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Using ERP in a Lean Manufacturing environment

Using ERP in a Lean Manufacturing environment. Andy Barnes Operations Manager Snell & Wilcox Ltd. Outline Agenda. About S&W Supply Process Improvement MFG Pro in a Lean Environment. About Snell & Wilcox. History. 1973: founded by Roderick Snell and Joe Wilcox

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Using ERP in a Lean Manufacturing environment

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  1. Using ERP in aLean Manufacturing environment Andy Barnes Operations Manager Snell & Wilcox Ltd

  2. Outline Agenda • About S&W • Supply Process Improvement • MFG Pro in a Lean Environment

  3. About Snell & Wilcox

  4. History • 1973: founded by Roderick Snell and Joe Wilcox • To focus on the preservation and improvement of the television image • 1988: Joe Wilcox retires, 24 employees • 1993: Introduction of Alchemist with ‘Ph.C’ • 1994: Acquired CEL Ltd • 1996: MPEG (Moving Picture Experts Group) activities began • 1999: MXF (Material Exchange Format) work starts • 2001: Acquired Post Impressions and PSP • 2005: Turnover ~£36m, 350 employees worldwide

  5. Products- IQ Modular

  6. Products- Switchers

  7. Award winning record • Four technical Emmys • Phase correlation motion compensation (Ph.C) - the key to superior standards conversion • Prefix MPEG pre-processing - saves storage and transmission costs • DEFT 3:2 cadence detection and repair - improves Hollywood workflow efficiency • HD up and down conversion - for flexibility in production and broadcast • Many other awards: • Eight Queens Awards • First to win two IABM Peter Wayne Technology and Innovation Awards

  8. Customers including...

  9. Locations HQ, R&D, Manufacturing Southleigh Park, Havant R&D, Manufacturing Saffron Walden R&D Newbury, Liss, Montreal Sales and Service UK, France, Germany, Russia, USA, Hong Kong, China, Japan, India, Lebanon Southleigh Park

  10. Supply Process Improvement

  11. Historical Process • Forecast driven batch build process (push) • Long lead times ~4-6wks • Poor levels of customer service - OTD ~55% • High levels of inventory - stock turns ~4/annum • Quality issues highlighted late in build process - Rework

  12. Objective Improve historical levels of on time delivery, lead time and quality to world class levels: S&W Target On time 55% >98% Response 4-6 wks <5 days Quality ??? ppm

  13. Time for Change- Spring 2004 • Established a full time multi-functional team • Capability through intensive training • External support - Cranfield Consultants • Pilot project using simple product family - Kudos+

  14. Motion • Transportation • Waiting time • Overproduction • Inventory • Processing time • Defects • Energy • Untapped human resources • By-products • Inappropriate IT support Types of Waste The Seven Wastes Other Common Wastes

  15. Value Stream Mapping- 1U Gateway Card

  16. Batches Space Transport / handling problems (damage) Time to make batch - some of which aren’t needed

  17. The Problem with Batches • Pushing Batches Through • Cycle time to make whole batch – not just what customer ordered • Waiting for other batches • “Pinching” from one batch to fulfil “more urgent” order • High inventory everywhere • Response time = time for complete batch to move through complete process, queuing behind other batches Inventory SMT Robotas Flow Solder Electrical Assembly Mechanical Assembly Test Soak Distance travelled between remote “silos” = 470m Each ‘silo’ making batches independently Delays and difficult to align production to actual orders – customer lead time 4-6 weeks Customer Lead Time

  18. Pull / Flow • Pull only what the customer orders • Cycle time to make quantity actually needed (x) • Flex capacity by moving operators / adding work-stations • No waiting for other batches • No “Pinching” to fulfil “more urgent” order • Only tactical inventory that is not committed to any specific order • Response time = time for each unit required to move through the final process only Tactical Inventory – Part-built in kanbans & Uncommitted to orders Cell: Elec/Mech/Test/Soak SMT Robotas Flow Solder Customer Demand = x Distance travelled between shared resources and cell = 70m (85% reduction) Customer lead time down to final process time <5 days (subject to volume) Customer Lead Time

  19. Work Content

  20. Actual Cell layout

  21. Before After Cluttered Poor Lighting Poor Ventilation Search for tools & parts Organised Bright Clean Everything to hand

  22. PCB Before

  23. PCB After

  24. Test Before

  25. Test After

  26. Kudos+ Workstation Parts for the build Build Instruction Clean & clear place to build the product

  27. Build Instructions Numbers in build instruction match those on the part bins

  28. 2 Bin Kanban System Numbers in build instruction match those on the part bins

  29. Signal to Build Empty space is the signal to build

  30. Bin Replenishment Empty bins are placed here for stores to collect Refilled bins are placed here by stores

  31. ATE Test Jig Product can be tested by the person who made it in the cell

  32. Benefits - Kudos+ KPI’s

  33. Extra Benefits • Improving the process has uncovered more ‘opportunities’ that were hidden • Helped identify key training requirements within the cell • Improved floor space utilisation • New Kanban philosophy • Transactions reduced • Continuous improvement ‘culture’ developing

  34. Benefits - Reduced WIP ~£400 Each 132 Units £52,800

  35. Benefits - Space 274.125m2 20% Overall Reduction

  36. Lean Projects Roadmap • Kudos+ cell - Completed July 04 • IQ Modular - 80% complete • Box build cell • PCB build & test cell • Box configuration & conformance test cell • Kahuna cell - 90% complete • Other product cells - December 05 • Surface Mount line - 2006

  37. MFG Pro in a Lean Environment

  38. History • 1994: Introduced Release 7.1 on a UNIX operating system • 1996: Upgraded to 7.4 • 2002: Upgraded to eb • 2005: Still bloody character screens!

  39. Supply Process- Pre Lean MRP Planned Orders determine what we ACTUALLY Purchase (PO’s) and Manufacture (WO’s) SOP MPS MRP PURCHASE ORDERS WORK ORDERS

  40. Supply Process- Post Lean MRP Planned Orders determine what we MIGHT Purchase (VS) and Manufacture (CRP) Demand Pull (SO, Kanban, Faxban) determines what we ACTUALLY Purchase & Manufacture SOP MPS MRP VENDOR SCHEDULES CRP

  41. Supply Process- Vendor Schedules

  42. Supply Process- CRP

  43. PRE LEAN MPS ATP POST LEAN Finite Capacity Scheduling Supply Process- Sales Order Processing

  44. PRE LEAN MRP Planned Orders Report (23.12) Check for shortages (13.8.18) Firm Plan Work Order (16.1) Release Work Order (16.6) Kit Work Order (16.10) Make Product / Assembly Receipt Work Order into stock (16.11) POST LEAN Make Product / Assembly Advanced Repetitive Backflush Product / Assembly (18.22.13): Cumulative Work Order Consume materials Consume labour @ standard Receipt into stock Supply Process- Material Transactions

  45. Thank you ANY QUESTIONS?

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