Material handling, inventory and productivity improvement - A Lean Six Sigma approach case study

This paper describes a two-step strategic-tactical Lean Six Sigma methodology as used by the author to improve productivity, enhance inventory and material handling management, and thus, reduce operational costs at “Down Town Press Inc.”, a commercial printing press located in New York State, USA. A close look at the company´s performance revealed a troubling picture with only 51 % utilization of personnel, nearly $40,000 of invested capital underutilized annually, and an excess of monthly inventory costs of almost $29,000. This study was conducted to help the company avoid a fatal bankruptcy and regain financial prosperity. First, a strategic Six Sigma DMAIC procedure approach is deployed to better understand the deep turmoil faced by Down Town Press Inc. Second, a more tactical Lean approach is applied to identify various wastes and propose a set of techniques, technologies and strategies to reduce or eliminate the identified wastes, and thus, reduce operational costs. The continuous improvement changes proposed at the conclusion of the study suggest a possible reduction of $300,000 in yearly operational capital. Furthermore, with the implementation of the proposed Inventory Management integrated with a comprehensive Material Handling Management System, the study predicts a higher utilization of employees and, therefore, an increased productivity.