Running head: VALUE CHAIN ISSUES
Issues and Trends in the Global Value Chain
University of Phoenix
December 5, 2011
Issues and Trends in the Global Value Chain
Global trends are changing on a seemingly daily basis. Global economies are weakening and some companies are discouraged by the condition of terror threats that are occurring. These threats are changing the spending behavior of the average customer. Not only is the customer not purchasing because of the economy, but businesses face the threat of shipments not being secure or not arriving in a timely manner. To lower cost, and increase benefits, the lean Six Sigma approach will benefit companies by improving strategies and tactics. Customs Trade Partnership against Terrorism will help to reduce terror threats. The goals set forth by the Customs Trade Partnership against Terrorism will have a significant, positive effect on ports across the globe. The training process will ensure the knowledge needed to protect the supply chain for all countries. Lean Six Sigma
Competition for global companies is great in today’s worldwide market. With the popularity and ease of access to the internet, anyone can create an online company for the world to see. Lean Six Sigma can create an environment that can enhance the strategy of competition. According to Carreira and Trudell, “Lean Six Sigma is a combination of the best features of Six Sigma and Lean manufacturing. Six Sigma is an integrated, disciplined approach for improving processes by understanding and controlling variation, which results in an improvement in the predictability of business processes. The basic values of Lean manufacturing include high quality, low cost, short cycle times, flexibility, the continuous pursuit to eliminate waste, and customer-defined value. While the classic tools of Lean address process definition, high materials velocity, and balance, the tools of Six Sigma address data-driven variation reduction” (Lawson, 2007). Lean causes products to move through processes faster, and Six Sigma improves quality, so integrating the two complementary methodologies can yield even greater benefits than implementing them separately. Some companies find this process too complex to integrate into their system. These companies believe that the process of combining the two strategies would create confusion thereby unwillingness for employees to comply. The Lean Six Sigma approach can help any company lower its costs, improve the quality of its output, and increase its profits as it transforms into a more competitive organization. “By integrating the Lean principle of a system-wide analytical view; for example, the value stream, the total cycle of activities needed to produce a product or service, organizations can maximize the benefit from their improvement efforts. Lean Six Sigma can be viewed from both a strategic and a tactical perspective.” (Lawson, 2007).
Global Trends of Lean Six Sigma
In the current situation the entire world is in economically, the trend for Lean Six Sigma may be necessary for all organizations to implement. Across the globe, many countries are experiencing the effect of a global recession. According to Ghosh, “With increased availability of innovative technology and enhancements, more and more measurements are being put in place to understand, monitor and control processes. As we know what we cannot measure we cannot improve. Available data for processes will encourage predictive modeling tools under the umbrella of Lean and Six Sigma tools. This will enable organizations to become more proactive and help with prevention and improved response times. The lead time of implementation of Lean and Six Sigma projects will also be on a downward trend as a result of easier measurements with technology advancements, greater affordability and the evolution of Web 2.0 tools to drive productivity and efficiency” (Ghosh,...
References: Ghosh, M. (2009). Projected Lean and Six Sigma Trends for 2010 Retrieved
December 1, 2011 from http://www.processexcellencenetwork.com/deployment-
Anderson, B. (2008). Strengthening Global Supply Chain Security Retrieved
December 3, 2011 from http://www.securitymagazine.com/articles/strengthening-global-
Murray, M. (2011). Customs-Trade Partnership Against Terrorism (C-TPAT), Retrieved
December 3, 2011.
Lawson, R. (2011). Combining Lean and Six Sigma. (BOOKS). Strategic Finance
(2007): 21+. General OneFile. Retrieved December 4, 2011, from http://find.galegroup.com.ezproxy.apollolibrary.com/gps/infomark.do?&contentSet=IAC-Documents&type=retrieve&tabID=T002&prodId=IPS&docId=A176083004&source=gale&srcprod=ITOF&userGroupName=uphoenix&version=1.0
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