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FICEP LOGISTICS IMPROVEMENT Approaching Lean Manufacturing SUMMARY [Scrivere un sunto, ovvero un breve riepilogo del documento,

FICEP LOGISTICS IMPROVEMENT

Approaching Lean Manufacturing

SUMMARY

[Scrivere un sunto, ovvero un breve riepilogo del documento, significativo e in grado di attrarre l'attenzione del lettore. Per aggiungere contenuto, è sufficiente fare clic qui e iniziare a digitare.]

Giulia Bossi, Thomas Cousin, Pietro Borsani, Sandeep Kumar Mishra

Industrial management LAB

Summary

Summary ...................................................................................................................................................................1 The company ............................................................................................................................................................2 The project................................................................................................................................................................3

Cognitive map .......................................................................................................................................................4 Group 1 Pietro Borsani and Sandeep Kumar Mishra .............................................................................................6 Group 2 Giulia Bossi and Thomas Cousin ..............................................................................................................7 Define ...................................................................................................................................................................7 Time planning ...................................................................................................................................................8 SIPOC ................................................................................................................................................................9

Measure .............................................................................................................................................................

10

Process chart

10

10

Collecting data

12

Analyze ..............................................................................................................................................................

16

5 whys analysis

16

Attachments ..........................................................................................................................................................

20

Group 2 ..............................................................................................................................................................

20

7PvsMOV pie chart

20

1

The company

FICEP is one of the world’s leading machine tool manufacturing companies with an experience of over 80 years. In 1930, the Colombo and Giuliani families created "Fabbrica Italiana Cesoie e Punzonatrici SA", with headquarters in Milan and factories in nearby of Gazzada, where there was enough space for a big plant. One of the main characteristics of Ficep is the continuous presence in the management of the original families, which continue to set the company direction towards customer requirements. Its product range is huge and in particular, it concerns the fabrication of structural steel and plate and the forging industry. Ficep counts 70 different types of machines and all of these can be shaped according to customer needs. This means a huge amount of components to deal with and it expresses the real need for strict procedures and policies to be effective in managing them. It is split in three main production plants: one in Gazzada, one in Casale Litta and one in Castronno.

A company like Ficep should have a defined way of working. Due to its big product range and the types of product they sell, logistics has to manage daily with thousands of euros of incoming and outgoing goods. Anyway, it seems that they do not perceive their size. Since it is an Italian family company, operations do not change accordingly to the changes of the environment in which the company acts. This means that improvements are a difficult issue to achieve, even if managers tried to push employees to continuous improvement. As can be perceived just entering in production department, there are high cultural barriers that block the development of more efficient ways to work. In fact, most of the people inside the company speak an Italian dialect. It is strongly in contrast with the international nature of company in terms of market. It seems that they are stuck to old management policies and all the trials made to improve have faded away. One of the most critical issue for companies is the ability to understand that there is a deep need for changes. This could be done through the correct perception of innovation needs and the correct assessment of internal and external stimuli, which can induce a big change. Here, it is even more difficult to appreciate the necessity for changes because the market is quite stable or growing, despite the crisis. In Ficep case, a small part of the company has been changed creating a sort of detached department where workers are lean oriented, named Gemini. Managers that led this big change, explain that it was very hard to convince both top management and workers to change. After one year from the change, they are quite convinced that change is worth. There is a lot of work to do both on Gemini that is a very good starting point for continuous improvement, and on all the other departments that are strongly stuffy. Another problem that cannot be under evaluated is the following: employees in different department do not care about the connections among different activities. This means that there is no continuity from inbound logistics to delivery of the finished product. Therefore, the flow is continuously interrupted.

2

The project

The project has be split in two sub-parts in order to get significant goals:

  • - The first group has to analyze the inbound logistics trying to define a better way to manage incoming goods. In particular, the group has to focus on the parking area outside the general warehouse. This area is currently managed with no standard procedures.

  • - The second group has to analyze the stocking process: from the receiving at GWH to stocking.

Anyway, the focus of those two projects is on traceability of responsibility that, since now, has not been possible due to the lack of any procedures. The whole project aims to address problems with a lean approach in order to make these processes more and more flowing. Anyway, it is not a matter of pure lean management application, but a definition of standard processes to increase efficiency, effectiveness and reduce many useless costs. During the development of the project, an A3 model is helpful to structure thinking and tell a concise PDCA story. Here, it is reported the “is-is not analysis” that has been essential in the first weeks to restrain the focus on what is actually the aim of the project.

 

Description

 

IS

IS NOT

 
 

What is the defect?

 

A matter of system efficiency and missing parts at assembly line

A matter of product quality

 
   

Not

production

system

(assembly

 

What processes?

 

Inbound logistics and storage system

line)

 
 

Where in the process?

 

From the entrance gate assembly line system

to

the

 
 

Who is affected?

 

Firstly planning dept., then logistics

 
 

When did it happen?

 

Since 80's when top management decided to meet three times a year to forecast everything

 
 

Every

times

the

purchasing

 
 

How

happen?

frequently

did

it

department makes an order and start

the process

 

Is there a pattern?

     
 

How much is it costing?

 

Never considered by the company. They have a huge stock that in somehow is completely useless. The procedures are undefined and this

 
 

arise

a

big

cost connected to

materials

handling

and

stocking

operations

 

As can be easily understood, their organization has no formalized process to which anyone can refer. Everything

is based on people, not on organisation and procedures. In addition, they are not able to track responsibilities. They do not even have an idea of the chain that links each simple activity in the process. In conclusion, if a statement could describe these projects, it would be the following:

3

Group 1:

The main problem is a lack in logistics management concerning storage, picking, inbound logistics and outbound; as a matter of fact there is the clear need for clear and standard rules/procedures in each department and for the different type of activity.

Group 2:

The main problem is the lack of standard procedures in stocking/picking pieces and in traceability of responsibilities. Actually, they have a lack in controlling the WH of each department. In fact, they do not control this system and therefore, they do not have specific KPIs to assess.

Why is standardization so important?

If the project were not oriented to create standard procedures, the study and the subsequent implementation could result in a completely useless effort. In fact:

It could happen that the way they work returns to the current conditions that is a chaos.

Pile of useless materials or pieces stocked even they are not required by the assembly line.

Missing parts continue to characterize the system.

In conclusion, it is important to say that if people are not conscious of their responsibilities, all the corrective actions presented by this project will be empty talk.

Cognitive map

In order to be able to address the problem, it has been useful to exploit some management tools. In particular, the team tried to visualize it through a cognitive map as shown in the picture below (Figure 1).

Cognitive maps are a useful item to shape the problem through a mental process of identification of links and consequences that consider different factors concerning a certain argument.

The team decided to adopt it because of its visual impact and the way it remains in mind compared to words. In this way, it was also possible to avoid those factors that were not of interest for the project. Anyway, only by mentioning all the possible elements affecting the concept of “missing parts” it was possible to find out possible causes and to get connections among each other.

4

Inadequate management system Suppliers’ bad performances Master plan 4 times a year Inadequate logistics Direct root
Inadequate
management
system
Suppliers’ bad
performances
Master plan 4 times a year
Inadequate logistics
Direct root causes

Customer dissatisfaction

Inadequate management system Suppliers’ bad performances Master plan 4 times a year Inadequate logistics Direct root
And consequently Delay in production Causes
And consequently
Delay in production
Causes
Inadequate management system Suppliers’ bad performances Master plan 4 times a year Inadequate logistics Direct root
MISSING PARTS Is defined as Indirect root causes Lack of components to No monitoring process assembly
MISSING PARTS
Is defined as
Indirect root causes
Lack of
components to
No monitoring process
assembly lines
And concerns
Big components
Big components
Wrong forecast
Wrong forecast
Lack of control on WH Which is a consequence of
Lack of control on WH
Which is a consequence of
No traceability of responsibility
No traceability of
responsibility
Small components
Small components
No KPIs Inadequate
No KPIs
Inadequate
management system
management system
No standard procedures to stock and pick
No standard
procedures to stock
and pick

Inefficient coding system

5

Group 1 Pietro Borsani and Sandeep Kumar Mishra

6

Group 2 Giulia Bossi and Thomas Cousin

In order to better structure the problem, the group has tried to analyze it through the application of DMAIC. Due to the large scope of the project, it is essential to define every intermediary steps and some milestones in order to check the project progress.

Define Measure Analyze Improve Control
Define
Measure
Analyze
Improve
Control

Goals Identify problem

Finalize the project focus

Define the scope Tools A3 model SIPOC model

Goals Collect data Determine process performances Tools Process mapping

Value added vs. non value added

Goals Root causes analysis Quantify possible savings Tools 5 whys Pareto charting

Goals Develop potential solutions Tools Road map of solutions

Goals Monitor and adjust Gains made via standardization Tools TBD

Define

Here, the main aim was to define the scope of the project. In this way, it has been possible to clarify to every stakeholder, which could be the problems to solve by groups 1 and 2.

The very first meetings were oriented in this direction, so that the group could focus on a specific part of operations that Ficep accomplishes and strongly understand what the project is.

It was essential to use a special kind of project charter: A3 model. The “is-is not analysis” has been already reported above. As regards the other parts of the model, here below it is possible to see the most significant ones.

Define •Goals •Identify problem •Finalize the project focus •Define the scope •Tools •A3 model •SIPOC model
Define
•Goals
•Identify problem
•Finalize the project focus
•Define the scope
•Tools
•A3 model
•SIPOC model

Team members

 

Stakeholders

 

Department

Giulia Bossi

Loris Reato

Cells Warehouses

Pietro Borsani

Marco Brambilla

Internal Production

Thomas Cousin

Alberto Portioli

Quality Control

Sandeep Kumar Mishra

 

Kaustav Kundu

 

Clarify the problem / Problem Backgroud / Current situation

 

Is-is not analysis

Is: Absence of items/components at the assembly line

Is not: JIT or LEAN management

Problem statement

 
 

Group 2

 

The main problem is the lack of standard procedures in stocking pieces and in traceability of responsibilities. People inside the company work without knowing that each actions is linked one to the other. It is a chain of errors that causes missing parts and delays.

Breakdown the problem

 
 

1.

Difficult phase because of the complexity of the system.

7

   

Problems in coding system: they have a quite undefined system of coding. For an

2.

external person, it is quite confusing. Many times, they call the same thing with two or more different codes.

3.

Problems with suppliers that deliver their products directly to the dept. WH without passing through general WH

4.

Picking and stocking operations are not coherent with Bill Of Materials and requirements of assembly line.

Set targets

 
 

Objectives

Deadlines

1.

Understanding of the current configuration of the WH

By w46

2.

Analysis of databases to find connections between critical variables (BOM, type of machine, standard or optional component, usage etc.)

By w50

3.

Estimation of current picking time

By w50

4.

Definition of classes to divide the WH according to critical parameters

By w2

5.

Redefinition of codes and how pieces are positioned inside the WH

By w2

6.

Estimation of new picking time and consequent percentage of reduction

By the end of the project

Time planning

Problems in coding system: they have a quite undefined system of coding. For an 2. external

In order to be more efficient in managing the project, it was basic to define the estimated duration of activities so that it could be possible to deliver the result on time.

This is the reason why a Gannt chart is exploited to visualize the sequence of accomplished activities. Durations are evaluated on a weekly base, according to the meeting cadence.

8

SIPOC

In order to be able to change the process of storing and picking pieces in and from the WH, it is important to deeply understand the actual causes of failures. Only in this way, it is possible to think and apply corrective actions so that a better process is defined.

For this purpose, SIPOC has been chosen to identify all relevant elements of a process improvement project before work begins: Suppliers, Inputs, Process, Outputs and Customers. A graphic representation of these factors is the output of the SIPOC model.

Suppliers Inputs Process Outputs Customers External suppliers Items Assemblies Assembly line GW logistics man Raw materials
Suppliers
Inputs
Process
Outputs
Customers
External suppliers
Items
Assemblies
Assembly line
GW logistics man
Raw materials
Sub-assemblies
Machine
Picking order
Items released to
Purchasing
Receiving
Logistics man stores
the items in WH
Picking activity
release
the assembly line

Looking at this graph it is possible to understand that the process is quite complex due to all the variables that affect each single box. For example, it is easily understandable that the management system (AS400) influences the most part of these boxes: the picking list is generated by it. During the meetings, it was possible to acknowledge the existence of a limit in the system itself. In fact, once a picking list is generated and the logistics man takes in charge to pick all the items, it can happen that not all the items are there. This is due to two different reasons: items do not have any address or AS400 is not depleting picking orders properly. In fact, there is no possibility to partially complete the order, as the system will not show that some items have been picked and some others are missing parts.

9

Measure

The main components of this phase are the detailed map of the process and the collection of data that is needed to drive out a perfect analysis of the current situation. This is why, the group decided to conduct some qualitative and quantitative analysis, in order to give a structure to the project. The tools that have been used are described in the following paragraphs. The most time consuming activity was the collection of data because database were not always complete or it was necessary to conduct a cross analysis among many databases.

Process chart

Measure •Goals •Collect data •Determine process performances •Tools •Process mapping •Value added vs. non value added
Measure
•Goals
•Collect data
•Determine process
performances
•Tools
•Process mapping
•Value added vs. non
value added

Each time a movement takes place many documents have to be filled and signed: this complicates the process. Here below, there is a partial chart of the document flows. The yellow rectangle shows the main flow the project encompasses. In fact, all the data considered during the analysis are strictly connected to it. In the next paragraph, 7P and 7M movements are deeply analysed in order to extract as much information as

possible on the current situation of the company. In this way, when a potential solution is identified,

it would be
it would be
easier to show to stakeholders its importance in terms of saving time and money and space.
easier to show to stakeholders its importance in terms of saving time and money and space.
Commented [GB1]: controllare correttezza movimenti
Documents flow
Suppliers
Project focus
7B
Other WHS
RA
GWH
L1
Quality
7M
7P
control
PM
Production
LU
line

Value-added vs. non value-added activities

In order to understand which the real wastes in Ficep are, it has been useful to analyze the process in terms of seven sources of waste of Taichii Ono:

  • 1. Transportation: logistics man moves through shelves following the picking order. The forklift moves too much, in respect of what is actually needed. This is for sure linked to the random way to organize their WH. In fact, each picking list is composed by items that are dispersed throughout the WH. In this way, the activities of picking and storing are time consuming and this can be translated in a waste of human labor. In addition, transportation can induce the existence of another type of waste, as an example products can be damaged during the transport.

10

Moreover, they place things whether they are not needed there. They move things from a place to another without a reason. This kind of waste can be a consequence of an inefficient workplace layout, large equipment or batch production: in Ficep, all of these causes have been observed. Here below, there is an example of picking list. The main issue is that logistics man accomplishes one work order at a time without considering that the following one can have some items stocked in the shelves is visiting.

  • 2. Inventory: this waste is considered as the unnecessary keeping of raw materials, finished goods, parts or WIP. As Ficep works in a MTS perspective, its production is based on forecasts, made three times a year. In addition, the group observed that Ficep works with a non-sense logic to manage WH. It is possible that pieces are redundant among different WH. They stock everything even the smallest and non-value part. Components are everywhere, not only in WH, but also on shop floor because nobody knows where to put them and so they leave pieces where there is enough space. This problem goes together with missing parts: by better managing inventory, it is possible to improve the whole production system.

  • 3. Movement/motion: this type of waste involves both human and machines. If the motion is not adding value, it is waste.

  • 4. Waiting: as reported above, they make a master plan three times a year and then place orders to purchase materials for future months demand. Pieces are waiting somewhere to be processed. This is a perfect waste of time and space.

  • 5. Overproduction: This is the worst type of waste because it is able to produce and hide other types of subsequent wastes. 1 It is not only a matter of processing product you are not able to sell yet, but also forecasted overproduction. Ficep tries to forecast the production on a quarter basis and as the order comes, it tries to turn in a MTO system. Anyway, due to market factors and variability in terms of customer requirements, this is for sure the most difficult waste to face with.

  • 6. Overprocessing: they make a standard product in MTS and then they customize it, because demand comes later in respect to production. For example, they paint two times the same piece: the first time with the “Ficep standard color”, but then they repaint it in completely different colors according to customer requirements. Another example could be the creation of the basic frame on which the machine will be assembled. Outside the WH, they have many frames ready to be processed. Even if this is not in charge of this part of the project, it has to do with the parking area to be created by the other group. Actually, they tried in the past to convert the painting dept. to Kanban, but they failed: in fact, operators refused to accept the new way of working and continued to paint all the parts that came (and come) to the department.

  • 7. Defects: due to lack of attention in managing stocks, it happens that some components is placed on the machine but it does not work properly because it has been damaged during transportation. It has to be re-bought and changed.

1 Lean Enterprise Institute

11

This adds more details to the analysis. In fact, it shows better how many sources of improvements there are. This project is only the starting point of a process of continuous improvement that could bring this company to save more and more money and time as well as resources.

In addition, points 2-3-4 make clear the connection between the two projects. The improvement of one part consequently increases the efficiency of the other part: the project on inbound logistics can influence the time in which pieces stay in the system waiting to be processed as well as reduce movements among the overall company, while the second part of the project influence the management of the WH. By achieving even small results in both parties, the company could benefit of huge improvements.

Collecting data

This is for sure the biggest part of the overall project. The group had to analyze huge databases trying to extract the information it needed to find out both the current situation of the company and possible improvement

solutions.

 
 

The analysis started with the code system that in this company, seems to be more complex than it should be. During weekly meetings, the group tried to understand which the current situation of the WH was. In order to do this, the first step was to understand the configuration and the coding system for both products and different

CU C1 WIP stock
CU
C1 WIP
stock
 

WH.

 

In FICEP, there are four cell WHs and one central WH. The first ones are split in

one WIP warehouse within the cell (dept.) and one canonic WH that is able to stock components.

Currently, there are no policies to manage incoming pieces: they are placed in the

first place free. In fact, there is no correspondence between the bill of material and the proper definition of position in WH. Moreover, here are stocked pieces such as screws that do not have any value and could be managed in other more effective ways. These pieces occupy positions uselessly. Another important criticality noticed by looking at the WH, is the extremely low level of saturation of the system. In addition, if someone asks to managers, which is the exact level of saturation, they will say they have never evaluate it. This is striking and it is of course linked to lack of basic KPIs to assess the performances of the system. WH is composed by a different number of aisles and columns. On average, they have 14 aisles. In this warehouse, each position is represented by a code, as follows:

0X 00X 00X Shelf Column Level
0X
00X
00X
Shelf
Column
Level

It seems to be a good way of coding, but this code hangs on the correspondent position and it is not assigned to a specific components. In fact, as it has been already said, each time the logistics man has to stock something, he looks for the first free position and only he knows where he put that piece. This creates a sort of chaos: if he, for some reasons, is not there when needed, the production line has to stop because of lack of materials. This is of course a waste of time and an interruption of the flow.

Another code then hangs on the pallet load, which is the ID of the product. The distinction is the following one.

12

Code

What is?

  • 1 ………. 00

 

Mechanical/internal production

  • 2 ………. 00

 

Outsourced

  • 3 ………. xx

 

Raw materials

  • 6 ……….

Gear motors

  • 7 ..

………

..

Commercial pieces

This picture shows the initial two digits of the coding system they use to identify groups of items in the bill of material of a certain machine.

G0
G0
G0 G9 G9 G9 G9 G8
G9 G9 G9 G9
G9
G9
G9
G9
G8
G8
  • Make to stock

G0 G8 G9 Items Items Items
G0
G8
G9
Items
Items
Items

Actually, the process of translating the components in BOM codes is the following one:

Design the machine

Intermediate phase: commercial area and technical dept. decide to make a price list. They try to translate options into codes

Translation in BOM as the picture shows.

Anyway, when the client sends the order, the coding system turns like in the chart below and the system turns from MTS to MTO.

G0, G9 are assemblies and sub-assemblies codes of products. Some groups are of standard components, some others are of optional ones. G8 is a pool of parts but actually, it is not an assembly part. It is used only to better see the components of the machine.

NB: here some components that require many weeks to be assembled are on the same level of others that take only two days. There is no connection between the level of the BOM and the time phase when the assemblies are actually picked and used. Therefore, they invented LOR that takes into account of the production needs but also the place where pieces are stocked (L1 or LU).

13

 
G0
G0
 

Make to order

         
G9
G9
  • G9

G0 Item G9 Item
G0
Item
G9
Item
  • Item

 
G9
G9
Optional
Optional
 

According to this coding system and considering the BOM of different machines they produce, the focus of the

project will be on those machines that create the 93% of total production. Therefore, it is interesting to analyze:

 

Machine

%production

G32 HP

48%

 

G36 HD

11%

TIPO A25

19%

 

TIPO B254

15%

Machine %production G32 HP 48% G36 HD 11% TIPO A25 19% TIPO B254 15% Going back

Going back to the type of document, the group has tried to link the type of movement to the number of picking

Going back to the type of document, the group has tried to link the type of
Going back to the type of document, the group has tried to link the type of
 

per each items related to those machines.

per each items related to those machines.
 
  • Commented [GB2]: not so sure it is like this

In particular, by analyzing the data provided, the group wanted to understand which are the items that are mostly picked. This means to consider the 7P movements from LU to L1.

This step was extremely important because it could create the basis for an analysis on inventory rotation rate or more simply, for understanding how to better position items in the WH. In fact, those items that are picked the most are the best candidates to be placed in “easy-to-reach” positions.

The intent of the table in attachment (7PvsMOV) and the graph is to show that most

The intent of the table in attachment (7PvsMOV) and the graph is to show that most of the pieces stocked in LU

The intent of the table in attachment (7PvsMOV) and the graph is to show that most
 

warehouse, are picked just once or maybe twice a year (77% of the total items in LU of 2014). It is incredible that

all of these pieces are never used in producing machines.

 
 

Having this strange data, the group tried to find out a main reason of this great inefficiency: they have in stock pieces that compose a machine that has been dismissed in past years. Nobody cares about these pieces and they

Having this strange data, the group tried to find out a main reason of this great
 

are in shelves even if they are no more

are in shelves even if they are no more

usable

.

Commented [GB3]: not only
Commented [GB4]: aggiungere altre conclusioni

 

Commented [GB5]: recompute the right data

14

7P movements 2% 2% 22% 4% 3% 3% 6% 14% 12% 10% 10% 1 2 3
7P movements
2%
2%
22%
4%
3%
3%
6%
14%
12%
10%
10%
1
2 3
4
5 6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22 23
24
25 26
27
28
33
36
39
40
42
45
47
53
60
87
91

15

Analyze

The objectives of this third phase will be to ascertain whether the cause potential, previously identified as those that triggered the problem in question, are indeed the right ones. Some supporting data have been already presented in the previous paragraph. Here, some more info that sustained the analysis can be found.

In this phase, the group had a clear idea of the project. Now, it is time to deepen the analysis and drive out some possible solution of the problem.

Here below we can find the root causes slot from the A3 model that was updated each week in order to define every time better what was the problem and to add eventual new causes the group detected.

Analyze • Goals • Root causes analysis • Quantify possible savings • Tools • 5 whys
Analyze
• Goals
• Root causes analysis
• Quantify possible
savings
• Tools
• 5 whys
• Pareto charting

Root causes analysis

GROUP 2

 
 

One cause is the Master Plan established by the top management each four months. They are currently on a MTS system and their forecasts are quite always wrong. In addition, their LT and DT are very different between each other. Therefore, the risk of having missing parts is strongly high. By analyzing extracts, we found out that there is a serious discrepancy between the BOM and the actual picking activities. This is why we tried to match different aspects such as pickings, components and machines, standard and customized components, in order to find out possible connections with the current configuration. Anyway, there is no policy in managing the WH. This is connected to a bad management of the company and affects not only our field of study, but also the overall performances of the company. In addition, they do not have a specific policy such as FIFO or LIFO, they pick the items that is easy to reach. Below, it is possible to find he 5 whys analysis which was helpful to catch info on root causes.

5 whys analysis

This analysis allows exploring cause-and-effect relationships among variables. It is based on the simple question “why?” and leads to the comprehension of root causes of a certain problem. In Ficep case, the starting point is of course “missing parts”.

As can be seen in the graph, the first level criticality are the absence of control and policies that affects the overall company, from the smallest activity to the biggest one.

However, these problems are visible at the first sight. The importance of this analysis is the understanding at deeper level the reason why a big company like Ficep has this chaotic way of doing.

It was strongly helpful because it gave the group a help in finding the most critical lack to cover, that is the absence of specific KPIs to control the warehousing system. In the next chapters, it is possible to go through the explanation of them and the criteria the group chose to improve the system.

16

Missing parts

No policies No control over WH No control over suppliers
No policies
No control over WH
No control over
suppliers
 
Cultural barriers No commitment There is no traceability

Cultural barriers

No commitment

There is no traceability

 

Not all the operators

They don't perceive the

understand the importance of them

connections among activities

of responsibility

Old way of managing

Family company

 

Stuck to old times

No KPIs

  • No understanding of the size of the company

They thought not to need them until today

  • No control on depts at the top levels

Many documents No standard procedures Nobody has an

Many documents

No standard procedures

Nobody has an

 

Unclear process

helicopter view of the company

Limits linked to the management system

  • The same subassembly

AS400

 

Twisted coding

system

No KPIs

is named with different codes

No standard

procedures

No quality control

No conformance

Free access to WH to

"Friends" policy

control

download

17

Here below are reported some important passages the group went through. It was important to make a crossed analysis among different factors:

  • - Machines produced in L department

  • - BOM of each machines

  • - Standard items and optional items

  • - Assemblies and subassemblies that compose the BOM

  • - Average usage of a certain component in a specific machine

  • - Forecast of the production for 2016

In this way, the group was able to find out:

  • - The components that are in common to different machines

  • - Others that are standard for one machine and optional for the other

  • - Yearly consumptions for each item both for the single machine and the total for all the machines

Using spreadsheets, the group was able to visualize some criteria to split the WH in different sectors:

  • - Sectors are chosen accordingly to machine type

  • - Commonalities are positioned in adjacent aisles so that, even it is not an optimal way to manage, it is possible to reach improvements.

18

Product People Barriers to change Not responsible Own way of doing Missing parts
Product
People
Barriers to change
Not responsible
Own way of doing
Missing parts
Family company No standard procedures No KPIs No control over the process Twisted coding system Management
Family company
No standard procedures
No KPIs
No control over the process
Twisted coding system
Management
Process
Complex BOM
Complex BOM

19

Attachments

Group 2

7PvsMOV pie chart

Nb Move/Y

Nb PN

Cum Qty

%

Cum %

1

 
  • 254 22%

  • 254 22%

 

2

 
  • 155 14%

  • 409 36%

 

3

 
  • 115 10%

  • 524 46%

 

4

 
  • 112 10%

  • 636 56%

 

5

 
  • 136 12%

  • 772 68%

 

6

 
  • 63 6%

  • 835 74%

 

7

 
  • 39 3%

  • 874 77%

 

8

 
  • 34 3%

  • 908 80%

 

9

 
  • 16 1%

  • 924 81%

 

10

 
  • 10 1%

  • 934 82%

 

11

 
  • 50 4%

  • 984 87%

 

12

 
  • 21 2%

  • 1005 89%

 

13

7

  • 1012 1%

 

89%

14

 
  • 11 1%

  • 1023 90%

 

15

 
  • 10 1%

  • 1033 91%

 

16

 
  • 9 1%

  • 1042 92%

 

17

 
  • 4 0%

  • 1046 92%

 

18

 
  • 5 0%

  • 1051 93%

 

19

11

  • 1062 1%

 

94%

20

 
  • 3 0%

  • 1065 94%

 

21

 
  • 4 0%

  • 1069 94%

 

22

 
  • 19 2%

  • 1088 96%

 

23

 
  • 15 1%

  • 1103 97%

 

24

 
  • 5 0%

  • 1108 98%

 

25

 
  • 1 0%

  • 1109 98%

 

26

 
  • 8 1%

  • 1117 99%

 

27

 
  • 1 0%

  • 1118 99%

 

28

 
  • 3 0%

  • 1121 99%

 

33

 
  • 1 0%

  • 1122 99%

 

36

 
  • 1 0%

  • 1123 99%

 

39

 
  • 1 0%

  • 1124 99%

 

40

 
  • 1 0%

  • 1125 99%

 

42

 
  • 1 0%

  • 1126 99%

 

45

 
  • 1 0%

  • 1127 99%

 

47

 
  • 3 0%

  • 1130 100%

 

53

 
  • 1 0%

  • 1131 100%

 

60

 
  • 1 0%

  • 1132 100%

 

87

 
  • 1 0%

  • 1133 100%

 

91

 
  • 1 0%

  • 1134 100%

 

20