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The IUP Journal of Supply Chain Management :
Application of Six Sigma in Supply Chain Management: Evaluation and Measurement Approach
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Firms have to analyze, monitor and make improvements of their existing Supply Chain Management (SCM) processes in order to beat market competition and stay competitive. In this regard, the Six Sigma is a methodology that enables the firms to review their existing SCM practices and guide them in making improvements. Six Sigma focuses on reducing variation, measuring defects and improving the quality of products, processes and services. Six Sigma-based SCM effectively manages typical disruption issues in supply chain as it ensures the delivery of the most appropriate product, in right time, in right place with the least cost to the customer. This paper develops an integrative framework and the business value-added framework and financial matrix to measure and evaluate the impact of Six Sigma on SCM. As identified and emphasized in this paper, efficiency and effectiveness drivers of SCM and accompanying business values generated by Six Sigma deployment in SCM positively influence an organization's overall business performance.

 
 
 

Six Sigma is a logical, systematic and process focused approach to achieving continuous process improvements. This process improvement methodology for enhancing quality levels was developed by Motorola in 1986 for its high volume manufacturing environment in order to increase its competitiveness against Japanese companies. Six Sigma is a wellstructured knowledge management approach that focuses on reducing variation, measuring defects and improving the quality of products, processes and services. It is a highly disciplined process that helps organizations to calculate how well a process is performing and focus on developing and delivering near-perfect products and services.

The supply chain represents a process of delivering value to customers by creating and delivering products. Supply chains span from raw materials to manufacturing, distribution, transportation, warehousing and product sales. Supply chain is the network of entities through which material and information flow. Those entities include suppliers, manufacturers, wholesalers, retailers and customers. In today’s highly competitive environment, supply chain performance is very vital for the survival of firms because customers judge the performance of firms based on their supply chain performance.

 
 
 

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