In this case-study, we report an optimization project concerning the large-scale retail field, where MIPU has focused on the analysis of key performance indicators.
In this project, our client is one of the most important Italian supermarket chains. It manages the entire value chain: from supply, passing through deposit and preservation, to goods distribution at the points of sale. The core activity is the management of storage warehouses and goods conservation.
Our customer owns storage warehouses situated in different locations on the Italian territory. These warehouses are divided into two categories:
- – Various products warehouses, wherein non-perishable goods are deposited
- – Perishable goods warehouses, wherein perishable goods that need adequate temperature and humidity conditions are stored.
The necessity of our client was to providing a tool for effectively monitoring the maintenance management and its costs inside the different operating sites, in the whole supermarket chain. The Maintenance Direction requested a tool that would allow the optimisation of the maintenance service, alongside with clear targets. This means the certain identification of criticalities and deviations in management and costs of the control activities, while suggesting corrective actions.
The solution we proposed and applied, has been introduced with a well-established method and executed in 4 Steps:
- – The First Step consisted in the inventory and mapping of all corporate assets subjected to maintenance in the different sites, and their implementation and categorisation within a dedicated CMMS software. Thanks to the software, it has been possible to register the maintenance of breakdowns and the predictive maintenance activities.
- – During the Second Step, MIPU dedicated to data collection, ensuring complete and correct inputs for the next phase: the Key Performance Indicators (KPIs) analysis.
- – KPIs have been the focal point of the Third Step. It has included the discussion with the client regarding the study and the choice of the most important KPIs to monitor in the retail industry and in its specific case. With the performance indicators, we have been able to define and implement tailor-made dashboards for the several departments and operational functions involved. The dashboards are essential for a precise monitoring of the maintenance performances.
The Fourth Step has consisted in the systematic application of upgrading activities basing on the indications obtained from the KPIs dashboard.
The KPIs activated and monitored by our customer has been divided in efficiency and effectiveness metrics.
Effectiveness Indices monitor all the activities related to corrective maintenances (MTTR – Mean Time To Repair). From their analysis, the evaluation of the maintenance service quality has been possible, among other things. Measuring the effectiveness of performances of internal and external maintainers and service providers has led to immediate results. The collected indications have permitted the costs optimization with great cost savings. Furthermore, it has been possible to create a benchmark among the supermarkets in order to obtain an effective comparison in terms of costs and performances and to assess the efficient supermarkets.
Efficiency Indices, moreover, allow to observe and study the employed machinery, in particular the refrigerating plants. The analysis of MTBM (Mean Time Between Maintenance) and MTBF (Mean Time Between Failures) indicators has revealed criticalities with rotating and cargo-handling equipment in the warehouses. These evidences have triggered improvement activities that have led to optimize the control of the supermarket’s warehouses.
Among the efficiency indices, the economic ones are also included. Through them, it has been possible to identify the maintenance aspects to tackle with priority. The aim? To achieve considerable savings, as happened in the management of the spare parts warehouse.
Through the implementation of a key performance indicators system, it has been possible to measure and understand the performances of the company processes. The performance indicators analysis in the large-scale distribution field is an indispensable approach in order to make responsible and productive decisions. The implementation and analysis of KPIs in the retail industry, as in other fields, are the only way to assure a strong and profitable continuous improvement.
To know more about this case-study or about other improvement projects in large-scale retail industry, contact us!