Logistics For International Journal Of Osteoarchaeology

Six sigma and Lean management

Discuss about the Logistics for International Journal of Osteoarchaeology.
 

The benefit of six sigma tool is uniform process which reduces defect, cost and most importantly improves productivity to satisfy customer and increase the market share. The lean management reduces the cycle time or production time of product (Snee, 2010). The lean requires less equipment and less human efforts. Six sigma analysis is undertaken to understand which area of the production can be affected by waste and which part can be affected by variation. So that, right tools can be used to solve right problems. The 4PL provider brings value and manages the logistics process, also concerning how warehouses are used. Organisations hire 4PL to increase profits and to properly manage to provide access to greater base of potential suppliers. The logistics company is facing immense problems in regards to managing supply chain. The fishbone analysis in itself is a problem solving tool especially comparing, testing and interpreting. Undertaking the most appropriate system, equipment and properly utilising them to regulate maintenance in the business operation. Dynamic market situations demand changes in various policies in the operation of every business. Automatic order picking facilities reduction in time of deploying and appropriating every worker at right place. 

The practical approach states that six sigma and Lean management both work towards the same ultimate goal- eliminating waste and creating efficiency. While both Lean and six sigma are business methods that aims to improve efficiency and effectiveness in the organisation. Both seek to reduce waste and increase the productivity as far as possible. Every organisation works to earn more and more profit. This can be achieved by two ways- targeting more and more customers and eliminating useless expenses and waste.

Six sigma is an extension of number of quality tools available to the organisation results in improvement. Six Sigma is a quality tool that focuses on reducing the number of errors in a process. It focuses on identifying variation. It looks at root cause analysis to determine the source of errors.

Lean is a system which tries to reduce or delete activities related to value loss. It is more focused towards removing waste and creating more value for products. Lean management focuses on keep production standards. If the production standards are high then each step results in very little waste. 

Six Sigma	Lean Management
To satisfy the client`s requirement. Implementation of Six Sigma techniques will lead to reduction of flow time of the operation.	To improve production by increasing efficiency by cutting down the waste created by rework, errors, idle time.
Six Sigma can be done by applying proper controls and taking appropriate steps. The basis of this technique is normal distribution and probability.	Lean is an organised process helps in removing waste from various processes of the organisation like distribution, manufacturing and service.
Six Sigma was introduced by Motorola	Lean was introduced by Toyota.
Breakthrough process Improvement teams focused on eliminating chronic problems and reducing variation in processes.	Rapid improvement teams focused on improving process speed and eliminating of deadly waste.
Six Sigma is calculation based on statistics and correction of faults to maximise output. Six sigma is basically used to reduce error prone activities in manufacturing fields.	Lean management is based on fix manufacturing processes from minute to minute. Lean is basically for manufacturing.
Six Sigma allows benefit to both systems to be fully utilised.	Many companies has achieved success with lean techniques to maximise profits.
Six Sigma is a structured approach to handle organisational problems by reducing risk.	Lean management decision makers apply continuous improvement methods to check the ways to increase value and reduce waste.
Six sigma is a process which interrupt and do not allow to change organisational culture and behavioural change in employees.	Lean is to inculcate change in an organisational culture and permanent change in employee behaviour.
Six Sigma is a quality measurement that meets perfection in products or services. Six Sigma is a process of maintaining the desired  quality in the products and improve by taking necessary steps.	Lean management aims at reducing waste from the operation process. It focuses on serving worth firm`s product or service to the customers.
Six sigma is suitable for long-term and complex problems. Six sigma needs high investment. It is not suitable for solving common problems (Munteanu, 2017).	Lean management works for good beginning of improvements which require less investment because of the nature of skills to be improved. It gives less emphasis on statistical tools and techniques (Munteanu, 2017).

Six sigma and Lean refers to the same because they both are bunch of structured tools which assist in problem solving and improve performance (Antony, 2011). When the current situation is to reduce waste and develop an efficient process, the lean tools are used. Whereas, when the goal is to eliminate variance and improve situations, the six sigma tool is used Psychogios, Atanasovski & Tsironis, 2012). 

Difference between Six sigma and Lean management

Arrangement in which an organisation sources out its logistics operation to more than two specialist firms in which one specialist firm is the 3^rd party logistics and 4^th party logistics is hired to coordinate the activities of the 3^rd party (BusinessDictionary, 2018). For supply chain, when 3^rd party logistics outsourcing is accepted without any business risk then corporations are looking for another partner to outsource the activities like build, run and measure supply chain solutions on organisation`s behalf (Mangan & Lalwani, 2016). This extension in the supply chain for the activities performed by 4^th party is known as 4^th party logistics. The 4^th party manages all the resources, technology and capacity. 4PL handles the integration of backend system, it also increase market transparency for goods. It also focuses on cost reduction of procuring goods. Fourth- party logistics is also referred as lead logistics provider (Aktan, Sahin & Basaran, 2016). It has a major role in supply chain because it is believed that 3^rd party logistics have wider responsibility and accountability in assisting the customer to reach the goals. Transparency is a key for 4PLs that also sometimes function as 3PL. 4PL works with customers to check and balance also for creating confidential agreements and prohibiting the share of information from transportation providers. While managing the movement of goods domestically and internationally. Transportation system becomes complex. The main transportation management services aims at planning and renders execution of shipment services. Lead logistics provider manages the whole supply chain to meet changing demand of customer needs (Mehmann & Teuteberg, 2016a).

A 4PL guides every element of supply chain and also manages the 3PLs, supervising transportation management and operation of the warehouses of the organisation. 4PL helps in making cost-effective plan to operate. An 4^th party logistics acts as primary supply chain management provider. LLP (Lead Logistics provider) undertakes the integration of all logistics services. 4PLs undertakes the acquisition of logistics service through contracts. By outsourcing the management of services, organisation starts making financial strategy to influence the decision making and applying the decisions on implementing and tracking logistics solutions. Such as in automobile industry which has more complex supply chain as compared to other industries, the backbone of operating supply chain, 4PLs (4^th party logistics) runs the business efficiently. Different from 3^rd party logistics, 4PL organisation is sometimes considered as separate entity which establishes long term contract between one or more partners. 4PL organisation acts as an interface between the customer and various logistics service providers (Supplychain247, 2018).

4P logistics

Ideally, almost all the client`s supply chain is managed by LLPs. By increasing demand of products and services in various parts of the world, more and more logistics services need to be developed so that the need of the customer can be accomplished. Supply chain is also extending its range, so as the number of warehouses are increasing. But with the increasing associated risks in the business world, several challenges are identified in warehousing (Aktan,  Sahin & Basaran, 2016). As the warehouses are established at various places to satisfy the customer needs while being so competitive. The increasing warehouses led to advancement of technology (Christopher, 2016). The entry of 4PLs in logistics industry bothered the concept of creation of outsourcing strategy delegating the services to others to reach and increase access of products and services to the people around the world. The 4PL (4^th party logistics) is created to manage the logistics services. The risk of goods and services is transferred to 4^th party logistics as soon as it starts its giving services in respect of the organisation. 4PLs render services on the behalf of the large companies. The 4PLs coordinate the ships at the port, stores and delivers the goods on the place where required. Every Logistics Company suffers from some problems- procures a lot of fuel costs, needs improvement in business processes especially technology advancement (Mehmann & Teuteberg, 2016b). 

Fishbone analysis is also known as cause and effect analysis and root cause analysis. This tool is to identify and rectify the root cause of any failure in the organisation and cause of certain and specific event. It is considered as one of the quality management tool. Root cause is underlying or basic problem that is destroying and causing problem to the whole surface. In this case, the aim to identify the problem in the supply chain management and to achieve the highest efficiency. Optimising the picking order activity is important for developing worker efficiency in a machine operated warehouse (mbaskool, 2018). Firstly, the company has to look into the issue where it is losing the value of operation. The problem is order picking due to lack of labour and automatic machines to carry out fast order picking.

This analysis will help to identify the suffering caused due to any problem. Then after, the major factor causing and effecting the activities adversely is identified (Harris, Lilley & Walter, 2017). The 2^nd step is to move inside the situation and identify the root cause of the event. The aim of 2^nd stage is finding what are the factors affecting the running of proper procedure (Desai, Desai & Ojode, 2015). 4Ms representing manpower, method, machine and material depends on the number of brainstorming ideas, the way of solution the problem has. In the second stage, the inefficient manpower and worker is identified and also lack of machines carrying goods in the warehouse.

Technology upgradation is used to support warehousing procedure. In warehouse management system, managing order picking from storage to meet the requirement of a customer is a core function. It is visible that a major part of operating expenses is incurred during order picking. Planning, organising and controlling in WMS (warehouse management system) order picking process is a major activity to be considered. To manage is to sequence the picks of material having a batch.  

It is important to pay attention to management of goods in the warehouse includes rack zones, shelving, sorting different types of goods at different place (Rushton, Croucher & Baker, 2014). Piece picking is a system in which same resembling goods are placed in a same order in a single line. So that sorting them from a stock becomes easier when received a order (Petersen & Aase, 2016).

Zone picking-In zone picking method, different people are allotted to different zone where same goods are kept, this picking is most suitable when a warehouse receives different goods orders every time. Each similar bunch of goods should be given a batch number (Venkitasubramony & Adil, 2017). 

References

Aktan, C., Sahin, E. E., & Basaran, N. (2016). RELATION OF 3PL AND 4PL ACTIVIES AND THEIR EFFECT ON EMERGING ECONOMIES. International Journal of Management Economics & Business, 12, 262.

Antony, J. (2011). Six Sigma vs Lean. Some perspectives from leading academics and practioners. International Journal of Productivity and Performance Management, 60(2), 185-190.

BusinessDictionary. (2018). Fourth party logistics (4PL). Retrieved from: https://www.businessdictionary.com/definition/fourth-party-logistics-4PL.html

Christopher, M. (2016). Logistics & supply chain management. UK: Pearson.

Desai, K. J., Desai, M. S., & Ojode, L. (2015). Supply chain risk management framework: A fishbone analysis approach. SAM Advanced Management Journal, 80(3), 34.

Harris, T. E., Lilley, K. A., & Walter, R. K. (2017). The Varying Role of Vertebrae in Pacific Fishbone Analysis: Comparing Tropical Versus Temperate Midden Assemblages. International Journal of Osteoarchaeology, 27(6), 1038-1047.

Lira et al. (2017). Use of the Ishikawa diagram in a case-control analysis to assess the causes of a diffuse lamellar keratitis outbreak. Retrieved from: https://www.scielo.br/pdf/abo/v80n5/0004-2749-abo-80-05-0281.pdf

Mangan, J. and Lalwani, C. (2016). Global logistics and supply chain management. US: John Wiley & Sons.

Mbaskool. (2018). Root Cause Analysis. Retrieved from: https://www.mbaskool.com/business-concepts/operations-logistics-supply-chain-terms/8567-root-cause-analysis.html

Mehmann, J., & Teuteberg, F. (2016a). Process reengineering by using the 4PL approach: A case study on transportation processing in the agricultural bulk logistics sector. Business Process Management Journal, 22(4), 879-902.

Mehmann, J., & Teuteberg, F. (2016b). The fourth-party logistics service provider approach to support sustainable development goals in transportation–a case study of the German agricultural bulk logistics sector. Journal of Cleaner Production, 126, 382-393.

Munteanu, A. M. C. (2017). Advantages of Lean Six Sigma’s implementation in the Romanian Economy. Management Research and Practice, 9(1), 54-60.

Petersen, C. G., & Aase, G. R. (2016). Improving Order Picking Efficiency with the Use of Cross Aisles and Storage Policies. Open Journal of Business and Management, 5(01), 95.

 Psychogios, A. G., Atanasovski, J., & Tsironis, L. K. (2012). Lean Six Sigma in a service context. A multi-factor application approach in the telecommunications industry. International Journal of Quality & Reliability Management, 29(1), 122-139.

Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. UK: Kogan Page Publishers.

Snee, R. D. (2010). Lean Six Sigma – getting better all the time. International Journal of Lean Six Sigma, 1(1), 9-29.

Supplychain247. (2018). 13 Key Considerations When Selecting a 3PL and The Difference Between a 3PL & 4PL. Retrieved from: https://www.supplychain247.com/article/13_key_considerations_when_selecting_a_3pl_3pl_vs_4pl

Venkitasubramony, R., & Adil, G. K. (2017). Design of an order-picking warehouse factoring vertical travel and space sharing. The International Journal of Advanced Manufacturing Technology, 91(5-8), 1921-1934.

Quality assurance solutions. (2018). My Beef with the Fishbone Template. Retrieved from: https://www.quality-assurance-solutions.com/fishbone-template.html