A systems study on the Makati Service Center of DHL Express Philippines

• Main Authors: Liu, Joanne Grace O., Ramoran, Jan Miakel R.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Root cause analysis; Express service; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5553
• Institution: De La Salle University

DHL was established on September 22, 1969 to provide Air Express door-to-door services for the transportation of time-sensitive materials. The study focuses more on the ground operations of the Makati Service Center. The data gathered in the study would be based from the data of DHL Express from January 2012 to December 2012.SWOT analysis was first used to identify the problems in the system. WOT-SURG analysis was then used to determine which problem will be prioritized. Based on the WOT-SURG analysis, the problem determined was that the shipments that are held in cage to be delivered every day deviates by 0.1% from the standard of 4%. If the problem continues to occur in the system, the company will incur a loss of Php 241,329 per year. This cost come from the holding costs and the cost for the second delivery attempt.The holding cost consists of the utilities cost, depreciation of the machine and the salary of the employee. The second delivery attempt consists of the labor cost per stop, depreciation cost of the vehicle per stop and the fuel cost per stop.To address this problem, a problem tree analysis was made to determine the cause of the problem found. It was determined that the problem was caused by the shipments that are having service incidents. These service incidents are Refused Delivery (49.31%), Closed on Arrival (15.05%), Customer Moved (14.04%), Bad Address ((.74%), Awaiting Consignee Collection (7.31%), Not Home (3.93%), Return to Consignor (0.50%), and Partial Delivery (0.11%). The shipments with service incidents refused delivery has four causes: damage in shipments (4%), courier cannot access premise (2%), consignor requests for new delivery date (16%) and the courier does not have change (78%). The shipment returned to the consignor is caused either when the consignor requests to return the shipment to origin (73%) or when the consignee requests to return the shipment to the origin (27%). The shipments with incomplete delivery may be caused by a mis-sort (64%) or a part of the shipment that is left in the service center (36%). The customer is not home may occur because the consignee is at work (98%) or when the consignee has not yet checked into the hotel (2%). For the incident bad address, it is caused by lack of information due to incomplete address (67%) or wrong address (33%).Kepner-Tregoe decision analysis was done to arrive at a solution which was to create a form so that the right information will be gathered, to implement guidelines and policies and to create a tracking system application for the customers.Furthermore, the proposed solutions would be able to address the problem of the system which was not being able to deliver at least 4% of the shipments held in cage. The solution to implement guidelines and policies can be implemented within 5 days. The solution to fill up forms can be implemented within half a day. The solution to create a tracking SMS Service can be implemented within half a day. It was computed that the proposed solutions would have a net present value of Php 769,899.67- Php 3,578,028 (pessimistic and optimistic point of view) and a payback period of 2 months, 2 weeks and 5 days.