ADSL Installation Cost Reduction: Unnecessary Truck Rolls

Business Issue:

The annual cost per install for ADSL orders was $284/installed (annualized number of installs = 33,600. $9.5 M annualized), excluding CPE, advertising, and capital equipment costs. Of this, $207K were identified as rework costs representing a gap of 2.2%. Reducing this by 50% represents a cost savings of $103K.

A reduction in rework due to “No Access” will help contain overtime costs.

Process Problems

Project focus:
In the last 13 months, ADSL field technician dispatches resulting in a no access situation were 7.86% of all ADSL dispatches resulting in a cost of poor quality of $170,700.

Solutions Implemented

• Enhance customer contact scripts during scheduling
• Implement proactive call back reminder
• Implement procedure for technicians after “no access”

Results of Action

Reduced the “no access” rate from 7.9% to 3.4% within 3 months resulting in $76,000 annual cost savings and a one time $55,000 cost savings in elimination of mailer reminders.

Tools Used

• Process Maps
• Perato Charts
• Cause & Effect Diagrams
• FMEA
• Chi-square
• Regression Analysis