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" Lost in Transit ": Our Company Program For Change

This document outlines a Six Sigma project to address the issue of products being lost in transit from Schneider Electric's shipping department. The project leader is Edgar Cruz and the goal is to reduce lost in transit complaints on field order deliveries shipped via UPS from 4-2%. A root cause analysis identified potential causes like bad labeling, not verifying packages, and incorrect tracking labels. The document also presents action plans to address root causes and proposed actions from UPS to improve efficiencies like reducing hand-offs and border delays through direct trailer integration.

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Elisa Llanas
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0% found this document useful (0 votes)
90 views

" Lost in Transit ": Our Company Program For Change

This document outlines a Six Sigma project to address the issue of products being lost in transit from Schneider Electric's shipping department. The project leader is Edgar Cruz and the goal is to reduce lost in transit complaints on field order deliveries shipped via UPS from 4-2%. A root cause analysis identified potential causes like bad labeling, not verifying packages, and incorrect tracking labels. The document also presents action plans to address root causes and proposed actions from UPS to improve efficiencies like reducing hand-offs and border delays through direct trailer integration.

Uploaded by

Elisa Llanas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 8

Our Company Program for

Change

“ Lost in Transit ”

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CNI Claims
Our Company Program for
Change

MTYType January Fe bruary March Apr May Jun Jul Aug Sep Amount
P LANT ERROR $ 1,010.52 $ 12,194.34 $ 8,587.84 $ 5,695.48 $ 8,729.43 $ 13,765.63 $ 18,060.29 $ 7,513.75 $ 3,604.09 $ 79,161.37
LOS T IN TRANS IT $ 4,357.60 $ 9,542.83 $ 4,311.27 $ 25,755.67 $ 3,970.90 $ 9,919.47 $ 6,191.13 $ 20,214.11 $ 7,220.33 $ 91,483.31
S HIP P ING DIS CREP ANCY $ 1,292.79 $ 592.07 $ 5,586.95 $ 7,067.90 $ 1,198.08 $ 7,885.45 $ 1,383.88 $ 653.96 $ 2,226.94 $ 27,888.02
CIC ERROR $ 388.84 $ 388.84
DAMAGED $ 474.65 $ 761.43 $ 297.93 $ 9,415.02 $ 14.58 $ 10,963.61
FREIGHT CHARGES $ 180.03 $ 1,000.00 $ 1,175.14 $ 1,079.25 $ 105.69 $ 793.03 $ 22,981.04 $ 27,314.18
LABOR CHARGES $ 97.50 $ 1,084.00 $ 1,181.50

$3,604.09

$7,220.33

$14.5
$22,981.0
$2,226.94

PLANT ERROR LOST IN TRANSIT SHIPPING DISCREPANCY DAMAGED FREIG HT CHARGES

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September Lost in Transit Results
Our Company Program for
Change
Cla im Typ e Am o unt
C NI (Q 2C ) $ 7,220.33
Dire c t C o n ta c t C o m p la in s $ 5,127.80
To ta l $ 12,348.13

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Action Plan
Our Company Program for “Six Sigma Project: Lost in Transit”
Change

Project Name: Lost in Transit FO's


Leader: Edgar Cruz

% 96% 98% 100%


KPI: FO's deliveries
Unit Baseline Goal Entitlement

Problem Statement: Potential Benefits: Goal Statement:


Reduce Lost in Transit complains on FO orders shipped via
Products shipped by Schneider Electric that are lost in transit Reduce 4%-2% on missed FO orders
UPS

Sponsor: Carlos Castro   EVP Gate Target Actual


Team Members Functional Area % Dedicated D 31/03/2008  
Cesar Vargas Transportation 60% MA 19/05/2008  
Samuel Salazar Shipping Department 30% I 09/06/2008  
Enrique Moreno Warehouse 10% C 03/07/2008  

Baseline Sigma σ
Target Sigma σ
Ending Sigma σ

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Our Company Program for
Change
SIPOC

Suppliers Inputs Process Outputs Customers

Shipping Department FO's FO deliveries Completed Packed Orders Final Customer

Schneider Monterrey Q2C system

Transportation Trucks

Import/Export Export documents

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Our Company Program for
Change

Potential Causes Actions

 Bad Labeling Process f

 Shipping department doesn't verify material


and package

 Wrong Tracking labels on the packages

 Missing Exportation documents

 Discrepancy on the quantity of packages


shipped

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UPS-SQD Monterrey
Our Company Program for
Trade Direct
Change

Inefficiencies Proposed Actions

 High Number of hand-offs  UPS will positioned a 53’ trailer on daily basis.

 Current integration shipping system will


 Excess Transportation segments remain.

Transportation, brokerage, distribution in USA


 Excess inventory carrying costs, labor, space will be in a single invoice.
and equipment costs
 Minimize border delays

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Our Company Program for
Change

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