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Project Data
Client: Fortune 500 Global Corporation specializing in Robotics, Power, Electrical Equipment & Automation Technology
Location: Northern Mississippi, USA
Timeframe: One Month
Key Project Factors: People, process and system challenges had developed throughout the facility due to lack of KPI and departmental expectations; impacting labor performance and utilization throughout the distribution operations. Without studying the activities at the elemental level, constructing multi-variable engineered standards and identifying continuous improvement opportunities, the client would have been unable to address the inefficient process and facility layout challenges negatively impacting their throughput and performance.
The Challenge
Client was struggling to receive and store inbound returned product in a timely manor due to inefficient processes and layout constraints; driving increased processing time and hindering throughput. The process was impacting turnaround on customer credits and impacting overall client service.
The Approach
Streamlined returns department and simplified reboxing process to support improved productivity and elimination of unnecessary work steps. Process steps were realigned between two operational areas maximizing receiving flow. In addition, the steps were reorganized to allow customer credits to be processed and cleared earlier in the returns process to deliver quick responses to the customers. Reboxing tasks, which were performed across multiple functions, were consolidated to a single optimized area. Standard operating procedures were designed to measure utilization and performance in this operation to create sustainable benefit.
The Results
Streamlining and shifting work steps between departments allowed for an immediate increase in expected efficiency. By decreasing processing time and increasing throughput in the returns department, productivity increased by 100%. Customer satisfaction was supported as a result of the increase in productivity while specialized job functions allowed for credit processing time to occur earlier in the returns process.
