The efficiency benefit of eliminating van keys at UPS

A Wall Street Journal article (Sept 26, 2011) describes the efficiency benefit to eliminating keys for vans – they are instead using a keyless system to start vehicles with a digital remote fob on the drivers belt.  UPS claims to save time spent taking keys out of the ignition, turning around to unlock the bulkhead door etc – a total of 6.5 minutes per day which will generate an estimated $ 70 million in savings, in addition to reducing motion and fatigue.  Is this the kind of “kaizen” one should expect with logistics systems ? How can these ideas be incoporated by van manufacturers to save costs throughout the industry ? Would you expect these cost savings to be passed on to consumers as lower shipment costs ?

About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

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