Customer Past Due Reduction in Automotive Industry Using Six-Sigma Approach

Abstract:

Quality must be a value that underlies the way an organization is managed. If good management practices are designed and executed correctly, then the results will be visible. The goal of this work is to increase the revenue level in an automotive company by optimizing and increasing the customer service level within its production plants. The paper proposes a documented and implemented process which identifies responsibilities and reduces the risk of increasing past due. Customer and supply chain team, most of the time, feel the pressure of delaying customers’ orders generated by project teams, suppliers, production and other entities involved. Bringing improvements into the supply chain process, will help customers, supply chain and production team streamline their work and time using six sigma quality methods and tools. In this way, the proposed targets will be completed. Six Sigma can be an important way for the organization to build and sustain low-cost leadership, because it can identify the sources of problems and opportunities to improve processes that have clear financial justifications. In addition, Six Sigma creates an organizational structure that continuously focuses on reducing costs in all manufacturing and service processes. The objective of the paper is to reduce the customer past due by minimizing the delays in the supply chain process using six sigma techniques. Following the Ishikawa and 5 Why analysis, several factors that generate the causes of the delays were identified. The analysis is concentrated on customers past due projection vs. stocks a supplier’s lead time, delivery schedule, and production plan.