Lean Six Sigma in internal logistics: a case study

Abstract

Lean logistics and continuous improvement methodologies, such as Six Sigma, are key subjects to reduce non added value activities and improve intrinsic processes in the supply chain of an organisation. This work explores, trough a case study in a company that manufactures multimedia car devices, Lean Six Sigma application in the internal logistics processes, which seems to be neglected by the current literature. The aim is to identify the variables influencing the quality and performance of raw material supply process throughout a case study to propose improvements to reduce the number of process defects. To obtain better results and due to the problem complexity, a Six Sigma project was selected because of its organised structure for problem analysis and resolution. Using Six Sigma together with quality tools and lean principles helped the identification of the variables that influence the raw material supply process and the definition of the improvement actions for a more efficient and effective defect reduction. The implemented actions reduced the defects in 80%, improving the customer service and increasing productivity in supermarket and repacking areas.