DMAIC
Reduction of obsolete
material
Manaus

Form #: 00-LS80-F103-A

Revision Date 02.03.2011

1
Team Introduction
Project champion/leader: Rejane Souza
Project sponsor: Francisneto Silva
Lean Assistant: Caio Sousa
Site...
Define
Problem/Opportunity Statement
Due to demand CUT week 48. Stock on hand
of remote control of 2.649 pcs.

Project Sco...
Define
Project Timeline
Phase

Date Planned

Start Date

Date Completed

Define

WK 1246

WK 1246

WK 1247

Measure

WK 12...
Measure Summary
Data Collection

0

Measurement System Analysis
After demand drop we analyse the local parts and focus on ...
Analyze Summary
Brainstorming
How to reduce E&O due demand drop?
1 - Negotiate with customer to increase with additional
d...
Analyze
Sandra
Silva TOTAL

Issues potencial

Adriana
Campos

Rejane
Souza

Rodrigo
Marques

Additional demand from custom...
Improve Summary
0

0
You can look on the graphic after material return to local vendor
Was reduced of $8.509,07 total E&O ...
Improve Summary
Root Cause

Solution

RETURN TO VENDOR

Form #: 00-LS80-F103-A

1- Negotiate with supplier;
2- Negotiate p...
Control Summary
Implementation Plan
The status of the implementation plan will be
discussed on Materials Meeting of refere...
Executive Summary
Project Summary

Project Approach

 Problem statement: Buyer initiate negotiation
to sell obsolete mate...
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Lean DMAIC for Obsolete Material Stock Reduction

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Projeto em DMAIC que relata as ações aplicadas para reudção de estoque obsoleto em 2012.
...
DMAIC project that shows some action applied to a obsolete stock reduction in 2012.

Published in: Business, Technology
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Lean DMAIC for Obsolete Material Stock Reduction

  1. 1. DMAIC Reduction of obsolete material Manaus Form #: 00-LS80-F103-A Revision Date 02.03.2011 1
  2. 2. Team Introduction Project champion/leader: Rejane Souza Project sponsor: Francisneto Silva Lean Assistant: Caio Sousa Site Lean Manager: Marcio Sousa Core team members: Adriana Campos Sandra Silva Rodrigo Marques Extended team / stakeholders (if applicable): Gil Campos Form #: 00-LS80-F103-A Revision Date 02.03.2011 2
  3. 3. Define Problem/Opportunity Statement Due to demand CUT week 48. Stock on hand of remote control of 2.649 pcs. Project Scope Minimize liability Form #: 00-LS80-F103-A Goal Statement Reduce minimum 80% on E&O from: $ 8.309,00 to $1,661.80; Metrics impacted: E&O and cancellation. Business Case / Financial Impact Negotiate with supplier to absorb the total excess of 2.649 pieces. It represents $ 8.309,00 of total E&O. Revision Date 02.03.2011 3
  4. 4. Define Project Timeline Phase Date Planned Start Date Date Completed Define WK 1246 WK 1246 WK 1247 Measure WK 1248 WK 1248 WK 1248 Analyze WK 1248 WK 1248 WK 1248 Improve WK 1249 WK 1249 WK 1250 Control WK 1250 WK 1250 WK 1251 Voice of the Customer External customers: As this is local part controlled via JIT , customer refuses pay to Jabil this material obsolete. Quality Parameters Demand drop due customer request, we can see the effects on E&O report. Internal customers: We are unable to consume the material due to line down. Form #: 00-LS80-F103-A Revision Date 02.03.2011 4
  5. 5. Measure Summary Data Collection 0 Measurement System Analysis After demand drop we analyse the local parts and focus on major values items. We identify a good opportunity to reduce the E&O of $8.509,07. Form #: 00-LS80-F103-A Revision Date 02.03.2011 5
  6. 6. Analyze Summary Brainstorming How to reduce E&O due demand drop? 1 - Negotiate with customer to increase with additional demand to consume obsolete parts 2- Checking if another plants has demand to consume the excess quantity; 3- Return to vendor; 4- Offer to broker, distributors; 5- Offer to customer service; Form #: 00-LS80-F103-A Revision Date 02.03.2011 6
  7. 7. Analyze Sandra Silva TOTAL Issues potencial Adriana Campos Rejane Souza Rodrigo Marques Additional demand from customer 3 9 3 9 729 Checking another plants demand 3 3 3 3 81 Return to vendor 9 9 9 9 6561 Sell to broker; distributor 1 1 3 1 3 Offer to customer service 3 9 3 3 Score No impact Low impact Moderate Strong impact 243 0 1 3 9 Comments : Based on C&E matrix, our team selected the major causes and them scored its. The results was Return to vendor. Form #: 00-LS80-F103-A Revision Date 02.03.2011 7
  8. 8. Improve Summary 0 0 You can look on the graphic after material return to local vendor Was reduced of $8.509,07 total E&O value. Buyers is still working to reduce all obsolete parts. Form #: 00-LS80-F103-A Revision Date 02.03.2011 8
  9. 9. Improve Summary Root Cause Solution RETURN TO VENDOR Form #: 00-LS80-F103-A 1- Negotiate with supplier; 2- Negotiate price value with supplier; 3- Supplier acceptance; 4- Start sales process; 5- Separate the physical material; 6- Do invoice; 7- Shipped; Revision Date 02.03.2011 Pilot / simulation results Evidence below after sale: Material invoiced to supplier on 12/12/12. Supplier acceptance sent by email on October 12th, 2012 9
  10. 10. Control Summary Implementation Plan The status of the implementation plan will be discussed on Materials Meeting of refered customer. Documentation The documentation was validated by BU team and PU. Process Ownership Buyer is owner to check and audit the metrics and issue tracking and resolution with support the PU team. Future Opportunities Replication: Deploy the project for other WC cell structure Follow-on projects: The project is recommend to all purchasing team. Form #: 00-LS80-F103-A Revision Date 02.03.2011 10
  11. 11. Executive Summary Project Summary Project Approach  Problem statement: Buyer initiate negotiation to sell obsolete material due demand drop.  Which tools were the most insightful? Brainstorm, C&E matrix.  Project goal: Reduce 80% of the value $ 8.309,00  What were the critical root causes of the problem? Customer demand drop.  Project start and end date: WK1248 / WK1251  All actions was concluded and implemented with success. Impact on Shareholder Value U$ 8.309,00 per month saving Form #: 00-LS80-F103-A Revision Date 02.03.2011 11
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