An Efficiency Improvement Approach to Reduce Transportation Costs: An Application

The reduction of transportation costs is an important issue for many companies that need to stay competitive. This work describes the application of a scheme for increasing transportation efficiency to achieve this purpose. This scheme is developed around a modified version of the Operational Equipment Effectiveness index used in TPM. This is adapted to be used as the main performance measure in transport operations. Availability, performance and quality wastes are identified using Value Stream Mapping of the operation. The implementation is carried out in the routing operation of a Mexican firm. The improvement initiatives are still in progress but the projected and available results are provided.