Operations Management Process Improvement at Essay

Excerpt from Essay :

The areas where there is a divergence from the desired outcomes can then be examined to identify why there is a divergence and assess how that divergence may be decreased (Breygogle et al., 2001).

Different approaches to implementation of 6 Sigma exist, DMIAC is one of these, with the different stages being define, measure, analyze, design and verify.

Slide 4

The definition of the issue for Riordan is how to improve the supply chain. It is a key aspect of the firms' ability to manufacture fans, if there are delays in the supply of goods there will be delis in manufacturing. As the firm has a level supply strategy for the majorly of the products, and goods are supplied out of stock when they are ordered, a delay due to supply chain issues may create delays in supplying customers,. Furthermore, to overcome this, the firm may need to invest more in inventory to ensure they have the inputs.

To make an improvement it is necessary to establish where there is an issue, and the level of the performance or divergence. The only receives 93% of input material on time form their suppliers.

Analyzing how and why the delays are occurring, reveal that Riordan are using only two local suppliers. The suppliers are likely to have limited resources and also have other customers, so it is the nature of the suppliers that is an issue. The relationship with the suppliers may also require some consideration, as this may also be a source of delay, if the firm is not receiving priority over other customers.

The analysis indicates that the design of a solution to reduce the delays may be to look for additional or replacement suppliers, looking to

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