Six Sigma Project Title:
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Six Sigma Project Title: Maximize “on time” delivery and reduce delays in delivery of Goods Project No.: OAS-06-007 (2W) (Revision 7, 7 September 2006).

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Define

Six Sigma Project Title:Maximize “on time” delivery and reduce delays in delivery of GoodsProject No.: OAS-06-007 (2W)(Revision 7, 7 September 2006)


Define

Champion: Paulino P. SantiagoTeam Leader: Bryan C. CookAsst. Team Leaders: Ma. Corazon Panganiban and Manolo D. MacariolaMembers:Lorna Santillan, Eric De Leon, Janet E. PaternoHernand De Chavez and Rey Belza


Define

DEFINE

Project Title:Maximize on time delivery and

reduce delays in delivery of goods

  • PROJECT DESCRIPTION:

  • OAIS-PC receives a number of complaints for the delayed delivery of goods which causes inconvenience to end user, delay implementation of projects and results in lost opportunity.

  • PROBLEM STATEMENT:

  • Delay in delivery of goods has a negative impact on customer (user section) satisfaction and results in lost of opportunity on the use of goods, or holds back the implementation of project.


  • Define

    DEFINE

    Project Title:Maximize on time delivery and

    reduce delays in delivery of goods

    • GOAL STATEMENT:

  • Reduce the number of delayed deliveries of goods and increase the "on time" delivery and customer satisfaction - KRA


  • Define

    High Level Process Map

    DEFINE


    Define

    Detailed Process Map for Goods

    DEFINE


    Define

    Output characteristics/ Project Y Relationship Matrix

    DEFINE


    Define

    DEFINE

    Critical to Quality


    Define

    S

    P

    O

    I

    C

    Customer

    Input

    Output

    Supplier

    Process

    CTQs

    DEFINE

    S I P O C CTQs

    OAIS-PC

    Purchase

    Order (PO)

    • Issues PO to

    • Supplier

    • 2. Receives,

    • acknowledges &

    • signs PO

    • 3. Process PO

    • 4. Issues delivery

    • receipt & invoice

    • 5. Delivers Goods

    • 6. Received Goods

    • & issue RR

    • 7. Check, Inspects,

    • accepts Goods &

    • signs RR

    Delivery of

    Goods

    Users

    • On time

    • delivery

    • 2. Correct Specs.

    • 3. Correct qty.


    Define

    Time Line

    DEFINE

    Time Line

    Define

    Measure

    Analyze

    Improve

    Control

    49 days

    26 Jan.06

    to

    15 Mar.06

    45 days

    16 Mar.06

    to

    30 Apr.06

    70 days

    1 Jul.06

    to

    8 Sep.06

    40 days

    15 Dec.05

    to

    25 Jan.06

    59 days

    2 May06

    to

    30Jun.06


    Define

    MEASURE

    SAMPLE

    Data Collection

    Please see attached excel worksheets

    for the data collected


    Define

    MEASURE

    Process Capability

    for Project Y

    Local Deliveries


    Define

    MEASURE

    Process Capability

    for Project Y

    Local Deliveries

    Distributioncurve


    Define

    Process Capability

    for Project Y

    Local Deliveries

    MEASURE


    Define

    Process Capability

    for Project Y

    Indent Deliveries

    MEASURE


    Define

    Process Capability

    for Project Y

    Indent Deliveries

    MEASURE

    Distributioncurve


    Define

    Process Capability

    for Project Y

    Indent Deliveries

    MEASURE


    Define

    Pareto Chart for no. of delayed

    Delivery per Supplier

    MEASURE


    Define

    Pareto Chart for cumulative no. of

    days of delayed

    Delivery per Supplier

    MEASURE


    Define

    Pareto Chart for no. of delayed

    Delivery per Supplier

    MEASURE


    Define

    Pareto Chart for cumulative

    no. of days of delayed

    Delivery per Supplier

    MEASURE


    Define

    MEASURE


    Define

    MEASURE


    Define

    MEASURE


    Define

    Cause-and-Effect Diagram

    ANALYZE

    Type of Supplier

    Procedure / Policy

    Local

    AO & AC

    Origin of goods

    Indent

    Penalty Clauses

    manufacturer

    Lack of supplier’s management policy

    distributor

    retailer

    Timely delivery of goods

    Commitment of the supplier to delivery

    within the terms of PO

    Lack of follow-up or monitoring

    Off-the-shelves

    Miscommunication

    Custom made

    Fax Machine

    Changes in specs after delivery

    Computer

    Lack or not clear specs.

    Softwarei.e. Oracle System

    Specs. & type of goods

    Technology

    & Communication


    Define

    Cause-and-Effect Diagram

    N

    N

    N

    N

    N

    N

    N

    N

    N

    N

    N

    N

    N

    C

    C

    C

    C

    C

    C

    C

    ANALYZE

    Type of Supplier

    Procedure / Policy

    Local

    AO & AC

    Origin of goods

    Indent

    Penalty Clauses

    manufacturer

    Lack of supplier’s management policy

    distributor

    retailer

    Timely delivery of goods

    Commitment of the supplier to delivery

    within the terms of PO

    Lack of follow-up or monitoring

    Late submission of shipping docs

    Changes in specs after delivery

    Miscommunication

    Custom made

    Fax Machine

    Off-the-shelves

    Computer

    Lack or not clear specs.

    Softwarei.e. Oracle System

    Specs. & type of goods

    Technology

    & Communication


    Define

    Cause-and-Effect Diagram

    Prioritize list of Cs

    ANALYZE

    Type of Supplier

    Procedure / Policy

    Commitment of the supplier to

    delivery within the terms of PO

    Penalty Clauses

    Timely delivery of goods

    Lack of follow-up or monitoring

    Late submission of shipping docs

    Lack or not clear specs.

    Miscommunication

    Fax Machine

    Specs. & type of goods

    Technology

    & Communication


    Define

    IMPROVE

    Proposed Solution

    Proposed Solutions

    • Short Term:

      • Strict Monitoring of supplier activities from receipt of PO to delivery of goods;

      • Call Supplier to confirm if they received the fax copy of PO

      • Call Supplier three days before the delivery deadline to remind them of their pending delivery for local and air shipment or as appropriate for sea shipment; and

      • To add in the notes to supplier of PO the following: “Please sign the lower right portion to acknowledge PO and fax it back to us. This will expedite payment after complete delivery”

    • B. Medium Term Solution:

      • Alert Supplier thru Oracle System every time PO is approved;

      • Alert Supplier thru Oracle System of their pending delivery prior to delivery deadline;

      • Development of Supplier Management System


    Define

    IMPROVE

    Proposed Solution


    Define

    Piloted Solution

    “To be process map”

    IMPROVE


    Define

    IMPROVE

    FAILURE MODE and EFFECT ANALYSIS (FMEA)


    Define

    Hypothesis Test

    IMPROVE

    Ho: mu1 = mu2

    Null Hypothesis: There is no difference between the “as is” process and the “improved” process.

    Ha: mu1 is not = mu2

    Alternative Hypothesis: There is a difference.

    Since P < 0.05 (0.000), we will reject Ho and accept Ha.

    Therefore, there is a difference between the “as is” and the “improved” sample data.

    Two-sample T for Days Orig. vs. Improved

    N Mean StDev SE Mean

    Days Orig. 247 11.1 22.7 1.4

    Improved 93 2.43 4.78 0.50

    Difference = mu (Days Orig.) - mu (Improved)

    Estimate for difference: 8.65491

    95% CI for difference: (5.64415, 11.66568)

    T-Test of difference = 0 (vs. not =): T-Value = 5.66 P-Value = 0.000 DF = 296


    Define

    Report for improved process

    IMPROVE


    Define

    IMPROVE

    Report for improved process

    Previous Process Sigma is 1.38. Therefore an improvement of 1.28 was realized.


    Define

    = current

    X = desired

    = direct influence

    = indirect influence

    = End-user

    *

    Control

    Stakeholder Analysis


    Define

    Control

    Risk Assessment Matrix


    Define

    Control

    Mistake Proofing &

    Control Sheet


    Define

    Financial Benefits

    • SOFT SAVINGS

      • Avoidance of Capacity Enhancement

      • Increase Customer Satisfaction

      • Increase Employee Satisfaction


    Define

    Financial Benefits

    Please see attached worksheet


    Define

    Financial Benefits


    Define

    Risk Analysis of Goods

    & Equipment


    Define

    Thank you...

    The End!


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