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REDUCING DELIVERY TIMES OF PRODUCTS USING DMAIC METHODOLOGY

Robert Obraz (), Zlatko Resetar () and Nikolina Pavicic ()
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Robert Obraz: Klimaoprema Inc., Republic of Croatia
Zlatko Resetar: College of Business Administration “Baltazar Adam Krcelic”, Republic of Croatia
Nikolina Pavicic: College of Business Administration “Baltazar Adam Krcelic”, Republic of Croatia

Interdisciplinary Management Research, 2014, vol. 10, 285-295

Abstract: The global market is a challenge for Croatian companies because the current business paradigm applied in the domestic market can hardly be applied globally. Faced with changing customer demand and increased competition, companies in the manufacturing sector have continued to question the production processes and continuously improve them if they want to survive in the global market and keep pace advantages over market competitors. One way of questioning, enhancement and improvement of existing business systems is DMAIC methodology. This paper presents the application of the DMAIC methodology to a product that has lost its market position. Although the product price was competitive, the delivery times of products for customer were too long. To solve this problem, observed business entity starts DMAIC project of improvement operations. The project covers all functional units and their operating procedures, and the end result of the project activities were new working procedures. Changing its operating modes observed business entity is able to shorten delivery times and win new geographical segments of the global market without additional financial investment.

Keywords: Six Sigma method; DMAIC methodology; production improvement; cost reduction; project management (search for similar items in EconPapers)
JEL-codes: D23 D24 O22 (search for similar items in EconPapers)
Date: 2014
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