3687 – Lean

Six Sigma
Green Belt
ASSIGNMENT 2

NAME

D AT E
Part 1
 Process Narrative
Purpose of the Process:
The main output of this process is a worksheet for the procurement team to place Purchase Orders with suppliers.

Metrics:
Primary:
1. Volume of each product
2. Inventory of each product

Secondary:
1. Total time it takes to produce the worksheet
2. Number of orders for delivery
 Process Narrative
Process Description
Customer goes online to our website and selects the groceries required for delivery. Customer then completes the
order checkout using an online payment method. All customers must place an order before Tuesday for their delivery
to be scheduled the same week. On Wednesday morning, the order list of all customers with everything that has
been ordered is exported from the backend. The export file is manipulated to create a master sheet which is
submitted to the procurement team. The procurement team will use the master sheet to order product from various
different suppliers. The procurement team will enter the supplier information in each of the categories which will be
used by the receiving team during receiving.
Create a Master Ordering Sheet
Creating a Master Order Sheet
Process
Map
 Type (Process Inventory Operation Time Value Add
High level Step Step Activity Process step Value add? NA Duration
or TIMWOOD) level (min:sec) Duration
Place an order online 1 Go to the website Process 0:01:00 No 0:00:00 0:01:00
Place an order online 2 Create an account Process 0:05:00 Yes 0:05:00 0:00:00
Place an order online 3 Log in Process 0:02:00 No 0:00:00 0:02:00
Place an order online 4 Add products to cart Process 1:00:00 Yes 1:00:00 0:00:00
Place an order online 5 Click on checkout Process 0:01:00 Yes 0:01:00 0:00:00
Place an order online 6 Enter shipping information Process 0:05:00 Yes 0:05:00 0:00:00
Place an order online 7 Enter Credit Card Information Process 0:05:00 Yes 0:05:00 0:00:00
Place an order online 8 Click on submit order Process 0:01:00 Yes 0:01:00 0:00:00
Order Creation 9 Process Payments Waiting 0:05:00 Yes 0:05:00 0:00:00
Order Creation 10 Sends order confirmation Waiting 0:01:00 Yes 0:01:00 0:00:00

Order Creation 11 create an order entry in the backend Process 0:05:00 Yes 0:05:00 0:00:00

Create Master Order Sheet 12 Go to backend of the platform Process 0:01:00 No 0:00:00 0:01:00
Create Master Order Sheet 13 Export the order list Process 0:10:00 Yes 0:10:00 0:00:00
Create Master Order Sheet 14 Export the product list Process 0:10:00 Yes 0:10:00 0:00:00

Create Master Order Sheet 15 Combine two list together to create a master list Process 0:10:00 Yes 0:10:00 0:00:00

Inventory Counts 16 Perform inventory count Inventory 8:00:00 Yes 8:00:00 0:00:00

Inventory Counts 17 Share the sheet with planning analyst Waiting 0:01:00 No 0:00:00 0:01:00

Create Master Order Sheet 18 Copy inventory sheet into the master list Process 0:01:00 No 0:00:00 0:01:00

Enter formulas to consolidate product list by cateogry and

Create Master Order Sheet 19 Process 1:00:00 Yes 1:00:00 0:00:00
order list by product

Use inventory numbers to calculate the order

Create Master Order Sheet 20 Process 0:30:00 Yes 0:30:00 0:00:00
requirements

Share the master list with procurement team and

Create Master Order Sheet 21 Waiting 0:01:00 Yes 0:01:00 0:00:00
receivign team via email
 Current State Time Summary

8:06

0:00 3:29

11:35

0:00 2:24 4:48 7:12 9:36 12:00 14:24

NA Duration Value Add Duration Operation Time (min:sec)

PROCESS BREAKDOWN
1%

30%

69%

Inventory Process Waiting

Process Time Value Add Duration NA Duration
Breakdown
8:24:00

7:12:00

6:00:00

4:48:00

3:36:00

2:24:00

1:12:00

0:00:00
Recommendations
There are a lot of opportunities to automate a lot of the manual tasks. This involves every week to
download data from platform backend. Copy and paste information in different spreadsheet and
then apply formulas to get a working sheet. This can all be automated with a little bit of tech
resources which will save a lot of time and accuracy and speed of outputting sheet. Time is very
important as procurement needs to place all orders before noon. Automating all the manipulation
would make this process much faster and less prone to errors.
CTQ Tree
Secondary Need Third Level Need Fourth Level Need
Primary Need CTQ/ Divers CTQ / Drivers CTQ / Drivers
Quantity of product Complete 99%
Accuracy
Best Before date of product Complete 99%
Inventory
Timely Receive report on time By Monday 9 AM
Reliability Name of person Enter in User log
Quanties of products ordered 100% complete
Sales Accurate Address Information Registered Address
Payment complete 100% complete
Order Volume
Time Receive all order on time By Tuesday 12 PM
Supplier Availability 100% of order
Availability
Supplier Price less 60% of Sale price
Fish Bone/Cause & Effect
Diagram
5 Issues Pain Points
Number Pain Point Method
1 Manipulate Data Fishbone
2 Inventory Volume Fishbone
3 Shopify Backend Fishbone
4 Download Customer Data SIPOC
5 Consolidate Order List and Product List SIPOC
Title: Inaccurate Inventory Volume reported every week Owner & Date: Rajjot Arora Prepared For:
1. Background 5. Proposed Countermeasures
-Inaccurate inventory is getting reported on weekly basis.
-Over/under order of products Prepare a training package
Increase inventory equipment A3 Template
Organize inventory by product
2. Current Conditions Meet with the inventory team and train them on everything
-Increase in money spent every week on over/under order of products
-Causes space issues at production site

2. Problem 6. Implementation Plan

Inaccurate inventory causes over/under order of product, as a result significant
loss of money every week. Draft inventory space plan 1 week Operations Manager
Buy more inventory equipment 1 week Operations Manager
Create labels for product allocation 1 week Inventory Analyst
3. Goals / Targets Move product to specified location 4 weeks Inventory Analyst
Draft SOP on counting/reportin inventory
95% accuracy rate 1 week Operations Manager
100% ontime report delivery

4. Analysis 7. Followup
Causes
because incorrect location of product Re-train employees every month
because there is not set place for product Re-evalute inventory equipment/space every quarter
because there is not enough space allocated to one product Track inventory accuracy week over week to see improvements
Because no one has done the analysis of how much space is required

Because no one on the team has been trained on how to analyze spacce requirements
Five Why’s
Why- Fact Finding
Why -1 because incorrect location of product
Why -2 because there is not set place for product
because there is not enough space allocated to one
Why -3
product
Because no one has done the analysis of how much
Why -4
space is required
Because no one on the team has been trained on how
Why -5
to analyze space requirements

Root Cause: Training required for all employees

Part 2