Redesigned end-to-end procurement process to reduce cycle time from 120 days to 30 days
To stay competitive in the current market with high customer demand for quality and fast delivery, process improvement involves combining highly effective Lean Six Sigma methods with the goal to deliver a quality product to consumers in the most efficient time and optimized process. We were hired by a space agency manufacturer to cut down the procurement process which was taking them 120 days.
We analyzed their current processes and systems and helped them redesign the procurement process. We cut down non-value-adding processes and optimized the process flow and created a central repository of information along with systems to support the seamless communication between departments and vendors meeting space agency and government requirements. Applying Lean Six Sigma DMADV methodology and tools in under 2 years, we cut down the procurement to 30 days from 120 days including the successful implementation of systems, change management, and training.
More bout the project.
In the initial discovery stage, we analyzed their process, and we were able to redesign the process in a controlled environment and reclassify the staff so that they work more efficiently. We prepared a road map of three phases- Define / Measure / Analyze, Improve / Design, Implement and Control, with key deliverables and timelines for each phase.
We analyzed their current processes, systems, and data flow. We then performed Process Value Mapping and identified Process steps that were Value added, Non-Value added, or essential. With this exercise, we were able to identify the process steps that needed to be eliminated/automated and redesigned the process to the most optimized state.
We created a database of vendors and a central repository with all the information, we created a vendor portal and used AI to analyze all the data. We implemented systems that reduced redundancy and time spent on processes, vendors went through quality checks, all documents were attached and all necessary testing was done. With the systems in place, we reduced the procurement process to a consistent 30 days.