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Guardrail Team — QDM turns small investments into significant impact.

When shipping with FedEx, policy dictates that customers provide the dimensional (DIM) weight of their shipment. At the hub, Mass Scanning Device System (MSDS) lines capture Revenue Exception (REX) data to determine the actual weight and dimensions of the shipment. Based on these scans, FedEx can ensure customers are charged the correct amount, even when the information provided by customers is inaccurate or incomplete.

"Belt edge" errors, which occur when a package moves outside the scan device Field of View (FoV), prevent REX data capture and cause significant loss of revenue. That's why the DIM Capture Improvement (DCI) — Guardrail team evaluated the root cause of belt edge errors and assessed how to improve DIM weight capture with a goal of FedEx scanning dimensions for 100% of volume.

For this project, Jeremy Pflug, E-Commerce Advisor, FedEx Trade Networks, worked closely with a team led by Elizabeth "Liz" Cartwright, Manager, IT, FedEx Services. As part of his Professional to Leader (P2L) leadership program, Jeremy had access to additional resources and Liz's team had the data mining experience to support the project. However, P2L involvement also meant that the team would need to complete the project within six months.

THE CHALLENGE

6

months

2.8M

belt edge errors annually

Finding opportunities in the data

Since they needed to work within a six-month timeline, the team narrowed their focus to the Memphis hub, which had the most REX errors. Using a fishbone diagram, they documented potential errors preventing measurements and found that error codes showed the greatest potential for incremental revenue capture.

FedEx lost 2.8 million REX scans at the Memphis hub in CY17 due to belt edge errors. Interestingly, data analysis also showed that only two MSDS lines had no belt edge errors.

A quick review with engineers and the development team identified that guardrails on these two MSDS lines kept packages in the FoV. While these guardrails were originally installed for the safety of team members, helping to prevent injuries associated with repositioning packages, they also eliminated any belt edge errors.

Quick solution, lasting results

Since the team already had a good idea for a working solution (installing guardrails on the other MSDS lines), they conducted a pilot on the highest volume line at the Memphis hub. When the initial results did not match their expectations, the team applied the ABLE process again and found that simply recalibrating the FoV could fix the issue.

Within 90 days of installing the new, recalibrated guardrails throughout the Memphis hub, data showed a complete eradication of belt edge errors. Post-pilot, this solution was implemented across the FedEx network, eliminating belt edge errors network-wide.

THE RESULTS

Memphis Pilot Results

$37K

investment

0

belt edge exceptions

$8.1M

annual revenue increase

more than 21k%

More than 21,000% ROI


Network-Wide Launch Results

$139K

investment

0

belt edge exceptions

$15.6M

annual revenue increase

more than than 11k%

More than 11,000% ROI

QAT member inspired by Quality Driven Management

During this project, many members of the Quality Action Team realized the value of QDM — and some became QDM Certified. Each team member came to appreciate a different piece of the toolkit.

"If you think something could be better, there is a set of tools that you can use to see how much better it can be and whether it's worth doing. We were able to pull in team members who specialize in data lifting and reporting. We just asked the right question to the right people — and together, we solved that problem. It was a small investment and a significant impact."