Kasa Fab Shipping Dept

Meeting the Challenges of On-Time Delivery

What is on-time delivery?

On-time delivery rarely refers to a specific date; it usually refers to a range of dates (in most companies) that are defined as X days before (early) and Y days after (late) the due date. The typical on-time delivery window is five days early, zero days late (or -5+0). For example, an item is due June 1, it would be considered on-time if it arrives on any day between May 27 and June 1.

This concept is embedded in almost all modern ERP/MRP systems. For the case study below, the on-time delivery percentage is based on an exact delivery date that is determined in the ERP/MRP system from the date the packing slip is prepared for the shipment.

Case Study - Kasa Fab Custom Metal Fab Shop

In 2013, Kasa Fab, a division of Kasa Companies, Inc. started to see the first signs that there was going to be a battle with on-time delivery.

Several things contributed to this recognition; a slowdown in the economy, internal cost increases that resulted in lower revenue and profits, and disorganization within our manufacturing facility.

At its lowest point, our company saw a 66% on-time delivery score, with the average for the year coming in at 80%. Everyone who was feeling the sting of delivering product late realized that something had to be done to get shipping on time or risk losing our customers to competitors. That is a scary thought for any manufacturing facility.

In early 2014, we knew we had to get in front of this potentially detrimental crisis, partly of our own recognition, but also because our customers were relating their frustration (through regularly conducted customer satisfaction surveys) to us that we were failing them. We knew we had to start focusing harder on solutions to improve our on-time delivery.

Word had started to spread from those satisfaction surveys to management that our customers were not providing glowing reviews on our delivery performance. While it is not pleasant to hear, it’s even more unpleasant if you choose not to listen to your customers.

We chose to listen.

The culture of Kasa focuses on customers and not just the external ones. The person that works in the desk beside us, as well the operator at the process that follows ours is viewed as our customer. Our focus had to be that each process we complete is “shipping” to the next process and is on time - every time.

We began hosting regular kaizen events to identify process improvements from the beginning of orders through the time the order ships from the shop. Each process was viewed as a customer that expected on-time delivery. Particular focus was placed on “done right the first time” to ensure we reached our shipping goals.

97%+ On-Time Delivery

These kaizen events began flushing out quality processes that were affecting on-time delivery every single day. They helped us to focus on all the waste (7 deadly wastes-MUDA) and develop process improvements to eradicate waste in every area of every process. This resulted in streamlined processes that allowed us to see the results for ourselves at visual board meetings every morning.

“Ultimately, it took six to eight months to turn things around and then we got our footing and hit 90% on-time delivery in August of 2015”, according to Mark Slubowski, VP of Production. “We continued to improve and maintain over the course of last year. We were able to maintain 97% on-time delivery for the rest of 2015 and into 2016. We are currently at an average of 97.67% on-time delivery!”

While we are very proud of our achievement in this battle with on-time delivery, we also understand that we have the ability to reach perfection, and with the continuous improvement skills we have learned through this process, we hope to not only reach it, but maintain it as well.