You are a Supply Chain Manager of a building supply company. Your company sells building materials to building contractors, home improvement construction companies, as well as the do-it-yourself weekend project homeowners. You have been struggling with the supplier of roofing nails for several months and you are fast approaching the peak roofing season. The supplier has been late on delivering orders and when orders are delivered the boxes are damaged and the quantities of nails in the boxes are inaccurate. Each box should have 1,000 nails, but you are getting complaints from your customers that they are only receiving partial quantities in the boxes. The situation with the supplier is getting so bad that some of your major customers are threatening to go to another building supply company for roofing nails. You have to get this situation under control before you lose much needed seasonal sales!
Create a supplier performance improvement plan. Incorporate Lean Six Sigma methodology into the problem solving and corrective action process. Include the steps that need to be taken to identify the root cause, potential containment, and corrective action. Include how you will monitor the supplier's compliance to corrective action, and explain whether or not the corrective action is effective.