Improving spare parts (MRO) inventory management policies after COVID-19 pandemic: a Lean Six Sigma 4.0 project

Abstract

Purpose

To redesign the spare parts (MRO) inventory management at Company XYZ's warehouse, considering the conditions after the COVID-19 pandemic.

Design/methodology/approach

To address this research project, the authors integrated three methodologies: action research, Lean Six Sigma (DMAIC) and Cross Industry Standard Process for Data Mining. These methodologies integrated the Lean Six Sigma (LSS) 4.0 framework applied in this project.

Findings

The spare parts inventory value was reduced by 15%, and inventory turnover increased by 120% without negatively impacting the internal service level.

Practical implications

Practitioners leading or participating in continuous improvement projects (CIPs) should consider data quality (data available and data trustworthiness), problem-solving approach and target area involvement to achieve CIP goals. Otherwise, the LSS 4.0 could fail or extend its duration by several weeks or months.

Originality/value

This project shows the importance of controlling a target area before deciding to conduct a LSS 4.0 project. To address this problem, the LSS 4.0 team implemented 5S during the measure phase of the DMAIC. Also, this project offers significant practitioner and theoretical contributions to the body of knowledge about LSS 4.0.

Citation

Vazquez Hernandez, J. and Elizondo Rojas, M.D. (2023), "Improving spare parts (MRO) inventory management policies after COVID-19 pandemic: a Lean Six Sigma 4.0 project", The TQM Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/TQM-08-2023-0245