Material Handling, Inventory and Productivity Improvement - A Lean Six Sigma Approach Case Study

Wa-Muzemba Anselm Tshibangu

2014

Abstract

This paper describes a two-step strategic-tactical Lean Six Sigma methodology as used by the author to improve productivity, enhance inventory and material handling management, and thus, reduce operational costs at “Down Town Press Inc.”, a commercial printing press located in New York State, USA. A close look at the company’s performance revealed a troubling picture with only 51 % utilization of personnel, nearly $40,000 of invested capital underutilized annually, and an excess of monthly inventory costs of almost $29,000. This study was conducted to help the company avoid a fatal bankruptcy and regain financial prosperity. First, a strategic Six Sigma DMAIC procedure approach is deployed to better understand the deep turmoil faced by Down Town Press Inc. Second, a more tactical Lean approach is applied to identify various wastes and propose a set of techniques, technologies and strategies to reduce or eliminate the identified wastes, and thus, reduce operational costs. The continuous improvement changes proposed at the conclusion of the study suggest a possible reduction of $300,000 in yearly operational capital. Furthermore, with the implementation of the proposed Inventory Management integrated with a comprehensive Material Handling Management System, the study predicts a higher utilization of employees and, therefore, an increased productivity.

References

  1. George, M. (2002-3). Lean Six Sigma: Combining Six Sigma Quality with Lean Speed, McGraw-Hill.
  2. Heizer, J. and Render, B. (2013). Principles of Operations Management, 9th Edition, Prentice Hall.
  3. Krajeski, Ritzman, and Malhotra (2013). Operations Management, 9th Edition, Prentice Hall.
  4. Meyers, F. E. and Stewart, J.R., (2002). Motion and Time study for Lean Manufacturing, 3rdEdition, Prentice Hall.
  5. Tshibangu, W. M. Anselm and Berlinski, Stephen(2012). Productivity Improvement Through Facility Layout Redesign: A Lean Six-Sigma Case Study. ICINCO 2012, Proceedings of the 11th International Conference on Informatics in Control, Automation and Robotics, Rome, Italy, July 28-31, 2012.
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Paper Citation


in Harvard Style

Anselm Tshibangu W. (2014). Material Handling, Inventory and Productivity Improvement - A Lean Six Sigma Approach Case Study . In Proceedings of the 11th International Conference on Informatics in Control, Automation and Robotics - Volume 2: ICINCO, ISBN 978-989-758-040-6, pages 700-707. DOI: 10.5220/0005025307000707


in Bibtex Style

@conference{icinco14,
author={Wa-Muzemba Anselm Tshibangu},
title={Material Handling, Inventory and Productivity Improvement - A Lean Six Sigma Approach Case Study},
booktitle={Proceedings of the 11th International Conference on Informatics in Control, Automation and Robotics - Volume 2: ICINCO,},
year={2014},
pages={700-707},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0005025307000707},
isbn={978-989-758-040-6},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 11th International Conference on Informatics in Control, Automation and Robotics - Volume 2: ICINCO,
TI - Material Handling, Inventory and Productivity Improvement - A Lean Six Sigma Approach Case Study
SN - 978-989-758-040-6
AU - Anselm Tshibangu W.
PY - 2014
SP - 700
EP - 707
DO - 10.5220/0005025307000707