Lean six sigma

LEAN SIX SIGMA LOGISTICS
Strategic Development to Operational Success
by

Dr. Thomas Goldsby • Robert Martichenko

Copyright ©2005 by J. Ross Publishing, Inc. ISBN 1-932159-36-3 Printed and bound in the U.S.A. Printed on acid-free paper 10 9 8 7 6 5 4 3 2 1

Library of Congress Cataloging-in-Publication Data Goldsby, Thomas J. Lean Six Sigma logistics / by: Thomas Goldsby & RobertMartichenko. p. cm. Includes index. ISBN 1-932159-36-3 (hardback : alk. paper) 1. Business logistics—Management. 2. Six sigma (Quality control standard). 3. Process control. 4. Inventory control. 5. Waste minimization. 6. Industrial efficiency. I. Martichenko, Robert, 1965–. II. Title. HD38.5.G63 2005 658.4′013—dc22 2005011208 This publication contains information obtained from authentic and highlyregarded sources. Reprinted material is used with permission, and sources are indicated. Reasonable effort has been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use. All rights reserved. Neither this publication nor any part thereof may be reproduced, stored in aretrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The copyright owner’s consent does not extend to copying for general distribution for promotion, for creating new works, or for resale. Specific permission must be obtained from J. Ross Publishing for such purposes. Direct allinquiries to J. Ross Publishing, Inc., 6501 Park of Commerce Blvd., Suite 200, Boca Raton, Florida 33487. Phone: (561) 869-3900 Fax: (561) 892-0700 Web: www.jrosspub.com

TABLE OF CONTENTS

Preface ............................................................................................................. xi Acknowledgments......................................................................................... xiii About the Authors ......................................................................................... xv Web Added Value™ ................................................................................... xvii Section 1. Lean Six Sigma Logistics: Why Bother? Chapter 1. What Is Lean Six Sigma Logistics? ............................................ 3 What Is Logistics?........................................................................................... 4 What Is Lean? .................................................................................................. 4 Lean and the Logistician ............................................................................ 4 What Is Six Sigma?......................................................................................... 5 Six Sigma and the Logistician ................................................................... 5 What Is Lean Six Sigma Logistics? ............................................................... 6 The Logistics Bridge Model ........................................................................ 7 Chapter 2. The Importance of Logistics and Supply Chain Management............................................................................. 9 Discovering the Dark Continent of Logistics ................................................ 9 This Thing Called “Supply Chain Management” ........................................ 11 The Logistics Wastes ..................................................................................... 14 Section 2. The Logistics WastesChapter 3. The Waste of Inventory .............................................................. Logistics and Inventory Management ........................................................... The Temptation of Inventory ........................................................................ The Costs of Holding Inventory ...................................................................

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