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A six-sigma methodology to solve the split shipment issue at Johnson & Johnson Medical Device

Doyen, Rémy
(2018)

Files

Doyen_54001600_2018.pdf
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Details

Supervisors
Chevalier, Philippe
Faculty
Louvain School of Management
Degree label
Master [120] en Ingénieur de gestion
Abstract
This project was conducted at Johnson & Johnson Medical Device for 5 months, from January 2018 to May 2018. The company is, nowadays, suffering from a more intense competition from worldwide competitor. Thus, having the quality of its products as competitive advantage is no more sufficient for the company. It has to become more customer oriented in order to remain the leader on the medical device market. That’s why six-sigma tools have been used to do this project. More especially, it has followed the DMAIC framework. To do so, Johnson & Johnson surveyed its customers and noticed that the problem of split shipment had undesirable consequences on customer’s satisfaction and on shipping costs. An order is considered as split when it has more than on delivery note or pickslip number. The goal of this thesis was to understand what drives this split shipment issue and how to solve this issue. After several analysis, the company decided to focus on two main root causes: the ways of allocation the order (Manual and Automatic Allocation) and the Delay on Allocation. Several improvement solutions have been proposed and the first results are concluding: the percentage of split shipment has decreased thanks to the utilization of six sigma tools. For instance, the six-sigma level of Synthes Trauma (a Johnson & Johnson sub-franchise) increased from 2.08 to 2.73.