Control Phase & Conclusions

DCM/10.08/AS-RR/TS
Demand Chain Management
6 Sigma Case Study – CAT : Part 3

This case was
prepared by Alan
Smart, Cranfield
School of
Management,
Cranfield
University,
Cranfield,
Bedford,
MK43 0AL,
England
And
Richard Renshaw
© Cranfield
School of
Management
And
Richard
Renshaw
October 2008.
All rights
reserved.
Control Phase & Conclusions
Discussion Points from Part 2
Ensure you describe the expected impact on the
business for each improvement suggestion: this
needs to be quantified
Provide criteria to prioritise the improvement
suggestions, for example:
o Difficulty
o Speed of implementation
o Scale of impact
This approach should help you facilitate decision
making with the stakeholder group
o Your criteria need to be clearly evaluated,
consistent and understandable (especially
when there is a debate whether the criteria
is negative or positive e.g. speed verses
lead time to benefit)
o Are any of your criteria subjective?
o You may want to make it more visual e.g.
using conditional formatting in a spread
sheet based matrix
See summary comments on next sheet

6 Sigma Case Study – CAT : Part 3 DCM/10.08/AS-RR/TS
Cranfield School of Management 2

Action Objective Comments Impact Difficulty Speed
Tighter
Approval
Control
Reduce the
quantity of
drawing
changes
required
substantially.
Focus
resource on
the
important
changes
Discussions with marketing
and the dealerships are
critical in making this work
and in aligning expectations.
The dealers are key for
selling the product; the
product is relatively new.
Criteria and targets need to
be decided to underpin the
prioritisation suggested.
The implementation approval
team will need guidance on
how the decisions need to be
made.
Hire Two
New
Engineers
Increase
capacity to
enable more
drawings to
be processed
An increase in capacity of
around 10% on its own is not
sufficient to materially
change the situation, hence
this suggestion is irrelevant.
The numbers suggest that
setting targets appropriately
will eliminate the need for
additional capacity
Batch Lower
Priority
Engineering
Changes
Make the
engineering
change
easier to
control
This could impose some
control over the release of
the engineering changes, but
not the volume.
This will need communication
to the relevant stakeholders,
suppliers, internal drawing
users
Audit Reinforce
discipline;
communicate
the
importance
of control
This is relatively easy to do
and focused. It’s just good
practice and reinforces
confidence in the process;
communication with suppliers
will help with this.
Repeats of the audit during
the control phase will help in
measuring discipline in the
process.

6 Sigma Case Study – CAT : Part 3 DCM/10.08/AS-RR/TS
Cranfield School of Management 3

Action Objective Comments Impact Difficulty Speed
New
Document
System
Use an IT
system to
speed up
decision
making
This is a longer term fix and
requires investment;
however the cost could be
spread over all of the product
groups in the company. This
would be a project in its own
right and requires its own
justification

Action
What measures should be put in place to understand if the new
solutions suggested are working?
What duration of monitoring is required to see if there is a change
in behaviour?
Which measures need to be followed up with Finance to understand
if the benefits are being realised according to plan?