Quality-driven logistics

Abstract: The overall objective of this thesis is to describe and explain how different quality management philosophies can be combined in the supply/demand chain, in order to contribute to its resilience. The analysis is both quantitative and qualitative, based on theory and literature related to TQM, Lean, Agile and Six Sigma, one literature study and three case studies that were performed in companies. The studies are related to four research questions and are presented in four papers. The first research question focuses on similarities and differences between the quality management concepts TQM, Lean and Six Sigma. The findings were that TQM, Six Sigma and Lean have many similarities, but they differ in some areas. For examples Lean addresses process flow and waste, whereas Six Sigma addresses variation and design. The conclusion is that there is a lot to gain if organisations are able to combine these three concepts, as they are complementary. Two case studies and a literature survey supported the findings. The second research question focuses on outcomes in a logistics process if using quality management. The findings were that the quality management approach leads to risks being mitigated, managed and monitored and ensures a more effective, robust and flexible process, very much in line with the Agility philosophy. Solutions for quicker response to customers have also been introduced. The findings were supported by two case studies in seven companies. The third research question focuses on how prepared the transport- and logistics-oriented companies are for the application of quality concepts and quality management philosophy. The findings were that they can be described as being TQM-oriented. The companies do not consider Lean and Six Sigma to be future trends. Focus is on the customer, while they do not focus on variations or removing waste. The findings were supported by a case study in 24 companies. The fourth research question focuses on how quality concepts can contribute to risk control and resilience in an organisation. A combined Lean/Six Sigma approach by using Six Sigma framework and the last phase, Perfection, in the Lean concept, implies that the companies’ resilience, due to their strengthened ability to handle variability, risk management and agility, was improved. The findings were supported by two case studies in seven companies.