THE IMPROVEMENT OF STOCK ALLOCATION LEAD TIME BY USING LEAN SIX SIGMA

Abstract

In the high level of competition in the market, customer satisfaction is very important for many companies to respond to the customer requirement such as on-time delivery. The current stock allocation process of company is inefficient to respond to on-time delivery and achieve customer requirement. The purpose of this research was to improve the stock allocation process of company by reducing sales order lines adjustment and lead time process. DMAIC model was applied to find activities that should be improved. The redesign process was created and implemented by eliminating the three adjustment reasons. After the implementation, the lead time of stock allocation process was reduced from 11 hours to 4 hours, and the sales order lines adjustment percentage was reduced from 58% to 16% in the first month of implementation, 13% in the second month, and 12% in the third month.