Kelly_Tractor

Kelly_Tractor - Work In Process Project Define Gateway...

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Work In Process Project Define Gateway Review Time from Open-to-Close of Work Orders
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Problem Definition The gap between the Opening and Closing date of Service Work Orders is at a present average of 39 days. As of November 2010, Kelly Tractor had $6,035,954.72 in WIP over 30 days with more than 15 days since last labor. Reducing the time between Opening and Closing Service Work Orders to 30 days or less will result in a savings on Cost of Capital of $431,570 per year. The company will also reduce costs involved with time for dispute resolution
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Project Objectives Goals to achieve: Reduce open-to-work order closing to 30 days. Develop a standard process for opening and closing work orders.
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Make collection process less complicated Increase profitability Company image Employee satisfaction Job retention Difficulties in collection Loss of customers Loss of jobs Loss of revenue Long Term Increase customer satisfaction Reduce/eliminate end of month invoicing Increase profitability Continued customer dissatisfaction Continue increase WIP Bonuses suffer Financial hardship on company Employee dissatisfaction increase (service office) Short Term Opportunity (if we do the project) Threats (if we don’t do the project) Focusing on the Long Term ensures involvement beyond what can be gained from the short term sense of urgency! This matrix helps determine the driving factors behind the project which can then be used in communicating the need. Threat Opportunity Matrix
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Process Maps WPB UED: SHOP PROCESS CUSTOMER BRINGS IN MACHINE (FIRST COME FIRST SERVED). ONCE MACHINE ARRIVES, CUSTOMER PROVIDES INFORMATION, REMAINDER OF INFO IS PULLED FROM MACHINE. WORK ORDER IS OPENED. CREDIT DEPARTMENT IS CONTACTED TO OPEN WORK ORDERS (25%). MACHINE IS ASSIGNED TO TECHNICIAN. TECHNICIAN TO TROUBLESHOOT MACHINE. TECHNICIAN ORDER PARTS DIRECTLY FROM SYSTEM. IF PARTS ARE AVAILABLE, PARTS DEPARTMENT DELIVERS PARTS. QUOTED JOB? NO TECHNICIAN WRITES PARTS LIST AND NECESSARY REPAIRS. INFORMATION IS GIVEN BACK TO OFFICE. SERVICE COORDINATOR PREPARES QUOTE AND FAXES TO CUSTOMER FOR APPROVAL. YES TECHNICIAN CONTINUES AND COMPLETE REPAIR. TEST MACHINE, IF IT FAILS THAN CORRECT FAILURE. DEPENDING ON CUSTOMER, SOME PRO-FORMA IS FAXED FOR PO#, OTHERS ISSUE PO# OVER THE PHONE IF PO# IS REQUIRED. ONCE PO# IS OBTAINED, WORK ORDER IS CLOSED FOR INVOICE. CUSTOMER HAS TO BE APPROVED BY CREDIT TO CLOSE WORK ORDER. WARRANTY? NO YES WORK ORDER INVOICED. ENSURE EVERYTHING NEEDED BY WARRANTY IS IN FILE (HOURS). PRO- FORMA INVOICE IS PRINTED, SERVICE REPORTS ARE COPIED AND EVERYTHING IS STAPLED TOGETHER. WORK ORDER IS CLOSED.
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Kelly_Tractor - Work In Process Project Define Gateway...

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