Applications Of Lean Six SIGMA To Supplier Management In T Company

Global finance crisis worsen most companies’ living condition, decreasing of demandresults in serve price war. Under this circumstances, how can the enterprises cut down theoperation cost and survive the finance crisis? Lay-off is not a good option.From the supplier chain management perspective, this thesis discusses howcompanies can implement supplier management with Lean6Sigma thinking, and have thesupplier chain work more efficient with lower cost.The core of lean thinking is to eliminate the waste which adds no value to theproducts or the services, while6Sigma emphasis on controlling the variation. Thecombination of the two thinking contributes to a same culture for the whole supplier chainand a standard theory to solve problems.Suppliers’ problem, mainly cycle time, quality issue and cost problems, are due totoo much waste with its purchasing, production, quality control, logistics, storage and soon. Applying Lean6Sigma to manage suppliers is to find the waste and establish a jointteam by the manufacturer and the supplier in order to banish waste and improve efficiency,which will end with a win-win situation.A case study is presented to demonstrate the applicability of the proposed method.Experience as well as lessons is discussed for future applications of the method.The writer would like to find out a theory as well as the ways to apply the lean6sigma to suppliers management for companies who are suffering the finance crisis, andmake it part of companies core competitive power.