WIP REDUCTION PROJECT

Project Leader: Ignacio Farias

Manager: Alejandro Melgar
Crocs Mexico
September 2012

Project Team
Name

Functional Area

Role

Ahmed Haddad

Global Director

Executive Sponsor

Ignacio Farias

NPI Coordinator

Project Leader

Alejandro Melgar
Ricardo Orozco

Engineering Manager
Quality Coordinator

Project Coach

Brenda Quiroz
Abril Hernandez
Juan Anguiano
Jose Luis Mireles
Cesar Murguia
Pablo Hernandez

Product Engineer
Process Engineer
Manufacturing Coordinator
Injection Coordinator
RMW Coordinator
MPS Coordinator

Team Members

Federico Muoz
Ulises Vargas
Fabiola Gamio
Valeria Herrera
Jacqueline
Santamaria

Injection Supervisor
Manufacturing Coordinator
Inventory Control Coordinator
Process Improvement
E1 Specialist

Subject Matter Experts

(SMEs)

Javier Merino

Finance

Financial Approver

Antonio Vera

Technology

Technology Contact

AUGUST WIP VARIATION

$70,000.00

120%

$60,000.00

100%

$50,000.00

80%

$40,000.00
60%
$30,000.00
40%

$20,000.00

20%

$10,000.00
$-

0%

DIFERENCIA

% ACUMULADO

EQUIPMENT

PROCESS

PEOPLE

MATERIALS

ENVIRONMENT

MANAGEMENT

Problem Statement

Goal Statement

During August 2012, the average WIP

certainty was 70% at there is not a
proper material flow control.

Increase WIP certainty to a 90% by wk

40.

Key Metric(s)

Timeline

> Secondary Metric Definition: def

tamao de muestra para conteo ciclico

> Secondary Metric - Baseline:
> Secondary Metric - Goal: 90%
> De todos los skus que vamos a medir

cumplamos el el 90%.
> Primary Metric Definition: conteo ciclico
> Primary Metric - Baseline: na
> Primary Metric - Goal: 90 % certeza

> Project Approval Date:

> Define:
> Measure:
> Analyze:
> Improve/Solution Implementation:
> Control/Check Points:

Define Financial Impact Estimate

Project Savings:

Calculation:
# Defects
per week

For YB and above: Please enter the results of your initial (estimated) calculations
in the ROI calculator tool, found on Sharepoint: ROI Toolkit , then validate your
calculation with your local Finance contact. (Be sure to capture the contacts
name and date to share with your coach.)

x time saved x time x

avg
= $ saved
per defect interval hourly rate
per year

Example 1 project scenario:

# exceptions
per week

52

x .2 hours saved
per exception

52

average hourly =
rate of a Sup

$ saved
per year

$10 rate
of a Sup

= $20,800 US$
saved/year

Example 2 project scenario:

Original time
(in hours)
to run report

hours saved
per exception

Example 1 with data:

200 exceptions
per week

Improved time
12 mos
(in hours) to run x
per
report per month
year

avg
hourly
rate

$ saved
per
year

Example 2 with data:

50 hours
to run report

30 hours
to run report

12 mos
per year

$10 (US$) avg =

hourly rate

$2,400
saved/year

Define SIPOC (Supplier, Input, Process,

Output, Customer)
Key Suppliers
>
>
>
>

Key Inputs

Clients
Clients Customers
IVR Software
Call routing application

> Incoming Customer Inquiry

> Transferred call
> Mis-routed call

High Level Process

Identifies
GO

START:

Issue

Addresses
Inquiry

Ensures
Issue
Resolution

Agent Greets
Caller

Key Outputs
>
>
>
>

Completed Call
Transferred call
Escalated call
Resolved issue

STOP:
Agent Wraps
Call

Key Customers
> End User

Define Voice of the Customer

Voice of the Customer

After Clarifying
The Key Issue(s) is

Customer(s) Requirements/
CTQs As Measured By:

(Example): I want my issues heard

and resolved so I can tend to other
business.

Customers want to have

their issues resolved in a
timely manner.

AHT: No more than 250 seconds

to identify and resolve customer
issue.

I do not want to have to repeat my

issue to a bunch of different people

Less transfers

First Call Resolution

Key Questions
Define
before youTollgate
move
on to the next
phase

As a result of
the team missing the AHT metric,
we incur a $10,000 penalty.

Why is the project worth doing?

What are the consequences of not doing this project?

What are the problems being addressed?
Where or when do the problems occur?
How will improving this process affect productivity?
How will this affect the Companys Profitability?
What do you hope to achieve with this project?

Remember to meet with your coach for DEFINE phase

sign-off!

Measure Current Metrics

Solution
implement
ed on
<DATE>

GB

Measure Control Charts

Under Development
include control charts

Measure Process Map & Identify Failure Points

Current Process (As Is v. As It Should Be)
Start
Agent
greets the
customer

Agent
pulls up
customer
info in
system

FP1
Customer
tells the
agent why
they are
calling

Agent
clarifies
customer
concern

FP2
Agent
reiterates
the
customers
frustration

Note: Please map the AS IS process

Make sure not to add any perceived solutions

End
Is this
your first
call?

Yes

Agent
resolves
customer
issue

No

FP3
Agent
reviews
notes to
identify
previous call
history

Please delete this slide before submitting your project

Agent ends
call

Measure Process Map & Identify Failure Points

EXAMPLE

Current Process (As Is v. As It Should Be) Drill Down

Start
Agent
greets the
customer

Agent
pulls up
customer
info in
system

FP1
Customer
tells the
agent why
they are
calling

Agent
clarifies
customer
concern

FP2
Agent
reiterates
the
customers
frustration

Note: Please map the AS IS process

Make sure not to add any perceived solutions

End
Is this
your first
call?

Yes

Agent
resolves
customer
issue

No

Under Development
add inputs and outputs
to each process step;
identify C,N,SOP and
VA/NVA for each input and
output

FP3
Agent
reviews
notes to
identify
previous call
history

Please delete this slide before submitting your project

Agent ends
call

Measure FMEA
EXAMPLE
FMEA:
project

A great tool to conduct a risk analysis, but may not be necessary for every
FMEA Works heet

Analyze 5 Whys
Failure
Point

Why Happening?
(Root Cause)

Action Plan

Recommended Actions

(Who, what, when)

FP #1

1.
2.
3.
4.
5.

Why?
Why?
Why?
Why?
Why?

Who:
What:
When:

FP #2

1.
2.
3.
4.
5.

Why?
Why?
Why?
Why?
Why?

Who:
What:
When:

FP #3

1.
2.
3.
4.
5.

Why?
Why?
Why?
Why?
Why?

Who:
What:
When:

FP #4

1.
2.
3.
4.
5.

Why?
Why?
Why?
Why?
Why?

Who:
What:
When:

Analyze Fishbone
Root Cause Fishbone
(list all potential root causes here)

People

Varied
skill/
educ
levels

Type of call
Residential or
Commercial

Billing
Claims
Sales
Tech
Support

Patrons
(customers
)

Unequal
on-the-job
experience of
agents

Area of Focus
(from MEASURE)

Provisions
(supplies)
System slow

Multi-tasking
(managing
projects/taking
calls)

Soft phone voice

quality

Slow diagnostic
tool

Procedures keep
changing
Lack of
standardizatio
n

Lack of job aids

Job aids not

up to date

Procedures

Noise level
too high

Place
(environment)

AHT
Gap of
110
seconds

Analyze Scatter Diagram & Pareto Chart

A scatter diagram and correlation will require
two columns of data for each agent:

A Pareto diagram will require two columns of

data: category and # of defects:

Call Type

# Calls
>250 sec

Commercial Billing

550

Res. Claims

135

Res. Tech Support

100

Comm. Sales

75

Res. Billing

70

Comm. Claims

50

Comm. Tech Support

35

Res. Sales

20