8R - Lean Six Sigma Glossary

The 8R framework is a system used to ensure that the right quality, quantity, type of material, place, time, source, price, type of transport and contract are used in order to achieve an optimal outcome. This framework is effective in managing the procurement process for goods or services. It helps organizations to identify and correct issues that might arise in the procurement process and also to prevent similar issues from arising in the future. Organisations use this process to ensure that the product or service delivery to the customer is in the right condition, at the right time, and at the right price.

The 8Rs are:

Right Quality
Right Quantity
Right Material Type
Right Place
Right Source
Right Price
Right Type of Transport
Right Contract

Below is a brief description of each of these 8R’s

Right Quality

Ensuring that the goods or services procured meet the required quality standards is the first step in the procurement process. This can include checking for compliance with industry standards and regulations, as well as ensuring that the goods or services meet the specific requirements of the organisation.

Right Quantity

The right quantity of goods or services must be procured in order to meet the needs of the organization. This includes ensuring that enough materials are on hand to meet production requirements, while also avoiding excess inventory.

Right Material Type

The right type of material must be procured to meet the requirements of the organization. This includes ensuring that materials are compatible with the production process, and that they meet any specific requirements such as safety, environmental or regulatory standards.

Right Place

The right place to source goods or services must be identified in order to meet the needs of the organization. This includes considering factors such as availability, lead time, and cost.

Right Source

The right supplier or source for goods or services must be identified in order to meet the needs of the organization. This includes considering factors such as supplier reputation, quality of goods or services, and delivery performance.

Right Price

The right price must be negotiated in order to meet the needs of the organization. This includes considering factors such as cost, quality, and delivery performance when negotiating with suppliers.

Right Type of Transport

The right type of transport must be used in order to meet the needs of the organization. This includes considering factors such as cost, lead time, and environmental impact when selecting a mode of transportation.

Right Contract

The right contract must be established in order to meet the needs of the organization. This includes considering factors such as terms and conditions, payment schedule, delivery schedule and warranties.

Implementing 8R

Implementing 8R is a continuous process that requires constant monitoring and improvement. Implementation of 8R happens through the following steps:

Identify the problem: The first step is to identify the problem or issue related to quality, quantity, type of material, place, time, source, price, type of transport, and contract.
Gather data: Collect data on the problem or issue to understand the root cause and the impact on the customer.
Analyze data: Analyze the data to identify patterns, trends, and relationships that can help explain the problem or issue.
Develop solutions: Develop solutions to address the problem or issue.
Implement solutions: Implement the solutions and monitor the results.
Evaluate results: Evaluate the results of the solutions and make adjustments as needed.
Continuously improve: Continuously monitor and improve the 8R process to ensure that the product or service meets the customer’s needs and expectations.

Benefits of 8R

By using the 8R framework, organizations can ensure that they are procuring goods and services that meet the needs of the organisation, and that these goods and services are being sourced from the right place, at the right time, at the right price, and with the right supplier. This framework also promotes the use of sustainable procurement practices and allows organizations to identify and correct issues that might arise in the procurement process and also to prevent similar issues from arising in the future.

Moreover, organizations can use 8R as a tool to check procurement process compliance with internal and external laws, regulations, and standards. They can also use the framework to identify and mitigate risks in procurement process, and to continuously improve the procurement process. The 8R framework is a flexible and adaptable system that can be applied to different industries and types of organizations, including manufacturing, construction, and service industries.

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Summary

By implementing 8R, businesses can improve the quality, quantity, type of material, place, time, source, price, type of transport, and contract of their products or services. This can lead to increased customer satisfaction, improved efficiency and productivity, and reduced costs. Additionally, it can also lead to better supplier relationships, improved product and service quality, and a better reputation in the market. 8R framework is a comprehensive and effective system for managing the procurement process. This framework helps organizations to identify and correct issues that might arise in the procurement process. And also to prevent similar issues from arising in the future. It promotes sustainable procurement practices and allows organizations to continuously improve the procurement process. Overall, implementing the 8R framework can lead to cost savings, improved performance, and customer satisfaction for organizations.

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Sachin Naik

Passionate about improving processes and systems | Lean Six Sigma practitioner, trainer and coach for 14+ years consulting giant corporations and fortune 500 companies on Operational Excellence | Start-up enthusiast | Change Management and Design Thinking student | Love to ride and drive