Achieving customer service excellence using Lean Pull Replenishment

Abstract

PurposeThe purpose of this study is to highlight a key strategic initiative within the former ADC Company (now part of TE Connectivity) called “Lean Pull Replenishment”, designed and implemented to achieve Six Sigma customer service excellence. This case study would also help facilitate problem‐based learning pedagogy.Design/methodology/approachThe study showcases implementation of the Lean Pull Replenishment approach using the define, measure, analyze, improve and control (DMAIC) framework. Key input variables were analyzed that contributed to historically inconsistent and unsatisfactory customer delivery performance. Analysis resulted in improving the allocative efficiency of critical input variables through pilot programs on strategic value streams by deploying dozens of kaizen events, and sustaining the gains through leveraging best practices and effective change management principles.FindingsThe study presents a strong case for the team work and the cultural transformation that occurred during the course of implementing this initiative across ADC supply chain. The paper also summarizes the improvement in customer service metrics and financials of the company.Originality/valueThrough this study, it has been established that with consistency of purpose, using the right tools for solving problems and through teaching Lean principles, remarkable results can be achieved, which can be sustained for the long‐term and become a self‐sustaining business philosophy.

Process Improvement for Value Creation: a Case of Health Care Organization

“…While focusing on business processes is not new, it has achieved some kind of "vogue" in the past several years (Holtzman, 2011). Processes and their improvement concepts, tools and techniques were analyzed by Dalmaris (2007), Lepak et al (2007), Langabeer et al (2009), Brandao de Souza (2009), Does et al (2009), Bowman and Ambrosini (2010), Chena (2010), McAlearney et al (2011), de Mast et al (2011), Brandao de Souza and Pidd (2011), Schiuma and Carlucci (2012), Tvedt et al (2012), Boyer et al (2012), Kumar et al (2013), Matthews (2013), Svagzdiene et al (2013), Antony (2014), Ciarniene and Vienazindiene (2015), Gardner et al (2015), Morrison (2015), Vessella (2015), Pekkola and Ukko (2016), and by other researchers. Chena et al (2010), Brandao de Souza (2009); Brandao de Souza and Pidd (2011), Kumar et al (2013) Antony (2014), Ciarniene and Vienazindiene (2015) analyzed Lean concept as a tool for processes and performance improvement.…”

How to Facilitate Implementation of Lean Concept?

“…It has since been widely accepted and adopted across every industry ranging from automobiles to electronics and in the recent years, is being increasingly applied to a wide range of service organizations, including health insurance companies, hospitals, clinics, retail stores, etc. (Kumar, Choe and Venkataramani, 2013).…”

UQ eSpace

“…The pull method creates the possibility of overcoming the disadvantages of the push method because it does not depend on the reliability of sales forecast. Instead, the production is regulated based on what is required by the customer in such a way that the information flows in the opposite direction to the flow of materials, as shown in Figure 1 (Kumar, Choe, & Venkataramani, 2012). In this way, every workstation receives the production order and produces only what is needed and when it is needed (Kumar, Choe, & Venkataramani, 2012).…”

“…For example, it is no longer possible to lose a Kanban card or make compilation errors because it is the software and the sensors that perform this task (Kolberg, Knobloch, & Zuhlke, 2017). Moreover, since E-Kanban is a much more reliable and faster system, it increases the performance of the supply operations of the various workstations, thus reducing the overall cost of this activity (Kumar, Choe, & Venkataramani, 2012).…”