Converging SCOR & Lean Six Sigma: Supply Chain Excellence CQSDI 2008 Converging SCOR & Lean Six Sigma: Supply Chain Excellence A case study is to make you aware of useful techniques, not to teach you how to use them in 60 minutes Simplifying something that is very large and very complex Determining where you are now vs where you need to be Unit costs, lower costs by volume Demand fell off, but we mfg to plan so as to hit unit costs. A United Space Alliance Supply Chain Case Study Laura Mills, C.P.M. Amy Petitt Scott L. Sealing Lean Six Sigma Black Belt Lean Six Sigma Black Belt Project Lead, SCM March 3, 2008

Agenda Overviews: Supply Chain Operations Reference model (SCOR) Six Sigma and Lean Toolset Integration Supply Chain Optimization

Complimentary, not Competitive Standard framework Identification of Improvement opportunities End-to-End Visibility SCOR SIX SIGMA LEAN Converge Making Complex Supply Chains Simpler

Establishing a Framework SCOR provides a valuable framework and infrastructure. Lean focuses on reduced lead time and reduced costs. Six Sigma focuses on improved quality and reduced costs. The convergence combines the benefits and power of all three methodologies. SCOR Lean Focus Shorter Delivery Times Six Sigma Focus Improved Product Quality Improvement Opportunities & Reduced Costs Resulting in sustainable Improvement Opportunities

Convergence Continuum Identify Opportunities SCOR Implement Solutions Prioritize Opportunities Lean Six Sigma Discover Root Causes

Convergence is a Structured Approach Business Strategy Supply Chain Benchmarking Supply Chain Assessment Value Stream Mapping Six Sigma Projects and Kaizen Bottom-line Results SCOR Lean Six Sigma Lean 6s Combined SYNERGISTIC Convergence bridges the gap between strategic enterprise planning & continuous improvement