Inventory Stock-Outs Decreased Using Six Sigma DMAIC Process ...

Inventory Stock-Out Six Sigma DMAIC Process ...

From Decisioneering, Inc ...

... In this case study, the Six Sigma DMAIC process is augmented with powerful optimization tool, CrystalBall, to decrease the number of inventory stock-outs while minimizing inventory costs for a company that sold perishable inventory. The Six Sigma project team resolved this problem and lowered the defect rate for stock-outs. The use of a stochastic solution, such as CrystalBall, in the DMAIC process resulted in lower costs than other methods. Also, the optimization model is run dynamically in the control phase of the DMAIC process to incorporate the latest demand and delivery information to determine if the improvement in defect rate can be sustained.

Crystal Ball is a suite of Excel add-ins that help turn your existing engineering and process spreadsheet models into dynamic forecasting tools. Today, Crystal Ball is the tool chosen by more than 85% of the Fortune 500. Companies like GE, Motorola, Honeywell, Seagate, Black & Decker, and Osram Sylvania all rely on Crystal Ball to manage risk, reduce variability, and make more informed business and strategic decisions. Crystal Ball is for anyone who uses spreadsheets and needs to forecast uncertain results. Six Sigma Black Belts, Master Black Belts, Green Belts, and other practitioners in nearly every industry, from manufacturing to software to pharmaceuticals to consulting, all rely on Crystal Ball to improve the quality of their Six Sigma analyses. In addition to Monte Carlo simulation, key Crystal Ball features include distribution fitting to historic data, correlation of distributions, sensitivity analysis, precision control of simulations, and forecast filtering. ...

Since 1986, Decisioneering, Inc. has been providing decision analysis software and solutions that empower individuals and organizations to make better decisions. Trust the leader in risk-analysis software to deliver better outcomes by defining risk and uncertainty. In October 2004, Decisioneering, Inc. was ranked on the Deloitte & Touche Colorado Technology Fast 50 list of fastest-growing technology companies in Colorado. This is the seventh year in a row that Decisioneering has made the list, which is based on five-year percentage revenue growth.