Track: Modeling and Simulation

Abstract

This paper presents a Six Sigma-based approach to optimize the supply chain network and mitigate the risk of chip supply shortage in the automotive industry based on survey data. Six Sigma is a data-driven approach to quality control that emphasizes the importance of minimizing defects and reducing variability in processes. The proposed approach
integrates the Six Sigma methodology into the optimization and risk mitigation process of the supply chain network. The methodology consists of five phases: Define, Measure, Analyze, Improve, and Control (DMAIC). This Study aims to suggest probable solutions for the chip shortage crisis. With deep statistical analysis, three root causes were identified a globalized semiconductor supply chain, an unoptimized supply chain network, and inventory  management. In order to mitigate these problems, three probable solutions have been provided which are multisourcing, nearshoring, and increased lead time in the planning system.

Keywords
Six-sigma, DMAIC, chip shortage, automotive, supply chain