Process improvement opportunities often arise from tactical problems in your operation.
“Replenishment labor costs are too high."
“We need more pick faces in the break pack area”
“Shipping is choking throughput”
The first step in any process improvement initiative should be to benchmark the current process. The “do nothing” alternative will form the baseline against which all alternative concepts are judged. It is not enough just to do better. You must do better in a manner that is both economically and qualitatively justified.
There are likely multiple ways to improve upon the current process. An analysis of all practical concepts will identify the optimal solution.
Each alternative concept should be developed and fully defined including:
Investment Required
Impact to layout / material flow
Impact on information systems
Space required
Annual labor costs
Estimated savings
Other benefits
Qualitative factors
Once each alternative is defined, an incremental evaluation of all viable alternatives against both the baseline and each other will identify the best solution. At that point detailed plans are developed and the solution is implemented.
After the preferred solution is implemented and has been operational for a period of time, it is important to measure the new process to validate incremental improvements and identify opportunities for further improvement.
CEI Logistics stands ready to help you with your process improvement initiatives. We believe that the success of any process improvement project should be measured exclusively by the operational results delivered. Call us at 800-441-1162, or e-mail 24hours@ceilogistics.com for more information.
|
© Copyright 2007, CEI Logistics. Toll-Free U.S. 800-319-0259 Toll-free in the U.S. 2120 Valley View Lane, Dallas, TX 75234 |