Improvement Activity Report Define Measure Analyse Improve Control 1. Project objectives. (What) 1. What to measure. (Data source?) 1. What is potentially causing problem? 1. List improvements. 1. Result of improvements. 2. Project Timescale. (When) 2. How to measure. 2. How to display? (C&E, Pareto, Tally) 2. Current status of initial 3. Set Targets. 1 IAR project started / IAR team created (wk15 2 Increased awareness of carriage costs (wk16) 3 Despatch Authorisation Form implemented (wk22 4 Sercom shipments reduced from B4 12 to next-d 5 Review of "timed" deliveries (wk24) 6 Autoliv ASG shipments now 2-day service (wk24 7 Sercom orders now 2-day pallet service (wk 33 8 9 Saturday shipment ceased unless customer requ 10 11 PROJECT CLOSED! Cust courier details must be present for EX- WORKS shipments (wk33) Backlog of August invoices from New UK couri included in Sept. figures (Parceline) Cust. Orders - ship to frequently "Timed" deliveries Incorrect coding of invoices Partial Shipments Production "missed" commits - Lates to despatch Initial quote stage (carriage not considered) General awareness of carriage costs within Worldmark UKI TAXI costs J a n - 0 6 M a r - 0 6 M a y - 0 6 J u l - 0 6 S e p - 0 6 N o v - 0 6 £500 £700 £900 £1,100 £1,300 £1,500 £1,700 £1,900 £2,100 £2,300 £2,500 £2,700 £2,900 £3,100 Taxi Invoice costs per month CARRIAGE WITHIN UK CARRIAGE TO IRELAND CARRIAGE TO EUROPE CARRIAGE TO USA / MEXICO CARRIAGE TO FAR EAST CARRIAGE TO REST OF WORLD EXCEPTIONAL CARRIAGE 72000 72001 72020 72030 72040 72050 72060 £0 £5,000 £10,000 Carriage costs by region Worldmark paying courier costs (DDP) - Should all shipments be Ex-works? "Hidden" duties & taxes Wrong courier choice / selected (Royal Mail docs.) No.4 / No.6 / R & D despatch processes (should these all be separate accounts?) Unauthorised shipments Use of incorrect courier account numbers Awareness of carriage terms / costs within Worldmark "SCUD" team J a n - 0 6 F e b - 0 6 M a r - 0 6 A p r - 0 6 M a y - 0 6 J u n - 0 6 J u l - 0 6 A u g - 0 6 S e p - 0 6 O c t - 0 6 N o v - 0 6 D e c - 0 6 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% £5,000 £10,000 £15,000 £20,000 £25,000 £30,000 £35,000 £40,000 £45,000 £50,000 % Carriage Costs v Carriagable Sales & Actual Carriage Costs Jan-06 Feb-06 Mar-06 Apr-06 £- £500,000 £1,000,000 £1,500,000 Total Sales v Carriagable Sales Jan-06 Feb-06 Mar-06 Apr-06 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% £5,000 £15,000 £25,000 £35,000 £45,000 % Carriage Costs v Carriagable Sales & Actual Carriage Costs 1. Define 3. Analysis 5. Control 2. Measure D M A I C 4. Improvements To reduce costs of the monthly carriage spend of Worldmark East Kilbride IAR NO: 007 Start Date: 10 May 2006 Team: J. McLaughlin, D. Crawford, S. McMichael, D. Thomson, M. Nikolaidou, P. Sinclair, J.Pioch Data Entry (incorrect courier details) IFS "Charges" section used incorrectly SERCOM - poor forecasting / scheduling Carriage costs too high Man Machine Method Material "Hidden" carriage costs (in Q&E) IFS cost calculations RMA process controls Reliabilty of courier vendor Change of customer delivery address (NABS) Security of EK courier account numbers Intercompany documents shipments Sercom consignment stock process Same-day shipments / Hand Carry IAR Start Intercompany order shipments Courier invoice terms are 30 days Incorrect coding of invoices
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Improvement Activity ReportDefine Measure Analyse Improve Control1. Project objectives. (What) 1. What to measure. (Data source?) 1. What is potentially causing problem? 1. List improvements. 1. Result of improvements.2. Project Timescale. (When) 2. How to measure. 2. How to display? (C&E, Pareto, Tally) 2. Current status of initial problem.
3. Set Targets.
1 IAR project started / IAR team created (wk15)2 Increased awareness of carriage costs (wk16)3 Despatch Authorisation Form implemented (wk22)4 Sercom shipments reduced from B4 12 to next-day (wk 24)5 Review of "timed" deliveries (wk24)6 Autoliv ASG shipments now 2-day service (wk24)7 Sercom orders now 2-day pallet service (wk 33)8
9 Saturday shipment ceased unless customer request (wk37)10
11 PROJECT CLOSED!
Cust courier details must be present for EX-WORKS shipments (wk33)
Backlog of August invoices from New UK courier included in Sept. figures (Parceline)
Cust. Orders - ship to frequently
"Timed" deliveries
Incorrect coding of invoices
Partial ShipmentsProduction "missed" commits - Lates to despatch
Initial quote stage (carriage not considered)
General awareness of carriage costs within
Worldmark UKI
TAXI costs
Jan-06Feb-06M
ar-06A
pr-06M
ay-06Jun-06Jul-06A
ug-06S
ep-06O
ct-06N
ov-06D
ec-06
£500
£700
£900
£1,100
£1,300
£1,500
£1,700
£1,900
£2,100
£2,300
£2,500
£2,700
£2,900
£3,100
Taxi Invoice costs per month
C AR R IAGE W ITH IN U K
C AR R IAGE TO IR ELAN D
C AR R IAGE TO EU R OPE
C AR R IAGE TO U SA / MEXIC O
C AR R IAGE TO FAR EAST
C AR R IAGE TO R EST OF WOR LD
EXC EPTION AL C AR R IAGE
72
00
07
20
01
72
02
07
20
30
72
04
07
20
50
72
06
0
£0 £5,000£10,000
Carriage costs by region
Worldmark paying courier costs (DDP) - Should all shipments be Ex-works?
"Hidden" duties & taxes
Wrong courier choice / selected (Royal Mail docs.)
No.4 / No.6 / R & D despatch processes (should these all be separate accounts?)
Unauthorised shipmentsUse of incorrect courier account numbers
Awareness of carriage terms / costs within Worldmark "SCUD" team
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%
10.0%
£5,000
£10,000
£15,000
£20,000
£25,000
£30,000
£35,000
£40,000
£45,000
£50,000
% Carriage Costs v Carriagable Sales & Actual Carriage Costs
Jan-06 Feb-06 Mar-06 Apr-06 £-
£200,000 £400,000 £600,000 £800,000
£1,000,000 £1,200,000 £1,400,000 £1,600,000
Total Sales v Carriagable Sales
Jan-06 Feb-06 Mar-06 Apr-060.0%
2.0%
4.0%
6.0%
8.0%
10.0%
£5,000 £10,000 £15,000 £20,000 £25,000 £30,000 £35,000 £40,000 £45,000 £50,000
% Carriage Costs v Carriagable Sales & Actual Carriage Costs
1. Define 3. Analysis
5. Control
2. Measure
D M A I C
4. Improvements
To reduce costs of the monthly carriage spend of Worldmark East Kilbride
IAR NO: 007Start Date: 10 May 2006Team: J. McLaughlin, D. Crawford, S. McMichael, D. Thomson, M. Nikolaidou, P. Sinclair, J.Pioch
Data Entry (incorrect courier details)IFS "Charges" section used incorrectly
SERCOM - poor forecasting / scheduling
Carriage costs too high
Man Machine
Method Material
"Hidden" carriage costs (in Q&E)IFS cost calculations
RMA process controls
Reliabilty of courier vendor
Change of customer delivery address (NABS)
Security of EK courier account numbers
Intercompany documents shipments
Sercom consignment stock process
Same-day shipments / Hand Carry
IARStart
Intercompany order shipments
Courier invoice terms are 30 days
Incorrect coding of invoices
Total Sales Exceptions ExWorks "Carriage" Sales 6% Cost INTERNAL CARRIAGE FINANCIAL CODES
Jan-06 £ 1,066,595 £ 650,543 £ 56,706 £ 359,345 £ 20,863 5.8%
6.0%70502 RENTALS / STORAGE
Feb-06 £ 1,153,796 £ 782,209 £ 172,159 £ 206,517 £ 11,490 5.6% 72000 CARRIAGE WITHIN UKMar-06 £ 1,355,144 £ 1,012,335 £ 49,112 £ 293,697 £ 27,216 9.3% 72001 CARRIAGE TO IRELANDApr-06 £ 1,282,523 £ 779,946 £ 43,394 £ 459,184 £ 15,569 3.4% 72002 CARRIAGE BREADMANMay-06 £ 1,240,357 £ 684,913 £ 32,475 £ 522,969 £ 23,379 4.5% £ 31,413 £ 8,034 72010 CARRIAGE WITHIN IRELANDJun-06 £ 1,285,742 £ 872,516 £ 51,925 £ 361,301 £ 19,230 5.3% £ 21,702 £ 2,472 72020 CARRIAGE TO EUROPEJul-06 £ 1,189,117 £ 795,643 £ 51,442 £ 342,032 £ 15,403 4.5% £ 20,545 £ 5,142 72030 CARRIAGE TO USA/MEXICOAug-06 £ 1,121,151 £ 768,817 £ 25,634 £ 326,700 £ 6,463 2.0% £ 19,624 £ 13,161 72040 CARRIAGE TO FAR EASTSep-06 £ 955,381 £ 471,259 £ 30,219 £ 453,903 £ 11,832 2.6% £ 27,265 £ 15,433 72050 CARRIAGE TO R.O.W.Oct-06 £ 1,056,824 £ 493,064 £ 19,864 £ 543,896 £ 11,732 2.2% £ 32,670 £ 20,938 72060 EXCEPTIONAL CARRIAGENov-06 £ 1,174,400 £ 764,920 £ 16,935 £ 392,546 £ 11,807 3.0% £ 23,579 £ 11,773 72070 CARRIAGE WITHIN HUNGARYDec-06 £ 1,009,051 £ 513,300 £ 7,949 £ 487,802 £ 11,060 2.3% £ 29,301 £ 18,241 84900 COST OF SALES - SUBCON OTHERS
£ 95,194 89300 COST OF SALES - CARRIAGE INWARDS
CARRIAGE COST PER REGIONAccount Description Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
72000 £2,885.72 £1,875.99 £2,104.32 £3,291.42 £2,856.84 £4,242.58 £1,416.97 £2,995.62 £4,609.94 £4,694.71 £2,314.36 £3,245.06
72001 £4,882.22 £3,483.81 £5,509.00 £5,954.06 £3,990.52 £6,718.39 £3,522.24 £5,223.53 £1,416.44 £3,468.64 £2,750.71 £1,925.77
72020 £3,574.73 £5,163.05 £8,577.52 £4,898.95 £7,159.04 £5,178.26 £970.37 £3,985.59 £2,106.91 £1,329.95 £1,931.20 £2,502.32
72030 £4,802.66 £1,708.71 £4,574.64 £721.03 £1,233.49 £4,168.87 -114.86 £859.66 £1,235.52 £567.53 £1,112.57 £490.24
72040 £2,392.40 £680.80 £2,691.82 £2,713.44 £3,207.97 £4,396.74 £2,052.06 £3,265.36 £2,349.22 £1,670.94 £3,503.35 £2,896.55
72050 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72060 £1,084.53 £1,155.76 £1,492.14 £553.24 £1,487.93 £0.00 £6,418.85 £0.00 £113.67 £0.00 £194.34 £0.00£19,622.26 £14,068.12 £24,949.44 £18,132.14 £19,935.79 £24,704.84 £14,265.63 £16,329.76 £11,831.70 £11,731.77 £11,806.53 £11,059.94
Carriage Spend
Carriage "v" Sales %
Pre- IAR Average %
Cost Saving YTD
CARRIAGE WITHIN UKCARRIAGE TO IRELANDCARRIAGE TO EUROPE
CARRIAGE TO USA / MEXICOCARRIAGE TO FAR EAST
CARRIAGE TO REST OF WORLDEXCEPTIONAL CARRIAGE
Total Sales Exceptions ExWorks "Carriage" Sales
Jan-07 £ 836,029 £ 597,228 £ - £ 238,801 £ 7,870 3.3%Feb-07 £ 778,476 £ 326,068 £ 1,568 £ 450,841 £ 6,824 1.5%Mar-07 £ 924,208 £ 513,221 £ 1,770 £ 409,217 £ 10,907 2.7%Apr-07 £ 876,747 £ 513,836 £ 500 £ 362,411 £ 10,480 2.9%May-07 £ - £ - £ - £ - £ - 0.0%Jun-07 £ - £ - £ - £ - £ - 0.0%Jul-07 £ - £ - £ - £ - £ - 0.0%Aug-07 £ - £ - £ - £ - £ - 0.0%Sep-07 £ - £ - £ - £ - £ - 0.0%Oct-07 £ - £ - £ - £ - £ - 0.0%Nov-07 £ - £ - £ - £ - £ - 0.0%Dec-07 £ - £ - £ - £ - £ - 0.0%
CARRIAGE COST PER REGIONAccount Description Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07
72000 £6,287.88 -£2,946.70 £3,129.36 £1,541.88 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72001 £1,394.89 £1,991.69 £1,324.99 £1,547.42 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72020 £1,960.99 £4,755.32 £1,889.24 £1,487.10 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72030 £636.41 £1,965.57 £3,235.33 £5,540.69 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72040 £153.98 £1,058.31 £1,328.34 £362.74 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72050 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
72060 £435.47 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00£10,869.62 £6,824.19 £10,907.26 £10,479.83 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00 £0.00
Carriage Spend
Carriage "v" Sales %
CARRIAGE WITHIN UKCARRIAGE TO IRELANDCARRIAGE TO EUROPE
CARRIAGE TO USA / MEXICOCARRIAGE TO FAR EASTCARRIAGE TO REST OF WORLDEXCEPTIONAL CARRIAGE
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 £-
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
% Carriage Costs v Carriagable Sales & Actual Carriage Costs 2007 Carriage Spend Carriage "v" Sales %
4 of 16
IAR 007 Action LogKey: Green
AmberRedBlue
Ref Action Actionee Date Initiated Target Date Status Date Completed
1 IAR team created Jim McLaughlin 5/10/2006 5/12/2006 Closed 15/05/2006
2 Jim McLaughlin 5/22/2006 5/29/2006 Closed 05/06/2006
3 Investigate into why March 06 invoiced carriage costs look very high Jim McLaughlin 7/6/2006 7/14/2006 Closed 18/07/2006
4
5
6
7
8
9
10
11
12
Discuss with Mick McCann the possibility of adding additional colunms to the
5 of 16
On TrackConcern/SlippingBehind ScheduleClosed
Comments
Invoices were incorrectly "coded". All carriage invoices will now be coded by Logistics dept.
High Priority (3) IAR # IAR Leader
007a Jim McLaughlinSERCOM consignment stock process
IAR # IAR LeaderIntercompany order shipments 007b Jim McLaughlinWorldmark paying courier costs (DDP) - Should all shipments be Ex-works?IFS cost calculations
RMA process controlsCust. Orders - ship to frequentlyPartial ShipmentsTimed deliveries
Medium Priority (2)
Taxi CostsAwareness of carriage terms / costs within Worldmark "SCUD" team
Low Priority (1)
Unauthorised ShipmentsGeneral Awareness of carriage costs within Worldmark UKIChange of customer address (NABS)Data entry (incorrect courier detailsUse of incorrect courier account Security of EK courier account numbersInitial quote stage (carriage not considered)IFS "Charges" section used Hidden carriage costs (in Q&E)Reliabilty of courier Same-day shipments / Hand CarryHidden duties & taxesWrong courier choice / selected (Royal Mail No.4 / No.6 / R & D despatch processes (should these all be separate accounts?)Intercompany documents shipmentsProduction "missed" commits - Lates to despatch
COURIER COMPANY Jan-06 Feb-06 Mar-06 Apr-06BARSAN GLOBAL LOGISTICS LTD - - - - BAX GLOBAL - - BURNS EXPRESSDALPA INTERNATIONAL LTDBUSINESS POST EXPRESS 1,843.48 627.62 812.15 2,879.79 PARCELINEDHL INTERNATIONAL LTD - - 181.65 10.00 - ECOSSE WORLD EXPRESS LTD 805.60 498.20 2,671.20 940.50 EXPRESS CARGO FORWARDING LTD 231.00 57.75 142.80 - FEDERAL EXPRESS EUROPE 7,296.46 2,705.76 7,501.79 5,208.94 GEOLOGISTICS LTD 1,640.00 269.00 580.08 515.00 HAUSER LTD 93.51 98.71 INTERLINK IRELAND 52.70 SERCOM SOLUTIONS - - - 235.96 TNT INTERNATIONAL UK LTD 29.39 192.25 1,162.84 347.26 TNT UK LTD 110.80 812.12 524.95 107.70 UNITED PARCEL SERVICE 5,727.30 7,442.36 9,749.29 6,980.04 WEAVER PALLET / UNITED PALLETS 104.00 398.00 146.00 265.00 WORLDMARK HUNGARY - - - - WORLDMARK MEXICO 649.70 - - 5.37 - PARCELS DELIVERED BY TAXI - - - URGENT HAND CARRIED DELIVERIES 100.00 - 68.06 235.96
BARSAN GLOBAL LOGISTICS LTD
BAX GLOBAL
BURNS EXPRESS
DALPA INTERNATIONAL LTD
BUSINESS POST EXPRESS
PARCELINE
DHL INTERNATIONAL LTD
ECOSSE WORLD EXPRESS LTD
EXPRESS CARGO FORWARDING LTD
FEDERAL EXPRESS EUROPE
GEOLOGISTICS LTD
HAUSER LTD
INTERLINK IRELAND
SERCOM SOLUTIONS
TNT INTERNATIONAL UK LTD
TNT UK LTD
UNITED PARCEL SERVICE
WEAVER PALLET / UNITED PALLETS
WORLDMARK HUNGARY
WORLDMARK MEXICO
PARCELS DELIVERED BY TAXI
URGENT HAND CARRIED DELIVERIES
-2,000.00 - 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00
B18
j_mclaug: PAYMENT TO UPS FOR CARRIAGE FOR DEL
A19
Weaver pallets have now changed their name to United
B23
j_mclaug: Craig Livingston - Hand Carry to Cz
D23
j_mclaug: C Livingston - Inter Sales Courier
E23
j_mclaug: Urgent deliveries to Sercom Limerick. This cost may be charged back to Mexico
BARSAN GLOBAL LOGISTICS LTD
BAX GLOBAL
BURNS EXPRESS
DALPA INTERNATIONAL LTD
BUSINESS POST EXPRESS
PARCELINE
DHL INTERNATIONAL LTD
ECOSSE WORLD EXPRESS LTD
EXPRESS CARGO FORWARDING LTD
FEDERAL EXPRESS EUROPE
GEOLOGISTICS LTD
HAUSER LTD
INTERLINK IRELAND
SERCOM SOLUTIONS
TNT INTERNATIONAL UK LTD
TNT UK LTD
UNITED PARCEL SERVICE
WEAVER PALLET / UNITED PALLETS
WORLDMARK HUNGARY
WORLDMARK MEXICO
PARCELS DELIVERED BY TAXI
URGENT HAND CARRIED DELIVERIES
-2,000.00 - 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00
May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 431.70 - - - - - - - - 359.15 - - - - - -
59.74 119.48 1,214.37 1,312.22 716.88 1,252.48 - - - 395.00 - 550.00 595.00
2,054.26 2,442.85 2,095.50 1,672.60 - 262.99 - - - 699.21 4,902.48 4,298.95 2,215.93 2,740.77
- - 165.76 24.17 - 122.04 122.04 39.87 - - 1,351.50 -1,227.60 715.50 - 715.50 1,431.00 - - - 4,783.86 9,000.65 - 160.72 4,142.82 3,721.74 2,239.05 4,519.02 3,397.87
348.00 - 209.00 385.00 - - 99.18 - - - 78.30
12.59 12.89 30.90 - - - - - - - - - 974.72 1,511.93 437.14 641.29 13.84 - 829.68 606.62 191.97 - 55.06 104.72 9,257.05 9,034.78 4,237.21 7,929.69 1,770.10 3,064.05 2,181.33 2,485.16 104.00 - - - - - - - 101.86 - - - - 337.67 - - - - - - 56.70 106.83 129.87 65.88 194.34 54.18 - - 1,035.60 - -
BARSAN GLOBAL LOGISTICS LTD
BAX GLOBAL
BURNS EXPRESS
DALPA INTERNATIONAL LTD
BUSINESS POST EXPRESS
PARCELINE
DHL INTERNATIONAL LTD
ECOSSE WORLD EXPRESS LTD
EXPRESS CARGO FORWARDING LTD
FEDERAL EXPRESS EUROPE
GEOLOGISTICS LTD
HAUSER LTD
INTERLINK IRELAND
SERCOM SOLUTIONS
TNT INTERNATIONAL UK LTD
TNT UK LTD
UNITED PARCEL SERVICE
WEAVER PALLET / UNITED PALLETS
WORLDMARK HUNGARY
WORLDMARK MEXICO
PARCELS DELIVERED BY TAXI
URGENT HAND CARRIED DELIVERIES
-2,000.00 - 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00
H8
j_mclaug: INCLUDES PAYMENT TO DHL BEIJING 12.07.06
H18
j_mclaug: UPS credit received for £84.78. ADJUST CODING TO UPS INV 200603928
H23
j_mclaug: Wei Zho took parts to Hong Kong
BARSAN GLOBAL LOGISTICS LTD
BAX GLOBAL
BURNS EXPRESS
DALPA INTERNATIONAL LTD
BUSINESS POST EXPRESS
PARCELINE
DHL INTERNATIONAL LTD
ECOSSE WORLD EXPRESS LTD
EXPRESS CARGO FORWARDING LTD
FEDERAL EXPRESS EUROPE
GEOLOGISTICS LTD
HAUSER LTD
INTERLINK IRELAND
SERCOM SOLUTIONS
TNT INTERNATIONAL UK LTD
TNT UK LTD
UNITED PARCEL SERVICE
WEAVER PALLET / UNITED PALLETS
WORLDMARK HUNGARY
WORLDMARK MEXICO
PARCELS DELIVERED BY TAXI
URGENT HAND CARRIED DELIVERIES
-2,000.00 - 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00 12,000.00
COURIER INVOICE COSTS PER MONTH - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
10,000.00
BUSINESS POST EXPRESS - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-0
6
Oct-06
Nov-0
6
Dec-0
6 -
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
10,000.00
UNITED PARCEL SERVICE - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-0
6
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6-500.00
1,500.00
3,500.00
5,500.00
7,500.00
9,500.00
FEDERAL EXPRESS - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-0
6
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6
-1,500.00
-1,000.00
-500.00
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
ECOSSE WORLD EXPRESS - 2006
Jan-
06
Feb-0
6
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-0
6
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
TNT UK LTD - 2006
Jan-
06
Feb-0
6
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
TNT INTERNATIONAL UK LTD - 2006
Jan-
06
Feb-0
6
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-0
6
Sep-0
6
Oct-06
Nov-0
6
Dec-0
6
-500.00
-
500.00
1,000.00
1,500.00
2,000.00
GEOLOGISTICS LTD (Tocanna) - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-0
6
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
WEAVER PALLET EXPRESS - 2006
Jan-
06
Feb-0
6
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-06
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
500.00
1,000.00
1,500.00
2,000.00
BURNS EXPRESS - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-06
May-0
6
Jun-
06Ju
l-06
Aug-0
6
Sep-06
Oct-06
Nov-0
6
Dec-0
6 -
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
10,000.00
PARCELINE - 2006
Jan-
06
Feb-06
Mar-0
6
Apr-0
6
May-0
6
Jun-
06Ju
l-06
Aug-0
6
Sep-06
Oct-06
Nov-0
6
Dec-0
6-50.00
50.00
150.00
250.00
350.00
450.00
550.00
650.00
750.00
DALPA INTERNATIONAL - 2006
Improvement Activity ReportDefine Measure Analyse Improve Control1. Project objectives. (What) 1. What to measure. (Data source?) 1. What is potentially causing problem? 1. List improvements. 1. Result of improvements.2. Project Timescale. (When) 2. How to measure. 2. How to display? (C&E, Pareto, Tally) 2. Current status of initial problem.
3. Set Targets.
1 IAR project started / IAR team created (wk30)2 Sercom shipments reduced from B4 12 to next-day (wk 24)3 New despatch operator/did not consolidate shipments (wk33)4 Sercom shipments now on 2-day pallet service (wk 344)5 Project Closed6789
10
19-Jun20-Jun21-Jun22-Jun23-Jun26-Jun27-Jun28-Jun29-Jun30-Jun4-Jul5-Jul6-Jul7-Jul10-Jul11-Jul12-Jul13-Jul14-Jul17-Jul18-Jul19-Jul20-Jul21-Jul24-Jul25-Jul26-Jul27-Jul28-Jul31-Jul1-A
ug2-A
ug3-A
ug4-A
ug7-A
ug8-A
ug9-A
ug10-A
ug11-A
ug14-A
ug15-A
ug16-A
ug17-A
ug18-A
ug21-A
ug22-A
ug23-A
ug24-A
ug25-A
ug28-A
ug29-A
ug30-A
ug31-A
ug1-S
ep4-S
ep5-S
ep6-S
ep7-S
ep8-S
ep11-S
ep12-S
ep13-S
ep14-S
ep15-S
ep18-S
ep19-S
ep20-S
ep21-S
ep22-S
ep25-S
ep26-S
ep27-S
ep28-S
ep29-S
ep2-O
ct3-O
ct4-O
ct5-O
ct6-O
ct9-O
ct10-O
ct11-O
ct12-O
ct13-O
ct16-O
ct17-O
ct18-O
ct19-O
ct20-O
ct23-O
ct24-O
ct25-O
ct26-O
ct27-O
ct30-O
ct31-O
ct1-N
ov2-N
ov3-N
ov
0
100
200
300
400
500
600
700
Ireland Daily Shipment Costs
Poor forward planning
Poor courier options
Dynamic changes in Dell forecastingNo formal procedures /
documentationSame-day shipments / Hand Carry
WM scheduling system / Poor visibility
Dell delivery expectations
WM / Dell supplier agreement
Limited access to IFS system for Sercom Account Manager
Awareness of carriage costs
29-May
5-Jun
12-Jun
19-Jun
26-Jun
3-Jul
10-Jul
17-Jul
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
£-
£200
£400
£600
£800
£1,000
£1,200
£1,400
% Carriage Costs v Carriagable Sales & Actual Carriage Costs (Sercom)
29-May
5-Jun12-Jun19-Jun26-Jun3-Jul10-Jul17-Jul24-Jul31-Jul7-A
ug14-A
ug21-A
ug28-A
ug4-S
ep11-S
ep18-S
ep25-S
ep2-O
ct9-O
ct16-O
ct23-O
ct30-O
ct6-N
ov13-N
ov20-N
ov27-N
ov4-D
ec11-D
ec18-D
ec25-D
ec1-Jan
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
£-
£200
£400
£600
£800
£1,000
£1,200
£1,400
£1,600
£1,800
£2,000
% Carriage Costs v Carriagable Sales & Actual Carriage Costs (Sercom)
1. Define 3. Analysis
5. Control
2. Measure
D M A I C
4. Improvements
To reduce costs of the carriage spend of Worldmark East Kilbride for shipment to Ireland (Sercom Solutions)
IAR NO: 007aStart Date: 18th July 2006Team: J. McLaughlin, D. Crawford, Joanna Pioch
Poor planningPoor Communication
Sercom consignment stock process
Man Machine
Method Material
Daily shipments
Partial Shipments
Production "missed" commits - Lates to despatch
Initial quote stage (carriage not considered)
Worldmark paying courier costs (DDP) - Should all shipments be Ex-works?
Awareness of carriage terms / costs within Worldmark "SCUD" team
Data Entry (incorrect details)
IFS "Charges" section used incorrectly ( flyer costs amotised into label unit price)
SERCOM - poor forecasting / scheduling
Sercom Carriage too
high
Man Machine
Method Material
Poor Focus
Defective labels returns from Sercom
Defective labels returns from Sercom
Raw material suppliers (lates)
Re-prioritisation of Sercom orders
(Production)
IARStarted
DATA SECTION
Invoice date Sales Value UPS Shipments Burns Shipments Irish Costs Percentage 3% Cost29-May £ 42,409.20 £ 1,186.39 £ - £ 1,186.39 2.8%
3.0%
5-Jun £ 20,541.56 £ 715.70 £ - £ 715.70 3.5%12-Jun £ 20,065.38 £ 837.15 £ - £ 837.15 4.2%19-Jun £ 27,111.58 £ 920.33 £ - £ 920.33 3.4%26-Jun £ 27,823.98 £ 1,224.83 £ - £ 1,224.83 4.4%3-Jul £ 37,083.64 £ 847.05 £ 59.74 £ 906.79 2.4%10-Jul £ 51,354.22 £ 768.41 £ - £ 768.41 1.5%17-Jul £ 35,242.51 £ 770.37 £ - £ 770.37 2.2%24-Jul £ 13,385.09 £ 206.37 £ - £ 206.37 1.5%
#REF!
£ 407.88 £ 201.51 31-Jul £ 39,854.16 £ 659.14 £ - £ 659.14 1.7% £ 1,214.45 £ 555.31 7-Aug £ 18,092.53 £ 420.88 £ - £ 420.88 2.3% £ 551.32 £ 130.44 14-Aug £ 49,983.23 £ 1,710.42 £ 96.82 £ 1,807.24 3.6% £ 1,523.11 -£ 284.13 21-Aug £ 25,950.51 £ 236.37 £ 58.00 £ 294.37 1.1% £ 790.77 £ 496.40 28-Aug £ 28,574.37 £ 49.73 £ 116.00 £ 165.73 0.6% £ 870.73 £ 705.00 4-Sep £ 25,850.23 £ 39.42 £ 116.00 £ 155.42 0.6% £ 787.72 £ 632.30 11-Sep #REF! £ 376.95 £ 116.00 £ 492.95 #REF! #REF! #REF!18-Sep #REF! £ 167.52 £ 174.00 £ 341.52 #REF!
#REF!
#REF! #REF!25-Sep #REF! £ 83.34 £ 116.00 £ 199.34 #REF! #REF! #REF!2-Oct #REF! £ 392.54 £ 58.00 £ 450.54 #REF! #REF! #REF!9-Oct #REF! £ 345.14 £ 116.00 £ 461.14 #REF! #REF! #REF!16-Oct #REF! £ 154.85 £ 604.00 £ 758.85 #REF! #REF! #REF!23-Oct #REF! £ 148.06 £ 290.00 £ 438.06 #REF! #REF! #REF!30-Oct #REF! £ 376.95 £ 116.00 £ 492.95 #REF! #REF! #REF!6-Nov #REF! £ 219.66 £ 58.00 £ 277.66 #REF! #REF! #REF!13-Nov #REF! £ 152.62 £ 174.00 £ 326.62 #REF!
#REF!
#REF! #REF!20-Nov #REF! £ 152.44 £ 174.00 £ 326.44 #REF! #REF! #REF!27-Nov #REF! £ 104.92 £ 232.00 £ 336.92 #REF! #REF! #REF!4-Dec #REF! £ 39.06 £ 168.00 £ 207.06 #REF! #REF! #REF!11-Dec #REF! £ 387.23 £ 232.00 £ 619.23 #REF! #REF! #REF!18-Dec #REF! £ 106.17 £ 290.00 £ 396.17 #REF! #REF! #REF!25-Dec #REF! £ 73.98 £ 174.00 £ 247.98 #REF! #REF! #REF!1-Jan #REF! #REF! £ - #REF! #REF! #REF! #REF!
#REF!
Pre- IAR Average %
Cost Saving YTD
R65
j_mclaug: 29/8/06 Invoice # 46679 had incorrect value of £80. Buirns to issue credit note for overcharge
R74
Cost included a same-day flyer from Belfast as P.J. required parts that were shipped originally on a 2-day service -COST £310
Improvement Activity ReportDefine Measure Analyse Improve Control1. Project objectives. (What) 1. What to measure. (Data source?) 1. What is potentially causing problem? 1. List improvements. 1. Result of improvements.2. Project Timescale. (When) 2. How to measure. 2. How to display? (C&E, Pareto, Tally) 2. Current status of initial problem.
3. Set Targets.
1 IAR project started / IAR team created (wk35)2 Collect Shipment Data3 Project Closed as not too large an issue!456789
10
353637383940414243444546474849505152 1 2 3 4 5 6 7 8 9 100
5
10
15
20
25
30
Volume of orders "V" Incorrect Details
# of Ex-Works Shipments (Order Lines)# of Orders Line With Correct Details
Week Number
# of
ord
ers
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
0%
20%
40%
60%
80%
100%
% of Ex-Works Orders Loaded Correctly (Weekly)
Week Number (2006)35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
0
0.2
0.4
0.6
0.8
1
% of Ex-Works Orders Loaded Correctly (Weekly)
Week Number (2006)
1. Define 3. Analysis
5. Control
2. Measure
D M A I C
4. Improvements
Improve control of EX-WORKS shipments
IAR NO: 007bStart Date: 28 August 2006Team: J. McLaughlin, D. Crawford, D. Thomson, M. Nikolaidou, P. Sinclair,
Poor Control Of Ex-Works Shipments
Man Machine
Method Material
Poor awareness of Delivery Terms
Poor Personnel Disciplines (not checking details)
Pre-arranged Shipment Agreements in IFS
Inadequate Training for Internal Sales
Sales Work Instructions Inadequate / not updated
Delivery Terms not considered at Qoute Stage
Worldmark Inter-Company Shipping Agreements
Courier Rates lower for Worldmark EK
Glossary of Shipment TermsEXW EX WORKS WORLDMARK PAY NO COSTS TOWARDS CARRIAGE AND DUTIES & TAXES
DDP DELIVERED DUTY PAID WORLDMARK PAY ALL COSTS
DDU DELIVERED DUTY UNPAID WORLDMARK PAY CARRIAGE / CUST. PAYS DUTY & TAXES
CIF COST INSURANCE AND FREIGHT
FCA FREE CARRIER
FAS FREE ALONGSIDE SHIP
FOB FREE ON BOARD
CFR COST AND FREIGHT
“Ex works” seller (Worldmark) makes delivery to the buyer (Customer) at his factory. This means that the buyer is taking responsibility for all the carrage costs and risks of transporting the goods from the seller’s factory. The buyer
MUST also nominate c
“Delivered duty paid “ means that the seller delivers the goods to the buyer at a named point of destination and takes responsibility for payment of all duty and other import and clearance costs for the import of the goods into the country
of importation.
“Delivered duty unpaid” means that the seller delivers the goods at a named place of destination. However the buyer is responsible for the costs of unloading the goods and paying for any import duty. Risk of loss or damage to the
goods passes to the buye
“Cost, Insurance and Freight” means that the seller is responsible for the costs up to the point at which the goods are unloaded in the port of destination. The buyer takes responsibility for all risks of loss from the point at which the
goods pass acros
“Free Carrier” seller delivers the goods to a carrier named by the buyer at a place nominated by the buyer (this may be the sellers premises). This term can relate to all means of transport.
“Free Alongside Ship” means that the seller at his cost is responsible for delivering the goods to the quayside in the exporting country at a time and place nominated by the seller.
“Free on Board” means that the seller is responsible for the costs of getting the goods to port and loading them on board the a named ship at a time and place nominated by the buyer
“Cost and Freight” means that the seller is responsible for the costs up to the point at which the goods are unloaded in the port of destination. The buyer takes responsibility for all risks of loss from the point at which the goods pass
across the ships
Improvement Activity ReportDefine Measure Analyse Improve Control1. Project objectives. (What) 1. What to measure. (Data source?) 1. What is potentially causing problem? 1. List improvements. 1. Result of improvements.2. Project Timescale. (When) 2. How to measure. 2. How to display? (C&E, Pareto, Tally) 2. Current status of initial problem.
3. Set Targets.
123456789
10
1. Define 3. Analysis
5. Control
2. Measure
D M A I C
4. Improvements
IAR NO: 007aStart Date: Team:
Man Machine
Method Material
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