Clearing customs is a necessary part of international trade. We’ll look at applications of Lean and Six Sigma in customs processes from Malaysia, Brazil, and Russia and finish with a video of how customs clearance works.
DMAIC Used to Establish a Benchmark for Paperwork Clearance: Malaysia
In a paper titled “Standard Time of Import Paperwork Clearance Department for Sustainability Organization Performance in Forwarding Company” authors Nor ‘Adilah Mohamad Raazali and others propose a benchmark for the standard time to complete daily paperwork received at a forwarding company by using the DMAIC approach.
Paperwork received is prepared for declaration and declared via an online system to Customs.
The paper includes:
- General Operation Activities of a Freight Forwarders Company
- Import Declaration Process Flow
- Pre-Clearance Process Flow
- Pull Paperwork Declaration Process Flow
- Clearance, Prevent, and Expedite (CPE) Workflow Process
- Average Daily Productivity
- Total Paperwork and Average Manpower of CPE (January-June 2017)
- Ishikawa Diagram of Logistics Risk: Low Output Rate
- Cause and Effect Diagram of Paperwork Clearance Delay
- Value Stream Map Steps for Non-manufacturing Processes
- Paperwork Segregation
- Amount of Paperwork Received Daily
- Number of Paperwork vs Manpower
- Cause and Effect Diagram for Factors for Paperwork Clearance delay
- Revised SOP for Paperwork Submission
You can read the paper here: https://core.ac.uk/download/pdf/338813704.pdf
Lean Six Sigma Applied to Reduce Logistics Costs: Brazil
In a case study titled “The vision of Lean Six Sigma to reduce costs in logistics practices modal shift Introduction” authors H. Pozo, W.L.P. Soares, and G.K. Akabane discuss the use of Lean Six Sigma to reduce costs in logistics practices.
“In this case study, the company ITRI serves as a multimodal logistics operating company and aims to
operationalize the operating condition of a dry port or Logistics Center Industrial Customs (LCIC) for the removal of customs cargo in transit through a process called DTA multimodal yard.”
The paper includes:
- Logistics Center Industrial Customs (LCIC): Strategic Analysis
- Stocks pre-DMAIC and post-DMAIC
- Critical Path Mapping DTA Process Common
- Critical Path Mapping DTA Patio Customs Process
- Analysis of Inventory Costs with DTA Implementation
You can access the case study here: https://ijera.com/papers/vol10no8/Series-1/A1008010109.pdf
Using Lean and Six Sigma to Improve Customs Administration: Russia
In a paper titled “Service oriented customs administration based on the principles of Lean manufacturing” authors Alexandra Kalashnikova and Anna Ovchinnikova discuss the use of Lean production to reduce the 7 types of production costs of customs services through the use of specific tools.
The paper includes
Lean Indicators of Success in Implementing Lean Measures into Customs
- Comparison of the Efficiency Indicators System for Implementing Goals and Objectives
- Lean Production Tools Applicable for Implementing the Program
- The program of implementing the concept of the Federal customs service developing based on introducing the Lean production
To access the paper, copy and paste the following link into your browser
How Does Customs Clearance Work?
A video from Supply Chain Geek covers customs clearance and how it works.
You can watch the video here: https://www.youtube.com/watch?v=WqddGUuSkcA
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