Measuring business performance in a SCN using Six Sigma methodology - a case study

Abstract

The purpose of this study is to propose a methodology based upon Six Sigma to improve the business performance in terms of: 1) perfect order fulfilment (POF); 2) quality level (QL) in a supply chain network (SCN) encompassing various entities such as suppliers, manufacturer, warehouse, distributors, retailers etc. POF is measured in terms of: 1) no of orders delivered in full; 2) delivery on customer commits date; 3) accurate documentation; 4) perfect condition of the product and QL is measured in terms of: 1) supplier satisfaction index; 2) production performance index; 3) warehousing performance index; 4) customer satisfaction index. From the results, it is observed that with the application of the DMAIC methodology in a SCN helps to improve POF and QL. The imperfect condition of POF in network has been reduced to 1.03 from 11.75 orders respectively and on the quality front an improvement of about 53% in DPMO level.