Inventory Optimization Using Lean Six-Sigma

The purpose of this paper is to show how to manage a low inventory level, taking into account the disturbances at the demand's level of company's customer, by applying The Six Sigma DMAIC methodology. That hardest part is when the company negotiated a contract with a customer for 2 weeks lead time while a contract with a supplier has 12 weeks lead time. This is done by managing in ERP SAP a section named Master Data to make possible that company's suppliers to react quickly at the fluctuation's demand. The proposed model is tested in a Romanian company from the Automotive Industry in Western Romania. Firstly, we have identified the main issues that produce a higher level of inventory and secondly, we measure for a period the data of these problems. In the third part, we find out the root causes and finally find solutions to improve and control.