Case Study: A Leading Telecommunications Company wanted to Reduce Operational Costs in their Broadband Division.
Challenge: One of the organizations within the broadband division was generating rework on service orders at an operational cost overrun of approximately $300,000.00 per year.
Solution: Using the DMAIIC/ Six Sigma methodology, root causes were identified and corrected. The lack of quality assurance, little emphasis on adherence to defined methods & procedures and defining how work was done within the organization were the critical root causes. An improvement plan has been implemented to address all of these issues. Additional daily and monthly reports are being generated, analyzed and disseminated to all personnel. Training, methods & procedures and employee evaluations have also been updated to address the poor quality.
Improvement to this process also had a profound effect on several other processes within the organization.
Outcome:
The process capability increased from 1 to 2 Sigma.
The direct cost reduction was approximately $100,000.
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.
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.
Outcome:
Product quality on retailers’ shelves was not impacted.
Raw material costs were reduced by $2.5M regional
Case Study: Leading Sports Equipment Importer Synchronizes Supply Chain
Challenge: A United States leading Sporting Goods Company seeks to improve Distribution Center and Inbound Transportation performance.
Solution: A cross functional team was formed included Demand Planners, Supply Planners, Transportation Managers, Divisional and Regional Supply Chain Leadership. The Division Leadership Team determined the direction and goals. The Regional Leadership conducted an analysis of the production scheduling, inbound transportation and inventory planning models, and well as distribution center processes. A corrective action plan was developed to achieve short term and mid term objectives. Several mid-term key task included synchronizing production planning with supply demand and aligning labor with peek demand periods. Two major short term tasks were achieving daily outbound performance goals and correcting inventory accuracy issues.
Outcome: A US & Canadian distribution network which could meet the marketing department's requirements.
Achieved 98.5% daily inventory location accuracy.
Achieved daily shipping target within 30 days.
Reduced in transit inventory levels by 7 days.
Improved distribution center costs by 15%.
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.
Outcome:
96% service levels systemwide
10% less than truckload cost savings
15% air network cost reduction
Case Study: Training Program
Challenge: Leading domestic personal care products Manufacturer Company required training cost reduction for seasonal production and warehouse new hires.
Solution: The first step for the team was to develop performance standards and training program. Next, the target selection interviewing approach was instituted in order to narrow down the talent pool. Next, the new hires were selected and trained to a new standard. Quarterly follow up occurred by trainers and leadership.
Outcome: A US & Canadian distribution network which could meet the marketing department's requirements.
Reduced training costs by 40%
Reduced overall facility costs by 6% during year 1.
Won Company President Quality Award.
20% of the first year new hires rose to management level within 3 years
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.
Outcome:
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
Featured Consultants
Business Engineering David Appleby Senior Consultant, Business Process Improvement
David is a senior consultant, Business Process
Improvement Division, for Bellwether Services, a
Business Consulting Firm with offices in Atlanta,
Denver, Kansas City and Washington, DC. Mr.
Appleby is a trained Black Belt and is responsible
for executing Six Sigma Business Engineering Projects.
Mr Appleby also manages several project teams for
Bellsouth’s Broadband Business Unit based in Atlanta.
During his career Mr. Appleby has served in several
Quality Assurance and Business Engineering roles.
You may reach David at [email protected].
Bellwether Services, a MBE, SDB, & SCVOE, is an international consulting firm which specializes in applying the Six Sigma methodology in Call Centers, Manufacturing and Supply Chain Environments. Interested parties may review our website for additional areas of expertise and services, www.bellwether-services.com.
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