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6-PANEL

6-PANEL. Check – In Process Time. Virginia fernandez Johanner gironella. Rodrigo fernandez Fabian olivo. 6-PANEL. D. M. A. I. C. DEFINE VOICE OF THE CUSTOMER. Background

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6-PANEL

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  1. 6-PANEL Check – In Process Time. Virginia fernandez Johannergironella Rodrigo fernandez Fabian olivo

  2. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER Background Seaboard Marine is an ocean transportation company that provides direct, regular service between the United States and the Caribbean Basin, Central and South America. Seaboard Marine maintains a nearly 135,000 square foot warehouse at the off-port Miami facility to efficiently handle customers' cargo large and small. The facility is equipped with wireless infrastructure and radio frequency devices to quickly and efficiently receive and track cargo. Employees handle all LCL needs to or from the United Sates, Central America, South America or the Caribbean. • Process Description • Current Seaboard Marine Warehouse operations have the following inputs & outputs:

  3. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER • The Operate Warehouse process breaks into 7 major steps: • Documents Check-in. • Unload Truck. • Stage Cargo. • Store Cargo. • Plan Shipment. • Load Container. • File Documents. • Project Charter • General Project Information. • Project Name - Process Optimization. • Expected Start Date - February 9, 2011. • Expected Completion Date - April 19, 2011. • Expected Savings – 2% • Estimated Costs - $ 0.00. • Describe the Problem or Issue, Goals, Objectives, and Deliverables of this Project. • Problem or Issue - Warehouse check-in process at Seaboard Marine generates a bottleneck increasing the total cycle time of the cargo unloading process. As a result there is queuing time for the customer and for Seaboard Marine to begin the second stage of the process.

  4. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER • Purpose of Project - Optimize resources and time for the check in operation of containers and cargo. • Business Case - The project will reduce the check in time in a 25%, which will represent in a 2% reduce in costs • Goals / Metrics - Design and develop a complete set of solutions to address root causes behind the delay of the check in process flow. This requires the use of metrics such as checking time, unloading time, queuing time and cycle time. • Expected Deliverables - Project Charter, Thought Process Map, Critical to Quality Characteristics, Pareto Chart, Baseline DMAIC / Sigma Levels, Root Cause Analysis, Statistical Process Control Charts, Proposed Solutions, Solutions Rating Matrix, Improvement Implementation Plan, Control Plans, Standard Operating Procedures, Financial Tools and Project Summary Close Out. • Define the Project Scope and Schedule. • Within Scope - This project is limited to warehouse check in and activities that relate to this process. • Outside of Scope - All other processes done within the company not related to the check in activities will be excluded from the project. • Tentative Schedule:

  5. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER • Define the Project Resources and Costs. • Project Team - Rodrigo Fernandez, JohannerGironella, Fabian Olivo and Virginia Fernandez. • Support Resources - Warehouse Manager, Warehouse Assistant, Receiving Clerk and Black Belt Support. • Special Needs - At least one of the core team members will need access to premises during working hours.

  6. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER Define the Project Benefits and Customers. • Process Owner - The use and capacity of the warehouse will be determined by Warehouse Manager and LCL Services Director. • Key Stakeholders - Seaboard Marine personnel supporting warehouse activities and customers using their shipping services. • Final Customer - Seaboard Marine • Expected Benefits - New process modifications will yield time and costs savings. Other benefits may include resource usage optimization creating a lean process.

  7. 6-PANEL D M A I C DEFINE VOICE OF THE CUSTOMER Process Flow Map Check In Flow Chart

  8. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY • X – Y Matrix • Y = f(x) = f(x1, x2, x3,……xn) • X1 = Register. Y1 = Check in process time. • X2 = Review delivery information. Y2 = Cost. • X3 = Enter delivery information into the system. Y3 = Customer satisfaction. • X4 = Generate D/R labels. • X5 = Attach labels to delivery order.

  9. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Data Collection Dock Receipt Activity. • During 2010 the company processed an average of 1,002.26 orders per week. A 7% increase in the volume of processed orders is expected for 2011, which represents an average of 1,072.42 orders per week. Te current check-in process should be capable to handle without any waste of time the amount of orders the company receive daily.

  10. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Data Collection Dock Receipt Activity. - Check-in process time. • Average Check-in time = 4.27 minutes.

  11. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Data Collection Representative sample size. - Daily processed orders average.

  12. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Data Collection Representative sample size cont. • Note: The wait time represents the time the driver has to wait to start the check-in process. The maximum waiting time was 1.21 hrs, for the driver who arrived at 4.10 pm. • In total, there is an average waiting time of 41.38 minutes.

  13. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Cause-Effect Diagram • Y = Check-in delays. Material Manpower - Supplements - Human error - Training - Delivery order information - Skills - Documentation Fatigue - - Competencies - Discipline Attention - - Data entry time - Software (WISE) - Information review - Computer - Printer - Information confirmation - Database - Sequence System Method

  14. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Flow chart. - Process Flow Map.

  15. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Graphical Data Analysis. - Pareto chart. • It was observed that the activities referring to enter the information in the system and reviewing the delivery information, are the mayor contributors for delaying the check-in process.

  16. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Process Capability Assessment. - Histogram.

  17. 6-PANEL D M A I C MEASURE CTQ (y) CAPABILITY Central Limit Theorem (CLT). • Number of recorded check-in times (n) = 126 • Mean check-in processing time (x) = 4:27 minutes • Standard deviation σ = 2.95

  18. 6-PANEL D M A I C ANALYZE y=f(x) Modeling and Simulation. A simulation of 625 observations was created to analyze the behavior of the waiting time for a week’s random arriving time and for a low activity day. (In average 1,017 dock receipts are processed per week) The most significant change can be seen when processing time is reduced to 3 min 30 sec. If we reproduced this data for 1,017 observations we would be able to see the increase in waiting time.

  19. 6-PANEL D M A I C ANALYZE y=f(x) Inferential Statistics. - Confidence Interval. 4.035 • 10 samples of 14 observations were taken for the confidence intervals. The horizontal line shows the location of the population mean. The confidence interval formed from the first sample extends from a low of 1.12 to a high of 12.30. In this case, the population mean falls in this interval. As we continue to examine the intervals, the confidence interval formed from the 5th sample falls completely below 4.035. Therefore, we have 9 samples that result in intervals that contain 4.035, and one that does not. In other words, 90% of our 10 samples produce intervals that contain the population mean. Since the number of set is low, we can infer that after more measurements the confidence level will change, so for a more accurate value, we will consider a confidence level of 95%.

  20. 6-PANEL D M A I C ANALYZE y=f(x) Hypothesis Test. Check-in time has to be less than 4 minutes 27 seconds. n = 45, x = 4.22, σ = 2.17 H0: µ = 4.27 H1: µ ≠ 4.27 σ = 0.05 p-value is less than 0.05, therefore we reject the null hypothesis. The process need to be adjusted.

  21. 6-PANEL D M A I C IMPROVE y=f(x) Activity Summary. • Seaboard Marine receiving operations are expected to end at 5:00pm. • Clients are received until 4:45 pm. • 15 min. allowance to check-in and unload last container arriving at 4:45pm • Cargo unloading takes 11:36 min per truck • Check-in time can’t exceed 3:27 min to avoid deviations from schedule. • At least a reduction in check-in time from 4:27 to 3:27 is required.

  22. 6-PANEL D M A I C IMPROVE y=f(x) How can we reduce the waiting time? With the reduction of 1 minute in the processing time for the check-in process, the average waiting time would reduce to 6 min 7 sec. This time reduce represents a 85% reduction for the waiting time and a 24% improve in the check-in process.

  23. 6-PANEL D M A I C IMPROVE y=f(x) Web Site Format.

  24. 6-PANEL D M A I C IMPROVE y=f(x) Web Site Format.

  25. 6-PANEL D M A I C IMPROVE y=f(x) New Value Stream Map.

  26. 6-PANEL D M A I C CONTROL X’s • For Customers • Notify Customers of availability of pre check-in online through different media (database, email, telephone) explaining the change and the benefits that this measure will provide. • Tutorial will be available on the website to explain how the process needs to be done. • Orders without a pre-check in will be received during the first month and a notification will be given to drivers. (Driver’s are almost always the same so they’ll know not to pick up a container that is not pre checked in) • A final notification will be distributed to all Seaboard Marine customers through different medias (database, email, telephone)

  27. 6-PANEL D M A I C CONTROL X’s • For Employees • Provide training. • Elaborate the new standard operating procedure (SOP) for this change. (Written document detailing all steps and activities of the process or procedure)

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