Crisplant Defects Quantification

Crisplant is a tilt-tray sortation system used in Reno (RNO 1) fulfilhnent center (FC) to group items by customer orders. On average., crisplant processes about 80% of the total outbound volume through its multipart operation flow. Because of high volume and complex process flow, the majority of defects, in RNO 1 FC. are seen in crisplant costing distribution center (RNO 1) significantly in labor hours. This research paper identifies and quantifies the major defects in crisplant, and outlines the solutions to reduce the cost of handling these defects in RNO 1. The project work thoroughly assesses the entire RNO 1 crisplant operations (induct, sort, pack, SLAM, and problem solve) through four-phase approach: Understand the crisplant Process Flow, Develop a Data Collection Framework, Collect and Analyze Data, and Identify/Implement Data Driven Solutions. Lean principles and methodologies were used throughout the project work especially when identifying solutions. For example, opportunities that improved the packing process were identified based on a deep-dive analysis as a part of the Kaizen study. The project results demonstrated 50% reduction in cost of handling crisplant defects in RNO l. Furthermore, it highlighted opportunities for additional savings by identifying solutions that can also be implemented in other FCs (i.e. SDF 1, TUL 1) with similar operation as RNO 1. Thesis Advisor: Roy Welsch Title: Professor of Statistics and Management Science Thesis Advisor: Stanley Gershwin Title: Senior Research Scientist [THIS PAGE IS INTENTIONALLY LEFT BLANK] NOTE ON PROPRIETARY INFORMATION In order to protect proprietary Amazon information, the data presented throughout this thesis has been altered and does not represent actual values used by Amazon.com Inc. The figures and results do not represent the actual values that were found or calculated during this project work. Any dollar values, process names and/or product information have been disguised, altered, or converted to percentages in order to preserve any valuable information from the competitors of Amazon.com Inc. [THIS PAGE IS INTENTIONALLY LEFT BLANK] TABLE OF CONTENTS A bstract.......................................................................................................................................... 3 Table of