Lean Six Sigma Implementation in a Small Business Warehouse Inventory Management Redesign

Abstract

This design project is based on the suggestion to implement Lean Six Sigma concepts, with proper inventory management, in a small business: a local grocery store. This business has served Puerto Rico since 2017, just after Hurricane Maria. Despite being a successful business, there is always room for improvement. That is why inventory management in the warehouse was redesigned. To get there, the five-step DMADV methodology was implemented. After defining the project, the process cycle time and its operational cost were measured. Then, how both were affecting the warehouse inventory management and how they could be reduced was analyzed. In the design phase, the inventory management was redesigned, which provided customer specifications to reduce time and costs. Lastly, to verify the redesign, a prototype was created and presented to the customer. Key Terms- DMADV, grocery store, inventory management, Lean Six Sigma