LEAN SIX SIGMA PRODUCTIVITY

Implementation and Future Trend ACADEMY

16 JANUARI 2022

Stanislaus Atol
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 Material Outlines
Overview of Supply Chain and Logistic Industry

Current Lean Six Sigma Applications

Future Trend in the Supply Chain and Logistic Industry

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 Overview of Supply Chain and Logistic Industry
Logistics

Raw Suppliers Manufacturing Distributors Retailers Customers

Materials Plants

Supply Chain
Supply Chain is a network of organizations,
people, activities, information, and
resources involved in supplying a product
or service to a consumers.
Logistics is refers to the management of
the flow of things between the point of
origin and the point of consumption
along the supply chain.

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 Current Lean Six Sigma Applications
Common LSS Structure Project Framework

Measurement of how far a given process deviates from perfection.

Improvement Methodology that applies statistic to measure, reduce variances and improve processes
Management System that is comprehensive and flexible to achieve, sustain and maximize business success
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 Current Lean Six Sigma Applications
Supplier Collaboration and Sourcing Predictive Maintenance
Use big data and predictive analysis to anticipate Increase up-time and availability of machine,
future customer buying needs and work with equipment, vehicles, fleet or vessel.
suppliers to source items and materials. Turning advanced and optimized productivity from
Example : time based or condition based maintenance to
optimization based maintenance.
Tesco saved
$140M through
reduction of waste
stocks

Source : Predictive Maintenance 4.0. PWC Report 2018

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 Current Lean Six Sigma Applications
Route Optimization Haulage Trucking Planning
Optimize route of fleet or vessel with benefit : Increase trucking productivity by order prioritization
- Enhance customer satifaction and capacity planning.

- Lower operational cost Order

Prioritization

- Reduce carbon footprint

Priority Urgency

- Improve working condition Level Level

Discharge Loading Reposition < 24 Hrs > 24 Hrs

Increase haulage
productivity by 18%
Reduce container
stack at CY terminal
Example : by 20%
Corsiana Mattress saved $5M by optimizing
shipping routes.

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 Future Trend in Supply Chain and Logistics
1. Continued Rise of Automation
From picking items, custom packaging, loading / unloading to door delivery and
everything in between.
The coming years will see even more advances in automated services

Sorting centre of Chinese delivery powerhouse Shentong

(STO) Express, Hangzhou. Source : https://packagingeurope.com/how-drones-
are-reshaping-home-delivery/

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 Future Trend in Supply Chain and Logistics
2. Eco-Conscious Consumers
Supply Chains cause 90% of companies’
environmental impacts
70% of consumers would pay more in order to
support greener logistics operations.

58% of employees consider sustainability

as factor in employment decisions.
Source : Global Commission on the Economy and Climate. Nielsen.

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 Future Trend in Supply Chain and Logistics
3. Blockchain Technology Integration
Popular blockchain initiatives :
1. Product provenance and
traceability
2. International shipping, cross-
border supply chain
3. Trade finance
4. Data security and dispute
resolution
Source : Wang, Y. , Han, J. H., & Beynon-Davies, P. (2018). Understanding
blockchain technology for future supply chains: a systematic literature 5. Smart contract
review and research agenda
6. Social impact

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 Future Trend in Supply Chain and Logistics
4. Additive Manufacturing / 3D Printing and Product On-Demand
3D Printing applications in several sectors :
1. Manufacturing applications
2. Medical applications
3. Industrial applications
• Mass customization
4. Sociacultural applications
• Rapid manufacturing
• Rapid prototyping
• Research
• Food
• Agile tooling
• Cloud-based Additive
Manufacturing
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 Future Trend in Supply Chain and Logistics
5. Growing Demand for Cloud
Most Common Uses of Cloud
“The Supply Chain Computing :
Management (SCM) 1. Infrastructure-as-a-Service (IaaS) and
Platform-as-a-Service (PaaS)
Market to Reach $19 Billion 2. Hybrid cloud and multicloud
by 2021 as SaaS 3. Test and development
Deployments Grow” 4. Big data analytics
Source : https://www.gartner.com/en/newsroom/press-
releases/2017-06-22-gartner-says-supply-chain-management- 5. Cloud storage
market-will-exceed-13-billion-in-2017-up-11-percent-from-
2016 6. Disaster recovery
7. Data backup
As impact of increasing uses of data
by remote access to perform any Source : https://www.ibm.com/cloud/blog/top-7-most-
common-uses-of-cloud-computing
analytics, prediction or optimization

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 Future Trend in Supply Chain and Logistics
6. Metaverse Space
• Traditional
Product
Retailing
Oriented
1995

• Electronic
Customer
Retailing
Oriented

2005

• Metaverse
Experience
Retailing
Oriented

Source : Papagiannidis, Savvas. , Bourlakis, Michael. (2010). Staging the

new retail drama: At a metaverse near you.

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 Thank You
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: 082112235378
: Productivity Academy (PRODEMY)
: @prodemyasia

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