- Training & Development
- Government Application of Six Sigma
Case Study: Application of Facility Design Theory
Challenge: A rapidly growing international logistics firm required design & development of a 50-acre distribution park to be operational within six months.
Solution: A cross-functional team was formed including building contractors, logistics engineers, business development managers, and executive leadership. We determined regulatory and government costs and customer requirements. Next, a budget and project plan was developed. And last, the team executed the plan.
- Implemented 18 VMI programs on time
- Achieved $1.2M profit in the first year of operations
- Scored 990 of 1,000 points on a FDA compliance audit
- Implemented an ISO 9002:1994-compliant program within 90 days of startup
Case Study: A multi-billion dollar third party logistics company requires transportation program consolidation
Challenge: A leading 3PL was proposed with a challenge to integrate seven distinctive North American surface transportation networks less than truckload and air networks.
Solution: We gathered plant and distribution center requirements. A request for information (RFI) was published. Results were returned and analyzed. A request for proposal (RFP) formal bid was distributed to the leading and niche players. Rates and performance standards were negotiated. Feedback was given to clients and a phased implemention plan was developed.
- 96% service levels systemwide
- 10% less than truckload cost savings
- 15% air network cost reduction
Cast Study: Soft drink manufacturer seeks cost savings
Challenge: A mid-size soft drink bottling plant was challenged to reduce production costs to fund future growth.
Solution: A cross-functional team was formed in order to review raw material cost savings opportunities. The team determined that packaging material offered a win-win for both the plant and supplier. Two key suppliers joined the team. As a result of trial and error under live conditions, the amount of packaging material used for bottling operations was reduced.
- Product quality on retailers’ shelves was not impacted.
- Raw material costs were reduced by $2.5M regional
Case Study: Order Cycle Time Reduction Project (Six Sigma Methodology)
Challenge: Leading food & beverage importer desired to order lead-time reduction.
Solution: The team mapped processes, determined process capability & root causes, as well as corrected process and technology issues. Next, we performed a cost benefit analysis as we gained support from our client’s purchasing community. After we corrected our client’s ordering routine, we corrected our supplier’s forecasting and production planning models. After implementing our solutions, we instituted a monthly control mechanism which was reviewed quarterly during S&OP meetings.
Outcome: Reduced order lead-time by 14 days — a 93% improvement.
Case Study: An international supply chain seeks to become a competitive advantage for the marketing organization (Six Sigma Methodology)
Challenge: A top importer was required to reengineer its distribution network in order to launch regional and/or local marketing campaigns in the US and Canada.
Solution: A forecast-to-cash process review was performed. Weakness in the supply chain's forecasting, sales coordination, inventory management and distributor execution were noted. A multi-national team was formed. A project plan was developed. The following six sigma basic tools were utilized: Voice of the customer (VOC), cause and effective diagram, histogram, pareto charts, processes mapping, brainstorming, process capability, sampling, and run charts. As a result of applying basic business engineering principles, the team implemented a forecasting and sales operations & planning (SO&P) process. Additionally, the transportation network was evaluated. As a result, ocean container weights were increased, the number of distribution centers were reduced and strategically located.
Outcome: A US & Canadian distribution network which could meet the marketing department's requirements.
- 60% less suppliers
- 26% improved SKU forecast accuracy
- 18-day cycle time reduction (order to receipt)
- $4.6M supply chain operations cost reduction
- $9.0M inventory reduction in year one