A VISUAL WORK HISTORYGE / FANUC EMBEDDED SYSTEMS

MOTIVATING

CREATIVE

STRATEGICDRIVEN

TACTICAL

PROGRESSIVE

Gregg Kastner

• Daily cycle counts– First 14 months, rack-by-rack, bin-by-bin– Next 24 months, A-B-C Material Codes*

• Established Cycle Count Control Group– Counted each day– Only one day of transactions to review in the event

there is an out of balance issue– Cross selection of parts that represent raw material– Only a few people know about parts and location

• Daily Negative Quantity Review• Part-to-Bin Ratio = 1:1• Part number barcodes printed on bill of material• Use of barcode scanners for all transaction• Part picker ID-Card• S.M.A.R.T. goals• Pre-printed kitting labels with part number barcode

64.17%

96.51%97.32%

98.58%

60%

70%

80%

90%

100%

FY-2004 FY-2005 FY-2006 FY-2007

Inventory accuracy during my tenure

40 months without a full wall-to-wall physical inventory

Aligning work flow and material reduction(LEAN Manufacturing Methodology)

2 cubicles, 11 benches, and 92 racks

Phase-I

•LEANed out the receiving process

•Removed 2 cubicles

•Removed closet

•Added second overhead door

Phase-II0 cubicles, 9 benches, and 99 racks

•Brought Semi-Finished Goods back for easier access to Parts Window

•Relocated kitting supplies to be behind kitters

•Moved heavier raw material to lower shelves

Phase-III0 cubicles, 9 benches and 74 racks

•23% reduction in storage space. From 13 shelves per-rack to 10 shelves per-rack

•25% reduction in storage racks

•Removal of rolling ladders

•33% reduction in kitting times by realigning all material bin with new numbering schema. Allowing to introduction pre-printed kitting labels.

Short Work Orders

Short Work Orders

CM Liaison

Parts Window Attendant

SupervisorKitter-1

Kitting Supplies

Kitting Supplies

Outbo

und

CM

B

ulk &

Sho

rtages

KittingSupplies

Semi Finished Goods P3/PROGRAM WORK ORDER STAGING

Copier & Printer Inventory Control Analyst Receiver-3/Cycle Counter

Re

ceiver-2

Re

ceiver-1

FA

ST

EN

ER

PLA

CE

Parts Window

5'-0"

TO SHIPPING

TO LAB FLOOR

Semi Finished Goods

Kitting Supplies

Kitting Supplies

Kitter-2Kitting

Supplies & Sealer

Parts Window Attendant

KittingSupplies

REEL COUNTER

Semi Finished Goods P3/PROGRAM WORK ORDER STAGING

Inventory Control Analyst Receiver-3/Cycle Counter

Re

ceiver-2

Re

ceiver-1

FA

ST

EN

ER

PLA

CE

Parts Window

5'-0"

TO SHIPPING

TO LAB FLOOR

Semi Finished Goods

Kitting Supplies

Kitter-2Kitting Supplies &

Sealer

CM Liaison

Kitter-1

Supervisor

Outbo

und

CM

B

ulk &

Sho

rtages

Sho

rt Work

Orde

rsS

hort W

ork O

rders

“MO” CabinetCAGE

Kitting Supplies

Kitting Supplies

Copier & Printer

Short Work Orders

Short Work Orders

P3/PROGRAM WORK ORDER STAGINGParts Window

TO SHIPPING

TO LAB FLOOR

5'-0"

Database for tracking department productivity, request

parts, and Six Sigma data gathering

Negative quantity related to kitting process

• Daily review of part numbers with negative quantities

• Negatives that are related to the Kitting process are noted on this form and are reviewed weekly with Kitters

Piece Parts and Expense Supplies

6.25.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95

5.25 5.25 5.3 5.3

5.37 5.39 5.565.20

4.925.39 5.46 5.39 5.53 5.62 5.48 5.4 5.31 5.34 5.22 5.14

0

1

2

3

4

5

6

7

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07

Goal MTD

Receiving activity tracking

• Each receiver enters activities at End of shift• Data is used to generate productivity charts to

compare against department goals• See example of two productivity charts below

Parts Put Away

1.22

0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93 0.93

0.50 0.50 0.50 0.50

0.870.83

0.76

0.650.69 0.66

0.76

0.540.58 0.61 0.58

0.49 0.48 0.510.55

0.44

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07

Goal MTD

Kitting activity tracking

• Sub-menu for all Kitting activities• Subdivided into 3 functional areas of

process

Automated material requests

• Used to request raw material back from a contract manufacture

• Generates an automated email based on a click on “Requested by” button

Tracking when work orders are dropped off

• Data captured is used for future reporting

• Verification if work order has been dropped off by Planning

Kitter productivity tracking

• Capture Kitters’ start and stop times for the work order

• Number of line items picked• Time spent on allowed activities (time deducted)• Any other issues with this work order• Determine Average Minutes per-Line Item• Below is an example of two productivity charts

Production-3 Kitting

2.50 2.50 2.50 2.50 2.50 2.5 2.5 2.5 2.5 2.5 2.5

1.50 1.5 1.5 1.51.862.05

1.7

1.08

1.61

1.83

1.53 1.5

1.89

1.47 1.43 1.481.32

1.85

1.26

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07

Goal MTD

SAMMY DAILY KITTING TIME

3.8

7 4.4

8

3.9

9 4.5

6

4.2

5

4.6

2

4.6

4

4.8

3

4.6

5

4.6

9

4.8

5

4.6

4.0

9 4.5

2

4.7

4.6 4.8

3

4.2

3 4.6

3

4.6

3

4.6

9

4.5

2

4.6

5

0

1

2

3

4

5

6

4-2

4-3

4-4

4-5

4-6

4-9

4-1

0

4-1

1

4-1

2

4-1

3

4-1

6

4-1

7

4-1

8

4-1

9

4-2

0

4-2

3

4-2

4

4-2

5

4-2

6

4-2

7

4-3

0

MT

D A

VG

MT

D G

OA

L

Automated PO requests

• Work Order number is entered and remaining data is auto-populated

• Generates automated email to the Planner, based on the “PO Request for” button that is clicked

Tracking carry-over work orders

• Used to track work orders that have not been started on time

• Data is used to support Six Sigma improvement methodology

Contract manufacture shortage tracking

• Contract Manufactures (CM) report shortages for consigned work orders

• Created tracking for kitters’ accuracy and process improvements in-house

• Tracking allowed for further review of CM processes so that we could make recommendations for improvements

Material request form

• Lab technicians enter request from their computer

• Request prints at the Parts Window

• Instant message is sent letting the requesting technician know the part is ready for pick up

• Reduction in down time due to no one standing at Parts Window waiting for parts (at times there had been as many as 5 technicians waiting for parts)

• If invalid part number is requested, Parts Window attendant lets technician know at that time to resend their request

• Accurate information before any parts are released

Other data gathering from a Six Sigma project (within the Manufacturing Agility Compiler)

• This is an example of a form that was created for a Six Sigma project looking at why work orders could not be started on time– This form tracked why work orders could not be brought back for

complete kitting• The outcome was determined to be tight delivery dates committed to our

customers by their sales person

Pre-printed kitting labels

INVENTORY ACCURACY AND COST SAVINGS

How we got here The Pre-printed Kitting Labels story

• Pre-printed Kitting Labels was the outcome of a 12- month project that looked at ways to:– Increase kitting accuracy– Decrease average minutes

per-line items picked

• All team members were encouraged to give input

Benefits of Pre-printed Kitting Labels

• Reduction in the amount of time needed to generate Kitting Labels. This was accomplished by utilizing several manual processes and several software programs.

• Inventory accuracy increased by 1.26% and kitting times decreased from 6 minutes per-line item to 4-minutes per line item, or 33%

• Team members are more engaged, as they see progress being made to make their job easier and their ideas being implemented

Gregg Kastnercan be reached

Home Address8813 West 137th Street

Savage, Minnesota 55378

Phone Number952.239.7983

Emailgregg.kastner@mchsi.co

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