1 / 17

Lean Product Fulfillment (LPF) Proposal Overview

Lean Product Fulfillment (LPF) Proposal Overview. September 25, 2007. Meeting Agenda. Review the Key Objectives of the LFM Model High level review of the material flow Open Discussion on the Model Initial Thoughts…. Challenges to over come Implementation Elements Next Steps.

caelan
Download Presentation

Lean Product Fulfillment (LPF) Proposal Overview

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lean Product Fulfillment (LPF) Proposal Overview September 25, 2007

  2. Meeting Agenda • Review the Key Objectives of the LFM Model • High level review of the material flow • Open Discussion on the Model • Initial Thoughts…. • Challenges to over come • Implementation Elements • Next Steps

  3. LPF Program Objectives • Enhance our current In-Plant store program to: • Provide more inventory available to support manufacturing • Reduce Micron Inventory Ownership for WIP • Reduce the number of System transactions • Enable flexibility for growth as more production comes to Micron-Puerto Rico • Enable more focus by on-site resources to manage material issues • Utilize an e-commerce solution to enhance Quality and efficiency

  4. High Level Solution Summary • Line Side Consignment Kan bans owned and managed by Avnet. • (2 Bins – 1 Week worth of inventory Each) • Bins scanned and replenished by Avnet • POURS.COM manages all transactions • Billing of Bin when fully empty • Material replenished within 24 hours • Avnet Personnel managing process and transactions

  5. Lean Product Fulfillment Process Flow

  6. LPF Process Flow Kan Ban Material is staged Line side And owned by Avnet. 2 (1 Week) kan bans per part Material is consumed by the manufacturing line Operators from Kan Ban 1 Manufacturing line 1wk 1 wk Bin 2 Bin 1 1 wk 1 wk Bin 2 Bin 1 Avnet owned Kan Bans

  7. LPF Process Flow Kan Ban Material is staged Line side And owned by Avnet. 2 (1 Week) kan bans per part Material is consumed by the manufacturing line Operators from Kan Ban 1 Manufacturing line 1wk 1 wk Avnet IPS Mgr routinely goes to Floor Stocking Locations to observe and signal Kan Ban Replenishment for consumed Items. Bin 2 Bin 1 1 wk 1 wk Bin 2 Bin 1 Avnet owned Kan Bans IPS Mgr. Scans Pours Bin Boxes with Bar Code scanner Returns to Avnet IPS and transfers Scan Information into POURS.COM

  8. Export of Inventory Replenishment To Micron SAP System Invoicing against existing Blanket PO Next Day Delivery To POU Components Delivered to the POU LPF Process Flow IPS Operator Processes POURS Release Trigger POURS Packing Slip Prints IPS Inventory EDI Replenishment Signal Parts are Pulled By Warehouse Operator Serialization Barcode Labels applied Line side Kan Ban Location

  9. Solution Benefits • This model removes the high transaction activity involved in the kitting process…by 2/3 rds • More productivity from Existing Resources…Avnet and Micron • Moves Avnet Buffer inventory from our IPS to the Point of Use….. • More flexibility for Manufacturing to keep building • E-Commerce Solution utilizing POURS to manage all transactions via EDI • More Quality in Data / Faster processing / Higher Efficiency • Micron Inventory Reduction for WIP and residual inventory… • Reduction in 4-6 Days of Inventory (RM/WIP) $110+K Inventory Reduction based on Avnet Business Level ($8 Mil/ $22k/Day) • Reduce and eliminate Material shortages and allow for more up-stream pipeline focus by on-site resources • Minimal Process Change for Micron

  10. Model Discussions • What are your initial thoughts? • What changes would you make to the model? • Are there any issues/challenges to over come? (Yellow Lights…we need to slow down and discuss that you think might inhibit this model? • Labeling requirements • Space requirements • System Transactions / Inventory Information • Other issues we might have note have considered • What metrics shall we be tracking to insure success?

  11. Finalize Model…Next Steps • Review Solution proposal with key players in Manufacturing / IT / Purchasing / Materials • Discuss the value proposition and determine quantified savings jointly with the program • Obtain Green Light to move forward… • Establish Implementation Team • Begin Safe Passage Model Implementation • Pilot….Refine Process….Expand program

  12. POURS.COM Appendix About POURS.COM

  13. POURS.com Point of Use Replenishment System www.POURS.com

  14. Point Of Use Replenishment System • Web Based - www.pours.com • Secure access from any Internet connected PC • No custom software to install or support • Simple, Intuitive User Interface • Automate Replenishment Signal to Any Supplier • Scan to trigger electronic orders • Reduce Administration • Reduce Inventory / Increase Turns • Manage Multiple Supply Chain Models • Kanban – Scan to “Pull” replenishment inventory • Min-Max – Manage QOH within specified parameters • Consignment/VMI – Automate communications to suppliers

  15. POURS Features (1) Web Based • Secure access from any Internet based PC • Share data across multiple facilities, departments or partners in the supply chain Ease of Use • Simple, online, intuitive user interface • Minimizes training and support Configurability • Configurable to meet the specific needs of your supply chain model • Kanban, VMI or Min/Max models Security • Your data remains secure and confidential in an enterprise-class data center Multi-Supplier • Create consistent processes across all material – regardless of supplier • Manage replenishment or consignments from any supplier EDI • Industry standard EDI transactions • Automate transactions to & from any EDI capable trading partner • No additional software required

  16. POURS Features (2) Data • Extensive list of reports and label formats • Data exportable to Excel or other applications • Integration with MRP/ERP systems Exception Based Processing • Exceptions identified in heads-up area of each screen • Can be configured to send email alerts proactively notifying the appropriate user(s) of exceptions External Data • Linked to Avnet’s database of nearly 3 million part numbers • Automatically look-up Avnet’s Inventory, hazmat details, package quantities, etc. Advance Ship Notices • Integrated ASNs provide online access to tracking information • Direct links to FedEx, UPS & DHL

  17. Benefits of POURS.COM • Reduce the cost of procurement by eliminating non-value-add activities. • Increased inventory turns. • Reduction in inventory frees working capital for re-deployment. • Increased manufacturing flexibility due to part availability. • Replenishment triggered by line-side personnel. • Improved quality through bar code driven processes. • Increased material balance control and visibility. • Quick implementation. • Reduced burden on your IT resources. • Single point of purchasing in multi site engagements.

More Related