Lean Management Approach to Sustain Improvement of Customized Exhibit Packaging and Enhancing CSAT Scores

This thesis investigates the potential benefits and multifaceted impacts of packaging optimization within the visual communications industry. Using Orbus Exhibit and Display Group as a specific case study, the research aimed to address the prevalent customer dissatisfaction associated with the company's packaging methods and materials used for Customized Exhibit Structures, one of Orbus' main product categories. The primary research objective was to alleviate customer difficulties experienced at exhibition sites due to inefficient packaging, subsequently aiming to increase the Customer Satisfaction Score (CSAT) related to packaging from a baseline of 76 to a target score of 86. To achieve these objectives, the study employed an integrative approach using Lean Management principles coupled with Design for Six Sigma (DFSS) methodologies. A detailed application of the DMADV (Define, Measure, Analyze, Design, Verify) process was used to critically evaluate and redesign the existing packaging. This meticulous process culminated in an optimized packaging solution which offered marked improvements in several areas. These enhancements encompassed heightened durability of the packaging, refined item organization within the packaging, improved labeling for better identification, clearer and more straightforward packing instructions, and a strategic reduction in the external width of the crate to increase transport efficiency. Key Performance Indicators (KPIs) were established to gauge the success of the project. The redesigned packaging solution delivered improvements in crucial KPIs, including the CSAT, Average Time to Assemble (ATA), Transport Efficiency Ratio (TER), and the Rate of Returns due to Packaging Errors (RRPE). The new packaging design not only ameliorated operational efficiency and customer satisfaction but also made a significant contribution to environmental sustainability. The latter was marked by a notable reduction in CO2 emissions per order by 43\%, indicating the sustainable benefits of efficient design. In terms of financial implications, the study applied scenario analysis to evaluate the financial viability of the new packaging design. The results underscored the cost-effectiveness of the redesign, projecting an expected Net Present Value (NPV) of \$5,220,617 over a six year period under realistic scenarios. The primary objective of the study was successfully met, with the redesigned packaging resulting in an improved CSAT score of 88, surpassing the original target. However, the research also acknowledges its limitations, which include the relatively short Verify phase in the DMADV process and the potential inaccuracies in the financial data due to the monitoring system used by Orbus until June 2023. This study provides substantial insights into how a combination of customer-centric design thinking, Lean Management principles, and DFSS methodologies can contribute significantly to the optimization of packaging within the visual communications industry. The outcomes reinforce the possibilities of enhancing customer satisfaction, reducing environmental footprint, and achieving substantial financial benefits simultaneously. The research concludes by highlighting the necessity of continuous improvement and further research to maintain and extend these benefits in the future.