define

1

Six Sigma Project Title:

Improvement of procurement process for the issuance of Printing Work Order

Project No.: OAS-06-013 (1W) (Revision 7, 23 October 2006)

2

Champion: Cecile LHF GregoryLead Team Leader: Paulino P. Santiago Jr.

Co-Team Leader: Bryan Cook Asst. Team Leaders: Ma. Corazon Panganiban and

Manolo D. MacariolaMembers:

Ces Tuason, Sarah Saranglao, Vic Lo, Vic Angeles and Anna Juico

3

DEFINE

PROJECT DESCRIPTION:OAIS-PC receives a significant volume of work orders request for external

printing requirements of OAIS-LM which requires fast processing. Delay in the issuance of work orders results to late delivery, delayed payment to supplier

and has a negative impact on customer satisfaction.

PROBLEM STATEMENT:Procurement process of external printing services needs to be improved in

order to minimize delay in the issuance of work orders.

Project Title: Improvement of procurement process for the issuance of Printing Work Order

4

DEFINE

GOAL STATEMENT:

To reduce by 20% the processing time for the issuance of work orders.

Project Title: Improvement of procurement process for the issuance of Printing Work Order

5

Critical to QualityDEFINE

Output Unit Works Order (WO)

Output Characteristic

(Big Y)Timely issuance of WO.

Operations Definition1st Phase - From OAIS-LM Receipt of External Printing Request to submission of Memo Request to OAIS-PC.2nd Phase - From OAIS-PC's receipt of memo request from LM to issuance of WO and PO.

How process will be measured

Number of days

1. USL - mean of 2005 Data;2. LSL - 0

TargetTo improve by 20% the processing time of issuance of WO.

Defect Beyond USL

No. of Defect Opportunities Per

Unit

1 opportunity for a defect per WO issued

CTQ

Project Y (Little y) Measure

Specification Limits

High-Level Need

Issuance of WO within specified no. of days.

6

Output Characteristics On t

ime

(Y,

N)

Act

ual

no.

of

day

s in

is

suan

ce

of

WO

Com

ple

tenes

s of

docu

men

ts

Corr

ectn

ess

of

spec

ifica

tions

and

quan

tity

Most

com

pet

itiv

e pri

ce

No.

of

Am

endm

ents

No.

of

com

pla

ints

of

end-u

sers

8 8 8 8

8 - Strong relationship

- Moderate relationship

- Weak relationshipNo symbol = No relationship

I ssuance of WO within specified no. of days.

Output characteristics/ Project Y Relationship

Matrix DEFINE

7

High Level Process MapDEFINE

START

OAIS-LM’S Receipt of External Printing Request

OAIS-LM Issue Request for

Quotation (RFQ) to Suppliers

OAIS-LM Receive and Evaluate Bids/

Quotations

OAIS-LM’s submit request to OAIS-

PC to issue Works Order (WO)

OAIS-PC Review and Prepare WO

OAIS-PC Issue WO to Supplier and Prepare PO

for payment purposes

END

8

Detailed Process Map for WO“As Is”

DEFINE

Detailed Process Map

OA

IS-L

MO

AIS

-PC

Prin

ting

Sup

plie

rR

eque

stor

/E

nd U

ser

START

Submit Request for Printing Services to OAIS-LM

Receives Request & Evaluate/

prepare printing specifications

External Printing

Internal Printing

Head, Contract Admin approved

& signs RFQ

Prepare RFQ (Approved by Head,

OAIS-LM) – suppliers taken from the pre-

qualified list of printing suppliers

Fax RFQ to Supplier

NO

YES

Receives RFQPrepares Quote

& Fax it to OAIS-LM

Receives Quote & Evaluate Technical/

Commercial terms

Submit Request for WO &

Evaluation Rprt to OAIS-PC

Receipt of OAIS-LM

Request for WO

Check & Verify Quotations &

Evaluation Report

OK

Prepare WOIssue/Send WO

to Supplier

Sign the WOReturn signed

WO to OAIS-PCProcess WO

Receive signed WO

(END) for RETA/TA

Send copy to OAIS-LM

Clarify with OAIS-LM

Receive copy of signed WO and

Initiate RP

Receives RP and Issues PO

(END)Non-RETA/TA

YES

NO

9

1. Timely Issuance of WO2. Correct Specs.and quantity3. CompleteDocumentation

OAIS-LM

Issuance ofWO

1. Receives External Printing Request2. Issues RFQs to Suppliers3. Evaluates Bids/ Quotations 4. Submit request for Issuance of WO5. Process WO6. Issue WO toSupplier7. Prepare PO for Payment purposes

Request for Printing Services

Requestor

S I P O C CTQs DEFINE

CTQsCTQsSSupplier OOutputPProcessIInput CCustomer

OAIS-LM RP and Request for WO

Supplier

10

Time LineDEFINE

ControlAnalyze ImproveMeasureDefine

Time Line

27 days12 Jan.06 to07 Feb.06

52 days08 Feb.06 to31 Mar.06

38 days01 Apr.06 to07 May 06

100 days 08 May06 to15 Aug.06

37 days16 Aug.06 to21Sep.06

11

Pareto Chart for

RETA/TA Budget Printing WOMEASUREMEASURE

Count

Perc

ent

Supplier RETA/TA

Count19.2 7.7 7.7

Cum % 34.6 65.4 84.6 92.3 100.0

9 8 5 2 2Percent 34.6 30.8

Othe

r

The Ho

use P

rinters

CGKfor

map

rint

Tran

sprin

t

Raint

ree

25

20

15

10

5

0

100

80

60

40

20

0

Pareto Chart of Supplier RETA/ TA

N=26

12

SAMPLEData Collection MEASUREMEASURE

Data collection sheets are in separate worksheets.

13

Pareto Chart for

Admin. Budget Printing WOMEASUREMEASURE

Count

Perc

ent

Supplier Admin.

Count 3Percent 35.1 18.9 10.8 8.1 5.4 5.4 5.4 2.7

138.1

Cum % 35.1 54.1 64.9 73.0 78.4 83.8 89.2 91.9

7

100.0

4 3 2 2 2 1

Othe

r

Golde

n Cup

Times

Intl

Parago

n

Ever

Eng

ravin

g

Hous

e Print

ers

CGKfor

map

rint

Tran

sprin

t

Raint

ree

40

30

20

10

0

100

80

60

40

20

0

Pareto Chart of Supplier Admin. for Printing WO

N=37

14

100806040200-20

USL

35302520151051

1000000

100000

10000

1000

100

10

1

Date:

Lower Spec:Nominal: 38 Opportunity:

Reported by:Project:Department:Process:Characteristic:Units:Upper Spec: 47

Actual (LT)

Process Performance Process Demographics

Actual (LT) Potential (ST)

Sigma(Z.Bench)

DPMO

-0.01

505221.9

1.49

68519.2

Process Benchmarks

Report 1: Executive Summary

Process Capability for Project Y


Distributioncurve

15



37332925211713951

100

50

0

_X=47.4

UCL=121.2

LCL=-26.4

Observation37332925211713951

100

50

0

__MR=27.8

UCL=90.7

LCL=0

ST

* -0.01Z.LSL * *Z.Bench 1.49 -0.01Z.Shift 1.50

LT

1.50P.USL * 0.505222P.LSL * *P.Total 0.0685192 0.505222

Mean

Yield 93.15 49.48DPMO 68519.2 505221.9Cp * *Cpk

38

* *CCpk * *Pp * *Ppk *

47.3784

-0.00

StDev * 28.907Z.USL

47 47

134.099-39.3418

I and MR Chart

Process Tolerance

Specifications

Potential (ST) Capability

Process Tolerance

Specifications

Actual (LT) Capability

Data Source:Time Span:Data Trace:

Capability I ndices

Report 2: Process Capability for LM Orig

16

16012080400

USL

35302520151051

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

-0.02

507184.0

1.48

69171.3

Process Benchmarks




Distributioncurve

17



37332925211713951

200

100

0

_X=44.6

UCL=144.5

LCL=-55.3

Observation37332925211713951

160

80

0

__MR=37.6

UCL=122.7

LCL=0

ST


LT

1.50P.USL * 0.507184P.LSL * *P.Total 0.0691713 0.507184

Mean

Yield 93.08 49.28DPMO 69171.3 507184.0Cp * *Cpk

35


44.6216

-0.01

StDev * 34.518Z.USL

44 44

148.176-58.933

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for PC Orig

18



Distributioncurve

200150100500

USL

35302520151051

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

0.00

500000.0

1.50

66,807.2

Process Benchmarks

Report 1: Executive Summary for Total Admin.

19



37332925211713951

200

100

0

_X=92

UCL=229.0

LCL=-45.0

Observation37332925211713951

200

100

0

__MR=51.5

UCL=168.4

LCL=0

ST

* 0.00Z.LSL * *Z.Bench 1.50 0.00Z.Shift 1.50

LT

1.50P.USL * 0.5P.LSL * *P.Total 0.0668072 0.5

Mean

Yield 93.32 50.00DPMO 66807.2 500000.0Cp * *Cpk

73


92

0.00

StDev * 46.616Z.USL

92 92

231.847-47.8471

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications


Data Source:Time Span: year 2005Data Trace:

Capability I ndices

Report 2: Process Capability for Total Admin.

20



Distributioncurve

240160800-80

USL

2624222018161412108642

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

-0.00

500830.0

1.50

67,077.1

Process Benchmarks

Report 1: Executive Summary for LM RETA/ TA

21



252219161310741

300

100

-100

_X=59.2

UCL=245.9

LCL=-127.5

Observation252219161310741

200

100

0

__MR=70.2

UCL=229.4

LCL=0

ST


LT

1.50P.USL * 0.500830P.LSL * *P.Total 0.0670771 0.500830

Mean

Yield 93.29 49.92DPMO 67077.1 500830.0Cp * *Cpk

47


59.1538

-0.00

StDev * 73.943Z.USL

59 59

280.983-162.675

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for LM RETA/ TA

22



Distributioncurve

5040302010

USL

2624222018161412108642

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

-0.01

504290.5

1.49

68,211.4

Process Benchmarks

Report 1: Executive Summary for PC RETA/ TA

23



252219161310741

40

20

0

_X=26.12

UCL=53.46

LCL=-1.23


40

20

0

__MR=10.28

UCL=33.59

LCL=0

ST


LT

1.50P.USL * 0.504290P.LSL * *P.Total 0.0682114 0.504290

Mean

Yield 93.18 49.57DPMO 68211.4 504290.5Cp * *Cpk

20


26.1154

-0.00

StDev * 10.729Z.USL

26 26

58.3015-6.07068

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for PC RETA/ TA

24



Distributioncurve

240160800-80

USL

2624222018161412108642

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

-0.00

501480.2

1.50

67,289.1

Process Benchmarks

Report 1: Executive Summary Total RETA/ TA

25



252219161310741

300

150

0

_X=85.3

UCL=280.8

LCL=-110.3


200

100

0

__MR=73.5

UCL=240.2

LCL=0

ST


LT

1.50P.USL * 0.501480P.LSL * *P.Total 0.0672891 0.501480

Mean

Yield 93.27 49.85DPMO 67289.1 501480.2Cp * *Cpk

68


85.2692

-0.00

StDev * 72.562Z.USL

85 85

302.955-132.417

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for Total RETA/ TA

26

Process / Procedure / Policy

Technology & Communication

People/Dept.

Specs. & Type of materials

AO & AC

Batching of request

Volume of request

Capacity

Late submissionof bids/quotes

Softwarei.e. Oracle System

Need-date

Revision of specs.

Lack or not clear specs.

ANALYZEANALYZE

Timely delivery of goods

Delayed initiationof RPOAIS-PC

Volume of WorkSigning of WO

Accuracy/complexity of specs.

Cause-and-Effect DiagramCause-and-Effect Diagram

Supplier

OAIS-LMLack of manpower

Seasonal Jobs

Process work flow

Type File

Type of publications

27

Process / Procedure / Policy

Technology & Communication

People/Dept.


AO & AC

Batching of request

Volume of request

Capacity

Late submissionof bids/quotes

Softwarei.e. Oracle System

Need-date

Revision of specs.


ANALYZEANALYZE

Timely issuance of WO


Volume of WorkSigning of WO


Cause-and-Effect DiagramCause-and-Effect Diagram

Supplier


Seasonal Jobs

Process work flow

File Type

Type of publications

N

N

N

N

N

N

N

CC

CC

CC

C

C

C

C

N

28

Process / Procedure / PolicyPeople/Dept.


Batching of request

Volume of requestLate submission

of bids/quotes

Revision of specs.


ANALYZEANALYZE

Timely issuance of WO


Volume of Work


Supplier


Process work flow

Cause-and-Effect DiagramPrioritize list of Cs

Cause-and-Effect DiagramPrioritize list of Cs

29

IMPROVEIMPROVEPARETO for the Control Factors

Count

Perc

ent

C1Count

62.7 86.4 100.0

37 14 8Percent 62.7 23.7 13.6Cum %

Late submission of quotationsHeavy workloadLate initiation of RP/ work flow

60

50

40

30

20

10

0

100

80

60

40

20

0

Pareto Chart of Control Factors

30

IMPROVEIMPROVEProposed Solution

Proposed Solutions

1. OAIS-LM to initiate RP simultaneous with submission of request for Work Order.2. OAIS-LM to remind suppliers to submit quote a day before the deadline for submission of quotes.3. OAIS-PC to prioritize processing of WO based on urgency and importance.4. OAIS-LM and printing requestor to finalize specifications before RFQs are sent to prospective suppliers.5. Medium Term Solution – To develop annual supply agreement.6. Long Term Solution – To develop supplier management system for printing work order.

31

IMPROVEIMPROVEProposed Solution

Control Factor Critical Issues, (C) Proposed Solution Owner Status

People & Dept. Lack of Manpower To prioritize processing of WO/Printing request based on urgency and importance

OAIS-PC & LM On going

Volume of Request/Work

To prioritize processing of WO/Printing request based on urgency and importance.

To develop annual supply agreement


Medium term

Supplier Late submission of bids

To remind supplier to submit quotation one day before the set deadline


Process/ Procedure / Policy

Delayed initiation of RP

Process Work Flow

Initiate RP simultaneously with the submission of request for WO.

Develop supplier management system that will monitor performance and registry of new

suppliers.

OAIS-LM

OAIS-PC/OIST

On going

Long term

Specifications and type of materials

Revision of specs.Lack of Accuracy /Clarity of specs.

To finalize specs before issuance of RFQs to suppliers

OAIS-LM and printing requestor

On going

32

Detailed Process Map for WO“To be Process Map”

IMPROVE

Detailed Process Map

OA

IS-L

MO

AIS

-PC

Prin

ting

S

upp

lier

Req

uest

or/

End

Use

r

START

Submit Request for Printing Services to OAIS-LM

Receives Request & Evaluate/

prepare printing specifications

External Printing

Internal Printing

Head, Contract Admin approved

& signs RFQ

Prepare RFQ (Approved by Head,

OAIS-LM) – suppliers taken from the pre-

qualified list of printing suppliers

Fax RFQ to Supplier

NO

YES

Receives RFQPrepares Quote

& Fax it to OAIS-LM

Receives Quote & Evaluate Technical/

Commercial terms

Submit Request for WO & Evaluation Report to

OAIS-PC & Initiate RP for Non-RETA/TA

Receipt of OAIS-LM Request for WO & RP

(if no RP for Non-RETA, remind LM to

initiate RP)

Check & Verify Quotations &

Evaluation Report

OK

Prepare WOIssue/Send WO

to Supplier

Sign the WOReturn signed

WO to OAIS-PCProcess WO

Receive signed WO

ISSUE PO

Clarify with OAIS-LM

END

YES

NO

RETA/TA ENDYES

NO

Follow up Quotes

33

IMPROVEIMPROVEFAILURE MODE and EFFECT

ANALYSIS (FMEA)

Potential Failure Mode and Effects Analysis(Process FMEA)

Item / Process

Potential Failure Mode

Potential Effect(s) of

Failure

Potential Causes of

Failure

Current Process Control

Recommended Action(s)

Responsibility & target

Completion Date

Action Results

SE

V

PR

OB

DE

T

RP

N

Actions taken

New

S

EV

New

O

CC

New

D

ET

New

R

PN

Initiate RP at the same time when request for WO is made

RP not initiated

Procurement process will not start

10 OAIS-LM not able to initiate RP

2 None 5 100 OAIS-PC to remind OAIS-LM to initiate RP

- Buyer- On going

Added to the process

10 1 1 10

Submission of Quotes by Supplier

Non receipt or late receipt of supplier’s quotation

Limits competition or no quotation received which will require re-bidding

5 Supplier overlooks set deadline of submission of quotation

2 None 5 50 Remind via phone or email suppliers 1 day before the scheduled submission of quotes

- Buyer- On going

Added to the process

5 1 1 5

SEV – SeverityPROB/OCC – probability of occurrenceDET – DetectionRPN – Review Risk Priority Numbers: prioritize item that requires additional quality planning or actions

34

DATA GatheredIMPROVE

Data gathered for improvement phase

• Admin. Work Orders

• Number of Data points: 38

• Period: 1 June to 21 September 2006

35

IMPROVEIMPROVEHypothesis Test

Ho: mu1 = mu2

Null Hypothesis: There is no difference between the “as is” process and the “improved” process.Ha: mu1 is not = mu2

Alternative Hypothesis: There is a difference.

Since P < 0.05 (0.000), we will reject Ho and accept Ha.Therefore, there is a difference between the “as is” and the “improved” sample data.

Data

TotalTotal Orig

200

150

100

50

0

Boxplot of Total Orig. Data , Total Improved Data

Mann-Whitney Test and CI: Total Orig., Total N MedianTotal Orig 37 85.00Total 38 28.50Point estimate for ETA1-ETA2 is 53.0095.1 Percent CI for ETA1-ETA2 is (37.99,69.99)W = 2014.0Test of ETA1 = ETA2 vs ETA1 not = ETA2 is significant at 0.0000The test is significant at P = 0.0000 (adjusted for ties)

Since the data is non-normal, we used the non-parametric tools by Mann Whitney.

36

IMPROVEIMPROVEReport for improved process

37332925211713951

80

40

0

_X=32.21

UCL=70.81

LCL=-6.39

Observation37332925211713951

40

20

0

__MR=14.51

UCL=47.42

LCL=0

ST


LT

1.50P.USL * 0.0000102P.LSL * *P.Total 0.0000000 0.0000102

Mean

Yield 100.00 100.00DPMO 0.0 10.2Cp * *Cpk

73


32.2105

1.42

StDev * 14.033Z.USL

92 92

74.3092-9.88811

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for Total

Report for improved process(Total Admin. Process)

37

IMPROVEIMPROVE Report for improved process(Total Admin. Process)

806040200

USL

35302520151051

1.0000E+06

10000.000

100.000

1.000

0.000

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

4.26

10.2

5.76

0.0

Process Benchmarks


Previous process sigma is 1.50. Therefore an improvement of 4.26 was realized.

38

IMPROVEIMPROVE Report for improved process(Total LM Process)

37332925211713951

40

20

0

_X=13.42

UCL=40.59

LCL=-13.75

Observation37332925211713951

40

20

0

__MR=10.22

UCL=33.38

LCL=0

ST


LT

1.50P.USL * 0.0008070P.LSL * *P.Total 0.0000016 0.0008070

Mean

Yield 100.00 99.92DPMO 1.6 807.0Cp * *Cpk

38


13.4211

1.05

StDev * 10.649Z.USL

47 47

45.367-18.5249

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for LM

39

IMPROVEIMPROVE Report for improved process(Total LM Process)

483624120-12

USL

35302520151051

1000000

100000

10000

1000

100

10

1

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

3.15

807.0

4.65

1.6

Process Benchmarks



40

IMPROVEIMPROVE Report for improved process(Total PC Process)

37332925211713951

40

20

0

_X=18.79

UCL=41.29

LCL=-3.71

Observation37332925211713951

30

15

0

__MR=8.46

UCL=27.64

LCL=0

ST


LT

1.50P.USL * 0.0011403P.LSL * *P.Total 0.0000027 0.0011403

Mean

Yield 100.00 99.89DPMO 2.7 1140.3Cp * *Cpk

35


18.7895

1.02

StDev * 8.263Z.USL

44 44

43.5783-5.99935

I and MR Chart

Process Tolerance

Specifications


Process Tolerance

Specifications



Capability I ndices

Report 2: Process Capability for PC

41

IMPROVEIMPROVE Report for improved process(Total PC Process)

403020100

USL

35302520151051

100000010000

1001

0

Date:



Actual (LT)



Sigma(Z.Bench)

DPMO

3.05

1140.3

4.55

2.7

Process Benchmarks



42

IMPROVEIMPROVE Table of Summary

Particulars

Processing Time Difference Sigma level Difference

Original Improved Value % Original Improved Value %

1. OAIS-LM Admin. 1.49 4.65 3.16 212.08%

Mean 47 13 34 72.34%

Median 45 11 34 75.56%

2. OAIS-PC Admin. 1.48 4.55 3.07 207.43%

Mean 44 18.79 25.21 57.30%

Median 34 18 16 47.06%

3. Total Admin 1.50 5.76 4.26 284.00%

Mean 92 32.21 59.79 64.99%

Median 85 28.50 56.50 66.47%

43

Control Stakeholder Analysis

Names(People or Groups)

Strongly Against

Moderately Against

Neutral Moderately Supportive

Strongly Supportive

SUPPLIERS

BUYERS (process owner)

Approvers

OAIS-LM

Printing Requestor

= current

X = desired

= direct influence= indirect influence

X

44

ControlRisk Assessment MatrixRisk Assessment Matrix

Risk Assessment Matrix

Control Factor Critical Issues Proposed Solution Risk Remarks

A. People / Dept. 1. Lack of Manpower Prioritize processing of WO/Printing request based on urgency and importance (OAIS-PC & LM))

High

The present number is staff is not sufficient to process section’s workload within the target processing time.

2. Volume of Request/Work

Prioritize processing of WO/Printing request based on urgency and importance.

Develop annual supply agreementHigh

OAIS-PC & LM staff is not only processing Printing WO or Printing request.

B. Supplier 3. Late submission of quotations

Call or email supplier to remind them of the set deadline for submission of quotations

Low

There are cases where suppliers forget to submit quotation on time resulting to non inclusion of their quotation in the evaluation.

C. Process / Procedure / Policy

4. Delayed initiation of RP

Initiate RP simultaneous with the request for WO

Develop Supplier Management SystemLow

RPs are sometimes initiated only when suppliers are following up payments

D. Specifications and type of materials

5. Lack of Accuracy /Clarity of specs

Finalize specs before issuance of RFQs to suppliersLow

Some changes in the specifications are being requested by the printing requestor after the issuance of WO.

Risk Identification:

High Risk - is one in which issues exist that are beyond team's control, there is no plan for resolution or has a low probability of successful resolution.

Low Risk - is one in which issues exist that are within team's control, has a plan for resolution and has a high probability of successful resolution.

No Risk - is considered to have either no risk or even though there is an issue, experience indicates that it can be solved within the normal course of design.

45

Control Mistake Proofing & Control Sheet

Mistake Proofing & Control Sheet

Improvement of procurement process for the issuance of Printing Work

OrderUser-Unit OAIS-PC Supplier Timing

Mistake Proofing

ImplementationStatus

1 Prioritize processing of WO/Printing request based on urgency and importance (OAIS-PC & LM))

X XEvery time request is received

NOs will review and check request

On going

2 Finalize specs before issuance of RFQs to suppliers

XBefore every RFQ is sent to the suppliers

NO will check specs. Before signing RFQs.

On going

3 Call or email supplier to remind them of the set deadline for submission of quotations

X XOne day before the set deadline

Buyer and LM staff to remind suppliers

On going

4 Initiate RP simultaneous with the request for WO

XEvery time a memo requesting for WO is made

LM’s staff & NO to check RP before signing the request for WO

On going

5 Develop annual supply agreement & Supplier Management System

X

After consolidation is done.

6- 12 months

LM & PC to consolidate same request per annum and develop supply agreement

CAU will develop SMS

On going

6–12 mos

46

Control SheetControl Sheet

Control Sheets

1. Best Practices / Operational Manual2. Internal Audit Checklist3. Control Plan for Key Performance Measure

47

Financial BenefitsFinancial Benefits

SOFT SAVINGS

• Avoidance of Capacity Enhancement

• Increase Customer Satisfaction

• Increase Employee Satisfaction

• Compliance with Procurement Procedure

define

Documents

issuance of work orders

sample proportion percentage

independent sample variances

deliveredhow process

processing time

sigma project title

late delivery

measuredspeed of delivery