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    A distribution center receives orders from dealers within a 30-mile radius. To improve order processing, a team mapped the flow of dealer orders from fax receipt to delivery. They found orders took an average of 7.5 hours from fax to delivery for in-stock items, with some delays and errors at each step, including fax processing, internal mail, order picking, and delivery. If an item was out of stock, it would take longer - usually a week - for a special shipment from the plant. The team will analyze the process map and data to recommend improvements to speed up order filling and reduce errors.

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    A distribution center receives orders from dealers within a 30-mile radius. To improve order processing, a team mapped the flow of dealer orders from fax receipt to delivery. They found orders took an average of 7.5 hours from fax to delivery for in-stock items, with some delays and errors at each step, including fax processing, internal mail, order picking, and delivery. If an item was out of stock, it would take longer - usually a week - for a special shipment from the plant. The team will analyze the process map and data to recommend improvements to speed up order filling and reduce errors.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    5 views3 pages

    Assignment 2 Process Mapping at Distribution Center

    Uploaded by

    kireeti415
    A distribution center receives orders from dealers within a 30-mile radius. To improve order processing, a team mapped the flow of dealer orders from fax receipt to delivery. They found orders took an average of 7.5 hours from fax to delivery for in-stock items, with some delays and errors at each step, including fax processing, internal mail, order picking, and delivery. If an item was out of stock, it would take longer - usually a week - for a special shipment from the plant. The team will analyze the process map and data to recommend improvements to speed up order filling and reduce errors.

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    © All Rights Reserved
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    Flag for inappropriate content
    of 3

    Principles of Supply Chain Management

    MGMT 371 ASSIGNMENT # 2 (100points)


    Dr. CHARLES A.BRIGGS.
    CASE STUDY:
    PROCESS MAPPING AT A DISTRIBUTION CENTER

    A National distribution center (DC) has responsibility for supplying


    products to dealers located within a 30-mile radius of its location. Lately,
    the DC has been receiving a lot of complaints from dealers regarding lost
    orders and the time required to process orders for items that are already in
    stock at the DC. A process improvement team has decided to study the
    process in more detail by tracing the flow of a dealer order through the
    DC, starting from when the dealer faxes in the order and ending with the
    order's delivery to the dealer.
    The team has collected the following information:
    1. The dealer faxes an order to the DC. Sometimes the paper gets jammed
    in the fax machine or an order gets thrown away accidentally.
    Employees estimate that about I in 25 orders is "lost" in this manner.
    2. The fax sits in an inbox anywhere from zero to four hours, with an
    average of two hours, before the fax is picked up by the DC's internal
    mail service.
    3. It takes the internal mail service one hour, on average, to deliver the
    order to the picking area (where the desired items are picked off the
    shelves). The range is 0 to 1.5 hours. In addition, 1 out of 100 orders is
    accidentally delivered to the wrong area of the DC, resulting in
    additional "lost" orders.

    4. Once an order is delivered to the picking area, it sits in the clerk's inbox
    until the clerk has time to process it. The order might wait in the inbox
    anywhere from zero to two hours, with an average time of one hour.

    5. Once the clerk starts processing the order, it takes her about five
    minutes to determine whether the item is in stock. If the requested
    product is in stock, a worker picks the order and puts it into a box.

    6. Average picking time is 20 minutes, with a range of 10 minutes to 45


    minutes.

    1
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    7. Next, an inspector takes about two minutes to check the order for
    correctness. Even with this inspection, 1 out of 200 orders shipped has
    the wrong items or quantities .

    8. A local transportation firm then takes the completed order and delivers
    it to the dealer (average delivery time is two hours, but can be anywhere
    from one to three hours).

    The transportation firm has an exemplary performance record:

    Over the past five years, the firm has never lost or damaged a shipment or
    delivered to the wrong dealer. If the item being ordered is out of stock, the
    clerk notifies the dealer and passes the order, on to the plant, which will
    arrange a special shipment directly to the dealer, usually within a week.

    Question?
    1. Using the symbols from slide 24 in chapter 3 or any other one you
    are confortable with using word document, construct or draws the
    process map for the order-filling process of in-stock items.
    As you read through the case ask yourself the following questions:
    What is the focal point of the process mapping effort?
    What are the boundries and the start and stop points for the
    process map?
    What detail should or not be included in the process map?

    NOTE!
    The map should includes detailed information on the times required and in
    percentages at each step where necesary in the process, as well as various
    quality problems.

    2. What is the average time (in minutes or hours) it will take between
    ordering and delivery for an in-stock item?

    3. Believing that if an item is not in stock it will take longer time for
    it to be delivered. If this should be the case, what will be the total
    time it will take for the Distribution Center to deliver to the
    dealers.

    4. Explain your findings and make precise recommendation based on


    your findings.

    2
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    3
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