Analysis and Improvement of Service Level: Practical Case in a Luxury Leather Goods Component Manufacturing Company

The demands of the business world increasingly challenge organizations to provide better Service Levels (SL). To monitor this performance, there are indicators such as the On-time-in-full (OTIF) and it is in this context that this project arises, which focuses on the analysis and improvement of the SL provided by the company under study. This Portuguese company is part of an international group of luxury leather goods, dedicated to the production of leather goods components. OTIF is measured by the group through a percentage called Service Rate (SR). The target set for the group’s companies is 85% and, in 2022, the company had a SR of 72%. In light of the action-research methodology, an analysis of the causes that lie at the origin of a service failure was started, and through the measurement and analysis of the potential for improvement, it was concluded that the cause in focus would be “KO Tool”. In this area, problems were identified, which triggered an action plan focused on the creation of a database and registry of occurrences, on acting on the causes of anomaly, on the creation of a dashboard to alert to ongoing blockages, and on the proposal for the regular purchase of tools. There were registered gains in information traceability, space optimization, and organization of occurrences and, in general terms, data capture on the causes of service failure was improved. Considering the implemented solutions and future suggestions, an increase of 3.5% in SR is expected.