Lost Luggage Costs $1.6 Billion
The February 22nd Rocky Mountain News reports that lost luggage costs
airlines worldwide an estimated $1.6 billion for approximately 20 million
lost bags.
While the percent of mishandled and misdirected bags is only 0.7% (4 Sigma
or 6,280 bags-per-million), it costs an estimated $87.50 per lost bag to
correct the problem (tracking and delivery).
If airlines could drive mishandled bags to 5 Sigma (233 BPM), the savings
would be over $500,000 per million bags or about $0.50/bag. Multiply this
times the billions of bags flown every year and you've got something to
counteract the rising costs of fuel.
One of the root causes: delays through baggage screening.
Solution: Lean thinking applied to baggage screening.
One of the defects: misdirected bags
Solution: Dirty 30 root cause analysis focused on misdirected bags.
Jay Arthur, the KnowWare Man, works with companies that want to plug the
leaks in their cash flow. Jay is the only consultant who specializes in
transactional Six Sigma for IT and Financial applications: ordering,
billing, purchasing, and payments. He is the author of Six Sigma Simplified.
mailto:knowwareman@mindspring.com
http://www.qimacros.com
2253 S. Oneida St, Ste D
Denver, CO 80224
303-756-9144 (888) 468-1537
0 Comments:
Post a Comment
<< Home