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Final Presentation Gap Reduction

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Kaizen event that saved $96K in one year.

Kaizen event that saved $96K in one year.


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Transcript

  • 1. Kaizen Reduction of Stocking Gap Times Montgomery, NY 1/27/06
  • 2. Kaizen Team - Lean Masters
    • (Left – right)
    • Terry Anderson
    • (I.T. Systems Support)
    • Anthony Scarchilli
    • (Kaizen Facilitator)
    • Chris Carroll
    • (Stocking Associate)
    • Holly Sulle
    • (QIC Coordinator)
    • Ivar Malm
    • (Orderfill Associate)
    • Steve Pitt
    • (Stocking Team Lead)
    • Angel Rojas
    • (Stocking / Orderfill Associate)
    • (not pictured)
  • 3. KAIZEN Project Charter
  • 4. S upplier I nputs P rocess O utputs C ustomer
  • 5. Following the Road of DMAIC
  • 6. Changing The Culture Process X Acceptance = Results ( P X A = R ) Rate the new process from 1 to 10 Rate the level of acceptance from 1 to 10 Multiply the two numbers P9 X A2 Results = 18 P7 X A5 Results = 35 Conclusion: You will get better results with a good process that has buy-in from the process participants than a better process without buy-in - especially applies to long term results (control phase).
  • 7. Stocking’s Value Stream Map Outlining the W.I.P. Initial Kaizen Tool – Define Phase
  • 8. Stocking’s Value Stream Map (cont’d) Clock in Find Machine Get Assignment Sign on Go to assigned area Scan LCP Deliver to assigned area Stock in location Scan Location Scan or write LCP Quality Check Pull Pallet Take to Outbound Reach Truck and Turret Process Putaway Turret Pick / Putaway Process Turret Inbound Putaway Back to Scan LCP Initial Kaizen Tool – Define Phase
  • 9. Kaizen Define Stage
    • S I P O C
    • TIMWOOD
    • Value Stream Map
    Initial Kaizen Tool – Define Phase
  • 10. Stocking Headcount – 3 shifts Kaizen Tool – Measure Phase
  • 11. NEDC Dashboard Kaizen Tool – Measure Phase
  • 12. NEDC Dashboard (cont’d) Kaizen Tool – Measure Phase
  • 13. The GAP Report Kaizen Tool – Measure Phase
  • 14. The GAP Report (cont’d) Kaizen Tool – Measure Phase
  • 15. The GAP Report (cont’d) Kaizen Tool – Measure Phase
  • 16. Kaizen Event Preparation
    • Downtime Causes
    • Brainstorming
    • Parking Lot
    • Implementation
    Kaizen Tool - Analyze Phase
  • 17. Implementation Phase Analyze to Improve Phase
  • 18. Implementation and Action Plan
    • Battery Change:
      • Fill out log to capture downtime
      • Drop & Swap program – machine availability?
      • Change batteries only when light is blinking
      • Maintenance to confirm blinking light or no change.
    • Housekeeping:
      • Expectation list of housekeeping in each area
      • No more than 10 min. per associate/day
      • Clean as you go
    Kaizen Tool – Improve Phase
  • 19. Implementation and Action Plan (cont’d)
    • Processes:
      • Designate 4 empty location in VNA for empty pallet storage.
      • Empty pallets in the mods – 5cs or less have to be consolidated to the back pallet and empty removed.
      • Help cards attached to windows of the Reach Trucks and Turret Trucks.
      • Empty location report to pull pallets out for quicker putaway.
      • Eliminate ALL “G” level locations.
      • Designated machine staging area for shift change over.
    Kaizen Tool – Improve Phase Commences
  • 20. Sources of Waste – “Muda”
    • T ransportation- Pallet picks staged at repack then transported to shipping
    • I nventory- Product on dock – increases cycle/lead time
    • M otion- Constant neck movement of looking up, poor ergonomics on Turret and Reach trucks – not facing forward
    • W aiting- People in your way and system downtime.
    • O verproduction- N/A – overproduction is needed to increase productivity and decrease cycle/lead time.
    • O verprocessing- N/A – No enhanced operational procedures.
    • D efects - Product doesn’t fit into location, wrong cat#/qty, restacking of empty pallets.
    • Another waste is: People (untapped and/or misused resources)
  • 21. Typical Mistakes
    • Intentional
    • Forgetfulness
    • Misidentification
    • Lack of Training
    • Inadvertent
    • Lack of Standardization
    • Not Following SOP
    • Misunderstanding
    • Not Paying Attention
    Variation is EVIL
  • 22. Future Initiatives – Parking Lot
    • Person to collect mixed product out of location 1hr/day.
    • Wireless printer – send labels from radio to printer.
    • Location stoppers to prevent pallets falling.
    • A lot of work on the condition of racks.
    • Condition of machinery – Time to replace.
    • More certified machine technicians for all shifts.
    • Refine the productivity standards.
    • Tape dispenser at QIC for OS&D tags – adhesive.
  • 23. Future Initiatives – Parking Lot (cont’d)
    • Compact printer attached to reach truck – eliminate repack station.
    • The use of plastic pallets versus wood – durability.
    • Empty pallet removal option in RF to make it a tracked function.
    • Can we source out our empty pallet retrieval and housekeeping functions?
    • Time clock at Mod C to prevent walking to receiving clock.
    • AIMS system upgrade on RF – listed route group, cat#/fact# listed, and quality check for Inbound loc.
  • 24. Improved Benefits
    • Current Proposed
    • Housekeeping : 15min 10min 57 @ 15min @ $17.02 57 @ 10min @ $17.02
        • $242.54/day $161.69/day
        • $80.85 savings/day
        • $19,404 a year
    • Empty pallet Removal : 32 @ 10min 1 assoc/hr/ shift
    • 320min = 5.33hrs 3hrs x $17.02
    • $17.02 x 5.33 = $90.77/day $51.06/day
    • $39.71 savings/day
    • $10,006.92 a year
  • 25. Improved Benefits (cont’d)
    • Current Proposed
    • Battery Change : code – change – code code – drop/swap – code
    • 7-8mins/machine ~2min/machine
    • $2.27/change $0.57/change
    • $1.70 /battery change
    • Mod Empty pallets : To remove empty & stock Mods cleared of pallet putaway – 2:44sec empty pallets - 32sec
    • $0.78/move $0.15/move Savings = $0.63/move x 57assoc.= $35.91/day
    • $8,618.40 per year
  • 26. Improved Benefits (cont’d)
    • Current Proposed
    • VNA Empty Pallets : 1 putaway, 1 pick, & empty 3 spots in VNA
    • 8:30 sec 6:09 sec
    • $2.41/move $1.74/move
    • $0.67 savings/move
    • Looking for machine : Searching warehouse Mod C & PA
    • 6:04 sec 1:30sec & .45sec
    • $1.72/assoc $0.43 & $0.22
    • $1.29 & $1.50 savings/assoc./day
  • 27. Improved Benefits (cont’d)
    • Current Proposed
    • GAPS : L imited monitoring Daily Monitoring
    • Excessive downtime Accountability
    • Avg of 30min gaps/assoc. 15min gap/assoc.
    • 28.5 hrs of gaps/day 14.25hrs/day
    • $485.07/day $242.54/day
    • Savings : $242.54/day and $58,209.60 a year
  • 28. ACCOUNTABILITY
    • Chronic offenders of gaps will have to stay on tracked functions.
    • 10 min gaps will be questioned.
    • Start time – no more than an 10 min gap.
    • Break time – no more than 40 min gap.
    • Lunch time – no more than 40 min gap.
    • End time – no more than 15 min gap to clean.
    • Daily gap monitoring by the supervisor / team lead
  • 29. ACCOUNTABILITY (cont’d)
    • If they don’t comply you ask?
    • Corrective action process will follow:
        • 1 st discussion of gap abuse – documented verbal warning
        • 2 nd discussion of gap abuse – Letter of discussion (LOD)
        • 3 rd discussion of gap abuse – warning
    • Employee incentive:
        • Employee of the month and its rewards.
    • What does this all mean?
  • 30. TOTAL SAVINGS $$
    • Drum Roll Please………………
    $96,242.79 A year
  • 31. R.A.C.I. Chart – To Sustain Improvement Here’s the plan to maintain and control improvements!!! Control Phase
  • 32. NEDC Warehouse Layout VNA Receiving Dock Shipping Dock Select Racks I-point Mods A B C V2 Racks
  • 33. Special Thanks To:
    • Cardinal : for promoting and supporting this event.
    • Walt Wallace : for his continued support, his belief in me, and his help with data collection to make this possible.
    • Marty Sibilia, Derek Penney, and Dave Werner : for their support and quick responses to my needs to understand the stocking process.
    • To the Kaizen team and all of you for being here and making this event an exciting and challenging reward.
  • 34. Any Questions? The End