The book comprises ten chapters, two appendices and a comprehensive glossary. The first appendix contains important supply chain metrics and the second contains key lean six sigma (LSS) concepts, listed by chapters. The introduction explains the reasons for writing the book and its goals, and gives a synopsis of the ten chapters. The chapters commence with key objectives and end with a summary.
James W. Martin, a Master Black Belt and President of Six Sigma Integration, INC, a Lean Six Sigma Consulting firm, is an adjunct instructor at the Providence College Graduate School of Business, Rhode Island, USA. He has worked with diverse organizations including in retail sales, banking and insurance, and manufacturing.
Chapter 1 presents 20 (12 key supply chain operational and eight key financial) metrics that should be identified to ensure business alignment, prior to creating LSS improvement projects. It is emphasized that it is imperative to understand the importance of Voice‐of‐the‐Customer and match that with the Voice‐of‐the‐Business. A 10‐step solution process (dealt in detail in the subsequent chapters) is also introduced.
Deploying LSS Projects using Lean Tools is the theme of Chapter 2; it shows how the sales and operating plan (S&OP) team facilitates the communication process. It also shows the importance and role of lead‐time in reducing supply chain costs that can account for 50 to 70 percent of an organization's budget; and briefly touches upon the various ways of reducing the lead‐time. Lead‐time reduction strategies are discussed in depth in Chapter 4, with the aid of value stream mapping. Chapter 3 deals with the concept of demand management, appropriate tools and methods (aggregating demand, forecasting models and errors) to accurately estimate demand.
Chapters 5 and 6 focus respectively on LSS applications to material requirement planning (MRP II) and how inventory models (fixed‐order and make‐to‐order) are used to identify LSS projects to identify and eliminate excess and obsolete inventory investment. The concepts of “lean supply chain” and third‐party logistics are first introduced in Chapter 7, and then the importance of integrating third‐party suppliers into the LSS initiative is explained.
Chapter 8 shows how to arrive at the root cause of problems by applying LSS tools such as process flow charts, cause‐and‐effect diagrams, time series plots, etc. Some of the operations research methods like queuing analysis, linear programming, simulation, etc. are just touched upon. The application of these tools and methods are explained with the aid of an example from a distribution call center.
Chapter 9 explains the importance of conducting pilot studies to test the recommended solutions and reduce the risk of implementation by effectively communicating process changes based on facts.
The concluding chapter uses a simple inventory model (Microsoft Excel based) to show the relationships between key process input variables and key process output variables and their impact on inventory turns ratio and investment. Finally, 25 LSS supply chain applications are briefly discussed.
This book with 190 illustrations is of real use to practitioners and academics teaching supply chain management.
