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Improving Supplier Delivery using Lean and Six Sigma

Improving Supplier Delivery using Lean and Six Sigma

In a recent Q&A which asked the question Why Six Sigma Initiatives fail I provided a detailed response based on both research and practical experience.

Here is an excerpt from the resulting article:

At a Value Network Summit in 2007 Glenda Turner (a Supply Chain Integrator with Boeing) made the following statement; “Now that I know the value networks methodology, I would not consider doing a Six Sigma, lean or any other kind of project without first doing a VNA to provide the systems context for the initiative.”

Similar sentiments regarding the VNA methodology were also expressed by Stephen Slade (a Director at Oracle) as well as Dr. Henning Kagerman (Chairman and CEO, SAP).

This leads to an obvious question, what is a Value Network Analysis (VNA) and why is it being seen as the way of the future over Six Sigma, SCOR or for that matter any of the other current methodologies?

As indicated in one of my previous responses, when organizations such as Boeing refer to a complex adaptive network, what they are really discussing is using an agent-based model whereby the unique operating attributes of key stakeholders are first understood individually and then (through a collaborative effort) are linked collectively by establishing what they refer to as “flow paths.” This latter exercise is tied into identifying the common points of connectivity between seemingly disparate stakeholders (and stakeholder objectives). In essence, it reflects a theory of process I discovered and developed starting in 1998 and what I have come to call “strand commonality.”

Under the VNA approach for example, the term supply chain has been dropped and replaced with the more appropriate “supply practice” moniker. This is due to the fact that the former reflects a sequential thought process versus a synchronized approach that is more in line with the way in which the real-world operates. Leveraging the VNA’s synchronized “agent-based” model the unique operating attributes of diverse stakeholders both within and external to the organization are clearly identified and understood. The VNA methodology (and those like it) then seeks to develop an “adaptive” model whereby the prescribed “process” reflects and therefore adapts to stakeholder characteristics and objectives. “Adapt” being the key word.

Conversely, Six Sigma is reflective of the traditional equation-based models in which an attempt is made to establish a “set” chain of characteristics in which stakeholder adoption or compliance is a key component. The only commonality link between different stakeholders is a centrally established (usually myopic) standard or standards that do not necessarily reflect the real-world operating attributes of the organization or its external trading partners.

The above excerpt is a good starting point.

I have provided links to a 7 part series I wrote titled Dangerous Supply Chain Myths. Parts 4, 5 and 7 should be of particular interest. While the emphasis is on Supply Chain, the principles are applicable to all operational aspects of an enterprise. This will hopefully provide some additional insights into the factors that are reshaping the way organizations will operate in the emerging global economy.

If you would like to obtain additional information or other articles and papers on this subject please contact the author.





Improving Supplier Delivery using Lean and Six Sigma - To learn more about this author, visit Jon Hansen's Website.

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Joe Dager
Joe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website

Leanne Hoagland-Smith
Are your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website


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