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Decrease Closed by Aging

Yellow Belt: Decrease Closed by Aging

Organization: Hertz RAC

Project Location: AZPHO11- Sky Harbor A/P

Project Number: 1

Project owner: Jesse Smith

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Team Members

Supervisor/Department Head:Matthew Koon

Additional Team Members:Jeff Cobine (Damage Manager)

Stephanie Voightlander (IR)Dalton Labay (IR)

Cynthia Richards (IR)Simon Kafluzi (IR)

Ronald Manlucu (IR)Prawet Mailaratanna (IR)Jonathan Bermudez (IR)

Walter Short (IR)Hector Duran (CSR)Brian Dudley (CSR)

D M A I C

Problem Statement

� Phoenix A/P failed to process .28% (91) of all contracts returned in the month of May. This is .28% above our goal of closing out all contracts. Failure to close out a rental locally can result in loss of refueling revenue as well as poor customer service due to inaccurate billing

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Project Charter

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Process Map

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Customer Picks Up Car and Receives Contract

Contract Voided

Customer Returns Vehicle

Contract Voided or Closed by OKC

Resulting in a DefectNO NO Contract Voided Off Aging Report by

AZPHO11

NO

Contract Removed from Aging Report

Yes

Contract Does not Show Up on Aging Report

Yes

Instant Return Rep. Closes Contract

Contract Closed Off Aging Report by

AZPHO11

Contract Closed by OKC Resulting in a Defect

Customer Receives Receipt

NO

Contract Removed from Aging Report

SIPOC

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Voice of the customer� IR- “MLS takes the vehicles before we have the chance to close out the contract.”

� Gold Customer- “My contract was not voided and now I am showing a charge on my credit card”

� Gold Customer - “Please close out my contract and send me a receipt, so I can put the receipt on my expense report”

� Gold Customer – “I returned the vehicle a day earlier than you closed my contract and it now shows I owe for an extra day.

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CTQC Tree

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Decrease Aging

Aging Manager

C Contracts from Void Contracts

from Aging Report

Close Contracts from Aging Report

IR Rep

Close Out All Returned Vehicles

Standard Work

Good Signage Traffic Directed to IR

Rep

Return Vehicle to Right spot

DPMO

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Defect= Aging Contract Closed by OKCOpportunity= All Returns

4.3 Sigma level reached at .28% Closed by OKC

Data information is from May 1st to May 31st

Source of Data

� Weekly Close by Aging Report

� Monthly Close by Aging Report

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Weekly Close by Aging Report

Break Down by Day/HourMonthly OKC Aging Closures/Total Return Transactions

MSA

� I pulled 91 contracts from May 1st to May 30th from the Weekly Close by Aging Report and compared them on ASAP to verify that the Rental Record Numbers used in this project are accurate. May was not a particularly bad month for OKC Close by aging, but I did see an uptick from April.

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Monthly OKC Aging Closures/Total Return Transactions

Legend

� Alternate RAC = Customer Returned to Alternate Airport Location

� Aging Close Miss = Customer Returned to 2160-11 and was not closed off Aging Report by location.

� Aging Void Miss = Customer did not Rent and Contract was not Voided off Aging Report by location.

� Alternate RAC Origin = Customer Picked up Vehicle at Alternate Location

� HLE Origin = Customer Picked up Vehicle at HLE Location

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Pareto Chart

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• The chart to the left shows the reasons for OKC Closures/Voids from Aging

• This data is from May 1st to May 30th

on all contracts closed by Aging.

• Largest opportunities on this month of review would be Aging Close Misses

64

77

8790 91

0

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20

30

40

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60

70

80

90

100

0

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Aging Close Miss HLE Origin Alternate RAC Origin Alternate RAC Aging Void Miss

Cu

mu

lati

ve %

# o

f O

ccu

ren

ces

Type of Defect from May 1st to May 31st

Closed by Aging Miss Defects

Count Cumulative Total

Trend Chart

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0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

Per

cen

tag

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f D

efec

ts

Timeline

Trend Chart

5 Why’s

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OKC Closes Contract From Aging Report

Contract on Aging Report 3 days past due date

Aging Manager did not close contract off Aging Report in a timely manner.

Aging Manager did not work Aging Report or missed contract.

Contract not closed at the time of vehicle return.

Transporter moved vehicle before contract was closed or customer parked in wrong location.

Bar Chart

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• Worst Days OKC Close by Aging: Wednesday and Thursday at 23% and 34% respectively.

• Best Days OKC Close by Aging Saturday and Monday at 4.4% and 5.9% respectively.

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5

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25

30

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SUN MON TUE WED THU FRI SAT

# of

Def

ects

Week Day

OKC Close by Aging by Week Day

Fish Bone

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Analyze Summary

� Working Aging Report on a daily basis and closing all possible contracts

� Contacting other locations when possible to close contracts returned to their location.

� Increased staffing at IR to better cover all returns and cut down on any missed returns

� Research contracts with representatives or managers to best close/void prior to OKC doing so.

� Noting with managers when gold/platinum contracts are not being voided as necessary to reduce number of contracts needed to be voided on Aging report

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Action Register

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What I did

� Worked Aging Process on a daily basis

� Sent requests to other locations to close contracts when they returned there instead of 2160-11 as originally intended in the reservation

� Researched contracts as best I could when it was determined that they could not be simply closed or voided given the movement data.

� Reviewed Weekly Close by Aging Report to see if any opportunities were missed.

� Hired two more IR Reps to close contracts faster (August 10th).

� Observed transporters on an ongoing basis and corrected them whenever I saw or was told they were moving vehicles with out an “X” marking that they have been closed out. Also set up test vehicles on three different occasions and the transporters did not move them.

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DPMO

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• The sigma level of 4.3 was in May with improvement to 4.6 in June resulting in the location being in the 5th place for Closed by Aging of all Hertz locations.

• Data information is from the month of May and June.

Before (May) After (June)

Day of the week

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• Data from June 1st to July 5th• OKC Closed by Aging Less defined by heavy return days. • One added IR Rep on May 25th, 2015 helped normalize labor planning• Increased Aging Report helped substantially reduce defects overall

0

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SUN MON TUE WED THU FRI

# O

KC

Clo

se b

y A

ging

Day of Week

OKC Closed by Aging By Week Day

Improvement Summary

� May- I started working the aging report and discussed different defects with my team to determine which could be fixed onsite and which would require the assistance of other locations.

� The biggest action I could control was working the aging report on a daily basis rather than allowing the report to build up or skipping weekends. This cut down on any possible misses due to the timing of movement and OKC working the report.

� Improved Staffing played a major factor in catching more customers as they returned and not allowing for transporters to not follow standard work and move cars without an “X”

� The biggest factor effecting us now are unknown defects, which are one way contracts that do not show up on our report, but count against us as the vehicle was returned to our location and subsequently closed by OKC without the aid of the renting location.

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DPMO

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Defect= Aging Contract Closed by OKCOpportunity= All Returns

• 4.6 Sigma level equals at .11% miss rate

• Data information is from July 1st to July 31st, 2015

OKC Closed by Aging Trend Chart

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• Data from April 27th to August 24th 2015

• August is our been our best month yetwith a .076% Closed by OKC comparedto a respectable .28% in May.

• Defects have now been reduced tomainly reservations that do not show upon location’s Aging Report

• Further movement can be made toreduce Aging Closed by OKC to 0 withthe support of other locations

• Overall dedication to reduce defects willsupport other locations as well

Control/Reaction Plan

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