The lack of manufacturing integration to this process was responsible for $60 of the $200 per order processing cost.
Figure 1: Typical order Workflow
Solution
Business Process Management analysis showed that there were several iterations of documents at the initial customer design sessions, and each iteration had slightly different input for the manufacturing orders. The analysis of this area through lean manufacturing BPM techniques also showed that by using more of a knowledge management system than just a simple Microsoft Excel database to capture customer requests, the expertise in the company could be better applied to the unique orders. Six Sigma analysis of these initial phases of an order showed that the company was not using any of the accumulated expertise or knowledge it had gained over decades of work in the product area they specialized in, which is heating and cooling equipment.
Using BPM-based workflow tools and techniques the company also was able to coordinate the order review and completion and steps and reduce several steps from order acceptance to production. One of the major factors in this solution was the fact that manufacturing, not engineering, needed to be the center of the final phase of order capture. With Six Sigma DMAIC-based approaches to analyzing these workflows, this point was discovered. A revised workflow is shown in Figure 2, Revised Ordering Process Workflow. This workflow shows the combination of streamlined processes and the use of Six Sigma DMAIC modeling to bring manufacturing...
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