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Matching Material In-flow with Pace of Production to Avoid Stoppages
ERP – Microsoft AX
New business system software to lay the
foundation to be able to modernize processes and take advantage of tools such as MRP and
planned production orders
Internal Supply Chain Redesign
Reworking the inventory control
process (including receiving and
delivering) and designing a central
warehouse for storage
System Reliability
Proactively searching out problematic areas
within the design architecture and
addressing the most critical and those with
the largest return
Define Concept Design Optimize Verify
Through interviews and observation, we mapped
the system. Once the context was understood,
recognizing that purchasing was the bottleneck became
evident
We were scraping the old ways and redesigning everything.
We had to measure physical dimensions for
warehouse spatial estimates.
Two other designs were considered before selecting the one above.
Next we had to figure out how the warehouse would perform its functions.
Stocking the warehouse ended up as above and next we needed to set the levels according to EOQ model FEMA: We were not able to pilot so we had to outsource EOQ sensitivity analysis and reorder trigger error-proofing to two Yellow Belts.
We did not have the full amount of required resources so we will implement in phases
Will add in visual aids and
routines in addition to system/data monitoring
The front end can get messy; the important thing is see the big picture so you can understand the context. Be quick to
absorb your self into their system.
Don’t assume design is a linear process and that you complete it “one and done”. Design is an extremely
iterative process
Organizations are in these positions because of their
habits; projects last because they change habits
Manual, proactive system to aid ERP
transition
Centralized control of inventory
Quantitative-based ordering method
Consolidated space, inventory, and data
Reactive, “tribal-
knowledge” based ordering
Shortages common
All inventory stored on floor
Lots of NVA time spent looking for parts
Employees take parts from other depts. to stock their areas
Current State
Manual, proactive ordering via Kanban signal
Shortages mitigated with safety stock
Inventory centrally controlled in warehouse
Order quantity based on data
Parts are sent to floor together as a kit or in a replenishment bin
Design State
Sutphen is a family own and run company that prides themselves
on production of high-quality, dependable customizable fire
trucks of iconic design.
Used for KB Dropboxes