Lean Six Sigma Deployment for Warehousing and Logistics

Transcription

1 60th Conference Oct. 21 & 22, 2014 Springfield, Massachusetts Lean Six Sigma Deployment for Warehousing and Logistics By ANTHONY OSIMO DIRECTOR of OPERATIONS BELLINGHAM, MA October 22, 2014 ASQ NEQC 60th Conference, Springfield, Massachusetts

2 WE SERVICE ONE CUSTOMER A SMALL, UP AND COMING LITTLE COFFEE CHAIN I LL GO AHEAD AND LET THE PRESIDENT TELL YOU WHO IT IS HAPPY ANNIVERSARY, MICHELLE. 2

3 WE ARE THE EXCLUSIVE DISTRIBUTOR FOR ALL DUNKIN DONUTS FRANCHISES WE HANDLE SOURCING, SUPPLIER CONTRACTS, WAREHOUSING, ORDER FULLFILLMENT AND STORE DELIVERY WE ARE LOOSELY AFFILIATED WITH DUNKIN BRANDS (OUT OF CANTON, MA), BUT WE ARE TECHNICALLY A NOT-FOR-PROFIT CO-OP AS WE ARE OWNED AND GOVERNED BY THE FRANCHISEES 3

4 SO, IN ORDER FOR DUNKIN MUST RUN AFTER 4

5 LOCATIONS MOKENA, IL COLONIE, NY BELLINGHAM, MA WESTAMPTON, NJ GREENSBORO, NC PHEONIX, AZ GROVELAND, FL CURRENTLY 7; GROWING TO 13 BY

6 NUMBER OF EMPLOYEES NUMBER OF STORES SERVICED ANNUAL BUDGET WORK ENVIRONMENT DEPARTMENTS $50 MILLION NEARLY 24x7; 365 DAYS / YEAR TRANSPORTATION AND WAREHOUSING LARGEST COMPETITOR 6

7 OPERATIONS CURRENT STATE WORLD CLASS TO IMPLEMENT A LEAN SIX SIGMA CULTURE IS EXPENSIVE 7

8 MASSACHUSETTS WORKFORCE TRAINING FUND PROCESS OVERVIEW AVAILABLE TO ALL MASSACHUSETTS BASED COMPANIES FUNDS ARE GENERATED FROM PAYROLL TAXES DECISION BASED ON STRENGTH OF ROI AND GEOGRAPHY INTENSE APPLICATION PROCESS HELP IS AVAILABLE 8

9 MASSACHUSETTS WORKFORCE TRAINING FUND OUR EXPERIENCE 1 ST ATTEMPT 2 ND ATTEMPT 3 S A CHARM? NEW STRATEGY WE WERE AWARDED $170K TO SPEND OVER A 2-YEAR PERIOD I OFFER MY SERVICES IN THE APPLICATION PROCESS 9

10 MASSACHUSETTS WORKFORCE TRAINING FUND OUR PARTNERSHIP QUALITY & PRODUCTIVITY SOLUTIONS, INC. CRITICAL TO SUCCESS: THE BLUEPRINT PHASE WE WERE AWARDED THE GRANT IN FEBRUARY AND BEGAN TRAINING IN MAY; OUR 2-YEAR SCHEDULE WAS METICULOUSLY PLANNED 10

11 GUEST SPEAKER: JEFF CROWLEY JEFF s BIO: JEFF BEGAN HIS CAREER AT THE DCP IN 2010 AS A WAREHOUSE SELECTOR AND HAS BEEN PROMOTED TWICE (LEADMAN AND SUPERVISOR) IN 4 YEARS. IN ADDITION, HE EARNED HIS GREEN BELT CERTIFICATION IN 2012 DUE MAINLY TO HIS EFFORTS WITH PROJECT FRED 11

12 LEAN SIX SIGMA SUCCESS STORY PROJECT FRED TIME TO MAKE THE IMPROVEMENTS F R E D THROUGH OCUSED COMMITMENT TO LEAN TOOLS EGIMENTED, STANDARDIZED WORK PROCESSES MPLOYEE INVOLVEMENT AT ALL LEVELS EDICATED MANAGEMENT TEAM 12

13 TOOLS USED SIPOC BOX WHISKER ISHIKAWA HISTOGRAM 5 WHYS DOE KAIZEN NVA / VA PROCESS FLOW DIAGRAM 13

14 5 WHYS PROBLEM STATEMENT: TOO MUCH VARIATION IN TYPICAL SELECTOR PRODUCTION RATES 1 WORKERS' ATTITUDE WHY? WHY? WHY? WHY? WHY? WORKERS POSSESS VARYING DEGREES OF PERSONAL WORK HABITS SOME WORKERS CONTENT WITH DELIVERING BARE MINIMUM EXPECTATIONS SOME WORKERS ARE NOT MOTIVATED TO IMPROVE LACK OF REWARD AND RECOGNITION SYSTEM 2 WORKERS' APTITUDE WORKERS DISPLAY INCONSISTENT TECHNIQUES NEW HIRES ARE NOT TRAINED PROPERLY TRAINERS ASSIGNED TO NEW HIRES ARE UNQUALIFIED LACK OF STANDARDIZED PROCESSES AND RELATED TRAINING 14

15 NVA / VA WRAPPING FINISHED PALLET, INITIATING 5% ORDER ON HEADSET, 4% PULLING WRAP AND PALLETS, 2% VOXWARE ISSUES, 2% HI/LO, 0% CONGESTION, 0% SELECTING TIME, 24% TRAVEL TIME, 63% 15

16 HISTOGRAM - TYPICAL SELECTING SHIFT - "BEFORE" NUMBER OF SELECTORS SELECTING RANGE: CASES PER HOUR 16

17 HISTOGRAM - TYPICAL SELECTING SHIFT - "AFTER" NUMBER OF SELECTORS SELECTING RANGE: CASES PER HOUR 17

18 RESULTS FINANCIAL IMPACT FOR DRY SELECTING, THE COST ASSOCIATED WITH SELECTING LABOR THAT IS AVOIDED WITH A 7 POINT INCREASE IN THE OVERALL SELECTION RATE AVERAGE, EQUATES TO AN ANNUALIZED SAVINGS OF: $80,500* *This figure is an assumption based on straight-time, fully burdened labor savings using an estimated dry zone case count 18

19 TEAM FRED MEETING MINUTES FACILITATOR RECORDER ATTENDEES Anthony Osimo Anthony Osimo Brian Bulk, Julie McCarthy, Jeff Crowley, Rob Rier, Ryann Leaming DEFINE MEASURE ANALYZE IMPROVE CONTROL DISCUSSION POINTS (from agenda) PROJECT PHASES and TARGET DATES JULY 5, Review template for data capturing at DOOR 27 Approved by team; suggested we begin with solo routes only 2 Review 5S areas for improvement - decide on next steps Fabrication of pallet holders OTHER DISCUSSION POINTS (outside of agenda) Kaizen led by Mike Perry begun 7/5/12 to address new hire training program Due date of kaizen is 7/19/12 ACTION ITEMS, ASSIGNMENTS and DUE DATES 1 Distribute data collection template to supervisors Tony - 7/8/12 2 Distribute last 6 mos performance data to team Tony - 7/10/12 3 Review last 6 mos performance data Team - 7/12/12 4 Pallet holder prototype fabrication Jeff - 7/10/12 19

20 QUESTION IF YOU WERE OUR CUSTOMER (FRANCHISE OWNER), WHAT WOULD BE YOUR TOP MEASURES OF OUR PERFORMANCE? THE PERFECT ORDER DELIVERY TIME ACCURACY (OTD) SELECTION ACCURACY (S&D) ITEM AVAILABILITY (STOCKOUTS) 20

21 HANDOUT 21

22 EMPLOYEE INVOLVEMENT (KAIZEN) RECOGNITION COMMUNICATION 22

23 KAIZEN EXAMPLE PRESHIFT MEETINGS 23

24 RECOGNITION EXAMPLE CHRIS RECEIVED A $100 GIFT CARD FOR RELAYING A GREAT IDEA WITH REGARD TO THE SIDE LIFT GATE TRAILER HE USED THE PALLET JACK IN THE FREEZER COMPARTMENT. AS A RESULT, HE FINISHED HIS ROUTE 27 MINUTES EARLY ON A 2-MAN MANIFEST WITH 1260 TOTAL PIECES. GREAT JOB, CHRIS. WE ENCOURAGE AND REWARD IDEAS THAT ARE BROUGHT FORWARD THAT WILL HELP THE TEAM MOVE FORWARD. SO, PLEASE KEEP THEM COMING!! 24

25 COMMUNICATION EXAMPLE 60 DAYS UNTIL WE PERFECT ORDER PO: 85% OTD: 97% S&D: 5% KICKOFF CELEBRATION BANNER WITH DAYS COUNTDOWN STATIONERY 25

26 CERTIFICATIONS MBB BLACK BELT 10 GREEN BELT 36 YELLOW BELT 68 AWARENESS

27 POSITIVE IMPACT ON MORALE 27

28 EMPLOYEE PERSPECTIVE 28

29 29

30 30

31 Anthony Osimo Director of Operations National DCP (508)