A Six Sigma-Based Methodology for Performance Measurement of a Supply Chain

Nowadays, competition is no longer between companies but between supply chains. Therefore, it is essential for a company to improve the performance of its supply chain. In order to find out improvement opportunities, companies need a universal and comparable measurement system which they can apply to either an entire supply chain or its individual members on a common scale. This paper explores how the six-sigma approach, popular worldwide, can be used to measure the performance of all kinds of products, services and processes, and how it can help an organization unify the performance measures of its supply chain. In former terms, this paper presents a structured methodology through which the performance of a supply chain can be effectively measured by the six-sigma metric.