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GM Shipping. Pick / Pack Process Improvement Developed, Implemented, & Presented by Reginald Fuller. Defining the Six-Sigma Project. Listen to the Voices. Voice of the Customer (VOC) On-Time Delivery Product Availability Product Selection ( IP & IQ) Quality of Shipment (Damages)

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Gm shipping

GM Shipping

Pick / Pack Process Improvement

Developed, Implemented, & Presented by Reginald Fuller


Defining the six sigma project
Defining the Six-Sigma Project


Listen to the voices
Listen to the Voices

  • Voice of the Customer (VOC)

    • On-Time Delivery

    • Product Availability

    • Product Selection ( IP & IQ)

    • Quality of Shipment (Damages)

    • Pricing

  • Voice of the Business (VOB)

    • Productivity

    • Responsiveness to Customers

    • Quality

    • Cost


Sipoc
SIPOC

  • Suppliers

    • GM Processing Centers

    • Parts Manufacturers

  • Inputs

    • Inventory

    • Customer Ordering

    • People

    • Equipment

  • Process

    • Dispatch Assignments

    • Picking

    • Sorting

    • Staging

    • Loading

    • Shipping

  • Output

    • Material Staging

    • Inventory Verification

  • Customer

    • Auto Dealers



Fishbone satisfaction
FishboneSatisfaction

Wastes: Corrective, Overproduction, and Process

Training

Experience

Utilization

Wastes: Motion & Waiting

Productivity

Methods

People

Satisfaction

Delivery

Information Systems

Inventory

Batching Work Assignments

Availability

Selection

On-Time Route Departure & Delivery


Process map
Process Map

Information Services

Batch Customer Orders in Queue

Picking Area

Sort

Dispatch Work Assignments

Pick

Parts

Employee Picking

Yes

No

Inventory Control

Replenishment

Dock Operations

Customer

Staging & Validation

Shipping

Flow disruptions in the process




Employee utilization
Employee Utilization

A typical employee walks x miles per night in dense warehouse area.


Pick density cycle times
Pick Density / Cycle Times

A typical work assignment takes 22.04 minutes to complete averaging 16.06 lines.


Location redundancy
Location Redundancy

Employees consistently select from redundant locations. Redundancies account for 17.9% of total bin selections.


Additional measurements
Additional Measurements

  • Sorting

    Employees waiting an average of 22 minutes per 8 hour shift waiting to sort materials.

  • Leveling

    Additional delays incurred from failure to complete entire batch cycle of work assignments prior to beginning next cycle.

  • Load Departure

    On time departure is 77.2 with a goal of 98% for on time delivery.



Wastes commwip
Wastes(COMMWIP)

  • Corrective

    • Availability compromised by shifting manpower from receiving department to close productivity gaps.

    • Selection process without built in validation and error proofing.

    • Damages incurred from expedition material handling to redeem wasted time.

  • Overproduction

    • Incomplete batch cycles warrant beginning of new cycle.

    • Employees wait excessively in sort aisle to complete picking process

  • Motion

    • Employees engaged in excessive walk due to redundant bin trips and inefficient batches of work assignments.

  • Waiting

    • Employees waiting in aisles to sort materials.

    • Pickers waiting in bin locations to pick out of redundant bins.

    • Dock personnel waiting on materials from packing area.

  • Process

    • Current process restricts optimal productivity.



Implementation
Implementation

  • Work Assignment Batching (Motion Waste)

    • Batch two routes together by area rather than single routes according to dealers.

    • New batches yield 2 hours over time labor savings per employee.

    • New batches improve pick density to 25 lines per 20 minute assignment.

  • Productivity (Process Waste)

    • Employee walking reduced to an average of 3.7 miles per night

    • Increased productivity allows realignment of personnel.

    • Personnel relocated to receiving operations to preserve availability.

    • Plant lines per hour increased to 27 with plant goal of 21.9.


Implementation cont
Implementation Cont.

  • Quality (Corrective Waste)

    • Availability improved from 89.7% to 97 percent

    • Sort quality improved after installing Poke Yoke in sort aisles

    • Selection improved from 91.2% to 98.7% after installing pull system for sorting materials.

    • Quality savings = $275.410

  • Pull System (KanBan)

    • Pick carts staged for quality checks and sort by dedicated sorters.

  • Leveling (Heijunka)

    • Consistent load planning

  • On time route departure and delivery improved to 96.2%

  • Cost

    • Overtime labor costs reduced from 27% to 3%.

    • Total labor savings = $435.711 per annum.

    • Total project savings = $711.121 per annum.



Controls
Controls

  • Revise SOP’s

    • Modify and document revised processes.

  • Training

    • Train employees on new processes.

  • Campaign

    • Share and post project successes on communications boards per A3 and corporate intranet. Post SOP’s in workplace.

  • Audit

    • Develop and conduct process audits to sustain modifications.


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