Lean Six Sigma Logistics: Strategic Development to Operational Success

Chapter 10: A Tour of the Bridge

OVERVIEW

There is no question that Lean and Six Sigma principles will contribute positively to logistics and supply chain activities. The challenge is to understand how to leverage the value of Lean and Six Sigma in logistics. Lean principles can sometimes be counterintuitive, making it difficult for operations people to embrace the value proposition. For example, a transportation manager will struggle with the concept of increasing frequency of deliveries if personal performance is measured on transportation costs. Hence, for Lean Six Sigma Logistics to be implemented successfully, it must be a corporate initiative. This is not to say that a company must be a Lean organization prior to implementing Lean in the logistics function. Of course, it is ideal if the organization has embraced Lean holistically, but Lean and Six Sigma bring many applications that can be applied to logistics in the absence of a corporate Lean initiative. What does this tell us? The important lesson is that Lean and Six Sigma teach us sound business principles. Lean and Six Sigma are not a trend, fad, or "flavor of the month." They are a well-packaged set of business excellence principles and tools. The trick is to unwrap the package and choose the principles and tools that are needed and best suit your particular situation. By using those principles and tools, an organization can design a business excellence model that will fit the culture and goals of the company.

HISTORY OF LEAN SIX SIGMA LOGISTICS

Lean logistics started as the...

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