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On Time Delivery Improvement Project
Key Business Challenges and Project Objectives:
Our Engineering Services client has a functional structure and found it challenging to ship on time, consistently. From an analysis, a number of issues were identified preventing shipments on time. One area identified was a lack of communication across the functions, resulting in shipments not meeting delivery requirements. CLS were invited to mentor the team on Visual Management as a possible improvement to managing shipments. The key objectives of this project were:
- Design and implement a Visual Management System to support On Time shipments to customer
- Improve On Time Delivery from 60% to 75%
CLS Approach and Changes Implemented:
CLS worked with the Project Team, starting with identification of the customers of the Shipment process and understanding their requirements, using a SIPOC. A list of 65 requirements were identified initially. The 65 items were prioritised and reduced to 8 critical requirements. Next the key information required to meet customer requirements were identified and who can provide this data. The team communicated these requirements to the relevant people and confirmed how frequently the information was required and in what format. On completion on the SIPOC, the following actions were implemented over a two-month timeframe with minimal investment:
- Designed a Shipment Board with the key elements of information identified on the Board
- Identified colour coding to identify what elements were on target for shipment (green) and what elements were not on target (red)
- Designed a process to implement actions for Red items
- Completed training and Piloted the process
- Updated board design from Pilot
Results / Outcomes:
- Designed and Implemented a Visual Management System to manage shipments.
- Engaged the functions to work effectively together and reducing stress associated with shipments for people involved.
- Improved On Time Delivery from 60% to 80%.