Streamlining Distribution / Transportation

Lean Six Sigma Tools

Performance Scorecard
5S Visual Management

Details

1) This project was totally driven by the Scorecard. Once the team created its Bulk Delivery Department Scorecard, they quickly realized what had to be done to improve performance. We came up with a saying that “the data will lead the way”.

Download Delivery Lean PowerPoint Presentation2) This company had two delivery functions. One was for packaged product and the other for bulk-liquid delivery. We focused on the bulk-delivery business.

3) The measures pointed to the need to reduce deliveries by improving the remote monitoring of the bulk liquid tanks, or increasing the size of the tanks.

4) By remotely monitoring the tanks of its customers, this company both does a great service for its customers; knowing when a delivery should be scheduled before it becomes an emergency.

5) By increasing the size of the bulk-tanks at its customers’ sites it can reduce delivery frequency to a target of 1 time per month. (See slide “Delivery Data”)

6) In addition, because this was a Lean project, and 5S is the foundation for Lean, we 5S-ed the dispatch offices. This company took on 5S in a big way, and is systematically 5S-ing all of its offices, operational and storage areas.

Results

You can see that this company expects to reduce the number of deliveries it makes by 185 per year. This translates into reduced delivery expense with better customer service.