About 1% of EquipmentCo.’s deliveries led to out-of-box failures (OBF). OBF is the failure of equipment after it is delivered to the customer. This resulted in customer dissatisfaction and increased delivery costs. EquipmentCo. had conducted root cause analysis on the origin of OBFs and implemented corrective actions. But the OBFs had not reduced substantially. Therefore, EquipmentCo. sought to identify the root cause of these failures as well as identify solutions.

1. What are the root
causes for product
failures due to faulty
product-assembly?
O P E R A T I O N S , M A N U F A C T U R I N G

2. KEY STATS
Solutions prototyped for
process improvement
Estimated reduction in the
out-of-box failures
3
75%

3. PROBLEM
About 1% of EquipmentCo.’s deliveries led to out-of-box failures
(OBF). OBF is the failure of equipment after it is delivered to the
customer. This resulted in customer dissatisfaction and increased
delivery costs. Therefore, EquipmentCo. sought to identify the root
cause of these failures as well as identify solutions.

4. APPROACH – PHASE I
Analyse current workflow to hypothesis failure root causes
Sprintly team identified three types of OBFs: wrong product delivery,
excess product delivery, incomplete order. The ‘wrong product’
deliveries were most common. Next, the team analyzed and mapped
the current process to list all possible error areas.

5. Process improvements – reorganizing the space, one order flow
implementation or color-coding stickers etc.
Modification of documentations
Technical solutions – barcode scanner or RFID to scan each item.
APPROACH – PHASE II
Preliminary recommendations based on listed process issues

6. APPROACH – PHASE III
Solution detailing and KPIs
Created a new process map in conjunction with EquipmentCo.’s current
process. This process map also listed additional new equipment
requirements and system changes for material flow. Additionally, the
Listed possible failures and remedies for the recommended solutions.

7. RESULT
Sprintly team identified the issue areas in EquipmentCo.’s current
logistic process that led to equipment failures. Based on this study
Sprintly team was able to deliver concrete change requirements to
EquipmentCo. They piloted the recommended solution and 75% of
OBFs could be reduced over the course of 3-6months.

8. Effectively manage key operational activities
with our expertise
L A U N C H A P R O J E C T W I T H U S
W R I T E T O U S