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How do you view variations in various Supply Chain processes?
Many Supply Chain teams work towards minimising variations in their processes so that the outcomes are more predictable and standardised. The concept of Six Sigma has helped in reducing these variations to gain efficiency and cost savings.
Should we apply the Six Sigma methodology to all the processes? Are there any watchouts? What happens when we focus extensively on standardisation?
One of the negative side effects of standardised processes is often the loss of flexibility. If the world is moving towards mass customisation and the power of one, how do we retain the flexibility?
There is a specific framework for us to decide when to standardise and when to retain flexibility. When should we minimise variations and where should we encourage it?
Any thoughts? I will cover it in my next post…