A Framework for Mitigating Excessive Transportation in the Context of Manufacturing Localization

Abstract

While the zeitgeist of today prescribes localization as a key to eliminate the excessive transportation for manufacturing firms, firm-level practical and workable guidelines that go beyond maxims are scant. Laden with analytical methods, this paper offers a phronetic, customizable framework based on Lean Six Sigma (LSS). The framework mimics Define-Measure-Analyze-Improve-Control (DMAIC) process. The early phases of the framework, ex-ante, prescribe the use of a variety tools and techniques from Lean Six sigma (LSS) and employ fuzzy analytic hierarchy process (FAHP) to extract the vital few root-causes that may impede localization. The latter phases suggest the use of design of experiments (DOE) to evaluate the root-causes, ex-post. The paper outlines a clear and established procedure and demonstrates each analytical phase using evidence from a twoyear real-world application in steel industry.