Data visualization has innumerable advantages in supply chain management, for it can reveal significant insights about supply chain KPIs (key performance indicators). These can help businesses optimize processes for greater returns and make the supply chain more sustainable. Suffice it to say it’s a win-win situation for everyone.

In this article, we take a look at what data visualization is at the fundamental level and how we can use data visualization principles to reveal important insights about the supply chain in an actionable manner. 

What is data visualization?

Data visualization is all about presenting data in a graphical format to tell a story using visuals. It gives a visual context for available information. Data-driven decision-making is nothing new, and approaches like Six Sigma and Lean routinely use data at every step to guide businesses. 

Dashboards are often harnessed to present a 360° bird’s eye view of the supply chain, which reveals latent problems and helps businesses identify the right solutions. With a holistic view of the grand picture, it’s much easier to identify and resolve challenges with innovative solutions.

Supply chain and data visualization

Supply chain data visualization is a great way for employees to track data in real timesupply, even when it is channeled from multiple sources. This improves transparency and visibility into key insights to both supply chain employees and customers and ultimately helps deliver greater value for higher customer satisfaction levels.

Data visualization when harnessed for supply chain management can be used to manage and fine-tune supply chains for improved efficiency. Data visualization can yield crucial insights such as alternatives to current suppliers and help hunt for the right replacements in the most cost-effective manner. All this would be impossible without an understanding of the current supply chain processes.

The globalization of supply chains has increased the complexity manifold for businesses. Amid this chaos, data visualization holds a shining light for companies to simplify processes and procure business inputs in an optimized manner.

Data visualization also helps visualize the state of inventories and manage them in an efficient manner. It will empower buyers to choose the right suppliers and goods in the interest of the company and the end users as a whole.

Use data to achieve supply chain perfection

Data visualization is the art and science of harnessing the might of data and using it in a visual framework to gather rich and actionable insights. When applied to the supply chain, it can greatly improve efficiency. 

Supply chain data visualization aggregates data from multiple sources and presents them in a unified single pane of glass view for everyone to see. This breaks down silos and cuts across hierarchy, helping everyone see critical information and use it to refine processes to ultimately reduce costs. It also helps reduce inventory management costs with greater visibility and helps achieve higher customer satisfaction levels.

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Every organization needs to meet the standards and customer expectations on quality, and this is particularly true of telecommunication companies. The competitive nature of a business is such that if the company fails to meet these expectations, often it will have an impact on sales and the company’s reputation. It is not enough for businesses to merely churn out products and services to address market demand, they must also ensure every point of the supply chain meets and exceeds set standards.

Quality can be compromised at many different points in the supply chain. This may include errors during assembly of components or mistakes on the product label. To maintain high quality throughout the supply chain, several methods have been proposed. The Six Sigma methodologies can be applied to uphold quality and reduce unnecessary costs.

What is Six Sigma?

This is a methodology that involves the use of statistical analysis to address shortcomings in different organizational environments from the services sector to manufacturing. Using these analytical tools, organizations are in a better position to pinpoint bottlenecks and eliminate supply chain inefficiencies and human errors.

Six Sigma is said to have evolved through the manufacturing industry after it was invented by Motorola and promoted by other companies such as General Electric. Motorola wanted to develop a methodology that coordinated a series of procedures, according to the Environmental Protection Agency.

The values, procedures, and techniques proposed by Six Sigma are captured in the acronym DMAIC (Define, Measure, Analyze, Improve, Control). This simply means that you need to define your objectives, then collect accurate information, use the information to make an objective analysis, work on improving the procedures, and ensure control is done by monitoring the processes and making the necessary modifications.

How Does Six Sigma Help In Telecom Manufacturing Operations?

Even though Six Sigma evolved through the manufacturing field, it has many applications, especially in the telecom sector. In this industry, it can be instrumental in identifying issues on time. For example, you may find that minimizing lead time could multiply the number of finished products you produce. Having identified the issues, you can use the data to improve your supply chain management program.

Which Top Telecom Manufacturers Have Successfully Utilized Six Sigma?

General Electric is the most well-known company that has implemented these strategies to improve its operations. According to the company, within the first five years of applying Six Sigma principles, they had saved over $10 billion. General Electric mainly uses these techniques to improve the company’s customer service experience. The company also finds these techniques fruitful in developing efficient and predictable systems that can ensure customers get consistent value and that the company meets its standards. This way, General Electric has been able to cut costs to the tune of billions, while providing customers with the highest level of experience.

What Are the Other Benefits of Six Sigma?

The Six Sigma principles can also help your organization use fewer resources, cut down on waste and make positive environmental improvements. The U.S. Environmental Protection Agency has stated that you can reduce the risk of defective products, which means that industrial waste is minimized. Defective products need to be repaired and replaced. Fewer defective products also mean that people will not be exposed to risks and accidents as a result of the defects.

Why Proper Implementation of Six Sigma Is Essential

There is no doubt that Six Sigma can go a long way in improving various aspects of your organization. If not properly executed, it could end up being an obstacle. One weakness of the methodology is that it is primarily data-driven, and may ignore how your employees feel. However, understanding these weaknesses can make it easier to prevent obstacles. One way to do this is to have a wide consultation with staff to keep tabs of the working conditions. The same should be done when evaluating customer experiences.

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Contrary to what many business leaders think, supply chain management using lean is not just for companies that manufacture products, but can be used by any business that seeks to streamline its processes through the elimination of waste and activities which add no value to the customer.

Companies have many areas within the supply chain in which waste can be identified in the form of time, inventory or costs. If a supply chain is to be made leaner, a company needs to look at each part of its supply chain, specifically focusing on the following areas:

Inventory Optimization

When a company stocks too much or too little of a particular item, it can be detrimental to its supply chain. In this case, the company’s service parts supply is more prevalent than its current supply chain. Optimization of inventory is dependent on precise and accurate forcasting of needed items. Lean supply chains require that extensive evaluation and quick identification of sudden market changes are carried out to ensure that shipping, manufaturing or other parts of the supply chain are not adversely affected.

Rapid Fulfillment

As connectivity becomes more widespread, especially with the use of mobile devices, consumers now believe that their voice is powerful, and use this power to demand instant gratification. Clearly, it is not possible to offer products instantly, so the best a company can do is to ensure that all orders are processed quickly, without errors and sent using the fastest means of transport available. Lean supply chains go a step further and combine different methods of transport that allow companies to not only gain a competitive advantage, but also satisfy the needs of the consumer as soon as possible.

Customization

Customization is one of the trickiest aspects of setting up a lean supply chain. This is because, for most people, it would seem more appropriate to view customization as having disparate ERP systems to cater to each distributor, supplier and retailer in the supply chain. In reality, customization is a reference to how unique processes are implemented across the entire supply chain to offer customers what they need.

In addition, any increase in the individual businesses within the chain results in the need to manufacture and repair – a more diverse range of products. A lean service parts supply chain is able to adapt and build customized parts to fill the growing demand.

Sustainability

Sustainability is a key characteristic of a lean supply chain. The supply of fossil fuel left on our planet is finite, which means that supply chains have to find ways to utilize renewable sources of energy. The renewable energy used is dependent on geographic location and how it relates to the supply chain’s underlying aspects. In addition, many governments are now enacting strict environmental and sustainability law and regulations as a way of pushing manufacturers towards the use of renewable forms of energy in the years to come.

Although there are skeptics who think that it is not possible for industry to move to renewable energy, a case in point is the decline in use of incandescent lightbulbs. The process began in manufacturing, and eventually trickled down to homes. Renewable energy will take the same course, and a lean supply chain should anticipate this and prepare for it.

Compliance and Visibility

Perhaps the most significant characteristic of a lean supply chain is its unwavering focus on maintenance of compliance and visibility. When we talk about compliance, we refer to adherence to the applicable local, state or federal regulations that relate to supply chain entities. Lean supply chains feature end-to-end visibility, which allows people to see into the entire process, eliminating potential compliance issues. In essence, this kind of visibility provides a means of self-assessment and a way to monitor the supply chain, leading to greater compliance.

Conclusion

In lean supply chain management, it is necessary for businesses to carefully examine each process within the supply chain in order to isolate areas that waste any resources that can be measured in time, money or raw materials. As a result, the company’s competitiveness will improve and profits will rise.

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Process improvement has already brought about a revolution in the way companies approach management of their operations. Now, it has become an indispensable part of the development of any effective supply chain. There are several tactics, methodologies and tools that have been developed to help organizations improve their processes in order to gain a competitive edge.

Lean Six Sigma (LSS) is a combination two methodologies, Lean and Six Sigma, that has seen incredible success in the improvement of production processes. The singular focus of lean is the eradication of waste of any kind while Six Sigma is dedicated to eliminating any defects through the reduction of variance; this combination makes LSS an incredibly powerful process improvement tool.

For this reason, a growing number of companies in the pharmaceutical industry are turning to Lean Six Sigma to stop waste and eliminate variance within their supply chains in the following ways:

Reducing Fulfillment Time for Orders

Besides the tracking and reporting required by the law, there are many pharmaceuticals that are sensitive to temperature, thus introducing considerable warehousing problems. When added to logistical concerns and the usual complexities of shipping, pharmaceutical order fulfillment is among the most complicated delivery operations that any company can face.

Still, the use of LSS to examine the order fulfillment system will help project teams to identify areas where there is a lot of waste or a high degree of variance. When they have been identified, the order fulfillment process can then be fixed through reduction of paperwork, automated pickup and shipping plans, as well as digital, automated verification of shipments.

Creating a Responsive Supply Chain

Pharmaceutical requirements are fluid and epidemics, disasters and other occurrences can have a drastic effect. For this reason, the company’s supply chain needs to be agile, dynamic and be able to respond quickly to changes in the needs of the customer. If a pharmaceutical company is attuned to these requirements, then it will have taken the crucial first step to create a supply chain that is able to respond to the customer’s requirements. Six Sigma’s define phase helps to do this, as it requires the company to measure progress made on the basis of what the customer considers to be Critical to Quality (CTQ).

Reduction and Elimination of Errors

The Lean technique known as Poka-Yoke can be of great benefit to inefficient supply chains with high rates of error. Poka-Yoke is a mistake-proofing tool which helps to eliminate human error by forcing users to complete their tasks correctly. In addition, the lean principle of 5S (Sort out, Set in order, Shine, Standardize and Sustain) also helps to reduce errors through elimination of waste. Adherence to 5S creates a clean, uncluttered and safe work environment, where workers are less prone to making mistakes.

Optimization of Order Fulfillment

An order is considered filled to completion if it arrives on time, complete with accurate documentation, and without any delivery damage. For life essential and time critical products such as pharmaceuticals, order fulfillment has to be done just right. Six Sigma optimizes order fulfillment by helping to identify problems within the supply chain such as inefficient execution or outdated planning practices.

Reducing Waste

As explained earlier, the purpose of lean is the elimination of waste, which is any activity that adds little or no value to the product. Some of the wastes that lean targets include unnecessary processing, such as excess packaging of pharmaceuticals, or unnecessary transportation, which burdens the company’s logistics infrastructure. By devising an efficient supply chain, the company increases its revenues, lowers costs and gains a competitive advantage.

Conclusion

Lean and Six Sigma have been proven to be effective in reducing waste and eliminating errors while improving product quality. When implemented, the strategies and tactics of Lean Six Sigma can be applied in a number of ways that include application of real time data for improved inventory management and establishment of quantifiable standards for every step on the pharmaceutical supply chain.

The post How LSS Can Improve Supply Chain Processes in the Pharmaceutical Industry appeared first on 6sigma.

What Makes a Green Belt Project?

Many people ask us what goes into a great Green Belt project, and it’s important to know the answer. Before selecting your next Six Sigma project, Green Belts should know what makes their work unique. So how do we recognize a great Green Belt project? Well, first of all, ensure your project is feasible for at least three months. It’s no good starting a project only for it to fall apart soon after. By targeting the issues that are just right, i.e. not too complex, nor too minor, your project has the best chance of success. Your project needs to be able to sustain you for a do-able period. Otherwise, productivity will start to lag. Below are some of our top Green Belt project ideas.

Learn more about our Six Sigma Green Belt training

Process Improvement Projects

Green Belts often deal with data to predict customer demand and identify process issues. Process improvement or problem-solving projects allow Green Belts to flex their analytical skills. Imagine you have an inefficient production system that you want to improve, but can’t find the root cause. A Green Belt project could target this issue to identify the underlying problem. By analyzing the process to see how it works, Green Belts can quickly identify causes of concern, such as redundant process stages.

Quality Improvement Projects

Quality is everything in Six Sigma. By reducing variation, Green Belt projects can make dramatic changes to your business success. Six Sigma’s aim is to achieve only 3.4 defects per million, which equates to a higher than 99% quality. You could find yourself with a substandard batch of phones fresh off the manufacturing floor. One batch could soon turn into several without proper attention. Green Belt project teams use techniques like root cause analysis and affinity diagrams to trace one issue to the next. This allows them to determine the root cause of the issue so you can act on it. You can then either change suppliers or source better quality parts, which means greater overall product quality. Greater quality leads to positive customer satisfaction which also ensures continued loyalty and profit.

Innovation Projects

Leveraging data to predict customer demand forms one of many Green Belt responsibilities. You can direct your Green Belt projects toward changing existing products to suit customer needs or starting from scratch. Green Belts regularly incorporate Lean principles into their work, allowing them to monitor and manipulate supply chains. This allows you to predict future demand and satisfy customer needs before the customer even knows what those needs are. You could base your Green Belt project around the creation of innovative new products that will extend your market reach. Using Six Sigma and Lean techniques, Green Belts can help your company attract customers who were previously out of reach.

Read More on Six Sigma Green Belt:

Career Opportunities for Six Sigma Green Belts

The Six Sigma Green Belt Makes You Rich in Knowledge

The Most Complete Six Sigma Green Belt Virtual Training Ever Taught

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