Application of lean and quality improvement methods for improving operational performance in coal supply chains: a case study

Abstract

PurposeThe application of lean and quality improvement methods is very common in process improvement projects at organisational levels. The purpose of this research is to assess the adoption of Lean Six Sigma™ approaches for addressing a complex process-related issue in the coal industry.Design/methodology/approachThe sticky coal problem was investigated from the perspective of process-related issues. Issues were addressed using a blended Lean value stream of supply chain interfaces and waste minimisation through the Six Sigma™ DMAIC problem-solving approach, taking into consideration cross-organisational processes.FindingsIt was found that the tendency to “solve the problem” at the receiving location without communication to the upstream was, and is still, a common practice that led to the main problem of downstream issues. The application of DMAIC Six Sigma™ helped to address the broader problem. The overall operations were improved significantly, showing the reduction of sticky coal/wagon hang-up in the downstream coal handling terminal.Research limitations/implicationsThe Lean Six Sigma approaches were adopted using DMAIC across cross-organisational supply chain processes. However, blending Lean and Six Sigma methods needs to be empirically tested across other sectors.Practical implicationsThe proposed methodology, using a framework of Lean Six Sigma approaches, could be used to guide practitioners in addressing similar complex and recurring issues in the manufacturing sector.Originality/valueThis research introduces a novel approach to process analysis, selection and contextualised improvement using a combination of Lean Six Sigma™ tools, techniques and methodologies sustained within a supply chain with certified ISO 9001 quality management systems.