Page 389 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

Design and Improvement of Service Processes—Process Management 349

The common decision variables for a logistics and distribution process
include
• Number of vehicles and drivers
• Facility size and layout
• Routing sequence
• Frequency of deliveries and delivery size
• Pickup loads from vendors, etc., on the backhaul or return to the
warehouse where possible to avoid deadheading (i.e., driving
empty).
The common problems in the logistics and distribution process include
1. Lost items
2. Damaged items
3. Shipment delays
4. Shipment errors
5. Excessive shipping cost
6. Poor customer service quality
These common problems are often caused by
• Poor logistics and distribution process design
• Poor scheduling and routing
• Unbalanced processes or bottlenecks
• Poor operation management
• Poor work flow management
• Poor equipment maintenance
• Poor service provider discipline or motivation

10.3.11 Transportation Processes
Transportation services involve the movement of people from one place to
another. A fundamental difference between transportation and logistics and
distribution systems is that people are being transported rather than goods.
Another important difference is that the routes in transportation services
tend to be fixed whereas the routes in delivery services are somewhat
flexible. Customers are interested in convenient and fast transportation.
Cost of transportation plays a significant role in the selection of the service.
Because set schedules and routes are used in transportation, customers
expect reliable service. Two types of pickup and drop-off points are used in
transportation: multiple pickup and drop-off points and single pickup and
drop-off points. In multiple pickup and drop-off point systems, customers
enter and leave the transportation vehicle independently. In single pickup