Lean Six Sigma Workshop

A six sigma approach to

decreasing turn-around time of last-
mile delivery

By:
Ekta S. - 18021141040
Kasturi K. - 18021141058
Sudharshan V.R. - 18021141112
Darshana S. - 18021141125
 Project Charter
Project Name Reducing turnaround time for last mile delivery

Last mile delivery for e-commerce companies

Process name

Project Number

Sub Process Name   Black Belt  

    Sponsor    

Business Case Problem/Opportunity Statement Goal Statement

Dot, Gurgaon is presently handling the last mile deliveries for e- The data for the month of April 2019 shows that 4 deliveries were To reduce the total time taken for a product ordered to reach the hands (turnaround time) of the customer from an average of 36 hours to 20 hours,
commerce companies like Amazon and Flipkart. Average turnaround delayed (identified by the company) out of 1000 deliveries. thereby increasing the satisfaction.
time per delivery ranges from 1 to 2 days.

Many a time, there are delays which if passed on to the customers

which may have a financial impact thus incurring a monetary loss and
high Customer dissatisfaction.

Project Scope Includes Project Excludes Project Milestones

Delivery in metro cities, electronics and appliances. Durables, tier-II and tier-III cities.
Start Date: 01-May 2020
End Date: 31-May-2020

  Target Date Actual Date TG Review Date

Define 01-May-20   01-May-21

Measure 08-May-20   15-May-21
Analyze 15-May-20   22-May-21
Improve 21-May-20   28-May-21
Control 29-May-20   31-May-21
Project CTQ Details Project Comments

Process CTQs Unit USL / LSL Target          

Turnaround time Hrs 36 / 4 20          
        Project Charter Sign Off ( With date)

    Current Target Sponsor  

  sigma ~4.06 5 GB/BB  
        BB/QL  
Project Translation Plans Project Benefits Estimate
 
Possible to roll out the model to other cities.
 Project Charter (contd.)
Estimated benefits (Enter details for columns whichever are applicable)

Hard gains Unit Amount Assumptions Soft gains Unit Assumptions

Reduced manhour       End customer satisfaction    

Better utilization of
employees       Sigma increase    

        Shareholder satisfaction    

CTQ: Turn-around time

SIPOC
Fishbone Diagram
 Control - Impact Matrix
Impact

Poor
Vehicle
network and
breakdown
GPS signal

Control
Wrong
orders
Poor road combined
conditions
Lengthy
route taken
 Root cause chosen

• Vehicle breakdown - High control, High impact

• The dataset used for correlation and

regression analysis is ‘Age of vehicles (months)
vs No. of breakdowns per month’
 Dataset chosen
Age of vehicles (months) No. of breakdowns per month
39 5
24 6
44 5
36 6
48 8
38 10
40 6
31 9
31 9
45 6
27 7
31 7
35 6
40 10
42 5
24 9
47 10
30 9
33 9
28 9
27 10
27 8
44 6
43 9
36 6
36 8
43 8
42 6
33 9
26 8
36 10
24 8
26 9
34 5
34 8
30 5
34 9
39 7
31 5
38 9
Regression Analysis (Minitab)
Regression Analysis
Correlation Analysis
Correlation Analysis
THANK YOU !