A framework for using six-sigma metrics to evaluate the performance of supply chain

Abstract

Quality management or six sigma management mainly focuses on internal organization. This paper carries forward six-sigma metrics, especially nonconforming rate into supply chain domain to develop a framework which evaluates the delivery performance of the entire supply chain and its all related processes. The proposed framework is different from other conventional performance evaluation methods. The proposed framework uses the sample data to calculate the nonconforming rate. Futhermore, the corresponding sigma level for the delivery performance can be obtained through the standard normal distribution table. The model presents a unique opportunity in identifying the current status of supply chain, taking corrective actions and increasing the customers' satisfaction. A case study is given to validate the proposed framework, and which is about a multinational home applications manufacturer's supply chain network.