Situation:  Applied Six Sigma methods to analyze the value elements of the supply chain, identifying a major raw material was not reflecting the overall market dynamics and needed to have significant cost reduction in order for the business to establish a proper return.  Using SVI on the product life cycle and working with all the stakeholders in the business, R&D, manufacturing, logistics, and suppliers, coached a supply chain Six Sigma Green Belt on addressing this value dilemma.

Finding:  The analysis identified both internal (production requirements) and external (market forces) that impacted costs, supply, and product quality.

Solution:  The opportunity identified was relatively straight forward using the Six Sigma methods but required potential risk be taken by a number of the stakeholders.   These risks were put in perspective of the poor financial performance of the business and steps taken to implement sourcing changes with the understanding and acceptance of all the key stakeholders.  Management of change was a major element of making this a success and had to be managed from the start to create proper expectations and recognition.

Result:  This project delivered over $5.0 Million in sustainable EBIT, a big boost to the business in the projects first year of implementation.
Using knowledge management principles, this project and its basic approach was leveraged to other business needs and generated additional multi-million dollar benefits.  The Green Belt received a sizeable monetary reward to celebrate this success.  A nice piece of “change” by any definition.