B7 STEEL YARD AWO

July 22 July 26, 2013

Team Leader: Chris French
Area Leader: Gerald Beuvelet
Tech Resource: Sarah Chuplis

Safely, Deliver On-Time, in a Cost Competitive Manner

SAFETY
v Begin and End with Safety.
v No Task or Part is worth risking the wellbeing of ourselves and team.
v Focus Efforts to Improve the Safety of our
Work Environment.

SAW AREA DELIVERY

PERFORMANCE
ROOT CAUSE ANALYSIS
VALUE STREAM MAP
Utilize Talent & Experience
Standardize

KEY
DIRECTIVES

Develop Process
Track Progress
Challenge What You Know
3
GE Title or job number
4/27/15

g ACTION WORKOUT
Current Process does not support efficient
Inventory Replenishment in the Steel Yard
nor does it provide clear instructions for
Saw Area Material Presentation

L E A N

ENTERP RIS E

Team

Target Areas

Area Operators
Business Leaders
MTAs
Purchasing
Flow Leaders
Lean Leaders
Co-Ops & Interns

Raw Material Order Process

Visual Inventory
Standard Work

L E A N

ENTERP RIS E

ACTION WORKOUT

TEAM 1 - Order Process and Standard Work

Liam Clapp - Kevin Weschler - Melanie Stetson - Roger Estok
Ron Nowacinski - Doug Larson
Current State:
Demand Notice to Receiving Material 4-6 business days
14 Unit Conversions in Current Order Process
Undefined Standard Work
Goals:
Develop Process for Same Day Order Placement
Simplify Standard Material Order Process & Delivery
Schedule
Create Standard Work for Steel Yard Team

L E A N

ENTERP RIS E

Value Stream
Map

ACTION WORKOUT

L E A N

ENTERP RIS E

Operation

Order
Process

Problem

Demand Notice to Receiving

Materials = 4-6 business days

Before Kaizen

36 H

ACTION WORKOUT

Actions Taken

Results

Empower Steel Yard EE to

place orders, Increased
order deadline by 1 hour

4-6 business days

reduced to 2-3
business days

After Kaizen

o u rs

4 Hours

L E A N

ENTERP RIS E

Operation

Unit of
measure
conversion
s

Problem

Frequency of Unit
Conversions leads to Order
Quantity Errors

SIMPLIFY

Reduced number of
conversions by 60%

Order sheet with job book

Parts Needed

Order sheet with job book

Parts Needed
Steel yard operator calculates pieces of bar
stock needed to fulfill job
Pieces of Bar Stock

Steel yard operator calculates # of sticks needed to

fulfill job
# of Sticks

Steel yard operator calculates weight of

needed pieces of bar stock
Weight
Steel yard operator writes needed material
on order sheet if not on shelf
Pieces of Bar Stock and Weight

Weight

MTA enters pieces of bar stock for

tube into spreadsheet to get total
length
Total Length
MTA emails tube order to buyer
Total Length
Buyer converts to weight and
adjusts tube order as nueeded
Weight
Buyer enters weight into CAS for
tube
Weight

bar/angle/rod supplier converts weight to pieces of

bar stock. Ajusts to even pieces of bar stock
Pieces of Bar Stock

Buyer emails supplier tube order

Weight
Tube supplier converts weight to
pieces of bar stock

MTA emails supplier bar/angle/rod order

Results

Job book comes out of CAS

Parts Needed

Job book comes out of CAS

Parts Needed

MTA enters weight into CAS for bar/angle/rod

Weight

Actions Taken

After Kaizen

Before Kaizen

MTA enters pieces of bar stock for bar/rod/angle

into spreadsheet to get weight
Weight

ACTION WORKOUT

Steel yard operator calculates weight of # of sticks needed for bar/

angle/rod
Weight

Steel yard operator calculates total length of # of sticks needed for tube
Total Length

Steel yard operator enters order into CAS and emails the supplier
Weight

Steel yard operator enters order into CAS and emails the supplier
Total Length

Bar/angle/rod supplier fills order for weight based on weight per unit
length
Weight

Tube supplier fills order for total length based on standard length of
materials
Total Length

Steel yard operator receives material, checking invoice against order

quantity in CAS
Weight

Steel yard operator receives material, checking invoice against order

quantity in CAS
Total Length

Pieces of Bar Stock

MTA writes what is ordered on order bill
and gives back to steel yard operator
Pieces of Bar Stock and Weight
Delivery notice
Pieces of Bar Stock
Job book comes out of no material drawer
Parts Needed

Steel yard operator determines which jobs to move to

the saw and moves the material
# of Sticks

Steel yard operator determines pieces of

bar stock needed to take to saw
Pieces of Bar Stock
Saw operator cuts up pieces of bar stock
into parts needed
Parts Needed

Saw operator cuts up sticks into parts needed

Parts Needed

L E A N

ENTERP RIS E

Operation

Standard
Work

Problem

Poorly defined Steel Yard EE

Requirements

Before Kaizen

ACTION WORKOUT

Actions Taken

Results

Create Standard Work

Package

Standardized Roles
and Responsibilities,
Defined Work Pulse,
New EE Training
Guide

After Kaizen

L E A N

ENTERP RIS E

ACTION WORKOUT

TEAM 1 RESULTS
Goal: Develop Process for Same Day Order Placement
- Empowered Steel Yard EE, Order to Vendor < 4
hrs.
Goal: Simplify Standard Order Process & Delivery
Schedule
- Reduced frequency of Unit Conversions
- Cut Order Process Steps from 6 to 2
- Establish Delivery Pulse with Vendors
Goal: Create Standard Work for Steel Yard Team
- Defined Roles and Responsibilities
- Established Daily Pulse

L E A N

ENTERP RIS E

ACTION WORKOUT

Team 1 Kaizen Newspaper

Project Description

Owner

Due Date

Train current steel yard operators

Larson/Estok

07/25/13

Train new first shift steel yard operator

Larson/Estok

08/30/13

Create process for maintaining and updating

standard work

French

08/30/13

Ensure delivery window compliance & make

windows narrower

Stetson

09/27/13

Change unit of measure in CAS for ordering

bar and angle from lbs to ft

Notes

Will begin working after

shutdown

WIP
Long term project that may
require another AWO

L E A N

ENTERP RIS E

ACTION WORKOUT

TEAM 2 - Inventory Organization and Management

Tyler Anderson - Jesse Taylor - Nigel Corea
Ron Mozdi - Eric Suroviec Daniel Reynolds
Current State:
No standardized labeling or organization system
Undefined inventory quantities
Obsolete material dispersed throughout racks
Goals:
Define standard inventory and reduce non-standard $ by
25%
Organize and label steel racks
Establish visual inventory management system and create
process to sustain inventory management

L E A N

ENTERP RIS E

g
Value Stream Map

ACTION WORKOUT

L E A N

ENTERP RIS E

ACTION WORKOUT

PROBLEM

CORRECTIVE ACTIONS

RESULTS

Raw material is not classified

or standardized

Created ABC list of steel

yard raw materials through
data analysis

Understanding of what
items should always be
on stock vs. order as
needed

BEFORE

AFTER

L E A N

ENTERP RIS E

ACTION WORKOUT

PROBLEM

CORRECTIVE ACTIONS

RESULTS

Minimal rack organization

Developed and
implemented a layout for
raw material among the
five racks

Labeled racks; Intuitive

layout of ABC items for
better material flow

BEFORE

AFTER

L E A N

ENTERP RIS E

ACTION WORKOUT

PROBLEM

CORRECTIVE ACTIONS

RESULTS

Lack of inventory
management

Visual inventory
management system handin-hand with labeling

Min, max, and reorder

quantity for all A-items

BEFORE

AFTER

L E A N

ENTERP RIS E

PROBLEM

CORRECTIVE ACTIONS

No standard work for

managing inventory flow

Developed a practical SW
and an information board

BEFORE

ACTION WORKOUT
RESULTS
Visual management
process, defined order
quantities, reduced
double orders
AFTER

L E A N

ENTERP RIS E

ACTION WORKOUT

TEAM 1 RESULTS
Goal: Define Standard Inventory & Reduce NonStandard Inventory $ by 25%
All Raw Material Defined, Plan Established for NonStandard Inventory
Goal: Organize and Label Racks
Standard and Obsolete Material identified on shelf
Location Established for All Raw Material
Labels Designed for Identifying Parts
Goal: Create Process for Visually Managing Inventory
Set Min/Max Using Visual Cues for Standard
Inventory

L E A N

ENTERP RIS E

ACTION WORKOUT

Team #2 Kaizen Newspaper

Project Description

Owner

Due Date

Completely Organize Racks

Mozdi/Nowacinski

FW 33

Finish Labeling Racks

Corea

FW 31

Implement Visual Inventory

Management

Taylor

FW 31

Finalize Standard Work

Anderson

FW 31

Assemble Information Board

French

FW 34

Take Action on C-Items

Estok/Nowacinski

FW 35

Add Locations of Materials to CAS

Estok/Chuplis

FW 35

Notes
After Shutdown

WIP

L E A N

B7 Steel Yard AWO

ENTERP RIS E

ACTION WORKOUT

LESSONS
LEARNED

A place for everything and everything in its

place is clich but significant.

Simple steps have big results.

Stay within the Scope of Project

Team Engagement is critical to developing a

culture of Continuous Improvement

Impact of Effective Standard Work on Quality,

Productivity, and Sustainability

5S IMPLEMENTATION

BASELINE AUDIT = 15
2 OSHA VIOLATIONS CORRECTED
2 SAFETY CONCERNS IDENTIFIED
RED TAG EVENT
5S STANDARD WORK
C.I. PROJECTS SCHEDULED
21
GE Title or job number
4/27/15

THANK YOU!

22
GE Title or job number
4/27/15