ORDER PLACEMENT PROCESS ENHANCEMENT BY USING SIX SIGMA DMAIC: A CASE STUDY OF INTERNATIONAL DEVELOPMENT ORGANIZATION

Abstract

This study focuses on delays in the procurement process at the International Development Organization (IDO), which provides infrastructure, project management, and procurement services for donors. The aim was to reduce procurement lead time to the minimum and improve the order placement process using the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) methodology. Data from January to June 2024 was collected through the IDO ERP system. The root causes of delays were identified through analysis, observation, and the use of improvement tools like the Detailed Process Flow Chart, Run Chart, and Pareto Analysis. These tools helped pinpoint possible delays, redundancies, and major reasons for inefficiencies. Improvement plans were created through brainstorming sessions and implemented effectively, resulting in a significant reduction in the average procurement lead time. Control plans were established for continuous improvement, ensuring the enhancements could be sustained over time. Overall, the study achieved its objectives and streamlined the procurement process.