A hybrid framework based on SIPOC and Six Sigma DMAIC for improving process dimensions in supply chain network

Abstract

Purpose – The purpose of this paper is to introduce a hybrid framework (suppliers, inputs, process, output and customers+define, measure, analyze, improve and control (SIPOC+DMAIC)) aimed at improving supply chain management (SCM) process dimensions in a supply chain (SC) network. Design/methodology/approach – Based upon the critical review of literature, process dimensions (average outgoing quality limit (AOQL), average outgoing quality (AOQ), process Z, defect per million opportunity) critical to SCM performance were identified. A framework consisting of three phases, i.e., design, implementation and results has been conceptualized and a case from paint industry is investigated. Implementation framework makes use of SIPOC model and Six Sigma DMAIC methodology. The goals of the study were achieved by using Six Sigma tools such as brainstorming sessions; root cause analysis, histograms, statistical tools such as control charts and process capability analysis. Findings – Authors made an attempt to propose a conceptual framework for improving process dimensions in a SC network. It is observed from the results that selection of appropriate strategies for improving process performance based upon experiences, and use of statistical tools by cross-functional teams with an effective coordination, guarantees success. Metrics such as AOQL shows the maximum worst possible defective or defect rate for the AOQ. Process Z helps to know about sigma capability of the process. Research limitations/implications – The framework so developed is tested in a single company manufacturing batches of paint. The study has important implications for the industry since it tries to integrate SCM process dimensions which would help in successful implementation of SCM practices in firm by following the DMAIC process. The framework enables the practitioners to investigate the process and demonstrate improvements using DMAIC which makes use of statistical tools. Originality/value – Although process dimensions related to SCM are critical to organization competitiveness, research so far has tended to focus on supply chain operations and reference model, balanced scorecard, total quality management, activity-based costing, just in time, etc., but in literature hardly any description of the SIPOC-DMAIC model to improve SCM process performance is provided. The use of statistics in DMAIC provides better insight into the process performance, and process control.