The Problem
APO developed an holistic plan to improve Inventory Accuracy at a Distribution Center in an effort to minimize the rework and costs associated with this defect. Part of this plan involved looking into Missing Parts which has become a department – the client normalized and operationalized this hidden factory – 100% waste. The process involved 3 FTE’s on 3 shifts or 9 total FTE’s.
Our Approach
APO gathered together a cross-functional Team from the client. Using basic Lean and 8D Problem Solving techniques such as process flow maps, Ishikawa Analysis, Pareto Analysis, and reviewing the Standard Work Instructions, we were able to find several opportunities to reduce lingering Inventory Accuracy errors which would cause repeated rework tasks. We were also able to leverage several modifications to the Warehouse Management System (PKMS) to effectuate additional improvements in error reduction, timing improvements, and error logging and communication.
The Results
The client Team led by Advanced Process Optimization effectively eliminated repeat Inventory Accuracy errors by implementing a basic Lean concept – Stop and Fix. We are able to reduce the Labor requirement from nine FTE’s to three – a 66.7% Non-Value Added labor reduction. This was accomplished in one week.