The problem
Managers at sorting centres sometimes encounter a problem but are unable to determine what is causing it – and are therefore unable to fix it. For example, managers at one parcel sorting centre noticed that the recirculation rate for packages was far greater than it should be. They knew that this was because operators were unable to empty chutes fast enough, so they kept getting blocked. This excessive recirculation was hampering operations and limiting the efficiency of the centre.
Data analysis revealed that there was uneven parcel distribution to the chutes in the system. Some chutes were heavily used, whereas others were almost unused. This meant that some operators could not keep up with arriving parcels while others had nothing to do. Operators were also having to walk long distances between chutes (up to 16 km per day), which caused fatigue and wasted valuable time.