Because of this, a procurement procedure that results in the finest possible product is vital. An important first step in the procurement process is determining what kinds of items the market wants (Cachon & Terwiesch, 2023). Following the identification process, they seek out potential vendors and acquire price quotes. Afterwards, the quotes are studied.

Price, quality, and distance from the farm are all taken into account, as well as the quantity that can be given. It is possible to work out a price and a delivery date after a thorough investigation. The merchandise might be supplied to Green Fruit Company after a successful agreement. The payment is finalized with the delivery of a check.

I used the Six Sigma methodology to evaluate the effectiveness of the procurement process. The DMAIC technique was used since a procedure was already in place. Definition, measurement, analysis, and improvement and control: DMAIC

1. Define- Fruits that are in high demand are the company’s main goal in establishing its business. It is the job of the procedure to locate the most cost-effective provider of the requested fruits. Quality is ensured by taking into account a number of elements. Quality, affordability, and shipping are all included.
2. Measure- Measuring entails keeping track of the results of the procedure. A total of 29 days’ worth of data was used to compile the report. In order to confirm that the procedure adheres to industry standards, the data is documented. Progress tracking and process monitoring are impossible without measurement.
3. Analyze- Analyzing the process reveals any issues it may have. Before payment, there is no quality control. Contaminated items might cost the firm money. The corporation will suffer a loss when it finally has to reject the defective products.A farmer may also disagree during talks, which is not taken into consideration by this procedure. It’s based on the premise that all discussions will conclude in a win-win situation.
4. Improve– Additional processes are required to improve the overall output, including reselection in the event of unsuccessful talks.

Control- In order to verify that the fruits provided are in acceptable condition, a monitoring system has been put in place.

In order to keep a process running well, it is necessary to gather data. Real-time monitoring of a process makes SPC the ideal option. For Green Fruit Company, this avoids the purchase of spoiled fruits from suppliers since its quality oversight is focused on prevention rather than detection.

The study employs four measures. Among them are performance ratio, capacity, system efficiency taking into consideration process centering, and capacity ratio taking into consideration process centering, respectively. One distinction is that one employs sigma vs. standard deviation for Cp while Pp has a standard deviation.

Sigma is a measure of range variation, while standard deviation s is a measure of overall data variance (Patel & Patel, 2021). Cpk and Ppk have the same difference. In order to better understand how the process works, we use a variety of measures.

Control chart

When looking at an x-bar chart, the UCL is 15, and the LCL is -3, respectively. The UCL and LCL for an R-chart are both set at a value of 20. These are the process’s control boundaries. There are no outliers in the data shown in the graph above; hence, there are no particular reasons.

However, there are common factors that cause the statistics to be erratic. Statistical control may be concluded if the data does not exceed or fall below the control limit. Furthermore, the Cp and Cpk values are also the same at 0.9986. There is a 1 in both the Pp and Pk.

Using Cp and Pp, we can determine if the process is competitive. Processes that have a greater Cp have a higher level of capacity. Even if Cp is nearly one and Pp is 1, we get a Cp of 0.9986. In this way, we may state that the process is competent even though it might be improved.

Due to standard deviation (s) and sigma, the Cp and Pp are almost identical. There is also a close correlation between Cpk and Ppk. We may infer that the procedure is under statistical control.

Cp is also the same as Cpk; therefore, the procedure is centralized. We have concluded that the Green Fruit Company procurement method is steady based on our investigation.

Results from the assessment indicate that the process is steady. The Six Sigma approach will be beneficial to the procedure. It is possible to break down a process using Six Sigma in a novel method. It enables SPC to be applied on a continual basis.

Furthermore, it enables constant evaluation of the process, which provides space for improvement. The SPC is a portion of Six Sigma, we may assume. It’s a powerful tool for process monitoring, improvement, and management. The Six Sigma has all of these parts.

The study makes use of four different measures. Among these are the performance ratio, the capacity, the system efficiency when taking into consideration the centering of the process, and the capacity ratio when taking into consideration the centering of the process, respectively. When calculating Cp, one uses sigma rather than the standard deviation, whereas when calculating Pp, one uses the standard deviation.

The standard deviation, or s, is a measure of the overall variance in the data, whereas sigma is a measure of the variation in the range of the data. The difference between Cpk and Ppk is the same. We take a number of different measurements in order to get a better understanding of how the process works.

When looking at an x-bar chart, the upper confidence limit (UCL) is 15, and the lower confidence limit (LCL) is -3. The upper critical limit (UCL) and lower critical limit (LCL) of an R-chart each have a value of 20. These outlines represent the control boundaries for the process. Since the data in the preceding graph do not contain any unusual occurrences (also known as “outliers”), we cannot pinpoint any specific reasons for the findings.

However, these seemingly random statistics can be attributed to a number of common causes. If the data do not go above or below the control limit, then statistical control can be considered to be in good standing. In addition, both the Cp and the Cpk values are identical, coming in at 0.9986. Both the Pp and the Pk contain a value of 1.

The SPC project is discussed in a way that is easy to understand. As was said before, the data is stored for a period of 29 days. Following the completion of the data collection, the SPC processes are put into effect. A control chart may be constructed with the analysis’s help to demonstrate whether the process is conforming to its specifications.

In the distant future, there will be more than one SPC project. Throughout the course of the procedure, efforts are taken to ensure that the quality is kept at a consistent level. In addition to six sigma, SPC should be used in procurement while dealing with Green Fruit Company.

The Green fruit company’s purchasing technique needs work if he ever wants to reach his productivity goals. The incorporation of correct transaction documentation is the first step in improving the process. After the company has received and paid the farmer’s invoice, the last step should be to document the transactions that occurred throughout this process.

Conducting a quality check on the things after they have been received is another possibility. The inspection of the quality is performed with the intention of ensuring that the agricultural products are in pristine condition. As a consequence of the quality inspection, suppliers are required to fulfill the commitments outlined in their contracts. It has a multitude of advantages to offer if it is put into action.

Having a system in place that is designed to minimize damage to agricultural goods is one method of reducing financial losses caused by such damage. If a supplier does not live up to half of the contract, the company will not engage in further business with that provider. The discontentments of the farmers have to be taken into account at every stage of the procedure.

Before making a final choice, the employer can revisit the previous bids and evaluate them once more, side by side. The procurement procedure of Green Fruit Company might be improved by implementing some of these suggestions.