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.
- 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
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.
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
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Case
Studies 
Business
Engineering David Appleby