The Six Sigma framework improves the awareness and management of supply-chain risk

Abstract

PurposeModern supply chains are at risk as a result of increasing disturbance. The use of Lean and Six Sigma’'s values, methods and tools can be one option to analyze, prevent and mitigate risks. The purpose of this study is to investigate whether a combined Lean Six Sigma philosophy can support the awareness and management of supply-chain risk.Design/methodology/approachThe methodology followed in the study is based on a literature review and multiple case study, performed by means of qualitative methods of data collection, such as observations on-site, face-to-face interviews and document analysis. Case selection includes the results of research conducted in seven large Swedish companies.FindingsIt has been indicated that Lean and Six Sigma values, methods and tools can be very effective in companies’ efforts to control the supply-chain risks and that they improve the companies’ ability to handle variability and risk management. Lean Six Sigma supports a risk-management culture in the focal companies, but they must involve customers and companies in the supply chain if they wish to create a risk-management culture in the entire supply chain. In order to do this, they can use the Six Sigma training structure, but they need to include more risk tools and methods developed for the supply chain management. It has also been indicated in the literature that if more people involve in 6S projects, the financial results will be better, and the innovation of processes will increase.Research limitations/implicationsThese include suggestions for how the companies can use the Six sigma training structure to collaborate in the supply chain.Practical implicationsThis study gives practical suggestions for how the companies in supply chain can collaborate and use the Six Sigma training structure for creating a more holistic view of supply chain, which also decrease risks in supply chain.Originality/valueThis study indicates that Lean Six Sigma supports risk awareness and management in the focal companies of the supply chains, which improves companies’ ability to handle variability and risk management. It has also been demonstrated that the companies should use the Six Sigma framework, especially training, as a foundation, and they should create common projects for better collaboration in the supply chain, which will decrease the risks in the entire supply chain.

Lean Six Sigma as an organizational resilience mechanism in health care during the era of COVID-19

“…Efficient process management and practicing operational excellence improves the reliability and capacity of processes (Bal et al , 2017; Beck et al , 2016). Developing LSS implementation routines, incorporating systematic problem solving, exploring novel solutions to continuously improve existing processes and innovating processes (via new technologies) results in reliable and resilient health care processes (Andersson and Pardillo-Baez, 2020; Hoerl and Gardner, 2010). LSS improves organizational resilience through the creation of efficient, reliable and resilient processes and continuous learning and improvement (Andersson and Pardillo-Baez, 2020; Pal et al , 2014).…”

“…A primary goal of LSS is to identify and reduce process variation, and reduce risk through systematic process monitoring and control to reduce instability, uncertainty and lack of reliability that comes from excessive process variation. Organizations that adopt Six Sigma focus on developing personnel with improved risk management awareness, with a goal of risk reduction to an organization’s operations (Andersson and Pardillo-Baez, 2020). In turn, organizations often deploy LSS through their respective supply chains, resulting in improved risk reduction among those supplier’s risk reduction and improved supplier and customer collaboration in the supply chain (Andersson and Pardillo-Baez, 2020).…”

“…Organizations that adopt Six Sigma focus on developing personnel with improved risk management awareness, with a goal of risk reduction to an organization’s operations (Andersson and Pardillo-Baez, 2020). In turn, organizations often deploy LSS through their respective supply chains, resulting in improved risk reduction among those supplier’s risk reduction and improved supplier and customer collaboration in the supply chain (Andersson and Pardillo-Baez, 2020). LSS risk reduction includes identifying critical failure points and mitigating those points through the LSS approach.…”

“…As a result, LSS projects often result in process improvements and innovation that improves organizational resilience (Madu and Kuei, 2014). The adoption of LSS results in robust processes and minimizes organizational risks through monitoring and mitigation of risk sources (Andersson and Pardillo-Baez, 2020). There are a variety of LSS techniques by which risk is managed.…”

Impact of lean six sigma at pharmacy unit on hospital profitability before and during Covid-19 pandemic

“…As indicated by Andersson and Pardillo-Baez (2020), LSS could provide benefits for risk mitigation, surveillance and risk prevention solutions. This research revealed the need to consider the prolonged external disruptions in the resource supply and demand such as what happened during the Covid-19 period as part of LSS-based risk management.…”