Credit Analysis Report OCTOBER 2014

Root Cause 1: Commercial Decision RTS; shown below.

4 - Custo

mer Ex

pectati

on RTS

6 - Commerc

ial Deci

sion RTS

a - Sa

les Er

ror R

TS

D - Dam

age -

Condition VO

h - Desp

atch Er

ror VO

l - Pick

ing Erro

r VO

N - Ove

r Supply R

TS

P - Qualit

y Mach

ining VO

R - Qualit

y - Grad

e VO

T - Custo

mer Err

or VO

U - Custo

mer Err

or RTS

W - Hau

lier Er

ror RTS

x - 3rd Part

y Proces

s RTS

Z - Sa

les Er

ror V

O

Reason Code INPUT

Total

Main Credit Issuer [RTS Commercial Decision]: Sales Person A.

Row Labels

6 - Commercial Decision RTS No. Of Credits

Sales Person A #

Sales Person B #

Sales Person C #

Sales Person D #

Sales Person E #

Sales Person F #

Sales Person G #

Grand Total #

Vicky Fellows; Oct 2014 1

Credit Analysis Report OCTOBER 2014

Root Cause 2: Quality Grade RTS; shown below.

Customer Damaged Despatch Other Picking Quality Quantity Sales

REAL Root Causes

Total

Main Credit Issuer [Quality]: Sales Person Z.

Row LabelsQuality No. Of Credits

Sales Person Z #Sales Person Y #Sales Person X #Sales Person W #Sales Person V #Sales Person U #Sales Person P #Sales Person O #Sales Person N #Sales Person M #Sales Person L #Sales Person K #Sales Person J #

Grand Total #

Vicky Fellows; Oct 2014 1

Credit Analysis Report OCTOBER 2014

Root Cause 3: Sales Errors.

Sales Errors Invoiced VS Rep

Total

Main Credit Issuer [Sales Errors]:

Row LabelsSales Errors No. Of ErrorsSALES PERSON 1 XSALES PERSON 2 XSALES PERSON 3 XSALES PERSON 4 XSALES PERSON 5 XSALES PERSON 6 XSALES PERSON 7 XSALES PERSON 8 XSALES PERSON 9 XSALES PERSON 10 XSALES PERSON 11 XSALES PERSON 12 XGrand Total X

Vicky Fellows; Oct 2014 1

Jackie: Credits IssuedSales Error No. Of ErrorsPrice Error XInput Error XLack of Communication XComputer Error XOther XGrand Total X

Credit Analysis Report OCTOBER 2014

Main Reason for Returns from Customer:

COMMERCIAL DECISION RTSMain complaints No. of ComplaintIncorrect Size XQuality XFussy Customer/Rejection XIncorrectly Stored/Transported XStock Cleanse XCancellations XDamaged or Machined incorrectly X

Main Quality Complaints:

QUALITY RTSMain complaints No. of ComplaintPoor Quality XMachined Incorrectly XTransport Damages XSplitting XDirty. Old stock. Too many knots. XDelaminating/Too wet XIncorrect Size XBlack and Mouldy XShipping Issue, worm holes etc. XFussy Customer XBlue Stained XRipples/grains on face XManufacturer Fault X

Main Sales Errors:

SALES ERROR CREDITSSales Errors Reason No. Of ErrorsLack of Communication XPricing Error/Dispute XWrong Product Booked XInput Error XCustomer Error XBooked to Wrong Account/Branch XLate Delivery XInsufficient Credit Given X

Cancellation X

Conclusions – MINUTED FROM BUSINESS CONTROLS MANAGER

Vicky Fellows; Oct 2014 1

SALES ERROR CREDITS

Input Errors No. Of Errors

Incorrect Size X

Incorrect Date XDid not know how to delete X

Wrong Info given X

Incorrect Qty X

Despatch Error X

Grand Total X

Credit Analysis Report OCTOBER 2014

1. Quality of timber is in question frequently; a lot are marked by holes, misshapen or exposed to wet weather.

2. A large number of products are being machined wrongly or damaged from them.

3. Transportation damages are adding to returns.

4. Sizing errors during input generating more returns.

5. Lack of communication between internal and external sales staff and between customers and sales, generating confusion and eventually sales errors.

6. Lack of training on the deletion of items that are causing some orders to be processed in error.

7. A large number of input errors are due to typing mistakes when rushing through.

8. Some changes to orders are being taken verbally without being recorded or written down; thus generating orders with incorrect information to the relevant picking teams.

Corrective Actions – MINUTED FROM BUSINESS CONTROLS MANAGER

1. Ensure Quality of timber is routinely inspected to ensure it is dry, unmarked and generally in good storage conditions.

Vicky Fellows; Oct 2014 1

Credit Analysis Report OCTOBER 2014

2. Sawyers to take more care in not damaging product and products to be inspected before loading on vehicles and despatched.

3. Take extra care in vehicle loading and securing packs down to minimise movement during travel.

4. Increase the level of communication with staff and customers on pricing changes, pricing agreements made by external reps to decrease the number of input errors.

5. Double check any confusion regarding orders (with customers) or mill items needed machining (with mill staff) to decrease input error.

6. Lack of training on the deletion of items that are causing some orders to be processed in error.

7. Clarification is needed on orders in the future; confusion leads to increased errors in sizes and products being issued. And take general care when inputting to ensure accurate data is sent for processing.

8. Any verbal orders or changes must be written and recorded to ensure changes are made and orders not forgotten.

Vicky Fellows; Oct 2014 1