3/28/2014 Reducing Freight Costs of Palletized Handhelds
http://lifeatrim/articles/2014/243/reducing_freight_costs_of_palletized_handhelds.htm 1/3
REDUCING FREIGHT COSTS OFPALLETIZED HANDHELDSEmployee Communications | 27/03/14 |
Unlike Article
16 | 12 | 534
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
Tags
Comments12 Comments
RELATED STORIES
BlackBerry Lean Six Sigma TrainingAvailable
Introducing…The Process OfficeTeam
Optimizing Beta Tester Selection
Core Qualification Reliability Testing
ME COMPANY ACTIONS EXTERNAL SITES
3/28/2014 Reducing Freight Costs of Palletized Handhelds
http://lifeatrim/articles/2014/243/reducing_freight_costs_of_palletized_handhelds.htm 2/3
SUBMIT
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!!
0 0 | Reply
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
3/28/2014 Reducing Freight Costs of Palletized Handhelds
http://lifeatrim/articles/2014/243/reducing_freight_costs_of_palletized_handhelds.htm 3/3
HOME CONTENT ARCHIVE COMMENTING GUIDELINES CONTENT SUBMISSION GUIDELINES
CONTACT US RELEASE NOTES REGIONAL HR POLICIES
© 2014 BLACKBERRY. FOR INTERNAL USE ONLY
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
