Overview
A large global fulfillment network engaged Butler Advisory to improve the cycle time of a key process path at a large fulfillment center. An important packing subprocess was underperforming and needed to increase the throughput rate by at least 13% in a 6 week period in order to meet company standards and customer expectations.
Methods
Lean Analysis:
The team's Lean Six Sigma experts analyzed tens of thousands of hours of performance data, searching for different categories of non-value-added time.
Root Cause Analysis:
After identifying the primary types of waste in the process, the team worked with the client to methodically identify the causes. A few key barriers to success were identified.
Lean Solutions:
The team presented an elegant set of practical solutions to permanently eliminate the primary causes of waste. 5S/layout changes reduced motion, kanban inventory systems reduced time spent searching for PPE and supplies, and streamlined planning tools helped reduce lost time at shift startup.
Statistical Process Control:
SPC and other powerful control mechanisms were used to ensure that the new standard was easy to follow and that all variations had a set response plan.
Outcomes
- Butler Advisory's team achieved a greater-than-required throughput rate improvement of 17% in just 4 weeks
- This translates to a 1.14s cycle time improvement for every package in this subprocess
- Annual savings of $23,300,000 USD
- Sustained improvement, with results never dropping below the new standard
