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Justify Converting a “Non-scheduled Process” to Be a “Scheduled Process”

Six Sigma – iSixSigma Forums General Forums Implementation Justify Converting a “Non-scheduled Process” to Be a “Scheduled Process”

Viewing 6 posts - 1 through 6 (of 6 total)
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  • #248958

    andrewlim
    Participant

    I’m currently working on project with a topic on analysis on several warehouse operations. Which scopes from receiving items up to shipping them out to the warehouse. My problem is the company is experiencing several transaction errors in their system which led to inventory inaccuracy in their records. I already did some analysis through the use of SIPOC and RCA.

    One of the main errors that I found to be the cause of of such transaction errors was the unorderly queuing of how inventory is handled. Which led to missing inventory, unrecorded picking jobs, unrecorded release of parts, and etc. I have already consulted it to some of the personnel in-charge of the different warehouse processes and they do agree that implementing a scheduled process instead of a one-to-one process would indeed improve the quality of inventory handling and have an improvement in their inventory records which I also derived from the RCA analysis.

    The part where I’m having a problem is how should I present these findings and justify that a conversion to a “Scheduled process” is the way to go? I’ve seen some problems quoting the improvements in process efficiency are one of the justified reasons but in my case, process efficiency is not my main concern but the inventory accuracy of the warehouse. Since this is more of a transaction type problem rather than an efficiency type, I’m having trouble justifying and presenting my findings through a cost-benefit analysis way.

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    #248960

    andrewlim
    Participant

    Just to clarify, I’m asking if there are other ways to justify the process to be scheduled such as put-away or pulling of items other than being derived as a solution from interviews and analysis or is it being derived from an RCA enough? Also, other than efficiency ratios as well as it’s not an efficiency problem.

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    #249944

    jefft
    Participant

    Hi @andrewlim

    You may be able to justify the process change through one or more of the following, either focusing on efficiency gains or inventory accuracy. In my experience, Accounting only allows a few variables to justify and measure projects – labor hours and inventory value are two big ones but there are several other opportunities:

    • reduction in time taken to process / pull / stock each part or order
    • reduction in cycle count adjustments
    • reduction in physical inventory loss
    • reduction in number of physical inventories
    • reduction of hours used to perform inventories
    • increased job satisfaction / reduced frustration by warehouse personnel
    • reduced turnover due to frustration
    • shorter learning curve to train people to use simpler system
    • improved service levels to customers
    • improved A/P accuracy, vendor relationships
    • reduced lead time to pick/pack/ship/invoice = quicker billing and revenue

     

    Jeff T

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    #250045

    Ruud Löbel
    Participant

    Hi Andrew,

    Just like Jeff wrote, it is all about show me the data. Make the business case clear; what are the costs of transaction errors, what are the hard savings by the improvement, what are the implementation costs. In addition you could mention the soft savings like customer satisfaction, increased job satisfaction, etc.

    Good luck on your project!

    Kind regards,

    Ruud

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    #250153

    Sherilyn De Mesa
    Participant

    Hi! Transaction errors are somehow related to the inefficiency of the process, you may want to utilize why-why analysis in order for you to come up to the main cause of the problem. Dig deeper, because I think the main problem is in the unstructured process of encoding of items that leads to incorrect or inaccurate data.

    Once you proved that there is an inefficient / unreliable process using RCA & Why-why analysis, you may come up to formulating a scheduled process. I suggest in utilizing ProModel software in presenting your project to show the effectivity of the improvement that you want to implement, productivity and efficiency is equal to higher profit and improved customer satisfaction.

    Wishing you well on your project!

    Kind regards,

    Yen

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    #250155

    Chris Seider
    Participant

    If you can come up with a project sheet with metric and problem statement, etc., then that would go a long way.

    There are always defects in processes but find metrics with business impact or safety impact and that helps out a lot.

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