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HBOK 1-178

Title Keep on Truckin’
Author(s) Nicole Adrian
Source Quality Progress
Topic Accreditations/Certifications/Awards (TJC, ISO, Baldrige)

Performance Improvement

Abstract Bayer Material Science ships billions of pounds of polymers annually to customers, so shipping costs can add significantly to the cost of goods sold. An examination of truck shipment data revealed that 83 percent of jobs were shipped at higher-than-necessary cost. A team at Bayer used various quality tools to identify root causes and opportunities for improvement. Using failure mode effects analysis and data segmentation, the team realized a cost reduction in excess of $800,000 in 2007. In addition, new measurements were established to chart the cost per pound of shipments.
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Reference Code 1-178

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