Six Sigma Approach to Enhance Concurrency of the Procurement Process for Raw Materials

Atanas Kochov,Aleksandar Argilovski

doi:10.31803/tg-20210304095657

Abstract

This paper presents the improvement of the procurement process for raw materials in a real manufacturing company supported by the Lean Sig Sigma as structured approach to deliver the improvement. The manufacturing company that is a subject of this paper have received a significant amount of complains regarding the internal purchase orders approval process and the overall procurement process of the company from both internal employees and external vendors and contractors. Considering that the company is procuring the raw goods from selected vendors, therefore the entire manufacturing plan depends on these materials, the company decided to improve this process trough Lean Six Sigma. The Lean Six Sigma approach was selected in order to obtain the improvement in a short time, based on indicators that were previously analyzed and prioritized. The paper focuses on simplifying of the process trough decreasing the number of mandatory steps.

Highlights

The purchasing of the raw materials is one of the key features of the production planning and control process
“The goal of the project is to shorten the time materials in the company needed for the needs needed as base for the identification and manicuring process is too procurement of the raw long and complicated materials, reduce the which results with delays steps and approvers and of the manufacturing and increase the concurrency unsatisfied clients and of the process
The purpose of this study was to improve the process for purchasing of raw materials in a real manufacturing company

Summary

Introduction

The purchasing of the raw materials is one of the key features of the production planning and control process. Sometimes this process is viewed as administrative and repetitive, it should be strategic and based on the current needs for purchasing of the companies. It is one of the most important factors that affects the shortening of the production plan and enhancement of the competitiveness of the entire company on the market. Once this process is optimized and thought through, it could generate a lot of savings for the companies as well as improve the relationships with the external contractors, vendors, and suppliers.

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Results

Conclusion