Michelin: Improving Load Accuracy and Safety Through Upstream Audit Redesign
A global leader in tire manufacturing and mobility solutions, supporting automotive, industrial, and commercial markets worldwide. As the company serves dealers, retailers, and end customers, its operational accuracy and efficiency are critical to maintaining service levels and customer satisfaction.
Michelin's dock-side scan verification created bottlenecks during loading, late-cycle inefficiencies, and safety concerns on the dock, with errors identified at the dock requiring rework that delayed shipments.
Project Overview
The company relied on scan verification at the dock to ensure shipment accuracy. While effective as a final checkpoint, this process created bottlenecks during loading and introduced inefficiencies late in the fulfillment cycle, as well as safety concerns on the dock. Errors identified at the dock required rework, delaying shipments and impacting throughput.
Outbound audit process redesign
Upstream verification within the picking process
$347,000 annual net labor savings with 11 PPM dock errors
Execution Highlights
Identify and correct accuracy issues earlier in the workflow
Incorporate the verification step within the picking process
Reduce dependency on dock-side scan verification
Outcomes
Generated approximately $347,000 in annual net labor savings while maintaining quality and productivity performance standards.
Achieved an overall OSD rate of 0.558%, RLO performance of 94 PPM, and dock errors of just 11 PPM, significantly outperforming quality targets.
Reduced employee exposure to dock hazards by eliminating dedicated auditors from active loading areas while improving shipment accuracy, minimizing rework, and increasing operational efficiency.
Approach
Redesigned the outbound verification process by shifting audit responsibility upstream to the picking process, eliminating dedicated dock-side auditing activities and improving process ownership.
Generated approximately $347,000 in annual net labor savings while maintaining quality and productivity performance standards.
Achieved an overall OSD rate of 0.558%, RLO performance of 94 PPM, and dock errors of just 11 PPM, significantly outperforming quality targets.
Reduced employee exposure to dock hazards by eliminating dedicated auditors from active loading areas while improving shipment accuracy, minimizing rework, and increasing operational efficiency.
By shifting verification upstream, TCG helped us improve accuracy while keeping our dock operations moving efficiently and more safe.
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