DMAIC Problem Solving ISCOM/472

Problem Solving Define Measure Analyze Improve Control DMAIC Problem Solving Define Measure Analyze Improve Control DMAIC and understanding uses of different data, operation management and various statistical process controls clarification within Home Depot. Process improvements are implemented on a daily basis with new employees and existing and new operations will experience different processes such as core competencies and, key performance indicators, operations management, productivity, strategy, and supply chain management functions. In efforts to support the research different objectives and business goals are addressed into many procedures and aspects ISCOM/472

Define Problem Pain of customer Problem existence length Stop reoccurring cycle of event Work Effort and Scope Supplier input and process output by customer Elimination of problem Capabilities and Limitation This chapter describes the key features of electronic commerce. Think about their good and bad e-commerce experiences. How many have we used our cell phones to search for products, or purchase products? How did we use e-commerce in the last holiday season? How has e-commerce changed how we shop and purchase goods and services?

HOME DEPORT Home deport is one of the largest organization that work with it customers and live by the organization values to take care of it customers and work with the community in many different program s that the company have in the organization. Home Deport have work very hard to have good customer service and want to build a working relationship with the people of the community and it vendors who that they get their products from.

Before After Plan and Outcome Imaging solution is where home deport have imaging software on company website for the customer can go to learn of how to do things what is call do it yourself. You can learn how to fix and repair all kind of repairs that is need and many time home deport have projects that are do with the community. Over the years as Home Depot’s business had changed the supply chain remained the same. To remove the weaknesses created by the outdated supply chain, Home Depot moved from a de-centralized inventory distribution logistics model to a centralized model. In addition to renovating the inventory distribution model, Home Depot has revised the supplier performance standards and created an electronic method of providing immediate and historical feedback to each supplier. Modifications to the supply chain have provided Home Depot a strong competitive edge (The Home Depot Foundation, 2010).

Measure Just in time Key performance indicators Data availability Flow chart information Calculate process six sigma Source Just in time Key performance indicators DMAIC process second step is measure which is a performance to show progress and reflect organizations goals. Measurements are taken beforehand to justify quantifiable considerations within a particular organization . As the organizations goals change indicators such as customer service levels, forecast accuracy, and manufacturing cycle time information is required. The use of the monitoring tools or key performance indicators evaluates the performance of an organizations supply chain as well as helps an organization define, reach and measure the advancement of goals within a organization . (Media Tech Target, 2011). The importance of service levels is to measure satisfaction levels of customers and how the organization responds to consumer expectations. Defining and measuring forecast accuracy designs decision-making and planning elements that can produce change into systems helping to validate and keep up with trends and cycle data. Evaluating manufacturing cycle time is a performance indicator that finds a solution for time compression with benefits such as value equations. Overall, the importance of the three performance indicators is dynamic, customer service levels, forecast accuracy, and manufacturing cycle time are models used in the complexity of organizations supply chain performance and each indicator relies on another indicators performance (Reh, J. 2010). Amber DeArmond; slide 5

Supply Chain Constraint DIAGRAM Service and Manufacturing Business Strategy Approach Advantages JIT- inventory plan TQM- improvement PR- rethink Benchmarking- partners Disadvantages Supply Chain Strategy JIT- inconsistent TQM- no commitment PR- miss a step; restart Benchmarking- flaws Supply Chain Objectives Ethical Concerns Capacity Constraint Physical Capacity Constraint Policy Strategy Impact This shows that a organization performance are efficient supply chain and the strategic will make a difference in successful or the organization failed in the supply system. Operational Approach Used Organization Quality Customer Demand & Expectation 6

Flow Chart Supply chain for Home Depot appears to be rather straightforward, but through examining the inefficiencies that existed within the former decentralized inventory system model, the management at Home Depot decided to make a change. Although one action was added to the supply chain, the redundancies and inefficiencies that existed in the previous inventory model were removed (The Home Depot Foundation, 2010).

Statistical Process Chart Statistical process chart are in place for commitment from the organization and a effective statistical process chart helps to measure efforts and different components of business functions while referencing objectives (More Stream.com, 2000-2011).

Select causes using methods Analyze Brainstorm Measure system Adjustment factors Select causes using methods Gap step analysis Process capability Step three of DMAIC process are Analyze the current performance to help with the problem, the challenges of productivity this creates innovative leverage in an organizations production process and decides building and buying solutions. The advantages and disadvantages in analyzing business operations provide challenges and rewards. Cognizant personnel support, selecting products, analyzing, sourcing approach, potential supply countries, freight and import cost, export, shipping and import details and contracts information and processes broaden business movement and potential movement (Bendorf, R.,2004). Service and products are managed through established and managed relationships through standard procedures in which a business operates internally. Independent relationships, skills, expertise and investments are entrenched as organizational pride and the existence of cultural barriers are less likely. Identifying cultural barriers effect product and services and the advances through supply channels new market spaces and business models is easily created at the top of the organization instead of across channels to preserve product and service domains in a timely manner internally. (Christensen, T., 2010). Productivity is designed to target new markets, spaces, and business models. Logistics HR, production machinery, capital management, and customer management is discovered through commercialization. Product and service diversity is extended; new line of products is through partner establishment. Focusing power, financial obligations are shared; more resources are found in global external assets so risk cost is reduced. Variety of sources is introduced, no single organization has all solutions, and the value of intellectual property is shared through external connections beyond core competencies (Christensen, T., 2010).

Ordering Cycle Procurement Cycle Electronic Data Interchange Distribution Purchase Orders Store Environment Manufacturing Excellence Customs Compliance Transportation Procurement cycle will have electronic data interchange, distribution information, purchase order methods, store environment conditions, manufacturing excellence, customs compliance, and transportation constraints. Without analyzing these steps, Home Depot can not be efficient in delivering products that customers need and having this system allows Home Depot vendor to work close and effectively with suppliers. Purchase orders are essential in the procurement process. Without a purchase order, products and services cannot be received or paid for tools. Customs Compliance is essential for international business to be successful. The Home Depot needs to understand requirements set forth through the various agencies of foreign territories. The final major factor of The Home Depot’s procurement cycle is transportations. The Home Depot needs to know where and when product will be delivered or the potential gaps so the appropriate resources can be available. Transportation acknowledgement requirements are outlined by the company in the supplier toolbox (The Home Depot Foundation, 2010). 11

Process Capability Determine Customer Trends Logistics management department will be the board Streamlining inventory management with order management Improving the companies supply chain functions Determine Customer Trends Shift focus Change direction Supplier relationship Increasing visibility The products market is very competitive and consumers will find the best prices, this was leaving Home Depot with inventory specific to design on the stores shelves or floor. A change of strategy was necessary so the company began moving away from the design-product aspect toward a wider range of product availability. The focus is on total spectrum of building, from the average home owner to the commercial builder. Home depot has been achieving this by simplifying the supplier relationship and expanding visibility throughout the chain, thus making the ordering process easier(The Home Depot Foundation, 2010)

Improve Solutions Test Plans Interpret charts Timelines Plot solutions Step four in the DMAIC process discusses improve. (Media Tech Target, 2011)

The core values are to take care of the people, give back to the community, do the right things, and provide excellent customer service, create shareholders value, have respect, have an entrepreneurial spirit, and to build strong relationships with customers, associates communities and vendors while using inventory

Strategy Six Sigma Information Systems Waste Elimination Reduce Cost Internal and External Sourcing Total Quality Management Innovative Solutions Strategy Many organization always want to make profit within the organization and you have to be competitive advantage with other supply chain management. . Competitive Advantage is a strategy that may be accomplished through improving efficiencies within the organization and minimizing waste. Organization can determine the businesses future through organizing assets and the business capacity to produce, and deliver products and services. This process gives and organization and advantage to meet customer expectations because of successful management in the supply chain (Bendorf, R., 2004).

Control Document Update and Improve Record method outcome Summarize key lessons Update and Improve Monitor implementation Training for new methods Step five in the DMAIC process is Control the improved process or product performance to ensure the targets are met.

Cause-and-effect Diagrams in Supply Management Human Factors Methods and Design Factors Inadequate supervision Poor training New operator Flawed part design Incorrect manufacturing sequence Inadequate tools Incorrect speed Poor maintenance Multiple suppliers Incorrect specification Variation in purchased components Supply chain management system starts through a chain of events that transfers products, good and services through consumer orders or business partners, the use of raw materials, producing items or services, and distributing the goods using an information service network (Rockford Consulting Group, Ltd., 1999). Key concepts in the supply chain management functions are logistics elements and drivers of change, information flow, location and transportation, and performance indicators.

Examining Customers and Work Performances External Customers Domestic Customers Novice Homeowners Experienced Homeowners Contractors International Customers Internal Customers Support Core Competencies MET Home Depot many products and services that most people would use at some point and many client can benefit from knowledge of the people who work at Home Depot. Contract also are doing a lot of business with Home Depot to procure most of the product and equipment so that organization can have the products to do business. Home Depot have to make sure that the suppliers are up to standard with the production of the products to meet the need of the customers (The Home Depot Foundation, 2010). 18

Bendorf, R. (2004) GlobalSourcing: What You Need to Know Retrieved from online wed address: http://www.ism.ws/files/Pubs/Proceedings/CKBendorf.pdf Christensen, T. (2010) How Does Outsourcing Affect the U.S. Economy Retrieved from online web address: http://www.wisegeek.com/how-does-outsourcing-affect-the-us-economy.htm

More Stream.com (2000-2011) Statistical Process Control Retrieved from online web address: http://www.moresteam.com/toolbox/t402.cfm Reh, J. (2010) Key Performance Indicators (KPI) retrieved from online web address http://management.about.com/cs/generalmanagement/a/keyperfindic.htm