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Value Ghain and Six Sigma Requirements

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Value Chain and Six Sigma Requirement

Lanita Douglas
Bus Strategy and Innovation for Competitive Advantage
13 May 2015 Supply chain management is defined as “the design and management of a supply chain network that delivers high-quality products to the right customers at the right time at minimum cost”. On the other hand, six sigma tools are powerful processes used by managers to identify and thus aid in solving the problems evidenced in the supply chain. Six sigma helps in continuous improvement to ensure variation and quality control while improving production and eliminating waste. This way, the six sigma helps in improving the efficiency of the supply chain. Using the six sigma, the supply chain managers have in mind what customers want. They ensure that the define value, deliver it, and maintain accountability for everything they do towards realizing the goals of the customers (Bentley & Davis, 2009).
Six sigma ensure value for customers. Value for customers means what customers are willing to pay the company to deliver. Value is effectively measured through increasing quality while minimizing waste. Six sigma helps in “measuring the processes involved in increasing quality while decreasing waste, and establishing variation-reducing controls to ensure a consistent output” (Martin, 2014, p. 37). Using six sigma in the supply chain, supply chain managers ensure that they adhere to the established processes, comply to the requirements, which are based on customer’s perception of value, eliminate activities that do not add any value, and document consistency of practice and purpose.
Integrating six sigma approaches in the supply chain helps in managing change more effectively bearing in mind that change is constant. Further, it helps in engaging vendors and customers and thus ensures success. Supply chain managers should understand that success does not

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