11. DMAIC and the Measure Stage

DMAIC and the Measure Stage.
In the previous lecture, we talked about defining the problem in the DMAIC methodology for solving business problems and improving processes, and ultimately achieving better quality.
In this lecture, what we’re focusing on is measuring the problem.
So as I told you already, we have built this map of a logistics network in the supply chain logistics course. In this course, we’re going to focus on making it better. Now, as I said earlier, we’re trying to have customers receive their orders within two days.
And typically, to receive an order within two days, we’re looking at a lead time. In order for a customer to be able to receive their order within two days, they have to be located no more than 500 miles from our warehouse. That’s the rule of thumb that most transportation companies use for two day delivery.
Because line haul will be done in day one and then the local delivery will be done in day two.
So as we look at this map, ten cities, three warehouses. Let’s quickly determine whether we are able to deliver to all of our customers in those ten cities within two days. So we start from the east coast. And we can actually use this nifty little function to measure the distance between our warehouse and Boston, that’s 278 miles.
Road mileage will be a little further.
But direct line gives us a pretty good idea. New York will be somewhere around 111, 112 miles. Philadelphia will be 85 miles. Washington DC will be 150 miles.
So this eastern Pennsylvania warehouse is suitably located to hit all of our four target cities within those two days.
Now let’s take a look at the central warehouse, and that’s supposed to deliver to Chicago. And that’s 426 miles.
To Atlanta, that is 181 miles.
And Miami, Florida, is 785 miles. So here we already see this is too far to deliver within two days. The truck will stop somewhere before Orlando in day one because the driver runs out of hours to drive, and they have to stop. So it adds an extra day in this case.
So the Miami customer base needs to be fulfilled from somewhere else within a 500 mile radius.
Let’s take a look at Houston. And that’s 178 miles from our warehouse near San Antonio. Dallas, 237 miles. So that is okay. And then we have to deliver to Los Angeles. And here we see that it’s over 1,200 miles, so there’s no way a truck can make it within two driving days.
So we’ve identified two target cities, Los Angeles and Miami, that need to have warehouses located closer so we can achieve our goal of having a warehouse network that fulfills two customers within two days.

Jim Rohn Sứ mệnh khởi nghiệp