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Applying Process Improvement Tools to an Order Fulfillment Process

Alessander Calle Rojas

Shakira Santos Dueñas

Patricio Soldi

Percy Tirado Romero

Group 1

Define: The team identified the problem of delays in order processing, aiming to ensure that 98% of orders met a 24-hour fulfillment deadline. Measure: They collected data on current order processing times to establish a performance baseline. Analyze: By mapping the order fulfillment process, they pinpointed bottlenecks and inefficiencies causing delays. Improve: The team implemented solutions, such as introducing longer carts, to streamline the picking process and reduce time. Control: They established monitoring mechanisms to ensure sustained improvements and prevent regression.

DMAIC

1. Explain how the process the team followed might align with DMAIC, the Deming Cycle, and the creative problem-solving process. In the case study "Applying Process Improvement Tools to an Order Fulfillment Process", a team at a large automotive parts distribution center undertook a project to enhance their order fulfillment process. Their approach aligns with several established process improvement methodologies:

2. What might the team do if the reduction in order processing time resulting from the introduction of the longer carts was not large enough to achieve the goal of having 98 % of the orders meet the 24-hour deadline? If the current reduction in order processing time doesn’t meet the 98% target, the team can consider these strategies: 1.Process Optimization: Identify and eliminate bottlenecks in packing, shipping, and quality control. Streamline procedures through time-motion studies and standardization. 2.Technological Solutions: Utilize Warehouse Management Systems (WMS) for efficient inventory management and picking routes. I mplement automated storage and retrieval systems. Adopt voice-picking technology for faster and more accurate order fulfillment. 3.Workforce Optimization: Cross-train employees for increased flexibility and reduced downtime. Monitor productivity using KPIs and incentivize employees to meet targets.

2. What might the team do if the reduction in order processing time resulting from the introduction of the longer carts was not large enough to achieve the goal of having 98 % of the orders meet the 24-hour deadline?

4.Layout and Design Improvements:

Optimize warehouse layout for efficient workflow.

Design ergonomic workstations to enhance worker productivity and reduce fatigue.

5.Supplier Collaboration:

Partner with reliable suppliers to minimize delays in material delivery.

Implement just-in-time inventory to reduce holding costs and improve order fulfillment.

By combining these strategies and continuously monitoring the process, the team can

identify additional opportunities for improvement and achieve the 98% target. It's essential

to maintain a focus on data-driven decision-making and a culture of continuous

improvement.

3. Suppose packing parts is now the activity responsible for the greatest delays in processing an order. How might this affect the project organization and next steps? Next steps:Next steps:Next steps: 111 ... Analyze PAnalyze P Analyze Packing Delaysacking Delaysacking Delays Conduct time studies similar to the pickingConduct time studies similar to the picking Conduct time studies similar to the picking process.process. process. Use flowcharts, Pareto charts, and histogramsUse flowcharts, Pareto charts, and histograms Use flowcharts, Pareto charts, and histograms to identify inefficiencies.to identify inefficiencies. to identify inefficiencies. Determine whether delays are caused byDetermine whether delays are caused by Determine whether delays are caused by packing procedures, material handling, lack ofpacking procedures, material handling, lack of packing procedures, material handling, lack of automation, or staffing issues.automation, or staffing issues. automation, or staffing issues. 222 ... Optimize Packing StationsOptimize Packing Stations Optimize Packing Stations Organize workstations to minimize movementOrganize workstations to minimize movement Organize workstations to minimize movement and unnecessary handling.and unnecessary handling. and unnecessary handling. Ensure packing materials (boxes, tape, labels)Ensure packing materials (boxes, tape, labels) Ensure packing materials (boxes, tape, labels) are within eare within e are within easy reach.asy reach.asy reach. StSt Standardize packaging for common orders toandardize packaging for common orders toandardize packaging for common orders to redred reduce decision-making time.uce decision-making time.uce decision-making time. 3.Implement Automation Where Possible 3.Implement Automation Where Possible3.Implement Automation Where Possible Introduce conveyor belts or automated packing machines. Introduce conveyor belts or automated packing machines.Introduce conveyor belts or automated packing machines. Use barcode scanning and automated label printing to Use barcode scanning and automated label printing toUse barcode scanning and automated label printing to speed up processing. speed up processing.speed up processing. Consider pre-packing high-demand parts to reduce last- Consider pre-packing high-demand parts to reduce last-Consider pre-packing high-demand parts to reduce last- minute work. minute work.minute work.

4. 4.4. Improve Training & StaffingImprove Training & StaffingImprove Training & Staffing Provide targeted training on efficient packing techniques. Provide targeted training on efficient packing techniques.Provide targeted training on efficient packing techniques. Adjust staffing levels during peak hours or create Adjust staffing levels during peak hours or createAdjust staffing levels during peak hours or create specialized packing roles. specialized packing roles.specialized packing roles.
5. 5.5. Monitor & Evaluate ChangesMonitor & Evaluate ChangesMonitor & Evaluate Changes Track key metrics like average packing time per order. Track key metrics like average packing time per order.Track key metrics like average packing time per order. Conduct pilot studies (as done with the carts) before full Conduct pilot studies (as done with the carts) before fullConduct pilot studies (as done with the carts) before full implementation. implementation.implementation. Continuously refine processes based on feedback and Continuously refine processes based on feedback andContinuously refine processes based on feedback and performance data. performance data.performance data.

Thank you