The Problem of "Not on Time" for Delivery and Pickup of Packages
DESCRIPTION
Precision Delivery Inc. (PDI) is a package pickup and delivery service for homes and small businesses. PDI specializes in packages 50 pounds or less and has a full-price rebate policy for any pickup or delivery made outside the customer-designated 15minute window. PDI advertising proudly states, "Pick-up and delivery at your convenience, not ours."
PDI has facilities at 2 locations, Downtown and Suburbia, each servicing customers within a 15-mile radius with pickup and deliveries made by truck or bicycle. Customers designate a 15-minute window for their packages to be picked up or delivered. PDI charges customers $5 per package plus $1 per pound (50-pound maximum).
On any given day PDI delivers and picks up approximately 200 packages having an average weight of 35 pounds.
Over the last six months, Sales Operators have reported that 35% customers have complained that deliveries and pickup have not been meeting the committed timelines. In response, Sales Operators were instructed to remind customers of the PDI price rebate policy. Additionally, a short survey was sent out to a small group of established customers. Survey results disclosed an appreciation of price rebates, but a preference for deliveries within the committed timelines.
How the organization's leadership solve the problem the Lean Six Sigma way using the DMAIC approach to solve the problem of delayed deliveries and pickup?