Enhancement of a Distribution Center Process using Lean Six Sigma

Abstract

The competition between manufacturing & distribution companies increases every day, in the present world of competitive business, cost minimization and efficient management of manufacturing unit is not an easy task. For many years, many companies have debated about the best way to boost profits and being more efficient. This has been a debated topic because the industries have different methods to do so. This attitude of always looking to improve is important and even more when the market is volatile and unpredictable. Some of them prefer to focus in process, quality or production in order to improve production and revenues. To be competitive, the industry is seeking for tools to be used in order to reduce cost and improve manufacturing capacity without compromising the quality of the products. One methodology used to reduce manufacturing cost and increase process capacity is Lean Manufacturing. This methodology is used to reduce sources of muda or in other words, waste. Muda can be associated to downtime, waiting time, unnecessary movements among others things that do not create value to the customer. This article discusses the improvement of the efficiency of the process in a Warehouse Company. The methodology selected for the implementation of the possible improvement was Lean Manufacturing using the DMAIC tool as a systematic approach. Key Terms - Capacity, DMAIC, Lean Manufacturing, Process Flow.