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Customer On Time Delivery Performance – Improvement project for TRP Sealings, Hereford, UK

Customer On Time Delivery Performance – Improvement project for TRP Sealings, Hereford, UK. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. . Introduction

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Customer On Time Delivery Performance – Improvement project for TRP Sealings, Hereford, UK

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  1. Customer On Time Delivery Performance – Improvement project for TRP Sealings, Hereford, UK

  2. Case Study – COTD & MPS WorkshopsSealing Systems Manufacturer, Hereford, UK. Introduction The client are manufacturers of customised and standard rubber compound gaskets for the plate heat exchanger industry. VA were asked by the client’s key customer, APV Invensys to support & guide the client to drive up their current COTD performance to APV sites in Goldsboro (U.S.) & Kolding (Denmark). Both APV sites had seen delivery Commitments and acknowledgement dates being unreliable and in many cases had witnessed further repetitive slippage to re-acknowledged dates. This was then having a significant knock-on effect to the operations side within both facilities. Project Plan After an initial SWOT analysis, VA recommended a 3 month program with the following objectives: • Detailed COTD analysis and implementation of Improvement Action Plan • Review and re-alignment of current stocking policies and parameters • Formal review, measurement and alignment plan of order book adherence • Introduction to the “Control Room” process After drilling down into the perceived issues, the VA Consultant quickly identified that there were 4 main causes impacting on the clients ability to deliver on time. These were: • Orders scheduled to utilize press run time rather than by customer request date (due to long changeover times) • No WIP tracking tools • Manual planning system did not provide accurate forward capacity plans • Quality issues on trimming process

  3. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. Implementation Below is a summary of the main processes introduced to drive improvement within the client’s business: • Control Room – Set up to develop, monitor and drive improvement of KPI’s & install broader visual management techniques throughout the site. • COTD Recording – Data table set up to expand on basic COTD measurement. In order to try and understand the reasons why lines were being delivered late, we started to look at the detail behind the order lines. This included days shipped early / late, root cause late and Order book adherence. • Critical Order board – Set up to track key order lines as identified by APV Purchasing Managers in their weekly order book review. Daily updates regarding WIP from Ops & Logistics Managers. Continual process of daily tracking until order line is shipped. • Quality – Visual display boards set up to coordinate acceptable quality standards on trimming between Goldsboro & TRP and also provide general quality guidelines on manufactured product. • OEE - Set up to understand where capacity losses were occurring in the Press area. • ABC Product Classification & Stocking Policy – Introduced to try and secure availability of volume gaskets by using stock replenishment systems based on agreed rules. During the introduction period of OEE, the recorded data showed that we were not only seeing losses through non value add activities during changeover times but also with other related processes. These included tool preparation, raw material availability, breakdowns & planned maintenance. These total losses were significant and were heavily impacting on the clients available capacity. Therefore the training program was very quickly extended to cover additional presses and also rolled out across all related functions. A selection of slides from the basic OEE Presentation supplied by VA are shown in the next slide.

  4. Sample slides from VA’s Basic OEE Presentation

  5. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. Results - COTD COTD figures for APV Goldsboro site have significantly improved over the project period, which is clearly displayed by the trend line. This has been achieved even though many partial shipments have been made to satisfy minimum demand requirements of the customer and therefore has magnified the impact of the overdues. COTD figures for APV Kolding have gradually improved over the project period, which again is displayed by the trend line. The figures show less fluctuation over the last few weeks of the project. This is a result of the new processes implemented by VA now being embedded into the client’s daily business. This will allow COTD for APV Kolding to be maintained at 95% +.

  6. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. Results - OEE The introduction of OEE into the client’s facility at Hereford has provided them with quantifiable data that can be used to maximise the efficiency of their press area. Although many of the issues were previously known, the presentation format of OEE and its involvement of cross functional personnel have provided a platform to agree simple but logical actions to resolve daily problems. Results up to the end of the project were as follows: Average Gasket Production Wks 5-11 (Pre-project) – 73,793 Average Gasket Production Wks 19-25 (Last 6 wks) – 77,645 Increase in Average Gasket Production per Wk – 3,852 Average Cost per Gasket - £3.69 Average Increase in Sales per Wk – £14,214 Annually - £739,000 Using the training and tools supplied by VA, normal expectations during this first phase (i.e. without Cap-Ex spend) would be to see OEE rise by around 6-8% from their initial baseline. The client are not only utilising the released hours to increase production volume but also to increase the number of changeovers per day. This will allow them to move away from planning orders by tool runs and start manufacturing orders by customer wish date. The efficiency figures above show the significant rewards the client have reaped within the timescales of the project. All initiatives implemented by VA are now fully owned and driven by the clients personnel on a daily basis.

  7. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. Follow up Due to the success of the original 3-month program, the client independently requested VA’s assistance to simplify COTD management and offer a solution to their manual planning process for their 3 production/trimming locations. • After initial Project Plan meetings with the Planning & Logistics teams at the clients, the following objectives were agreed: • Work with the client’s team to ensure successful implementation of Microsoft based “Preactor” scheduling system across all presses in the operation to timescale. • Implement MPS and ATP processes within the client’s operation. • Implement process for intermediate scheduling of works orders through key process steps. • Implement ‘conformance to schedule’ measures at key points in the process. • These objectives provided the following benefits to the business: • Ability to give much more accurate commitment dates for delivery to customers. • Ability to track performance to delivery dates at intermediate stages in the operation, thus allowing early warning to customers of any potential missed dates. • Ability to identify which processes and root causes were preventing delivery on time, with focus on resolution to fix these problems.

  8. Case Study – COTD & MPS Workshops Sealing Systems Manufacturer, Hereford, UK. Follow up MPS (Master Production Schedule) Implementation Previously the process for planning at the clients had been driven by the customer order being accepted and added to the press shop plan, “pushing” the order through the manual press shop process before being routed to one of three trimming locations. Recognising the need to plan production from the bottleneck trimming process, a Master Production Schedule process and weekly meeting were employed to track buffer stock implementation and subsequent lead-time reductions. The MPS process works by tracking stock implementation at the trimming process stage by allocating a specific trimming location for each part and using the press shop as a supplier to the trimming process. All parts – depending on usage and difficulty - have been allocated a specific trimming location allowing accurate capacity planning, training and transport planning for each location. • Benefits realised by the client: • Each trimming location now has a 12 – 16 week schedule of specific parts based on accurate trimming capacity. • Due to specific parts being trimmed in each location, dedicated stock locations can be used for each part which makes shipments easier to plan and execute. • Quality is improved due to dedicated parts in each location and reduction in training requirements. • Customer lead-times are more accurate for planning purposes due to use of accurate capacity planning information and delivery times to each location. • Buffer stocks can be agreed and tracked over a defined period reducing lead times to the end customer

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