Analysis of Subcontractor ́s Material Management Process – How to Improve the Process Using Lean Six Sigma Tools : development of generic tool(s) to improve material management process and incoming quality control (IQC)

Abstract

The background of this final thesis was to deepen the collaboration between NewIcon Oy and the Subcontractor by improving the material management process. The purpose of this final thesis was to study the Lean Six Sigma methodology, gather and analyze data, improve the incoming quality control, reduce lead time and develop generic tools to improve the subcontractor ́s material management process.

The research data and used methods were based on the case study, including supplier audit results, SIPOC diagram of the order-to-delivery process, current state Value Stream Map of subcontractors' order-to-delivery process, and comparison of the material management process. The research data was gathered and analyzed during the case study. Qualitative information was gathered using joint development meetings and interviews and material management process observation (Gemba) performed by the author.

As a result of this final thesis project, several improvement ideas for subcontractor ́s material management process and tools were created. The future state flow chart of the subcontractor ́s material management process visualizes and predicts the improvement. Standard Operating Procedure (SOP) – Incoming Quality Control (IQC) for subcontractor operations was created to improve quality inspection procedures. SIPOC diagram was created regarding the future state of the material management process. The future state Value Stream Map of the material management process was created and it indicates a substantial lead time improvement in the material management process.