Six Sigma Wins

Six Sigma: Reduction in Raw Materials Inventory


Full-Service Technology and Solution Provider for Optical Media

What we provided:

Six Sigma Master Black Belt Project Leadership. The team included plan controllers, inventory managers, production managers, IT staff and cost accountants.

The results:

Raw materials inventory levels at this customer’s plant were excessively high, resulting in large sums being unnecessarily tied up in inventory. The Think Systems’ team reviewed 12 months of raw materials balances for individual material types. Stratification of the balances revealed the raw materials that were contributing most heavily to the high ending balances. Using statistical analysis, the team identified the root causes of excessive inventory and developed comprehensive solutions, resulting in a 36% reduction in inventory and significant capital cost savings per month.

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