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Quality Quandaries: Streamlining the Procurement Process at a Media and Entertainment Company

Summary: In improvement projects, the DMAIC structure and the Pareto principle help to provide focus. As an example, this column presents an improvement project that took place at a large media and entertainment company in The Netherlands in 2012. The project aimed to reduce the operational costs of the purchasing process and applied the DMAIC structure to achieve this. In the project of streamlining the procurement process at a media and entertainment company, the Pareto principle that most of the effects derived from only a small part of the causes was applied several times; for example, by focusing on the processing time of the ordering employee, the technical cluster, and the mistakes that occurred most frequently. The project illustrates how Lean Six Sigma’s DMAIC roadmap helps in providing focus. Through a concrete and specific benefit analysis in the define phase, a definition of CTQs with a large impact in the measure phase, a data-based diagnosis in the analyze phase, and a focus on the vital few influence factors in the improve phase, a problem is narrowed down step by step.

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  • Topics: Six Sigma
  • Keywords: DMAIC, Pareto charts, Six Sigma, Procurement, Case study
  • Author: Erdmann, Tashi P.; Janssen, Willem W.L.M.; Does, Ronald J.M.M.;
  • Journal: Quality Engineering