Problem : Accuracy – Location & Inventory

Department : Inbound

Area : Binning

Suggestion : Want to solve the problem by using method of - DMAIC - PDCA

Assignment taken based VP mail on accuracy for Location & Inventory

STEPS

DEFINE Identify the problem – Accuracy on location and inventory. Unable to maintain of accuracy on location and inventory.Based on month on month audit report we are in 80% to 90%

MESSURE Identify the gap between current and required performance.Gap to be achieved – min Inventory accuracy 99.99% & Location accuracy 100%

ANALYSE List out prioritize potential causes of the problem.Identified causes of problem listed out and made new format for improve.

IMPROVE Created simplest and easiest plan. Test solutions using Plan-Do-Check-Act (PDCA) cycle method.

CONTROL Formatted new format for future to sustain the improvement efficiency.

DMAIC – STEPS

Objective Causes

PLAN Identified the problem

WHAT

WHO

WHERE

Accuracy on location & inventory

As a team

Binning

1. Binning team.2. Picking team.3. System person .4. Month end and load pressure . 5. Improper Bin audit.

6. More than 3 materials in one single location.7. Last 4 Digit materials in same and next location.8. Improper training on profile.

Need to explain the purpose about maintaining of accuracy on location and inventory to our picking and binning team.

DO Decided - by giving training on profile knowledge and to do bin audit on daily basis . we can achieve the task.

Make sure that to understand where we are why we need to do and what we have to do.

Task lead person should understand the concept and should explain the team what benefit and loss we are going to get based on the task.

Should be identified :1.Team leader 2.Team size3.Trainer4.System person 5.Task time frame6.Old data on task 7.New format

Audit should be done on binned materials of UC and STO, empty location, less than 5 Qty materials and last 4 digit number same and next location with support of 2 exclusive persons .

Started trailing

CHECK Measurement on trailing to be registered.

Need to determine effectiveness of plan.

Next level of training has to be carried out to improve task level & here communication will role major role.

New format has to be made and record should be done on day to day wise without fail.Before starting work discussion should be happened with team on previous day activity & suggestion .

Monitoring on performance and validate the training.

Analyze should be happened on day to day on our task and aim.

ACT Review on feedback.

Planned to start 2nd phase trail.

Month (in % - after month end first week audit report)

Zone APRIL MAY JUNE JULY AUG

A 92 94 91 92 88

B 82 79 81 70 75

C 88 85 86 83 88

D 91 86 71 76 84

F 86 81 86 84 74

G 90 85 84 89 85

K 86 80 85 72 70

Avg 88 84 83 81 81

Accuracy on zone location

Sl.No Month TVS Accepted Short Wrong Damage Excess Total

1 April 26 16 8 2 0 26

2 May 60 33 27 0 0 60

3 June 45 29 16 0 0 45

4 July 44 24 16 2 2 44

5 August 50 23 23 4 0 50

6 Sept 2 0 1 1 0 2

G Total 227 125 91 9 2 227

Claims Data – Due to improper picking

in %

Sl.No Month TVS Accepted Short Wrong Damage Excess

1 April 26 62 31 8 0

2 May 60 55 45 0 0

3 June 45 64 36 0 0

4 July 44 55 36 5 5

5 August 50 46 46 8 0

6 Sept 2 0 50 50 0

G Total 227 55 40 4 1

SL NO Month No of

% in salesNS

1 April 10 .02

2 May 9 .01

3 June 46 .06

4 July 59 .08

5 August 38 .08

NS – Due to improper picking

Inventory accuracy

Issues

NS

Time waste (Cycle time)

Productivity

Claim

Service delivery

Customer satisfaction

Inventory accuracy can controlled by maintaining location accuracy.

will get increase

will get increase

will get down

will get increase

Failure

Failure

Week – performance in %

S. No Cause Current level Target 1 2 3 4

1 Binning team. 90 100%

2 Picking team. 90 100%

3 System person. 90 100%

4 Bin audit. 50% 100%

5 More than 3 materials in one single location. (Parts) 3500 0

6 Last 4 Digit materials in same and next location. (Parts) 200 0

New formats for analyze the data

Date Checking on

manual updating on TO

Error identified in %

Daily audit on STO binned

materials

Error identified in %

Daily audit on UC

binned materials

Error identified in % System

person Error

identified in % No of material

Error identified in %

06.09.2014 200 40 20 250 25 10 70 4 5.7 700 20 2.9 1220 89 7.2

Day to day - task monitoring format

Target is 1%

Sl. No Idea ,Action, or cause Easiness Impact 1 Training 2 SOP – understanding 3 Brainstorming 4 Communication 5 On audit6 Team effort 7 Picking team support 8 System activity9 Registering the data on task

10 System support ( WM process)11 Team leader and team relationship

Format for assessment on task

The ease of achieving (1 = Very difficult to 10 – Very easy)

The impact of the result (1 = Very low to 10 = Very High)

Current Expect

Location Accuracy 80% - 90% 98%

Inventory Accuracy 98% 99%

Cycle time Can increase 10%.

Productivity 90% 93%

Claims – PPM 750 < 500

No Stock .04% .01%

Benefits :

As a service provider we can satisfy the customer by giving 100% service delivery on time.

By giving 100% service delivery we can satisfy end customer and our client