Application of DMAIC technique to improve supply chain efficiency

Abstract

This study presents a detailed analysis of the use of Lean manufacturing approaches to improve operational efficiency and minimize waste in the production processes of a sugar packaging company situated in South Africa. Faced with obstacles in fulfilling waste reduction targets and improving operational efficiency, the study attempted to carefully identify underlying sources of waste and implement Lean concepts, notably the DMAIC technique. The study used a range of Lean problem-solving approaches, beginning with an ABC analysis to identify Stock Keeping Units (SKU) with the greatest waste levels, followed by a mix of the 5- Whys probing methodology and Ishikawa diagrams to go deeper into waste reduction initiatives. Matrix prioritization was then used to prioritize actions and implementations that address identified inefficiencies and issues, leading to the creation and execution of an implementation strategy. During the improvement phase, waste was significantly reduced, notably in the 500g stock-keeping unit. Despite encountering obstacles associated with 1 kg SKUs, due to variances in the Bill of Materials (BOM), significant progress was accomplished. The DMAIC framework offered an organized method that included problem identification, process evaluation, data analysis, improvement implementation, and control installation. The study indicated significant waste levels, which were above weekly targets, resulting in a 70% production efficiency, (or 30% inefficiency), emphasizing the need for process improvements. Among other recommendations, the study suggests improving supervisor handover methods and introducing non-conformance reports (NCRs) to increase supplier responsibility and raw material quality. Supplier participation in performance reviews emerged as a crucial driver in dramatically decreasing waste and increasing production efficiency, resulting in a remarkable 20% improvement in production efficiency, thus raising the production efficiency levels to 90%. In essence, this study sheds light on the efficacy of the DMAIC methodology within the sugar company, offering practical insights into enhancing supply chain efficiency and minimizing waste. By targeting significant process inefficiencies, the research contributes to enhancing sugar production operations, benefiting stakeholders, and bolstering industry competitiveness. The results advocate for the adoption of Lean methodologies to optimize production processes and enhance profitability.