Page 388 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

348 Chapter Ten

centers and transshipment centers, effectiveness of the computer information
system and shipment tracking system, and effectiveness of the paperwork
process.

Vehicle Usage and Carrying Capacity Utilization
Capacity utilization levels of key resources, such as vehicles and handling
equipment, are often indicators of bottlenecks or wastes. Overutilized or
fully utilized resources often indicate that they are bottlenecks. Underutilized
resources often indicate that they create waste.

Customer—Service Provider Interaction
In the logistics and distribution process, the amount of customer–service
provider interaction is less than that of the customer service process. The
interaction mostly happens in the shipping and receiving.

Logistics and Distribution Process Analysis
Typical activities in the logistics and distribution process include
• Taking customer shipment orders
• Verifying and registering shipment orders into the shipment tracking
system
• Sorting shipment goods
• Scheduling and routing of shipments
• Loading and unloading of shipments
• Different modes of transportation (land vehicles, sea, air)
• Processing paperwork
The resources needed for logistics and distribution service processes typically
include vehicles, ships, airplanes, air hubs, sorting centers, a high-capacity
computer information system, a sophisticated scheduling and routing system,
shipment collection and delivery centers, and well-trained employees.

The answers to the following questions may be very helpful in designing
and improving a logistics and distribution process:
• How many of each vehicle are required to meet customer demand?
• Which delivery routes will maximize productivity?
• How many loads per vehicle maximizes the productivity?
• How many shifts and service providers are needed?
• What procedures can be used to minimize service or product selection
time?