There are several benefits of joining the training sessions, which are filled with lessons that give you a lot of knowledge about Six Sigma and its methodologies. Once you are certified with a six sigma certification, then there are other tiers of the same certification to look up to. There are thousands of resources available online meant for the preparation of Six sigma; these resources are very helpful in cases where getting an offline coaching facility is difficult.
Demand and Production
For Lean Production, it’s critical to understand the demand and to work to avoid any variation that can be controlled because we know already that variation of demand is a cause of queuing. But, and as we will continue to see throughout this course, demand variation has an effect throughout the production, and Lean Six Sigma Green Belt Certification helps us to manage that variation to minimize waste. But the first step is to see what we can do upfront to reduce the demand variation. The obvious first step is to improve our forecast accuracy. This often comes, of course, from sales and marketing.
Now, if you know exactly your demand, then you can optimize your production perfectly without any variation – at least for the demand side. But an actual fact, of course, although analytical forecasting methods are becoming more and more powerful, forecasting is never accurate, and forecast accuracy is often not measured or rewarded. So, one option here would be to improve the forecast accuracy by actually tracking and incentivizing accuracy.
So incentives for larger purchases rather than purchasing would actually be needed, whether it be from a quantity discount or from a sale, causing, then, demand distortions. So, eliminating sales is actually done by big companies. Computer systems are often refreshed overnight so that, for example, every day or every evening, an updated supply and demand picture is seen. But the problem is that these systems are always showing the demand picture you know from the day before, from the week before. And midterm planning is typically done monthly, so the overall view of the demand tends to be only valid for the last time period that you’re looking at. So if there is a way, you can reduce that in your own planning systems by Sprintzeal. That is one way of helping to at least SEE the demand or a more accurate picture of the demand rather than always planning for the last week or for the last month or even for the last day.
Revenue management is another very well-known and powerful tool in operations management and as an entire course into itself. Revenue management means using revenue using pricing to smooth demand, and there are typical examples in our daily lives: from paying higher rates during peak times. For example, for the taxi fares used in Singapore, you have peak times, or you have to pay more, and that means you’re hoping that fewer people will then use the taxis during that time and the demand will shift to a less popular time. Whenever you order something — tickets, for example — you tend to pay lower rates for ordering in advance. Anything that can help predict the demand or smooth the demand as part of revenue management. And, finally, this discussion, of course, can continue ad infinitum! But another important and growing area is supply chain visibility, and it’s made much easier today with the IT systems. And if you’ve heard of the Bullwhip Effect, which means that when demand variability in the supply chain — here’s the customer, and here’s your supply chain — you have demanded at the customer here, and this demand signal gets amplified as you go back – upstream – in the supply chain. This is called the bullwhip effect. This means that certain parts of your supply chain if there’s small variation at what at the customer side downstream. You end up with large variation upstream at the upstream resources. So one way of improving that, though, is through supply chain visibility, where all along the supply chain, you would see the actual demand from the customer, and that would then help us then maintain smooth our demand and order to enable our smooth, steady flow.