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    Office Supplies Cost Optimization Using Six Sigma

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    Kitchaiya, Piyachat EMGT Field Project.pdf (328.0Kb)
    Issue Date
    2006-05-19
    Author
    Kitchaiya, Piyachat
    Format
    335934 bytes
    Type
    Project
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    Abstract
    Six Sigma is quality management philosophy used by many successful companies. The DMAIC (Define-Measure-Analyze-Improve-Control) Methodology is a commonly used the Six Sigma tool designed to improve an existing process. V&P has chosen to use Six Sigma to reduce the cost of office supplies.

    The office supply procedure is inconsistent as divisions purchase different products from different vendors resulting in unnecessarily high supply expenditures. These purchases fall into two categories: On-Contract and Off-Contract purchasing. Off-Contract purchasing has the greatest impact on high supply cost. Within Off-Contract purchasing, five trends was identified. Special requests and personal preference had the most significant impact.

    Benefit calculations based on detailed breakdown of causes of variations combined with expert estimates provides expectations for improvements future purchasing transactions. Purchasing data was statistically analyzed to determine the process capability. For the new process the process capability improved from 44 percent to 24 percent.

    Cost will be lowered by expanding the list of On-contract supplies, negotiating additional on contract pricing, minimizing off-contract ordering, and reducing a other vendor ordering. The project is expected save approximately $120,000 in 2006.
    URI
    http://hdl.handle.net/1808/968
    Collections
    • Engineering Management Field Projects [238]

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    Contact KU ScholarWorks
    785-864-8983
    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    785-864-8983

    KU Libraries
    1425 Jayhawk Blvd
    Lawrence, KS 66045
    Image Credits
     

     

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