Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance نسخه متنی

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Supply Chain Vector [Electronic resources] : Methods for Linking the Execution of Global Business Models With Financial Performance - نسخه متنی

Daniel L. Gardner

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Five Why Analysis

Many of the techniques found in the sigma tool kit are designed for specific phases of the DMAIC process, while others can be use at any time throughout the life of a project. Applicable to both high-level brainstorming sessions and process-specific analysis, the five why analysis conditions people to question any facet of a company's operation at least five times. First adopted by Japanese lean thinkers and picked up in the United States by Motorola, five why analysis assists team members in many endeavors, including identifying potential projects, pinpointing areas of waste and focusing on root causes of problems. Whether in the early stages of a project or in the finer areas of process analysis, the five why approach is designed to prepare team members for use of other sigma tools that lead to process improvements.

Let's look at an example of a five why exchange that took place between a sigma team and a group of buyers. The company in question is Buchanan Automotive, a Columbus, Ohio-based auto parts manufacturer that imports raw materials from Asia. Its inventory levels are growing rapidly and company management does not understand why. Conducted during an early brainstorming session, the flow is indicative of how five why analysis can point team members in interesting directions.



















Q:


Why are inventory levels so high?




Q:


Why are raw materials purchases out of line with production planning?




Q:


Why are buyers paranoid?




Q:


Why aren't lead times reliable?




Q:


Why are there so many customs delays?




Answers


















A:


Because raw materials purchases are out of line with the forecast and production planning.





Note

From the answer to the first question, there is reason to believe that raw materials are to blame for increasing inventories. For the moment, at least, work in process and finished goods are left aside.



A:


There have been some quality issues with components that have caused work in process to increase, but mainly because buyers are paranoid.


A:


Lead times are not reliable, so in order to avoid shutting lines down, they are placing their orders earlier and in greater quantities.





Note

The discussion now may indicate that the problem is not with inventories per se but nervousness in the system based on unreliable lead times.



A:


Too many customs delays at destination.


A:


Many suppliers do not provide commercial documentation when they tender cargo and there are too many mistakes when cargo is received.





Note

While the investigation is just beginning, the project team has uncovered potential areas of concern and can begin to hypothesize about causes. In this case, further process review may validate or reject where the five why analysis has led the team thus far.


This simple exchange is also proof that the people closest to an activity are the ones with the greatest amount of knowledge about a product or process. Had the members of the sigma team not taken the time to talk with the buyers, they may have never arrived at the decision they agreed upon.


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