Box printing operation will be considered a single

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box printing operation will be considered a single value stream product family, regardless of which products are ordered. Identifying a Unit of Measure To define a unit of measure, Victoria looks at the customer of this value stream: the Boxing Department (an internal customer). The Boxing Department boxes each of the four types of products in boxes supplied by the Printing Department. The “raw material” desired by the Boxing Department is the correct number of boxes delivered for each customer order. There may be a different quantity of pens or pencils in each box and printed boxes are the output or “finished good” of the Printing Department. Therefore, Victoria decides to use number of boxes as the unit of measure throughout this value stream. Each inventory block or process cycle time will be converted to a measure that includes “number of boxes.” Identifying Customer Demand As Victoria discovered in her earlier value stream mapping exercise, CWI receives orders for approximately 24,000 pencils each week. The average order size is 100 pencils. CWI produces many different sizes of boxes, but the average pencil order is for boxes of 20 pencils per box. Therefore, with customers ordering approximately 24,000 pencils each week and averaging 20 pencils per box, the Printing Department must print approximately 24,000 / 20 = 1200 pencil
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boxes each week. After making similar calculations for each of the other product types produced by CWI, Victoria discovers that this value stream must handle orders for 5800 printed boxes each week. The Customer Service Department Victoria begins by observing how orders arrive from the end customers. Customers either send e-mail, or order through CWI’s website. With an average of 145 unique customer orders arriving daily, orders seem to be arriving constantly. The Customer Service Department employs two (2) full time customer service representatives. About six years ago, a consultant was hired by CWI to improve the morale and work conditions. This consultant strongly advocated job rotation, so the two customer service representatives developed a “job rotation” schedule for their duties. Below is a copy of that work schedule: Time Schedule Customer Service Representative A Time Schedule Customer Service Representative B 8:00am – 12:00am (4.0 hours) Print and verify new customer orders 8:00am – 10:30am (2.5 hours) Verifies entry of orders 10:30am – 12:00pm (1.5 hours) Makes courtesy calls to key customers 12:00pm – 1:00pm LUNCH 12:00pm – 1:00pm LUNCH 1:00pm – 3:30pm (2.5 hours) Verifies entry of orders 1:00pm – 5:00pm (4.0 hours) Prints and verify new customer orders 3:30pm – 5:00pm (1.5 hours) Makes courtesy calls to key customers Therefore, each customer service representative spends a total of 6.5 hours each day (81.25% of 8 hours) on activities that process new customer orders. They each spend 1.5 hours each day (18.75% of 8 hours) calling key customers to maintain customer satisfaction and to acquire new business. It is estimated that 40% of the sales growth experienced at CWI in the past three years is directly attributed to these courtesy calls.
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  • Spring '13
  • stevelundregan
  • orders, Value stream mapping, customer service department

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