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Project Data
Client: Fortune 500 Global Corporation specializing in Robotics, Power, Electrical Equipment & Automation Technology
Location: Northern Mississippi, USA
Timeframe: Two Months
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 correctly ship product out in a timely manner. The outbound process lacked flow, frequently created error shipments that had to be rectified and utilized extra labor hours across multiple shifts. Process did not have a standardized, sustainable flow and Associates did not have clearly defined work steps which minimized search times, identified missing product, and delivered on-time shipments.
The Approach
Redesigned outbound facility layout and designated staging areas based on trailer type allowed for accountability of the product and reduction of search time through improved visibility. Clear, standardized loading and pallet building operational processes were created to support improved productivity and throughput for final pallet preparation. This allowed the loaders to quickly identify product and deliver finished pallets from designated areas or pallet wrapper machines directly onto the trailers without any need for paperwork, extra staging, or searching.
The Results
The redesigned outbound operation allowed the shipping team to create sustainable flow through the operation while reducing labor demands. After alleviating all of the search time and paperwork handling created by the previous process, there was a potential productivity improvement of 14% in the loading operation. Designated areas for various pallets based on trailer type also allowed pallet accountability which further supported the initiative to reduce error shipments and drive higher customer satisfaction.
