Problem : Accuracy – Location & Inventory
Department : Inbound
Area : Binning
Suggestion :
Want to solve the problem by using method of - DMAIC - PDCA
Assignment taken based VP mail on accuracy for Location & Inventory

STEPS
DEFINE Identify the problem –
Accuracy on location and inventory.
Unable to maintain of accuracy on location and inventory.
Based on month on month audit report we are in 80% to 90%
MESSURE Identify the gap between current and required performance.
Gap to be achieved – min Inventory accuracy 99.99% &
Location accuracy 100%
ANALYSE List out prioritize potential causes of the problem.
Identified causes of problem listed out and made new format
for improve.
IMPROVE Created simplest and easiest plan.
Test solutions using Plan-Do-Check-Act (PDCA) cycle method.
CONTROL Formatted new format for future to sustain the improvement
efficiency.
DMAIC – STEPS

Objective Causes
PLAN Identified the
problem
WHAT
WHO
WHERE
Accuracy on
location
& inventory
As a team
Binning
1. Binning team.
2. Picking team.
3. System person .
4. Month end and
load pressure .
5. Improper Bin audit.
6. More than 3
materials in one single
location.
7. Last 4 Digit materials
in same and next
location.
8. Improper training on
profile.
Need to
explain the
purpose about
maintaining of
accuracy on
location and
inventory to
our picking and
binning team.
DO Decided - by
giving training
on profile
knowledge and
to do bin audit
on daily basis .
we can achieve
the task.
Make sure that
to understand
where we are
why we need
to do and what
we have to do.
Task lead
person should
understand the
concept and
should explain
the team what
benefit and loss
we are going to
get based on
the task.
Should be identified :
1.Team leader
2.Team size
3.Trainer
4.System person
5.Task time frame
6.Old data on task
7.New format
Audit should be done
on binned materials of
UC and STO, empty
location, less than 5
Qty materials and last
4 digit number same
and next location with
support of 2 exclusive
persons .
Started trailing
CHECK Measurement
on trailing to be
registered.
Need to
determine
effectiveness
of plan.
Next level of
training has to
be carried out
to improve task
level & here
communication
will role major
role.
New format has to be made
and record should be done on
day to day wise without fail.
Before starting work
discussion should be
happened with team on
previous day activity &
suggestion .
Monitoring on
performance and
validate the training.
Analyze
should be
happened on
day to day on
our task and
aim.
ACT Review on
feedback.
Planned to
start 2nd
phase
trail.

Month (in % - after month end first week audit report)
Zone APRIL MAY JUNE JULY AUG
A 92 94 91 92 88
B 82 79 81 70 75
C 88 85 86 83 88
D 91 86 71 76 84
F 86 81 86 84 74
G 90 85 84 89 85
K 86 80 85 72 70
Avg 88 84 83 81 81
Accuracy on zone location

Sl.No Month
TVS
Accepted
Short Wrong Damage Excess Total
1 April 26 16 8 2 0 26
2 May 60 33 27 0 0 60
3 June 45 29 16 0 0 45
4 July 44 24 16 2 2 44
5 August 50 23 23 4 0 50
6 Sept 2 0 1 1 0 2
G Total 227 125 91 9 2 227
Claims Data – Due to improper picking
in %
Sl.No Month
TVS
Accepted
Short Wrong Damage Excess
1 April 26 62 31 8 0
2 May 60 55 45 0 0
3 June 45 64 36 0 0
4 July 44 55 36 5 5
5 August 50 46 46 8 0
6 Sept 2 0 50 50 0
G Total 227 55 40 4 1
SL NO Month
No of
% in
salesNS
1 April 10 .02
2 May 9 .01
3 June 46 .06
4 July 59 .08
5 August 38 .08
NS – Due to improper picking

Inventory accuracy
Issues
NS
Time waste (Cycle time)
Productivity
Claim
Service delivery
Customer satisfaction
Inventory accuracy can controlled by maintaining location accuracy.
will get increase
will get increase
will get down
will get increase
Failure
Failure

Week – performance in %
S. No Cause
Current
level
Target 1 2 3 4
1 Binning team. 90 100%
2 Picking team. 90 100%
3 System person. 90 100%
4 Bin audit. 50% 100%
5 More than 3 materials in one single location. (Parts) 3500 0
6 Last 4 Digit materials in same and next location. (Parts) 200 0
New formats for analyze the data

Date
Checking on
manual
updating on TO
Error
identified
in %
Daily audit
on STO
binned
materials
Error
identified
in %
Daily audit
on UC
binned
materials
Error
identified
in %
System
person
Error
identified
in %
No of
material
Error
identified
in %
06.09.2014 200 40 20 250 25 10 70 4 5.7 700 20 2.9 1220 89 7.2
Day to day - task monitoring format
Target is 1%

Sl. No Idea ,Action, or cause Easiness Impact
1 Training
2 SOP – understanding
3 Brainstorming
4 Communication
5 On audit
6 Team effort
7 Picking team support
8 System activity
9 Registering the data on task
10 System support ( WM process)
11 Team leader and team relationship
Format for assessment on task
 The ease of achieving (1 = Very difficult to 10 – Very easy)
 The impact of the result (1 = Very low to 10 = Very High)

Current Expect
Location Accuracy 80% - 90% 98%
Inventory Accuracy 98% 99%
Cycle time Can increase 10%.
Productivity 90% 93%
Claims – PPM 750 < 500
No Stock .04% .01%
Benefits :
As a service provider we can satisfy the customer by giving 100% service delivery on time.
By giving 100% service delivery we can satisfy end customer and our client