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Material Management for the 21st Century: Shop Floor Logistics

Material Management for the 21st Century: Shop Floor Logistics. Dr. Tom Landers The Logistics Institute University of Arkansas. Shop Floor Logistics. Integration of intra-facility material flow as a link in the global value chain. Approach. Point-of-use / pull replenishment systems

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Material Management for the 21st Century: Shop Floor Logistics

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  1. Material Management for the 21st Century: Shop Floor Logistics Dr. Tom Landers The Logistics Institute University of Arkansas

  2. Shop Floor Logistics Integration of intra-facility material flow as a link in the global value chain Approach • Point-of-use / pull replenishment systems • Intelligent tracking technologies

  3. PUSH SYSTEMS The Problem

  4. Push Systems: Kitting Dock Stock Kitting Workstation

  5. Dock Stock Push Systems: Pick & Deliver Workstation

  6. Problems with Push Systems • Forecasting • Systems drive processes • Fire fighting

  7. Problems with Push Systems • Excess WIP • Complex • Hoarding

  8. Building Walls Warehouse (Stockroom) Plant (Shop) Distribution Center (DC) • Raw • Materials • WIP • Finished • Goods

  9. SHOP FLOOR LOGISTICS The Solution

  10. World Class Goals • Enhance efficiency • Minimize inventory investment • Shorten lead times • React faster to demand changes • Uncover any quality problems

  11. Eliminating Walls Warehouse (Stockroom) Plant (Shop) Distribution Center (DC) • Raw • Materials • WIP • Finished • Goods

  12. Workcenter Workcenter Stores Stores I/O I/O I/O I/O Stores Stores Workcenter Workcenter Central Store Point of Use (Focused) Stores

  13. Objectives of Focused Stores • Availability • Simplicity • Visibility • Tailoring • Low inventory • Short cycle time • Low material handling cost • Space efficiency • Team empowerment

  14. Bin #2 Bin #2 Bin #1 Bin #1 Two-Bin System

  15. Bin #2 ROP is Reached ROP is Reached Bin #2 Two-Bin System

  16. Pull Signals • Barcode / RFDC systems • Cards • Kanban squares • Other visual signals

  17. Focused Storage Mediafor Carton Parts

  18. Focused Storage Mediafor Reeled Parts

  19. Eskay Mini-Load System

  20. Eskay Workstation

  21. Eskay Use Point Managers • Hewlett-Packard Case Study • Mini load AS/RS system with 4224 locations • Unit load AS/RS system with 930 locations • Eight sorting transfer vehicles • Three banks of use point managers • RTS inventory control software • Customer Benefits • Repair turnaround time reduced 33% • Productivity doubled • Eliminates wasted time hunting for parts and products to work on

  22. Storage MediaMix-Volume Relationships

  23. Packaging Effect

  24. Bin Quantity Effect

  25. Demand Demand Demand Demand Demand Time Time Time Time Time Demand Effect I. Constant I. Random I. Intermittent Level Level Trend Trend

  26. Design Tools

  27. Pure Pull System

  28. Conditions for Pure Pull • High-volume / Low-mix repetitive production • Short lead time • Proper vendor package quantity • Electronic pull signals (EDI) • High quality / no inspection • Shop discipline • Efficient receiving process

  29. Hybrid Push/Pull System

  30. WAREHOUSE PICK LANES HOME WORKSTATION Office Electronics Repair & Rework

  31. WAREHOUSE HOME VERTICAL CAROUSEL WORKSTATION Defense Electronics PWB Assembly

  32. 2-BIN STORAGE HOME WORKSTATION KITTING LARGE PART STORAGE Conveyor Assembly

  33. WAREHOUSE HOME WORKSTATION Office Electronics Assembly

  34. WAREHOUSE PWB AUTOASSY. WORKSTATION Consumer ElectronicsAssembly

  35. Case Study Benefits

  36. Case Study Benefits • Intangibles • Cycle time reduction • Empowers employees • Eliminates stockouts • Stabilizes shop processes • Makes status accurate and visible • Forces diverse functional groups to team

  37. Implementation Issues • Resource Requirements • Implementation team • Design support tools • Production pilot • Shop discipline • Information Technology • Documentation • Purchasing • Financial

  38. Schedule 4 to 5 months Capital $50,000 to $100,000 Resource Requirements

  39. Implementation Team • Selling the concepts • Functions • Meetings • Action List

  40. Process Engineer - 50% Master Scheduler - 30% IT Specialist - 20% Project Manager - 20% Product Engineer - 15% Material Planner - 10% Buyer - 10% Storeroom Coach - 10% Trainer - 10% Shop Associate - 5% Storeroom Associate - 2% Human Resources - 2% Facilities Engineer - 2% Team Commitments

  41. Design Support Tools • Data collection and analysis • Spreadsheet • Database • Facilities • CAD • Flow modeling • Focused stores • Initial design • Periodic maintenance

  42. Production Pilot • Conference room pilot • Mirroring • Long-lead equipment purchase • Scheduling of installation • Coordinating trades • Initial work center (high success) • Debugging process • Fan out • Pick up momentum

  43. Step #1: Shop Discipline • 2 bin system concept • Union work rules • Training • FIFO (of storage medium) • Operator pull quantities • Standard delivery • volumetrics • “KD packaging”

  44. IT Support • Bar code labels (include • periodic maintenance) • Interfacing to legacy systems • RFDC system capability • Critical replenishment • priority logic • EDI interface • Backup & recovery

  45. Documentation • Standardized process • Substitute parts • Adds & deletes • Change effectivity • Shop instructions • ISO 9000 • On-line instructions

  46. Purchasing • Certified vendors • Vendor pull signals (EDI/VAN, Internet, faxbans, breadman review) • Package optimization and standardization • Intermittent demand

  47. Financial • Relaxation of job costing systems • Reporting of material consumption • Differentiation of raw material and WIP • Integration with legacy accounting systems

  48. Focused storage saves us $millions! Focused storage is not compatible with our computer systems! I hate it! Do it!! Focused storage makes my life easier! Gotta love it! Focused StorageConversations

  49. Shop Floor Logistics Integration of intra-facility material flow as a link in the global value chain Approach • Point-of-use / pull replenishment systems • Intelligent tracking technologies

  50. Intelligent Tracking We are out, but it is on a truck that will be here in 10 minutes. I don’t know. Real-time Material Visibility =Customer Satisfaction

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