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The application of Lean Six Sigma Methodology for Improving Operation in Distribution Center  

Park, Sang-Min (Department of Industrial and Management Engineering, University of Incheon)
Lee, Bum-Woo (Department of Industrial and Management Engineering, University of Incheon)
Publication Information
Journal of the Korea Safety Management & Science / v.9, no.3, 2007 , pp. 95-102 More about this Journal
Abstract
Nowadays, globally high-grade companies have done their best for increasing their competitive power through a many kinds of method in incisive competition for making certain of a pacesetting position. Among the rest, Six Sigma have been the best methodology of improving process and have proven to be effective by the result of improving process in many of manufacturing business, however, it has not obtained excellent results in the transaction business. In transaction business, a $30\sim50%$ costs in total costs is generated by slow-speed working and reworking. The slow processes decrease the quality and increase the cost, which decreases customer satisfaction, and finally the income is decreased. All of them are so called wastes in processes. For this, adopting of lean six sigma methodology in process management can eliminate the wastes and reduce the variation. This study focuses on distribution with the domains like capacity, layout, amount of location, assignment of product, operation procedure and operation rule in order to improve these domains, we make a further application of eight analysis ways based on DMAIC method for improving operation of processes of distribution center as the third profit source. The goal of this study is to trace an approach that can easily adopt of Lean Six Sigma in operational management of distribution center by a kind of data, analysis method and template.
Keywords
Lean Six Sigma; DMAIC; Distribution Center;
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