Analyzing Mitigation of Container Security Risks Using Six Sigma DMAIC Approach in Supply Chain Design

Abstract

The study illustrates how the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) approach could be used to assist in standardizing container security and minimize risks in supply chain design. It seeks to determine the major problems for cargo container shipments and the impact that a standardized security approach could have on business results. A short literature review is presented, followed by a section on the supply chain network, closing with the Six Sigma DMAIC tools. Lack of standardization in security measures is a key problem. One container can move through up to 25 supply-chain parties and involve 35 to 40 shipping documents. Because the standard container ship holds 4,000 containers, each arrival involves massive amounts of paperwork. Some 7.8 million loaded containers enter U.S. seaports annually, an average of more than 21,000 daily. Another 4.8 million pass through as export cargo. The first three phases of the DMAIC process are described in greater detail. In the Define phase, a project charter is formed. In the Measure phase, a process map of the container flow shows the current state of the supply chain. Also, the security risks are analyzed using cause-and-effect analysis. In the Analyze phase, the high-priority failure modes are identified. Poka-yoke or mistake-proofing ideas are also proposed. Major findings include: technology will be key to improving security; the number of participants needs to be reduced; and there must be more public-private sector interaction, since neither one wants to take full control of the security problem.