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ST-04 · Project dossier

Digitalisation of non-conformity management

Dachser · Mohammedia · final-year internship (bachelor’s degree)February – May 2022

Non-conformities were handled on paper forms, and the follow-up of the activity lacked a dashboard.

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PDCA

PDCA

Plan

NC form
12min
Tracking
Lost by e-mail

Scroll: the platform changes action by action

  1. No.

    01

    Phase

    Plan

    Area

    Platform

    Frame the project

    On Dachser’s platform in Mohammedia, the activity is growing and the administrative staff spend a lot of time writing. Goal: gain productivity and give the logistics manager a tool to manage performance.

    • PDCA
    • 5W2H
    • Project charter
    • 12-week schedule
    • Cut the time needed to handle a non-conformity
    • Ensure the traceability of every non-conformity
    • Measure the utilisation rate of each unit
    • Give the logistics manager a decision-support tool
  2. No.

    02

    Phase

    Plan

    Area

    Logistics office

    Understand why the follow-up slips away

    When an anomaly is found, its photo and its reason go to the customer by e-mail. After that, nothing: no follow-up, no indicator to decide.

    • 5 whys
    • 5W2H
    5 whys
    1. 1

      Finding

      The follow-up of non-conformities is poorly managed.

    2. 2

      Why?

      There is no traceability.

    3. 3

      Why?

      Non-conformities are sent by e-mail, and e-mails get forgotten or deleted.

    4. 4

      Why?

      Root causeNo file gathers all the non-conformities.

  3. No.

    03

    Phase

    Do

    Area

    Receiving

    List the anomalies

    Brainstorming with the logistics manager and two administrative staff, then data collection: the types of anomalies (Ishikawa, Pareto) and the step of the flow where they appear.

    • Brainstorming
    • Ishikawa
    • Pareto
    Survey

    Anomalys

    • Damaged pallet
    • Torn packaging
    • Wet packaging
    • Dented packaging
    • Palletising problem
    • Expired product
    • Missing item
    • Surplus
    • Punctured drum

    Steps

    • Receiving
    • Warehouse
    • Stock
    • Order picking
    • Shipping
  4. No.

    04

    Phase

    Do

    Area

    Non-conformity form

    Automate the non-conformity form

    A new Excel form with drop-down lists and a date picker, and three VBA macros: the form goes to the customer as a PDF, its data join the traceability file, then it clears itself for the next one.

    • Excel
    • VBA
    • Drop-down lists
    Path of the form

    Non-conformity form

    drop-down lists, date picker

    1. Macro 1PDF and e-mail

      the form is converted to PDF and sent

    2. Macro 2Traceability

      the data are added without overwriting what is there

    3. Macro 3Reset

      the form is cleared and saved for the next entry

  5. No.

    05

    Phase

    Do

    Area

    Traceability file

    Centralise traceability

    All non-conformities arrive in a single file, with their indicators: at last there is an overall view.

    • Traceability
    • KPI
    • One line per non-conformity, with no loss of history
    • An overall view of the non-conformities and their KPIs
  6. No.

    06

    Phase

    Check

    Area

    Logistics office

    Measure the gain

    Handling a non-conformity, converting it to PDF and sending it to the customer took 12 minutes with the old form. With the new one, 5 minutes.

    • Before / after measurement
    • Old form: 12 minutes per case
    • New form: 5 minutes per case
    • 7 minutes saved on every non-conformity handled
  7. No.

    07

    Phase

    Act

    Area

    Non-conformity form

    Roll out and train

    The form is put in place across the whole logistics department. To overcome the difficulties of getting started, a procedure sheet supports the training of the administrative staff.

    • Roll-out
    • Training
    • Procedure sheet
    • Form rolled out across the whole logistics department
    • Administrative staff trained
    • Step-by-step procedure sheet
  8. No.

    08

    Phase

    Plan

    Area

    Platform

    Time the flow

    Second workstream: the utilisation rate. Each step, from pre-receiving to shipping, is timed. Everywhere, the administrative tasks or those given to a single operator weigh the most.

    • Time study
    • Operating times
    Flow time study
    1. 1

      Pre-receiving

      inspection and opening of the truck

    2. 2

      Receiving

      sending the report and updating the tracking table

    3. 3

      Put-away

      storage

    4. 4

      Picking

      creating the order in the system

    5. 5

      Shipping

      loading validation and follow-up

    Detailed times not published

  9. No.

    09

    Phase

    Do

    Area

    Dashboard

    Build the dashboard

    An automatic Excel dashboard, fed by the time studies and by the inbound and outbound pallet flows of each unit.

    • Visual management
    • KPI
    • Excel
    DashboardAutomatic
    • Utilisation rate

    • Planned hours / assigned hours

    • Handling unit flows

    • Full-time operators needed per unit and per month

    • Activity trend of each customer

    Real indicators · values not published

  10. No.

    10

    Phase

    Act

    Area

    Dashboard

    Decide from the gaps

    With the logistics manager, clear rules based on the gap between hours worked and hours assigned, to justify reinforcement, recruitment or training.

    • Decision support
    Decision rules
    • Hours worked > hours assigned · a few days

      → reinforcement from a less busy unit

    • Hours worked > hours assigned · 1 to 3 months

      → fixed-term hire for the time needed

    • Hours worked > hours assigned · 6 months or more

      → renewable one-year fixed-term contract or permanent contract

    • Hours worked < hours assigned

      → training, order picking during quiet times

RESULTS

What the project delivers

Non-conformity form
12 → 5 min
7 minutes saved per case handled
Traceability
Centralised
every non-conformity in a single file, with its KPIs
Roll-out
Whole department
staff trained, procedure sheet
Management
Dashboard
utilisation rate, staffing needs per unit
Decision
Gap rules
reinforcement, recruitment or training depending on the gap