1. Matching Material In-flow with Pace of Production to Avoid Stoppages
ERP – Microsoft AX
New business system
software to lay the
foundation to be able to
modernize processes
and take advantage of
tools such as MRP and
planned production
orders
Internal Supply Chain Redesign
Reworking the
inventory control
process (including
receiving and
delivering) and
designing a central
warehouse for storage
System Reliability
Proactively searching
out problematic areas
within the design
architecture and
addressing the most
critical and those with
the largest return
Define Concept Design Optimize Verify
Through interviews and
observation, we mapped
the system. Once the
context was understood,
recognizing that purchasing
was the bottleneck became
evident
We were scraping the
old ways and
redesigning everything.
We had to measure
physical dimensions for
warehouse spatial
estimates.
Two other designs were
considered before
selecting the one above.
Next we had to figure out
how the warehouse would
perform its functions.
Stocking the warehouse
ended up as above and next
we needed to set the levels
according to EOQ model
FEMA: We were not able to
pilot so we had to outsource
EOQ sensitivity analysis and
reorder trigger error-proofing
to two Yellow Belts.
We did not have the full
amount of required
resources so we will
implement in phases
Will add in visual aids and
routines in addition to
system/data monitoring
The front end can get messy; the important thing is see the
big picture so you can understand the context. Be quick to
absorb your self into their system.
Don’t assume design is a linear process and that you
complete it “one and done”. Design is an extremely
iterative process
Organizations are in these
positions because of their
habits; projects last
because they change habits
Manual, proactive
system to aid ERP
transition
Centralized control of
inventory
Quantitative-based
ordering method
Consolidated space,
inventory, and data
 Reactive, “tribal-
knowledge” based
ordering
 Shortages common
 All inventory stored
on floor
 Lots of NVA time
spent looking for
parts
 Employees take
parts from other
depts. to stock their
areas
Current State
 Manual,
proactive
ordering via
Kanban signal
 Shortages
mitigated with
safety stock
 Inventory
centrally
controlled in
warehouse
 Order quantity
based on data
 Parts are sent to
floor together as
a kit or in a
replenishment
bin
Design State
Sutphen is a family own and run
company that prides themselves
on production of high-quality,
dependable customizable fire
trucks of iconic design.
Used for KB
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