) executing or initiating the activity, the timestamp of the event, or data elements recorded with the event (e.g., the size of an order).

Event logs of the processes (actual runs) can be used to conduct three types of process mining. The first type of process mining is discovery. A discovery technique takes an event log and produces a model or chart of the process utilized.  The second type of process mining is conformance. Here, an existing process model is compared with an event log of the same process. Conformance checking can be used to check if reality, as recorded in the log, conforms to the model.   The third type of process mining is enhancement. Here, the idea is to extend or improve an existing process model using information about the actual process recorded in some event log. To support enhancement, by using timestamps in the event log,  the process model can show  bottlenecks, service levels, throughput times, and frequencies.

Guiding Principles for Design of Process Mining System and Development of Process Maps


GP1: Event Data Should Be Treated as First-Class Citizens

GP2: Log Extraction Should Be Driven by Questions

GP3: Concurrency, Choice and Other Basic Control-Flow Constructs Should be Supported

GP4: Events Should Be Related to Model Elements

GP5: Models Should Be Treated as Purposeful Abstractions of Reality

GP6: Process Mining Should Be a Continuous Process

Challenges

C1: Finding, Merging, and Cleaning Event Data

C2: Dealing with Complex Event Logs Having Diverse Characteristics

C3: Creating Representative Benchmarks

C4: Dealing with Concept Drift

C5: Improving the Representational Bias Used for Process Discovery

C6: Balancing Between Quality Criteria such as Fitness, Simplicity, Precision, and Generalization

C7: Cross-Organizational Mining

C8: Providing Operational Support

C9: Combining Process Mining With Other Types of Analysis

C10: Improving Usability for Non-Experts

C11: Improving Understandability for Non-Experts


Process Mining

Manifesto  released by the IEEE Task Force on Process Mining.


--------------------



4 Ways Process Mining Uses Automated Root Cause Analysis

UPDATED ON AUGUST 8, 2022    |     PUBLISHED ON MARCH 3, 2022 

https://research.aimultiple.com/automated-root-cause-analysis/

Ph.D Student Senderovich Arik

Subject Queue Mining: Service Perspectives in Process Mining

Department Department of Industrial Engineering and Management

Supervisors Professor Avigdor Gal

Professor Emeritus Avishai Mandelbaum

Abstract

Business processes are supported by information systems that record process-related events in event logs. Process mining aims at discovering useful information about the business process from these event logs. Process mining can be viewed as the link that connects process analysis fields (e.g. business process management and operations research) to data analysis fields (e.g. machine learning and data mining).

Process mining techniques  aim at answering operational questions such as `does the executed process as observed in the event log correspond to what was planned?', `how long will it take for a running case to finish?' and `how should resource capacity or staffing levels change to improve the process with respect to some cost criteria?

Prior to this thesis, process mining techniques overlooked dependencies between cases when answering such operational questions. For example, state-of-the-art methods for predicting remaining times of running cases considered only historical data of the case itself, while the interactions among cases (e.g. through queueing for shared resources) were neglected. 

In service processes in healthcare, banking, transportation etc.,  multiple customer-resource interactions occur, and customers often compete over scarce resources. Consequently, the central argument of this thesis is that for service-oriented processes, process mining solutions must consider case interactions when answering operational questions.

The main contribution of this research thesis is the start of bridging a noticeable gap between process mining and queuing theory. To this end, we introduce queue mining (a term coined in this thesis), which is a set of data-driven methods (models and algorithms) for queueing analysis of business processes.

Our queue mining techniques address the problems of prediction (delays and total times in the process), conformance to schedule (planned vs. actual), and process improvement (via production policy optimization). We demonstrate the effectiveness of these techniques with experiments on real-world data that comes from three domains: banking (a bank's call center), transportation (city buses), and healthcare (an outpatient hospital).

http://www.graduate.technion.ac.il/theses/Abstracts.asp?Id=29534


Presentation on theme: "Service Perspectives in Process Mining"— Presentation transcript:

https://slideplayer.com/slide/14748344/


Process Mining Presentations

Prof. Vil wan der Aalst

https://www.slideshare.net/wvdaalst/process-mining-chapter03datamining

About Process Mining - 2018

https://medium.com/@pedrorobledobpm/process-mining-plays-an-essential-role-in-digital-transformation-384839236bbe


Process Mining for Six Sigma: Utilising Digital Traces

I.Kregel D.Stemann J.Kochc A.Coners

Computers & Industrial Engineering

Available online 24 December 2020, 107083

In Press, Journal Pre-proof

Computers & Industrial Engineering

https://www.sciencedirect.com/science/article/abs/pii/S0360835220307531


Machine Learning in Manufacturing and Industry 4.0 applications

Using process mining to improve productivity in make-to-stock manufacturing

Rafael Lorenz,Julian Senoner,Wilfried Sihn &Torbjørn Netland

International Journal of Production Research 

Volume 59, 2021 - Issue 16 

https://www.tandfonline.com/doi/full/10.1080/00207543.2021.1906460



Ud. 15.10.2022,  2.4.2022, 2.2.2022

pub: 31.12.2020





Process Mining
is purpose-built to handle the inherent
complexity and dynamism of the modern

News - Information for Industrial Engineering Analysis of Delays in Processes - Lean Inventory Design in Processes


Next Lesson of the IE Course

Eliminate the Delay (Remember ECRS Method)

How can we eliminate the delay in a process? Identify the delay and find ways to eliminate it.

There is a three way break up of time in a process.

Value added activity time + Non-value added activity time + No Activity time (delay).

Cost is incurred all the time. Time reduction is cost reduction if resources are same. (Narayana Rao, 19 July 2021)



Flow Manufacturing and Product Families.


Product families help you to create flow manufacturing cells. Flow manufacturing has many benefits compared to job shop or job queue manufacturing shops. Jobs have inherent delays in material flow.

Flow manufacturing is one of the five principles of lean manufacturing design.

Analysis of Delays


Delays, both temporary and permanent were recognized by process improvement advocates. But the attention given to preventing delays did not receive strong push. It is Japanese managers and industrial engineers who made innovation in this area and then extended the requirements to reduce delays to the other three operations processing, inspection and transport and realized dramatic improvement in productivity that exceeded the performance of US companies by even 100 percent.

Shigeo Shingo explained the analysis and prevention of delays well in his book TPS: IE Point of View.

Eliminating - Stocks and Temporary/Permanent Storage Operations (Delay)


There are three types of accumulations between processes:

E storage - Planned inventories resulting from unbalanced flow between processes  (engineering)
C storage - buffer or cushion stock to avoid delay in subsequent processes due to machine breakdowns or rejects (control)
S storage - safety stock; Stock kept to take care of variability of demand during lead time and variability of  production lead time.  

Eliminating E-Storage

E-storage is due to engineering/planning/design of the production-distribution  system. SMED reduces batch quantities and thus reduces planned lot size inventories. Synchronize the entire process flow.

Eliminating C storage - Cushion

compensating for:
machine breakdowns,
defective products, and
downtime for tool and die changes 

Prevent machine breakdowns - Zero Defect Movement - Eliminate Lengthy setups and tool changes


Eliminating Safety (S) storage - Plan to fulfil demand directly from production.



Recent Developments - News Information on Reducing Process Delays

Interesting Paper
An Empirical Study of Delays in Large Engineering Projects: An Indian Experience
R. Jayaraman. 
Jindal Journal of Business Research, Volume 10, Issue 1


14.6.2022
Shahrukh Irani

I help any high-mix low-volume (HMLV) manufacturer customize their impleme

Fellow IEs, how can we rejuvenate our profession? There is a lot of IE that is missing in the Toyota Production System. It just takes for each of use to take an IE textbook, each to identify a chapter whose content matches a lot of what we know about the Toyota Production System, and put those chapters through the "Leanification grinder". Infusing "Lean IE" into the IE we know is going to produce an IE BoK that is much-needed, both by educators (and students) as well as all of us practitioners.

If nothing else, is Lean going to wipe out Industrial Engineering? If yes, then when somebody asks an IE, "Quo Vadis", will their reply be, "My professional grave?".

https://www.linkedin.com/posts/shahrukh-irani-8b25a55_introduction-to-work-study-activity-6942196518644850690-gmv0

Narayana Rao KVSS

" It just takes for each of use to take an IE textbook, each to identify a chapter whose content matches a lot of what we know about the Toyota Production System, and put those chapters through the "Leanification grinder"."

We just have to take temporary delays and storage time of process chart and examine ways to minimize them. Cycle time can reduce to processing time + inspection time + transport time. All TPS innovations will enter IE BOK.

------


“Data-driven throughput bottleneck analysis in production systems." - PhD Thesis - It will be part of computer aided industrial engineering.
Mukund Subramaniyan - Ph.D. from Chalmers University


Using Value Stream Mapping to Eliminate Waste - MDPI  
by M Salwin · 2021 — This paper presents a case study that describes the use of Value Stream. Mapping (VSM) in the production of steel pipes.

Value Stream Mapping For Software Delivery
Value stream mapping allows you to optimize your flow of materials and information by lowering costs and improving value adds. Read on to learn more.
By Harness Author
Last updated October 7, 2021

The origins of Value Stream Mapping (VSM) came from the 1918 book Installing Efficiency Methods by Charles E. Knoeppel. The book contains diagrams showing the flow of materials and information.
At Milliken, the VSM application sits within the Production Flow (PF) methodology inside the Milliken Performance System (MPS). 

Taking DevSecOps to the Next Level with Value Stream Mapping
Nanette Brown
MAY 24, 2021

Anylogic - VSM Simulation
https://cloud.anylogic.com/model/c8310181-65ef-4335-8253-5e48416500d0?mode=SETTINGS

https://www.smartdraw.com/value-stream-map/value-stream-mapping-software.htm

Cost value-stream mapping as a lean assessment tool in a surgical glove manufacturing company

Rajesh Menon B.,, *; P.R. Shalij,  ; P. Sajeesh, ; G. Tom ; Pramod V.R.
S. Afr. J. Ind. Eng. vol.32 n.1 Pretoria May. 2021

--------------------

Eliminating - Stocks and Temporary/Permanent Storage Operations (Delay)


There are three types of accumulations between processes:

E storage - Planned inventories resulting from unbalanced flow between processes  (engineering)
C storage - buffer or cushion stock to avoid delay in subsequent processes due to machine breakdowns or rejects (control)
S storage - safety stock; Stock kept to take care of variability of demand during lead time and variability of  production lead time.  

Eliminating E-Storage

E-storage is due to engineering/planning/design of the production-distribution  system. SMED reduces batch quantities and thus reduces planned lot size inventories. Synchronize the entire process flow.

Eliminating C storage - Cushion

compensating for:
machine breakdowns,
defective products, and
downtime for tool and die changes 

Prevent machine breakdowns - Zero Defect Movement - Eliminate Lengthy setups and tool changes


Eliminating Safety (S) storage - Plan to fulfil demand directly from production.

Prevent machine breakdowns


Determining the cause of machine failure at the time it occurs, even if it means shutting down the line temporarily.

Total Productive Maintenance movement.


News - Information for Maintenance Operation Analysis

Eliminate Cushion Storage: Zero Defect Movement.


Total quality management.
Use better inspection processes:
Self Inspection.
Successive Inspection.
Enhancement to inspection through Poka Yoke


Eliminate Cushion Storage: Eliminate Lengthy setups and tool changes


Implement SMED to eliminate long set-up times and tool changes
Running smaller batch sizes to allow for quick changes in production plans

Eliminate Cushion Storage
Absorb Change in Production Plan
Running smaller batch sizes allows for quick changes in production plans without disturbing flow production to significant extent.

Eliminating Safety (S) storage

Safety stock is kept not to take care of any predicted problem but to provide additional security
It may guard against delivery delays, scheduling errors, indefinite production schedules, etc.
Ex. 10 Delivery to stores
In example 2.10 Shingo mentions a company wherein vendors supply to store and from store components are supplied to assembly line.
Shingo suggested that vendors should directly supply the day’s requirements to assembly floor and in case of any problem, components in the store can be used.
Less Need for Safety Stock Observed
That practice led to the observation that very less safety stock is needed in the store.

Shingo recommends keeping a small controlled stock that is only used when the daily or hourly scheduled delivery fails or falls behind.
In case of unexpected defects also it can be used.


The safety stock can then be replenished when the scheduled materials arrive, but the supply of materials due for the process go directly to the line, rather than normally going into storage first.
This is the essence of the just-in-time supply method.


Eliminating lot delays
While lots are processed, the entire lot, except for the one piece being processed, is in storage (is idle).
The greatest reduction in production time can be achieved when transport lot sizes are reduced to just one; the piece that was just worked on.

SMED
Using SMED (single-minute exchange of dies), set up time is decreased so large lot sizes are no longer necessary to achieve machine operating efficiencies.
SMED facilitates one item lot sizes.


Layout Improvement - Flow
Transportation changes can be accomplished through flow  layout and using gravity feed Chutes which result in shorter production cycles and decreases in transport man-hours.

Reducing Cycle Time
Generally, semi-processed parts are held between processes 80% of the time in a production cycle time.
It quantity leveling is used and synchronization of flow is created, the cycle time can be reduced by 80%.
By shifting to small lot sizes will further reduce cycle time.


TPS – Reduction of Delays or Storage

Methods of reducing production time delays (JIT) is the foundation of Toyota Production System.
It clearly brings down production cycle time and thereby offers small order to delivery time.

Process Mining for Process Recording and Analysis


Process Mining for Manufacturing Process Analysis: A case Study
Conference Paper · July 2014
https://www.researchgate.net/publication/271910986

Process mining is extracting process-oriented knowledge from event logs recorded in  MES and exploiting the big data to provide an accurate view on manufacturing process. Process mining provides a manufacturing process model, which is valuable to provide an insight of actual manufacturing processes. It will perform further analysis for the discovered model such as bottleneck analysis, and is can conduct machine analysis that shows the utilization of machines. 

The framework of process mining has four major steps: data preparation, data preprocessing, manufacturing process mining and analysis, and evaluation and interpretation.

In the data preparation step, raw data are extracted from MES databases. Next, data pruning and filtering should be done and the refined data are converted into a standard form, i.e. MXML. In the next step, several process mining techniques are applied according to the two perspectives: Process and Resource. In the process perspective, we can discover a process model and conduct process performance analysis such as conformance checking, bottleneck analysis, and pattern analysis. The resource perspective mainly focuses on resource performance analysis to find machine utilization. The results are available to decision makers to  evaluate and interpret by decision makers and improve the existing processes based on the interpreted results.

Updated 28.6.2022, 14.6.2022,  15.9.2021 17 July 2021
Pub July 2020

Tuesday, October 11, 2022

Zero Defect Movement, Six Sigma Method and Industrial Engineering - Robust Productive Process Design

Six Sigma - Contribution to GE - 1997 - Covered in the first version.

Zero Defect Movement, Six Sigma Method and Industrial Engineering - Robust Productive Process Design - IE Six Sigma Projects.


Industrial engineers have to make their process redesigns more productive. They have to  robust also with respect to variation and the six sigma exercise will facilitate that task. Industrial engineers can measure the output possible from a current process optimized using six sigma exercise and also  subject the redesigned process to six sigma exercise. It is logical that the process which gives better output in terms quality, productivity and cost will be selected. A multi-objective criterion can be used to make the choice.

Even in lean systems, necessary safety stocks are employed to manage the risks economically. The point in TPS is to attack the risk drivers first to change them for better before using safety stocks to compensate for them.  Narayana Rao, 17.2.2022.



Lesson 158 of  Industrial Engineering ONLINE Course. (Lesson of Analysis of Delays sub-module)
Lesson 156:     Analysis of Delays in the Processes - Part of Flow Process Chart Analysis

Moving closer and closer to zero defects goal improves processes. This will reduce defects and reduce delays that are caused by rework and the maintenance of safety stocks to avoid production stoppages.

Process industrial engineering has to aim at zero defects in its productivity improvement projects. F.W. Taylor specially highlighted the attention to quality in productivity improvement initiatives. But he was not given adequate credit for it by subsequent scholars who blamed productivity improvement for quality deterioration. Industrial engineers have to be conscious of quality dimension. Defects decrease productivity in terms of profit and cost. Additional production does not increase profit, if additional defects offset the contribution provided by the incremental good items produced. Industrial engineers have to justify their productivity improvement ideas and projects through engineering economic analysis. An industrial engineering ideas or suggestion or redesign can be implemented only when it provides adequate return on investment. In doing engineering economic analysis, the cost of defects will enter the calculation and more the defects, more will be the cost and it will reduce ROI.

Industrial engineers have to pay attention to the zero defect science and technology available and adopt it in the engineering systems achieve zero defects along with increased productivity.


Jidoka - Zero Defects - Japan


Jidoka, that is process design and process improvement  is  one of the two pillars of Toyota Production System, the World Standard for Manufacturing during 1970 to 2010. Now of course the aspiration is Smart Manufacturing System and Smart Factory. Many researchers, scholars, industrialists, innovators, engineers and administrators are making great efforts to come out with smart manufacturing system that will give them the competitive advantage in the Industry 4.0 engineering environment. Zero defects is practiced by Toyoda textiles and the objective and practices were further refined in Toyota Motors.

The Toyota Production System was developed by Toyota in the 1950's. Taichi Ohno is a leader in this system development. He wrote some books and also is quoted in some other books. He says Jidoka and JIT are the two pillars of TPS.  Thus, the origins of TPS started much earlier to the special efforts of Ohno and Shigeo Shingo.

The concept of Jidoka, which was originally developed by Toyota's founder, Sakichi Toyoda in 1920's, as 'intelligent automation', and first used on automatic looming machines to improve productivity as well as ensuring quality, by automatically detecting abnormalities. Automatic machines should increase productiion but should  not produce defects is the idea behind Jidoka. A machine that does not produce defects is an idea of Jidoka. Thus Japanese zero defect movement was started by Sakichi Toyoda.

In the 1930s the concept of 'Just-in-Time', was invented by Kiichiro Toyoda as part of his efforts to create an efficient way of manufacturing Toyota cars, when resources were scarce, and waste could not be afforded. Just-in-time depends on getting exactly the right goods (components) to exactly the right place at the right time.

Jidoka and Just-in-time formed the two pillars of the Toyota Production System which was developed by Taichi Ohno and has since been improved over many decades.
https://toyota-forklifts.eu/our-offer/services-solutions/toyota-lean-academy/toyota-production-system/

Supporting documents
https://blog.gembaacademy.com/2007/04/09/jidoka-forgotten-pillar/
https://books.google.co.in/books?id=hlgyDwAAQBAJ&pg=PA44#v=onepage&q&f=false
https://in.kaizen.com/blog/post/2016/10/12/jidoka-the-forgotten-pillar.html
https://books.google.co.in/books?id=K9aYpFdFONUC&pg=PA95#v=onepage&q&f=false
https://world-class-manufacturing.com/jidoka.html
http://alexsibaja.blogspot.com/2014/02/jidoka-is-path-to-zero-defect.html

Zero Defects Movement - Phil Crosby


Six sigma method is engineering solution to zero defect movement started by Phil Crosby.

Zero Defects is the approach to quality that was developed and promoted by the guru Philip B. Crosby in his book ‘Quality Is Free’.

It’s a way of thinking about quality that doesn’t tolerate errors or defects and continually strives to improve processes and prevent errors so that work is always done correctly without needing repetition or rework or generating waste;

The accepted theory was that a certain level of defects is seen as normal or acceptable, as implied by the Acceptable Quality Limit approach; Crosby took a strong line against AQLs for precisely that reason, he saw them as a “commitment, before we start the job, that we will produce imperfect material”.

Zero Defects is based on four key principles:

Quality is simply conformance to requirements.
It is always cheaper to do the job right the first time than to correct problems later
Quality is measured in monetary terms (the price of non-conformance)
The performance standard for a process must be Zero Defects.


The key word for achieving Zero Defects is Zero defects production. Not reworking to correct errors or deviations.

The case for Zero Defects


Crosby explains that defects result in costs which can be measured - inspection, waste/scrap, rework, lost customers, etc. By eliminating defects these costs are sufficiently reduced that the savings more than pay for the quality improvement programme; hence his assertion that ‘Quality is Free’ and his advocacy of the quality management movement.

As with many areas of quality management it’s about the philosophy and the journey you take from where you are now to being a better business, it is the “attitude of defect prevention”.

When your goal is zero defects it sets a standard against which all your processes can be assessed. It’s about continually striving to work better and not being satisfied with the status quo.

Crosby gave a 14 step quality improvement programme.
http://www.qualityandproducts.com/2009/12/08/the-pros-and-cons-of-%E2%80%98zero-defects%E2%80%99/


Lockheed Martin - Proud of Phil Crosby and Zero Defect Program


It was at the Martin Company’s Orlando plant that a far-reaching and influential program was born: Zero Defects, the granddaddy of nearly every quality control program in the world. One of the plant’s first jobs was the production of the first Pershing missile for the United States Army. Philip Crosby was the quality control manager on the Pershing missile program, and he established the four principles of Zero Defects:


1) Quality is conformance to requirements,
2) Defect prevention is preferable to quality inspection and correction,
3) Zero Defects is the quality standard, and
4) Quality is measured in monetary terms—the Price of Nonconformance.


Put simply, it’s better to do it right the first time than to have to correct mistakes later. Crosby’s standards were credited with a 25 percent reduction in the Pershing missile program’s overall rejection rate, and a 30 percent reduction in scrap costs. Zero Defects meant a better product, produced more economically.

The Martin Company offered Zero Defects freely to all other aerospace companies and, years later, it was adopted by automobile manufacturers around the world.

Zero Defects was the guiding principle behind Martin Marietta’s work on the Titan rocket series, which propelled NASA’s Gemini astronauts into orbit over ten months in 1965 and 1966. The end result was a program that launched ten manned missions and had a 100 percent success rate—a feat unmatched in space travel before.
http://www.lockheedmartin.com/us/100years/stories/zero-defects.html

Advancing zero defect manufacturing: A state-of-the-art perspective and future research directions
DarylPowell,   Maria Chiara Magnanini,  Marcello Colledani, Odd Myklebust 
Computers in Industry
Volume 136, April 2022, 103596

Bibliography


Arsuaga Berrueta, M. et al., 2012, ‘Instrumentation and control methodology for zero 
defect manufacturing in boring operations’, in 23rd DAAAM International 
Symposium on Intelligent Manufacturing and Automation 2012, pp. 385–388. 

Beckert, E., et al., 2020. Multi-sensor and closed-loop control of component and assembly processes for zero-defect manufacturing of photonics. In: He, S., Vivien, L. 
(Eds.), Smart Photonic and Optoelectronic Integrated Circuits XXII. SPIE, pp. 12. 
https://doi.org/10.1117/12.2542060

Chen, M., Lyu, J., 2011. Enhancement of measurement capability for precision manufacturing processes using an attribute gauge system. Proc. Inst. Mech. Eng., Part 
B: J. Eng. Manuf. 225 (10), 1912–1924. https://doi.org/10.1177/0954405410396153

Liang, C., Li, Y., Luo, J., 2018. ‘Smart measurement systems for Zero-Defect 
Manufacturing’, in. Proc. - IEEE 16th Int. Conf. Ind. Inform., INDIN 2018, 834–839. 
https://doi.org/10.1109/INDIN.2018.8472016

Colledani, M., Coupek, D., Verl, A., Aichele, J., Yemane, A., 2014a. Design and evaluation 
of in-line product repair strategies for defect reduction in the production of 
electric drives. Procedia CIRP 21, 159–164. https://doi.org/10.1016/j.procir.2014.03.186 

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Source: Advancing zero defect manufacturing: A state-of-the-art perspective and future research directions
DarylPowell,   Maria Chiara Magnanini,  Marcello Colledani, Odd Myklebust 
Computers in Industry
Volume 136, April 2022, 103596


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Manufacturing Excellence - 'Zero Defect, Zero Effect'




https://www.youtube.com/watch?v=zpJ98WObz7w
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Six Sigma Method - Lessons

409

Six Sigma

http://www.intechopen.com/books/quality-management-and-six-sigma/six-sigma

http://nraomtr.blogspot.com/2014/05/six-sigma-introduction.html


410

Initiating Six Sigma - IE Six Sigma - Robust Productive Process Design


https://nraoiekc.blogspot.com/2022/03/initiating-six-sigma-ie-six-sigma.html

411

Measurements for Six Sigma - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/measurements-for-six-sigma-ie-six-sigma.html


412

Data Analysis for Six Sigma - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/data-analysis-for-six-sigma-ie-six.html

413

Improve The Process - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/improve-process-ie-six-sigma-robust.html

414

Control the Process - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/control-process-ie-six-sigma-robust.html

415

Implementing and Getting Results from Six Sigma - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/implementing-and-getting-results-from.html


416

Design for Six Sigma (DFSS) - IE Six Sigma - Robust Productive Process Design

https://nraoiekc.blogspot.com/2022/03/design-for-six-sigma-dfss-ie-six-sigma.html

417

Application of Six Sigma. Successful Projects from the Application of Six Sigma Methodology - Jaime Sanchez and Adan Valles-Chavez.

https://www.intechopen.com/chapters/17409


Articles on Six Sigma


The Certified Six Sigma Black Belt - Donald Benbow and T.M. Kubiak - Book Information

Six Sigma - Introduction

Total Quality Management: Focus on Six Sigma - Review Notes

Control of Variation in Inputs and Outputs - Management Insights from Statistics

How GE Stays Young

by Brad Power
May 13, 2014

GE is an icon of management best practices. Under CEO Jack Welch in the 1980s and 1990s, they adopted operational efficiency approaches (“Workout,” “Six Sigma,” and “Lean”) that reinforced their success and that many companies emulated. But,  GE is moving on. While Lean and Six Sigma continue to be important, the company is constantly looking for new ways to get better and faster for their customers. That includes learning from the outside and striving to adopt certain start-up practices, with a focus on three key management processes: (1) resource allocation that nurtures future businesses, (2) faster-cycle product development, and (3) partnering with start-ups.

Harvard Business Review Article.

Six Sigma - Contribution to GE - 1997



Excerpts from  GE Annual Report 1997
http://bib.kuleuven.be/ebib/data/jaarverslagen/GE_1997.pdf


The centerpiece of our dreams and aspirations "the drive for Six Sigma quality.

 “Six Sigma” is a disciplined methodology, led and taught by highly trained GE employees
called “Master Black Belts” and “Black Belts,” that focuses on moving every process that touches our
customers — every product and service — toward near-perfect quality.


Six sigma projects usually focus on improving our customers’ productivity and reducing their capital outlays, while increasing the quality, speed and efficiency of our operations.

We didn’t invent Six Sigma — we learned it.

Motorola pioneered it and AlliedSignal successfully embraced it. The experiences of these two companies, which they shared with us, made the launch of our initiative much simpler and faster.

GE had another huge advantage that accelerated our quality effort: we had a Company that was open to change, hungry to learn and anxious to move quickly on a good idea.


At GE today —finding  the better way, the best idea, from whomever will share it with us, has become our central focus.

Nowhere has this learning environment, this search for the better idea, been more powerfully demonstrated than in our drive for Six Sigma quality. Twenty-eight months ago, we became convinced that Six Sigma quality could play a central role in GE’s future; but we believed, as well, that it would take years of consistent communication, relentless emphasis and impassioned leadership move this big Company on this bold new course.

We were wrong!
Projections of our progress in Six Sigma, no matter how optimistic, have had to be junked every few months as gross underestimates. Six Sigma has spread like wildfire across the Company, and it is transforming everything we do.


We had our annual Operating Managers Meeting — 500 of our senior business leaders from around the globe — during the first week of January 1998, and it turned out to be a wonderful snapshot of the way this learning Company — this new GE — has come to behave; and now, with Six Sigma, how it has come to work.

Today, in the uncountable number of business meetings across GE — both organized and “in-the-hall” — the gates are open to the largest flood of innovative ideas in world business. These ideas are generated, improved upon and shared by 350 business segments — or, as we think of them, 350 business laboratories. Today, these ideas center on spreading Six Sigma “best practices” across our business operations.

At this particular Operating Managers Meeting, about 25 speakers, from across the Company and around the world, excitedly described how Six Sigma is transforming the way their businesses work.

They shared what they had learned from projects such as streamlining the back room of a credit card operation, or improving turnaround time in a jet engine overhaul shop, or “hit-rate” improvements in commercial finance transactions. Most of the presenters focused on how their process improvements were making their customers more competitive and productive:

• Medical Systems described how Six Sigma designs have produced a 10-fold increase in the life of CT scanner x-ray tubes — increasing the “uptime” of these machines and the profitability and level of patient care given by hospitals and other health care providers.

• Superabrasives — our industrial diamond business — described how Six Sigma quadrupled its return on investment and, by improving yields, is giving it a full decades worth of capacity despite growing volume — without spending a nickel on plant and equipment capacity.

• Our railcar leasing business described a 62% reduction in turnaround time at its repair shops: an enormous productivity gain for our railroad and shipper customers and for a business that’s now two to three times faster than its nearest rival because of Six Sigma improvements. In the next phase, spread across the entire shop network, Black Belts and Green Belts, working with their teams, redesigned the overhaul process, resulting in a 50% further reduction in cycle time.

• The plastics business, through rigorous Six Sigma process work, added 300 million pounds of new capacity (equivalent to a “free plant”), saved $400 million in investment and will save another $400 million by 2000.

At our meeting, zealot after zealot shared stories of customers made more competitive, of credit card and mortgage application processes streamlined, of inventories reduced, and of whole factories and businesses performing at levels never believed possible.

The sharing process was repeated at another level two weeks later in Paris, as 150 Master Black Belts and Black Belts, from every GE business throughout Europe, came together to share and learn quality technology. This learning is done in the boundaryless, transcultural language of Six Sigma, where “CTQ’s” (critical to quality characteristics) or “DPMO’s” (defects per million opportunities) or “SPC” (statistical process control) have exactly the same meaning at every GE operation from Tokyo to Delhi and from Budapest to Cleveland and Shanghai.

The meeting stories are anecdotal; big companies can make great presentations and impressive charts. But the cumulative impact on the Company’s numbers is not anecdotal, nor a product of charts. It is the product of 276,000 people executing ... and delivering the results of Six Sigma to our bottom line.

Operating margin, a critical measure of business efficiency and profitability, hovered around the 10% level at GE for decades.  With Six Sigma embedding itself deeper into Company operations, GE in 1997 went through the “impossible” 15% level — approaching 16% — and we are optimistic about the upside.

Six Sigma, even at this relatively early stage, delivered more than $300 million to our 1997 operating income. In 1998, returns will more than double this operating profit impact. Six Sigma is quickly becoming part of the genetic code of our future leadership. Six Sigma training is now an ironclad prerequisite for promotion to any professional or managerial position in the Company — and a requirement for any award of stock options.

Senior executive compensation is now heavily weighted toward Six Sigma commitment and success — success now increasingly defined as “eatable” financial returns, for our customers and for us. There are now nearly 4,000 full-time, fully trained Black Belts and Master Black Belts: Six Sigma instructors, mentors and project leaders. There are more than 60,000 Green Belt part-time project leaders who have completed at least one Six Sigma project.

Already, Black Belts and Master Black Belts who are finishing Six Sigma assignments have become the most sought-after candidates for senior leadership jobs in the Company, including vice presidents and chief financial officers at some of our businesses. Hundreds have already moved upward through the pipeline. They are true believers, speaking the language of the future, energized by successful projects under their belts, and drawing other committed zealots upward with them.

In the early 1990s, we defined ourselves as a company of boundaryless people with a thirst for learning and a compulsion to share

Now it is Six Sigma that is  permeating much of what we do all day.



We are feverish on the subject of Six Sigma quality as it relates to products, services and people — maybe a bit unbalanced —  because we see it as the ultimate way to make real our dreams of what this great Company could become.

Six Sigma has turned up the voltage in every GE business across the globe, energizing and exciting all of us and moving us closer than ever to what we have always wanted to become: more than a hundred-billion-dollar global enterprise with the agility, customer focus and fire in the belly of a small company.


In our 1994 letter to you, we addressed the perennial question put to management teams, which is “how much more can be squeezed from the lemon?” We claimed, then, that there was in fact unlimited juice in this “lemon,” and that none of this had anything to do with “squeezing” at all.

We believed there was an ocean of creativity and passion and energy in GE people that had no bottom and no shores. We believed that then, and we are convinced of it today. And when we said that there was an “infinite capacity to improve everything,” we believed that as well — viscerally — but there was no methodology or discipline attached to that belief. There is now. It’s Six Sigma quality, along with a culture of learning, sharing and unending excitement.

2006 — Six Sigma Excellence Award Winners

Award for “Best Defect Elimination in Manufacturing”, sponsored by Minitab.
Winner: Reliance Industries Ltd (Neeraj Dhingra)

2009 Six Sigma Excellence Finalists
Manufacturing

Medtronic Spinal & Biologics – "Set-screw Breakoff Torque"
Perlos Telecommunication & Electronic Component India Pvt. Ltd. – "Yield Improvement of In Mold Decoration (IMD) Molding Process"
Xerox – "Photoreceptor Belt Tensioning System"


SIX SIGMA PRINCIPLES


Six Sigma is based on the following basic principles.

1. Y=f(X) + ε: All outcomes and results, the dependent variable (the Y) are determined by inputs (the Xs) with some degree of uncertainty (ε).


2. To change or improve results (the Y), you have to focus on the inputs (the Xs), modify them. (In the six sigma method, values of different variables X are changed systematically and resulting output is recorded and analyzed to find the best combination of values.

3. Variation is everywhere, and it degrades consistent, good performance. Your job is to find it and minimize it!

4. You get minimum variation for a particular combination Xs for given set of X and some times by including more input variables.

5. Valid measurements and data are required foundations for consistent, breakthrough improvement.

6. Only a critical few inputs have significant effect on the output. Concentrate on the critical few. There is some effort involved in determining the set of Xs that have significant effect on the output.


Philosophy – Process inputs control the outputs and determine their level of quality.

Focus – An unending quest for improving business processes.

Methods – Known as DMAIC (define, measure, analyze, improve, and control) and DMADV (define, measure, analyze, design, verify).

Measure of Success – Ultimately reducing defects to 3.4 per one million opportunities, through iterative application of six sigma methodology to understand the process better.


Books







https://ashwinmore.com/origin-of-lean-six-sigma/














Updated 11.10.2022,  22.7.2022, 14.4.2022,  17.3.2022,  17.2.2022, 7.2.2022, 21 Jan 2022, 23 Sep 2021,  25 August 2019, 24 August 2017, 3 March 2012