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LEAN
SIX SIGMA
LOGISTICS
Strategic Development to
Operational Success
by
Dr. Thomas Goldsby • Robert Martichenko
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Copyright ©2005 by J. Ross Publishing, Inc.
ISBN 1-932159-36-3
Printed and bound in the U.S.A. Printed on acid-free paper
10987654321
Library of Congress Cataloging-in-Publication Data
Goldsby, Thomas J.
Lean Six Sigma logistics / by: Thomas Goldsby & Robert Martichenko.
p. cm.
Includes index.
ISBN 1-932159-36-3 (hardback : alk. paper)
1. Business logistics—Management. 2. Six sigma (Quality control
standard). 3. Process control. 4. Inventory control. 5. Waste
minimization. 6. Industrial efficiency. I. Martichenko, Robert, 1965–. II.
Title.
HD38.5.G63 2005
658.4′013—dc22
2005011208
This publication contains information obtained from authentic and highly regarded sources.
Reprinted material is used with permission, and sources are indicated. Reasonable effort has
been made to publish reliable data and information, but the author and the publisher cannot
assume responsibility for the validity of all materials or for the consequences of their use.
All rights reserved. Neither this publication nor any part thereof may be reproduced,
stored in a retrieval system or transmitted in any form or by any means, electronic, me-
chanical, photocopying, recording or otherwise, without the prior written permission of the
publisher.
The copyright owner’s consent does not extend to copying for general distribution for
promotion, for creating new works, or for resale. Specific permission must be obtained from
J. Ross Publishing for such purposes.
Direct all inquiries to J. Ross Publishing, Inc., 6501 Park of Commerce Blvd., Suite 200,
Boca Raton, Florida 33487.
Phone: (561) 869-3900
Fax: (561) 892-0700
Web: www.jrosspub.com
TABLE OF CONTENTS
Preface ............................................................................................................. xi
Acknowledgments ......................................................................................... xiii
About the Authors ......................................................................................... xv
Web Added Value™ ................................................................................... xvii
Section 1. Lean Six Sigma Logistics: Why Bother?
Chapter 1. What Is Lean Six Sigma Logistics? ............................................ 3
What Is Logistics? ........................................................................................... 4
What Is Lean? .................................................................................................. 4
Lean and the Logistician ............................................................................ 4
What Is Six Sigma? ......................................................................................... 5
Six Sigma and the Logistician ................................................................... 5
What Is Lean Six Sigma Logistics? ............................................................... 6
The Logistics Bridge Model ........................................................................ 7
Chapter 2. The Importance of Logistics and
Supply Chain Management ............................................................................. 9
Discovering the Dark Continent of Logistics ................................................ 9
This Thing Called “Supply Chain Management” ........................................ 11
The Logistics Wastes ..................................................................................... 14
Section 2. The Logistics Wastes
Chapter 3. The Waste of Inventory .............................................................. 19
Logistics and Inventory Management ........................................................... 19
The Temptation of Inventory ........................................................................ 20
The Costs of Holding Inventory ................................................................... 22
iii
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iv
Lean Six Sigma Logistics
Chapter 4. The Waste of Transportation ..................................................... 27
Logistics and Transportation Management ................................................... 27
Transportation and Logistics Trade-offs ....................................................... 29
Transportation Carrier Relationships ............................................................ 31
Minimizing the Day-to-Day Wastes in Transportation ............................... 32
Chapter 5. The Waste of Space and Facilities ............................................ 35
Logistics and Warehousing ........................................................................... 35
How Many Facilities? How Much Space? .................................................. 36
Are Advanced Technologies a Cure or Merely a Crutch? ......................... 37
Chapter 6. The Waste of Time ..................................................................... 39
Logistics and Time Wastes ........................................................................... 39
Order Transmission ................................................................................... 39
Order Processing ....................................................................................... 41
Order Filling .............................................................................................. 42
Order Staging and Verification ................................................................ 43
Order Shipping and Delivery ................................................................... 44
Chapter 7. The Waste of Packaging ............................................................ 47
Logistics and Product Packaging .................................................................. 47
Packaging as a Source of Waste .................................................................. 48
Packaging as a Waste .................................................................................... 49
Packaging as a Visual Control ..................................................................... 50
Chapter 8. The Waste of Administration ..................................................... 51
Logistics and Administration ........................................................................ 51
Administration as Help and Hindrance ........................................................ 52
Technology and Administration .................................................................... 52
Chapter 9. The Waste of Knowledge ........................................................... 55
Logistics and Knowledge .............................................................................. 55
Cultivating Knowledge .................................................................................. 56
Managing the Flow of Knowledge ............................................................... 57
The River of Wastes ..................................................................................... 59
Section 3. The Logistics Bridge Model
Chapter 10. A Tour of the Bridge ................................................................ 65
History of Lean Six Sigma Logistics ........................................................... 66

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