Deployment of Lean Six Sigma in Strategic Inventory Management

Abstract

In today’s very competitive business environment around the world, organizations need to be lean and mean as their strategy for competitive advantage. For the company under study, the management has decided to deploy Lean Six Sigma program as a structured methodology to improve the organizational performance since year 2016. The organization has chosen to embark on Lean Six Sigma journey in conducting its business process transformation as the means to improve its business efficiency and optimize its’ operating cost. One of the business areas where Lean Six Sigma was deployed was to establish strategy to optimize and reduce inventory values to minimum by the end of the Power Purchase Agreement tenure. This study attempts to evaluate the effectiveness of the methodology deployed. The research is to explore in depth what is the characteristic of Lean Six Sigma methodologies when applied in this aspect. What are the factors those may influence the succes its implementation. The problems faced during the journey will be examined to identify the limitations of the Lean Six Sigma methodology may have and how it can be made better.