Improving supply chains through continuous flow
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Authors
Caguiat, Noel
MacDonald, CQE, Toby
Murphy, Terry
Scott, Michael
Issue Date
2010
Type
Capstone
Language
en
Keywords
Engineering management
Alternative Title
Abstract
Globalization and technology have forced many organizations to focus efforts on supply chain performance. This study evaluates the global supply chain of one such company and demonstrates how lead times can be improved by mitigating constraints in the flow of materials through the optimized use of a Material Requirements Planning (MRP) system. The researchers employed the DMAIC methodology and Lean Six Sigma tools throughout the study as a strategic means to make improvements and produce results. The outcome of the study showed that lead times were reduced from 90 days to 30 days by improving the flow of materials through the application of a Lot-for-Lot based MRP system within the supply chain. The researchers conclude the study by recommending future examination of safety stock levels, order quantity minimums, forecast accuracy, and supply chain costs.