Work in process project
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Work In Process Project. Define Gateway Review Time from Open-to-Close of Work Orders. Problem Definition. The gap between the Opening and Closing date of Service Work Orders is at a present average of 39 days.

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Work In Process Project

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Work in process project

Work In Process Project

Define Gateway Review

Time from Open-to-Close of Work Orders


Problem definition

Problem Definition

  • The gap between the Opening and Closing date of Service Work Orders is at a present average of 39 days.

  • As of November 2010, Kelly Tractor had $6,035,954.72 in WIP over 30 days with more than 15 days since last labor. Reducing the time between Opening and Closing Service Work Orders to 30 days or less will result in a savings on Cost of Capital of $431,570 per year. The company will also reduce costs involved with time for dispute resolution


Project objectives

Project Objectives

Goals to achieve:

  • Reduce open-to-work order closing to 30 days.

  • Develop a standard process for opening and closing work orders.


Work in process project

Process Maps


Work in process project

Process Maps Part 1


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Process Maps Part 2


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Process Maps – Part 3


Measure

Measure

The team collected data to understand and account for the factors affecting our goal:

Y=Improve average number of days between opening and closing of service work orders to 30 days.

  • X1= Opening, segmenting and correcting work orders

  • X2= Service reports (incomplete)

  • X3= Parts and core returns

  • X4= Customer PO#

  • X5= Available technicians

  • X6= Office staff ratio


X1 opening segmenting and correcting work orders

X1=Opening, Segmenting and correcting Work Orders

In order to determine if work orders are being opened and segmented properly, the Team gathered transfer data for the month..


X1 opening segmenting and correcting work orders1

X1=Opening, Segmenting and correcting Work Orders

Possible reasons for transfers within same WO :

  • Technician not punching in on the correct segment

  • Needed segments have not been opened in the WO

  • Parts not ordered on the correct segment.


X1 opening segmenting and correcting work orders2

X1=Opening, Segmenting and correcting Work Orders


X2 service reports incomplete

X2= Service reports (incomplete)

The Team gathered 165 Service reports from different branches. All service reports were reviewed. Out of the total sample, 51 service reports contained errors (30%).

The main findings were:

  • Parts not included if changed

  • Requirements not complete (4C’s; Cause, Complaint, Correction and Complication)

  • Incomplete header information


X2 service reports incomplete1

X2= Service reports (incomplete)


X3 parts and core returns

X3= Parts and Core Returns

  • The team created an outstanding core report for Miami. The Team used this report to check the number of returns and the number of days for the returns.


X3 parts and core returns1

X3= Parts and Core Returns


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X4= Customer PO#

AVG Respond Time= 18 DAYS


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X5= Available technicians


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  • X6= Office Staff Ratio


Work in process project

X5= Available technicians

X6= Office Staff Ratio


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WO 1st to Last Day of Labor


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ANALYZE Questions

• Did you collect additional data? What was measured? What did you learn from the analysis?

The Team obtained the most recent WIP figures, values will be updated reflecting an increase On the original WIP

• What is the opportunity represented by addressing the problem? What are the anticipated impacts on customer satisfaction?

Opportunity will be to collect invoices in a timely manner.

Timely, accurate invoicing will have a positive impact on our customers and their needs.


Work in process project

WIP ProjectANALYZE Questions

• How could this increase our capacity?

By improving our ability to process work orders (efficiency), we will increase our capacity to process additional work orders.

• Have you found any “quick win” improvements?

Quick win: allowed permission to back out work orders only at manager level.

• Has the financial representative been notified of significant changes in facts or assumptions?

Financial representative has not been contacted at this time (will be contacted).


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