Case Study

CASE STUDY

NATIONAL AIR EXPRESS

1. The productivity measure of shipments per day per truck is still useful, but it needs to be factored together with the customer service standards that Smith wants incorporated. Then on the return trip to pick up packages, the driver can pick up the completed paperwork and already-packed boxes much more quickly without having to worry about rushing the customer. (" National Air Express"). Furthermore, even traffic and weather conditions can be worked around to some degree. Works Cited "National Air Express." Adapted by Phil Pugliese. Since many businesses would not have the appropriate locked area, however, another option might be for Smith to utilize the reorganization of pick-up sand deliveries so that all deliveries are made in the morning and afternoon and all pick-ups are made from shortly after 5: p.m. This would allow the driver to make pick-ups from shortly after5: p.m. If Smith tracks the frequency of shipment per customer and factors in the dollars of profit he is making, he will arrive at a more useful measure of profitability that can tell him whether he can afford to-and should-increase his costs for more trucks and drivers.

The number of stops per driver is certainly still a good productivity measure, since it gives a good idea regarding the “amount of service” provided by the company on a daily basis. Another issue that could be tracked regarding the company’s productivity might be area covered per driver per day since this measure would provide additional information regarding the company’s capability to serve a more geographically dispersed area and its effectiveness with respect to the relevant route planning problems.

2. Since most call-in pickups are around 5.00 p.m., by offering some incentive, i.e. discounted rates, to customers that call in earlier parts of the day, could help smoothen the experienced (service) demand, and reduce the congestion currently experienced by the company. An

Cited: "National Air Express." Adapted by Phil Pugliese. Since many businesses would not have the appropriate locked area, however, another option might be for Smith to utilize the reorganization of pick-up sand deliveries so that all deliveries are made in the morning and afternoon and all pick-ups are made from shortly after 5: p.m. This would allow the driver to make pick-ups from shortly after5: p.m. If Smith tracks the frequency of shipment per customer and factors in the dollars of profit he is making, he will arrive at a more useful measure of profitability that can tell him whether he can afford to-and should-increase his costs for more trucks and drivers. The number of stops per driver is certainly still a good productivity measure, since it gives a good idea regarding the “amount of service” provided by the company on a daily basis. Another issue that could be tracked regarding the company’s productivity might be area covered per driver per day since this measure would provide additional information regarding the company’s capability to serve a more geographically dispersed area and its effectiveness with respect to the relevant route planning problems. 2. Since most call-in pickups are around 5.00 p.m., by offering some incentive, i.e. discounted rates, to customers that call in earlier parts of the day, could help smoothen the experienced (service) demand, and reduce the congestion currently experienced by the company. An additional de-congesting measure could be to preprocess most of the involved paperwork so that the expected service time at the customer site is minimized. On the other hand, Smith might consider changing the way he is operating in lieu of adding more trucks and drivers. The standard, scheduled pick-up would be serviced at a lower cost than unexpected pick-ups, offering an incentive to customers to develop a routine and consistent schedule for their shipping. Than they are currently doing-especially since, by dropping off materials and papers beforehand on their morning delivery route, drivers can ensure that the packaging and paperwork will already be done when they arrive for pick-up. One is for customers to leave packages in a secure area for the driver to pick up. Although the case study notes that most customers "want as late a pickup as possible, just before closing (usually at 5: p.m.), the driver cannot, of course, be at several places at once at 5: p.m. To reduce the variability in daily pick-up call-ins, customers can be encouraged to have a standing pick-up order if they will be shipping packages daily or on the same day every week. This way, there can be a standard route that never varies, making it an express route, and other routes for unexpected pick-ups. National Air Express 3. Some businesses have a locked area that only the owner and the driver have a key to. Rather than shipments per day per truck, he might choose to measure productivity in terms of dollars per day per truck or cumulative dollars for each customer.