that follows these eight steps: 1. Identify critical subsystems (processes, equipment, technologies, inventory, and people) within each DC operation. 2. Apply FMEA comprehensively and objectively, following a “top down” approach. 3. Identify potential failures within each subsystem — especially potential single points of failure. 4. Assign an RPN score to each potential failure. 5. Evaluate and prioritize all potential failures based on their relative RPN scores. 6. Develop improved preventive and preparedness controls for the high-priority potential failures. 7. Implement the improved controls in the DC operation. 8. Repeat steps 1 through 7 periodically, as the operation evolves. If the likelihood of a failure is high, then DC management should take the following steps: Evaluate and eliminate causes of the failure.
Improve other DC processes that contribute to the causes of failure. Install preventive controls that reduce or prevent failures. Add redundancy to DC operations. Develop and maintain standard operating procedures (SOPs) for preventing possible failures within the DC. On the other hand, if the potential impact of a failure is high, then DC management should take the following steps: Identify correlated, leading events that can serve as “warning flags.” Add a step to an earlier event’s process to prevent the failure. Use event management tools such as alarms and notifications to proactively alert users when conditions in the DC indicate a possible or imminent failure. Train DC staff to recognize the “warning flags” and monitor event management tools, so they can intervene proactively.
Install preparedness controls that reduce or prevent the consequences of failures. Design workarounds to DC operations. Develop and maintain SOPs for dealing with possible failures within the DC, in the event they do occur. TYPICAL RESULTS By using a standardized approach to mitigating risk based on FMEA and by developing comprehensive SOPs, the DC staff will develop a culture of proactive problem prevention rather than reactive problem solving. They will also maintain a living record of potential failures and associated controls, resulting in improved reliability, reduced operating costs, and reduced losses in the DC, as well as greater customer satisfaction.
Steve Hopper is founder and Principal, Inviscid Consulting. He will be speaking on this topic on Wednesday, September 26, at the 2018 PARCEL Forum.