5 % decrease in Units Packed per Hour (UPH) for both singles paths. Without the CPT chase, the decrease in UPH would not exist and therefore we would be able to pack out more items, making more money. However for each item that misses a CPT, it costs, on average, $2.85 to upgrade the shipment. Because of this I performed two analyses to see the impact of our CPT Chase.
The first analysis I performed was an analysis looking at the profitability of sending out additional packages vs. the potential cost of having to upgrade CPT misses. I started by calculating the average UPH drop for each singles path. To do this, I first looked at the rates for hours that did not have breaks and were not directly preceding a CPT, this gave me a benchmark for …show more content…
I ran multiple scenarios for the expected number of packages that would not be shipped out using two factors: a percentage ranging from 10-90% of the number of packages that would be missed and varying the number of shipments that need to be shipped out 1 hour before CPT. For example, one hour before CPT pack needs to ship out 500 singles packages by CPT, assuming we miss 10% will lead to a cost to upgrade. To find this cost to upgrade, I talked to our Senior Leadership Team and was able to find that the average cost to upgrade per package is $2.85. From this I was able to create an analysis with 4 variables: number of SS packers, number of SL packers, percentage of shipments missed, and number of shipments 1 hour before. Combining all of this information I was able to check all of the situations to see if it was beneficial or detrimental to chase CPT shipments (Appendix H). I was given, or able to find, all of the information except for profit per item, so the results hinge on the profit that we make per item. If the profit per item is greater than 37 cents, it is detrimental to chase CPT shipments, but if …show more content…
After training them, I spent the day answering questions that arose through the course of the day. Along with that, I moved items that were tested from the line to stow. I also worked with the pick PA to figure out the best number of pickers to have picking SIOC items. After each day was over, I would manually assign more picks so that the next day we would have enough items to test. I trained the associates on front half days and also monitored the ones on back half days when I was there. This led to me being very familiar with the process and being able to answer any
The first analysis I performed was an analysis looking at the profitability of sending out additional packages vs. the potential cost of having to upgrade CPT misses. I started by calculating the average UPH drop for each singles path. To do this, I first looked at the rates for hours that did not have breaks and were not directly preceding a CPT, this gave me a benchmark for …show more content…
I ran multiple scenarios for the expected number of packages that would not be shipped out using two factors: a percentage ranging from 10-90% of the number of packages that would be missed and varying the number of shipments that need to be shipped out 1 hour before CPT. For example, one hour before CPT pack needs to ship out 500 singles packages by CPT, assuming we miss 10% will lead to a cost to upgrade. To find this cost to upgrade, I talked to our Senior Leadership Team and was able to find that the average cost to upgrade per package is $2.85. From this I was able to create an analysis with 4 variables: number of SS packers, number of SL packers, percentage of shipments missed, and number of shipments 1 hour before. Combining all of this information I was able to check all of the situations to see if it was beneficial or detrimental to chase CPT shipments (Appendix H). I was given, or able to find, all of the information except for profit per item, so the results hinge on the profit that we make per item. If the profit per item is greater than 37 cents, it is detrimental to chase CPT shipments, but if …show more content…
After training them, I spent the day answering questions that arose through the course of the day. Along with that, I moved items that were tested from the line to stow. I also worked with the pick PA to figure out the best number of pickers to have picking SIOC items. After each day was over, I would manually assign more picks so that the next day we would have enough items to test. I trained the associates on front half days and also monitored the ones on back half days when I was there. This led to me being very familiar with the process and being able to answer any