Reducing Freight Costs of Palletized Handhelds

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REDUCING FREIGHT COSTS OFPALLETIZED HANDHELDSEmployee Communications | 27/03/14 |

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The word quality is often synonymous with Lean Six Sigma (LSS). People imagine a manufacturing line

improving its yields by reducing defects. Jeff Lam and Eric Woollings have proved there’s more to the quality

story.

You’ve already read about Richard Walsh optimizing the beta tester process in this special series about LSS

projects. Today you’ll learn how Jeff, a Manufacturing Engineering Specialist, and Eric, Manager, Americas

Logistics and Global Shipping Process, worked together to reduce freight costs per unit by improving the

palletization and shipping processes.

Using the LSS methodology, this project improved palletization and shipping processes by double-stacking

pallets and defining the right size for all Logistics freight service providers. Some of the tools used were

FMEA, Ishikawa (fishbone) diagram and Force Field Analysis. Annualized savings of $103,120 based on

January 2014 supply plan volumes is projected. Future savings will be $0.04 per unit and will be a constant

and ongoing direct cost savings.

The process was implemented on March 3, shortly after Jeff and Eric received

their Greenbelt certification in February.

“Because we are the process owners, we didn’t have to hand off the

implementation to anyone else,” explained Eric, acknowledging how that

experience and deep knowledge of the issues helped make the analysis easier.

That didn’t mean it was smooth sailing.

“To accurately perform proper cost analysis, multiple data mining and analyses

of the six month historicals and forecast supply plans were required for validity

reasons as they were constantly changing,” said Jeff.

Jeff and Eric spent some time explaining how LSS normally focuses on quality

ON THIS ENTRY

TitleReducing Freight Costs of PalletizedHandhelds

AuthorEmployee Communications

DateMarch 27, 2014

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Comments12 Comments

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BlackBerry Lean Six Sigma TrainingAvailable

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and reducing variation. At times it was a struggle to apply the methodology to their palletization processes. “If

you look at our project document, our goal and problem statement were not tied to reducing variability or

defects,” said Eric. It was simply about reducing costs.

“You don’t have to do [LSS] only because your goal is to reduce variability,” Eric pointed out. Not only did they

reduce per unit freight costs, they standardized a method for palletizing products going forward. “We don’t have

to second guess ourselves anymore and define different pallet configurations for different carriers,” said Jeff. At

which point Eric joked, “Hey Jeff, we did reduce variability!”

Jeff and Eric have proved that not only can LSS apply to seemingly non-quality situations, it can reduce

costs, improve processes which ultimately reduce time spent on the process and troubleshooting variation,

and they can have fun doing it.

To learn more about the Lean Six Sigma training at BlackBerry, visit go/sixsigma or ask a question in the

comments below. If you have a process improvement idea, submit it at go/blackberryideas.

12 COMMENTS

MYKHAYLO RYECHKIN • 1 hour ago

Great work, congrats!!

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CHRISTINE LAKE • 2 hours ago

Way to go!!! Congratulations.

0 0 | Reply

KATHY KIBBLE • 3 hours ago

Well done!

0 0 | Reply

ANA SHIMATA • 4 hours ago

awesome!! btw you guys look so cute :)

0 0 | Reply

LEE SMITH • 5 hours ago

Awesome work, way to go!!

0 0 | Reply

DIANA PEREZ • 15 hours ago

C O N G R A T U L A T I O N S G U Y S ! ! !

0 0 | Reply

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MARIA RODRIGUEZ • 20 hours ago

Congratulations!!!!

0 0 | Reply

RICK CLUETT • 21 hours ago

Awesome!

0 0 | Reply

LETY AMBRIZ GUTIERREZ • 21 hours ago

Congratulations!

1 0 | Reply

KYLE REID • 21 hours ago

Well done Gents!

1 0 | Reply

CASSANDRA FOGLE • 22 hours ago

Great work guys. Eric, I'll look to you for coaching tips on my project! :)

2 0 | Reply

ANDREW HICKEY • 22 hours ago

Well done gentlemen! Super!

3 0 | Reply