Jeffersonville Warehouse Team 2: Short Ship

Reduction
AWO FW 46
“I empower this team to follow the guidelines of Action Workout and support all
decisions that are made by the team.”

Robert Wooldridge, Warehouse Mgr. Date: 11-13-2007

Team Members

Jamie Herman - GE Parts Quality Mgr

Mark Barnsfather Op Mgr TMSi
Ed Huttunen - GE Mgr Parts Management
Brian Davis – GE coop Parts Management
Eric Delgado – TMSi Packer
Mike Alain – GE Parts Planner
Cameron Cornelison – GE coop Parts Dist
Brandon Chasteen, BB
Tom Ledbetter – GE Technician
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Goals & Objectives

• Mistake proof the shipment of courier tech parts.

• Eliminate warehoused caused courier tech short ships.

 AWO – Jeffersonville Nov 13-16, 2007
Short Ships as % of Shipments
$8,000,000 2.50%

$7,000,000
2.00%
$6,000,000

$5,000,000 1.50%

$4,000,000
Total $ Shipped 1.00%
$3,000,000
ShortShip %
$2,000,000
0.50%
$1,000,000

$0 0.00%

Jan Feb Mar Apr May Jun Jul Aug Sept

Short Ships by Channel
100%
90%
80%
70%
60%
50%
40%
30% Ot her
PD

20%
T ech

10%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
 Missing Shipments

# OF MISSING SHIPMENTS PER FW AT 5100

4,000.00

3,500.00

3,000.00 2006
# Missing Shipments

2007
2,500.00

2,000.00

1,500.00

1,000.00

500.00

-
10

19
22
25

31
34
37

46
13
16

28

40
43

49
52
1
4
7

FW
 Highest Short Ship Items 3Q 2007

Item # Desc Total Short shipped

WX8X73 FLEX-DUCT-BAGGED W 2 CLM 1584
WX9X18 DRYER CORD 4' 30 AMP 4 W 1119
WX08X10006 6SMRTCONECT 805
WX9X20 DRYER CORD 6' 50 AMP 4 W 748
PM28X319 D/W CONN KIT 680
WX10X10200 DW MAGIC 12 OZ 612
MWF WATER FILT REF CYST 606
WR55X10552 BOARD ASM MAIN DOMESTIC 550
PM08X20073 SEMI-RIGID DUCT 480
WB02X10700 FILTER CHARCOAL 458
WR51X10053 HEATER & BRACKET ASSY 379
WR60X162 MTR EVAP FAN 323
WX9X3 DRYER CORD 5' 30 AMP 3 W 314
WX08X10130 4IN TENSCLMP 300
WX9X35 RANGE CORD 4' 40 AMP 4 W 284
WX15X38 1/2 MIPX3/8 FIP SS GAS C 250
WR57X10051 WATER VALVE KIT 226
WB2K20 BRKT ASM A-T 206
WR50X55 THERMO PKG 202
WD26X10013 MECHANISM ASSY PS KIT 184
WR60X10141 MOTOR AC/DC 170
WB36X10003 LAMP-INCANDESCENT 157
WR30X10061 ELECTRONIC IM DOMESTIC 153
WH49X10042 KIT - AGITATOR COUPLING 148
WX60X1 U COMP BG 15 146
 Highest Short Ship Customers
CYB89 11283.698 1ST SOURCE PARTS CENTER
DLP41 10581.002 AP-WAGNER INC.
ZCJ77 8623.678 RALPH'S TRANSFER CO.INC.
19758 8538.642 TEDS TV SALES & SERVICE
CWX57 8497.718 SERVALL COMPANY
CGN92 8371.387 RELIABLE PARTS INC
WXT20 8235.188 MAINTENANCE WAREHOUSE
CRC76 8156.172 MARCONE
TLW51 6336.057 APPLIANCE PARTS DEPOT LP
ZSR17 6007 SPIRIT DELIVERY
P4X50 5925.303 MARCONE APPLIANCE PARTS
DYP38 5250.094 DEY APPL SERVICE CO INC
D9R43 5196.186 SUNDBERG CO
 Highest Short Ship Techs
Tech Sept YTD Shortship Pieces Sept YTD Short Ship $
MIKE KRIGBAUM 42 $8,912.50
MICHAEL CLEVELAND 223 $5,520.04
BRAD MILLER 216 $4,258.81
ROY AGUIRRE 281 $4,163.21
JAMES RANSFORD 372 $4,035.46
GEORGE MATHIS 478 $3,986.43
GLENN SMITH 233 $3,818.86
MICHAEL CLEVELAND 284 $3,594.79
MARK HALE 362 $3,534.38
TRENT WOLFKILL 260 $3,428.32
PATRICK TRAVICA 134 $3,197.94
MICHAEL KNOX 76 $3,095.18
JAMES BRYANT 277 $3,088.66
HENRY RANDALL 112 $3,077.69
T.DEAN JANUS 267 $3,068.94
MICHAEL SUHU 209 $3,062.08
WILLIAM SAYERS 187 $3,023.27
THOMAS FERREIRA 188 $2,928.81
MARK WALSH 155 $2,915.48
LEO CARAMAZANA 287 $2,871.24
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Jeffersonville to Carrier to Chicago 1
Velocity Express Chicago 2
Courier to Zone Chicago 3

Cleveland
Pittsburgh
Mike Rix Courier Detroit North
Detroit South
Kansas City
Vitran Express Grand Rapids
Cleveland
Jeffersonville
Warehouse
CD&L/1st Choice
St. Louis
Courier

Orbit Courier Eden Prairie

Averitt Express
Dallas West
Blast Express
Dallas East

SAIA Louisville
Columbus
Relay Express Indianapolis
Dayton
Cincinnati
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Idea Generation Sheet – 7 Ways
•Pick by courier route
•RF Pick
•Finger scan & Label Printer – label include: part number, part loc, order number, tech,
route, date/time
•Pick by label in pick sequence
•Blow up courier routes and ship direct to tech
•Pick by location and then sort
•Pick into bullpen instead of pallet
•Label bullpen locs on floor and document with a map
•Color code routes
•Sort pallets as completed. Do not accumulate pallets and sort at end of day
•Stagger route shipment days
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results

Parts are collected on pallets and carried Parts do not fall from pallet
Pick for Utilize the cardboard bullpens to
to the sorting area. Opportunity for part to while traveling or sorting.
courier collect parts prior to sorting. Could
be picked, and counted as picked but fall
tech also use returnable containers with
off the skid and never be noticed. Result
orders drop sides.
is a short ship

Before Kaizen After Kaizen

Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results

Parts are collected into a central area and
Sort for
then the pickers sort into the bullpens for
courier
each route. The location for the bullpens
tech
is totally random and changes daily.
orders
Introduces ineffeciencies in looking for
the correct bullpen
Developed a map with a layout for
More efficient sorting
the route bullpens to be in a
consistent location each day.
Currently have a paper map and
labels attached to the floor. Step 2
would be to make an overhead label
system

Before Kaizen After Kaizen

Bullpens were randomly

located with day to day
variation
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Courier Tech Layout and Schedule
Dallas East
Cleveland Kansas City Chicago 1

Table
Dayton (RX) (Blast Exp)
(DL) (Vitran) (CH) (Red)
(Green)

Cincinnati
(RX)
Courier Shipping Schedule
Pittsburgh Monday All Louisville
(DL) (RX)
Tuesday Chicago and Dallas
Dallas West
Wednesday All Grand Rapids
(Blast Exp)
(SO)
(Blue) Thursday Kansas City and Dallas

Indianapolis Friday All; except Kansas City and Dallas Eden Prairie
(RX) (Orbit)

Chicago 2
Saint Louis
(CH)
(CD&L)
(Mustard)

Columbus Detroit South

(RX) (SO) (Gray)

Detroit North Chicago 3

(SO) (Pink) (CH) (Purple)
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results

Parts are collected into a central area and Each picker picks by courier route
Pick and Eliminate sorting so that 2
then the pickers sort into the bullpens for eliminating the need to sort.
sort more hours a day can be
each route. There is opportunity to sort into spent picking
courier
the wrong bullpen which would result in 2
tech
defects. A part sent that was not ordered and
orders
a part shorted from where it should have
shipped

Before Kaizen After Kaizen

Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results
Pickers manually sort their pick sequence
Pick by a Print labels by courier route in pick Eliminate sorting so that 2
from several orders. No validation that all
route that is sequence. Unused labels are taken to more hours a day can be
orders have been picked complete and
sorted into team lead to bounce or alternate pick spent picking. Eliminate
additional opportunity for shipping to
pick location. No need for sorting. ship from not being picked.
wrong location during sorting.
sequence
using labels
for parts

Before Kaizen After Kaizen

Loc: 002-23-005 Pcs: 1

Part: WR52X10052
Desc: thingamabob
Order: 5431234
Tech: T123 Route: LOU
Items on order 3
Last item on order N
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results
Tech and courier route information is
Recording of Print labels by courier route in pick Labels are legible, contain
handwritten on the part. The location of the
tech and sequence. Labels are placed on the more information that
writing, abbreviations is not consistent.
courier route part identification side of the box. handwritten tech and
Writing may not be legible.
information courier information and
on partle Documented in SP400015.
consistent location on part

Before Kaizen After Kaizen

Loc: 002-23-005 Pcs: 1

Part: WR52X10052
Desc: thingamabob
Order: 5431234
Tech: T123 Route: LOU
Items on order 3
Last item on order N
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Documentation for Labels SP400015
•TECH COURIER ORDERS MUST BE LABELED WITH MINIMUM OF TECH NUMBER
AND COURIER ROUTE
•EACH PART MUST BE LABELED
•THE LABEL SHALL CONTAIN THE FOLLOWING
•· PART LOCATION
•· PART NUMBER Loc: 002-23-005 Pcs: 1
• PART QUANTITY
Part: WR52X10052
Desc: thingamabob Bar code
• PART DESCRIPTION Order: 5431234
•· ORDER NUMBER Tech: T123 Route: LOU
Items on order 3
•· TECH NUMBER
Last item on order N
•· COURIER ROUTE
• ITEMS ON ORDER
• LAST ITEM ON ORDER (YES OR NO)
• BARCODE INFORMATION
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results
The parts contain tech and route
Receipt of Develop SOP with work station Eliminates previous tech
information that is not being removed or
tech parts instruction to cover all tech numbers information so that only the
covered which leads to shipping errors
that are RTS and route information with paper correct tech information is
tape before RTS visible
Documented in SP200003

Before Kaizen After Kaizen

Paper tape covering

tech information but not
the part number
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Documentation for Tech Returns SP200003

       Check MID’s for correct quantity, backorder quantity and storage location.
       Cover and/or remove any shipping labels or markings on box.
       Cover small holes and blemishes with paper tape
       Make sure your MID doesn’t have a Backorder Qty greater than 0 on the MID
paper
       If the MID has a Backorder Qty greater than 0, circle it with a red marker.
       Locate the Storage Location on the MID
       Attatch the MID to the part you just returned
       If the MID had a backorder place the part in a backorder skid or tote
If no backorder then place the part in the appropriate skid or tote for location
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results
Courier routes, addresses and information
Tech Courier Corrected the bullpen courier label Eliminate possible shipping
had not bee updated from the last time the
Route information. Saved documentation error due to wrong courier
couriers changed
Shipping and updated pickers supply. information or incorrect
Prep addresses
Include this process in the SOP for
courier route changes.

Wrong information Cincinnati

 SAIA
498 Commercial Dr.
Fairfield, OH 45014
 ATTN: Relay Express
Ph: (513) 860-2555
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Operation Problem Actions Taken Results
Ship confirmation of courier tech orders are
Ship Ship confirmation transactions to Eliminate short ships as a
done throughout the day without regard to
confirmation only be completed AFTER order has result of bounces that were
whether or not he order has been picked or
of courier been picked and confirmed thqt all not documented on order
will actually ship today. If there is a bounce
tech orders items were shipped.
from the order, there is no opportunity to
correct the order as it has already been ship Documented in SP300010
confirmed. Order will show as shipped even
if not due to ship

Before Kaizen After Kaizen

TECH CONFIRMATION
No documentation regarding when to TO BE COMPLETED AFTER ORDERS HAVE BEEN
ship confirm PICKED
    Enter WH108 at main menu
       Press Enter
       Enter the User ID of the person who printed the
WAVE
       Press Enter
       Place a “1” by all of the tech courier orders that
were printed for that day
       Press Enter
       Print screen
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Target Sheet
Date: 11/13/2007

UOM Start Target 1st Day 2nd Day 3rd Day 4th Day Result % Change
Courier Tech Short $12904 ytd
Ships $ avg 0 Validate in 4-6 weeks
Standard Work for
Sorting Yes/No No Yes 10% 25% 75% 100%
Productivity lines per hour
Route defect 12 0 12 6 0 0
Order defects 0 7.59% 0 0
Jeffersonville Warehouse Team 2: Short Ship
Kaizen Newspaper Reduction
DATE TARGET
ACTION ITEM OWNER ASSIGNED COMPLETION
%

100%
25%

50%

75%
Map bullpen locations Bryan Davis 11/13/07 11/13/07 X
Temporary label bull pen locations Bryan Davis 11/13/07 11/13/07 X
Permanent label bull pen locations Bryan Davis 11/13/07 11/16/07 V
Pick number on pick sheet Mark Barnsfather 11/13/07 11/14/07 X
Tech number and route on part label side Mark Barnsfather 11/13/07 11/14/07 X
Packing slip in sleeve in readible orientation Mark Barnsfather 11/13/07 11/14/07 X
Cover old tech info on RTS Ed Huttunen 11/13/07 11/14/07 X
Poles for bull pen locations 11/13/07 11/16/07 X
Correction of tech numbers, routes and Cameron 11/14/07 11/26/07 X
freight code - standardize Cornelison
Simulate pick by route Jamie Herman 11/13/07 11/16/07 X
Simulate pick by label Jamie Herman 11/13/07 11/16/07 X
Establish SOP for returns Ed Huttunen 11/13/07 11/16/07 X
Establish SOP for courier route changes Cameron 11/14/07 11/16/07 X
Cornelison
Update carrier information on bullpen labels Cameron 11/14/07 11/15/07 X
Cornelison
SOP for courier tech bounce Jamie Herman 11/14/07 11/15/07 X
Visual aid for tech returns Eric Delgado 11/13/07 11/15/07 X
Label spec Ed Huttunen 11/13/07 11/15/07 X
MITR for label spec and process Ed Huttunen 11/13/07 11/20/07 X
Implement label pick Ed Huttunen/ 11/13/07 TBD
Jamie Herman
Eliminate bags for small part courier tech Jamie Herman 11/13/07 12/1/07 X
orders
Jeffersonville Warehouse Team 2: Short Ship
Reduction
Lessons Learned
•Sorting process is an opportunity to have a shipping error
•Parts can fall from pallet of picker and cause a shipping error
•Haz/mat materials follow different shipping process
•Importance of current SOP and following the SOP
•Handwriting tech number and route on boxes can vary.
•RTS from techs must have tech and route number removed or it can cause a
shipping error
•Orders can be confirmed before they are complete which can lead to a shipping
error
•We do not have an audit process for tech courier orders
•Route on address header is different from the route on the instructions
•Courier route changes were not reflected in the bullpen shipping labels
•Why why why why why
Jeffersonville Warehouse Team 2: Short Ship
The Team at Work Reduction