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LeanCor Consulting Webinar: The PFEP – How to Create Standardization in Material Flow Ordering

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Building a Plan for Every Part (PFEP) is one of the most effective ways to create standardization in an ordering and delivery process and optimize material flow. Breakthrough results in on-time-delivery, coverage, and cost reduction can be achieved through this discipline, but how do you do it? In this 1-hour webinar from the LeanCor Consulting team, learn the critical components of PFEP that will ensure delivery of the Right part, at the Right time, in the Right quantity.

*This webinar is part of a special “Go to the Gemba” series where we interview different industry supply chain professionals about how they use lean principles and tools to solve their challenges.

We Will Explore:

How to collect the PFEP data necessary to make informed decisions about transportation, packaging, inventory, placement, ordering quantities, and handling.
How to successfully implement PFEP in your operations
How PFEP can stimulate an environment of doing the right thing first and lay the foundation for continuous improvement

Published in: Business
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LeanCor Consulting Webinar: The PFEP – How to Create Standardization in Material Flow Ordering

  1. 1. Optimize your supply chain processes. Decrease total cost. Copyright © LeanCor 2015 How to Create Standardization in Material Flow Ordering
  2. 2. Copyright © LeanCor 2015 Regional Vice President, LeanCor Supply Chain Group Instructor, University of Kentucky, Lean Enterprise Institute dbrowning@leancor.com Career Focus: Supply chain and logistics including transportation management, logistics network and route designs, PFEP and material flow, ROI assessments, lean cross-dock and distribution center projects and people development Currently Responsible For: Managing and supporting active lean supply chain projects, facilitating LeanCor Training and Education events and Kaizen workshops, managing the Lean Deployment central region, and working with current and future clients to develop business opportunities. Industry Group Speaker: AME, CSCMP, WERC, UK Gatton College of Business, Lean Enterprise Institute, Honda Lean Network
  3. 3. Copyright © LeanCor 2015 Material Flow Engineer, LeanCor Supply Chain Group hsadek@leancor.com Career Focus: Supply chain and logistics including transportation management, logistics network and route designs, PFEP and material flow, ROI assessments, lean cross-dock and distribution center projects and people development Currently Responsible For: Driving LeanCor’s continued growth in utilizing and maintaining PFEP data to implement material flow improvements throughout the customer’s manufacturing plant; Lean Coach in LeanCor’s Certified Online Lean Training for Leaders Industry Experience: Supply Chain Business Analyst and Gemba Kanri Support for Nissan North America
  4. 4. Copyright © LeanCor 2015  Lean, supply chain, six sigma, and leadership courses that develop people capability and problem solving skills while building a culture of operational excellence.  Project-based, end-to- end supply chain solutions that improve your processes, reduce inventory and Total Cost, and optimize your network.  Custom, outsourced transportation management and warehousing solutions that optimize material flow, and exceed your business goals. Trusted supply chain partner that specializes in lean principles to deliver operational improvement. Three divisions:
  5. 5. Copyright © LeanCor 2015 Plan for every part (PFEP) is a database integrated with the enterprise resource (ERP) system; that monitors and controls the movement of parts within the supply chain network until the point of use. It details and centralizes each part’s complete information for increased visibility.
  6. 6. Copyright © LeanCor 2015  PFEP system defines and sustains information about each part in the process: where it comes from; How it is delivered, When and how often, how it should be stored and packaged, the point of use and when to replenish.  A well designed and maintained PFEP System significantly reduces material shortages, inventories, supply chain complexities and costs. Demand Drives Production On-Time Delivery Drives Schedule Consumption Drives Replenishment
  7. 7. Copyright © LeanCor 2015  Corporate and Plant Logistics  Purchasing & Planners  Material Flow Engineers  Industrial Engineers  Process Techs  Suppliers  Repack Operation  Packaging Engineers POLL: Who would benefit most from PFEP at your organization? Submit your answer in the Question box.
  8. 8. Copyright © LeanCor 2015
  9. 9. Copyright © LeanCor 2015  Cross-functional team effort  One part at a time  Group Parts into categories  Load data in the smallest element possible  Usage details  Supplier Details  Delivery methods and frequency  Perform a Trial Run
  10. 10. Copyright © LeanCor 2015 Download the full case study: leancor.com/industries-served-and-case-studies/
  11. 11. Copyright © LeanCor 2015 Excel - Small Facility - Manual Entry Updates - Complex Formulas - One user only at a time - Hard and Risky to maintain - Limited Options PFEP Systems - Large Facility - Automatic Updates - No seen formulas - Multi-user capabilities - Easy and less risk to maintain - Wide range of options POLL: What PFEP technology do you use? Select all that apply.
  12. 12. Copyright © LeanCor 2015  Appoint a PFEP Handler  Fewer PFEP handlers will definitely results in a more accurate PFEP  Create a PFEP Change/Add Request Form  Institute a guideline for PFEP documentation and approval process before it appears on the shop floor  Store the current updated PFEP in one central, accessible location (Read Only).
  13. 13. Copyright © LeanCor 2015  False information across the board  Being active instead of proactive  Failure to deliver the parts on time causing downtime  The process of ordering materials in the exact quantities becomes complicated  Parts exceeding WH capacity & inventory level fluctuates (Ordering Vs Consumption)  Expedite transportation costs hit the roof  Lost visibility and control over part delivery POLL: What analysis do you perform on your PFEP? Submit your answer in the Question box.
  14. 14. Copyright © LeanCor 2015 Right Part Right Quantity Right Time Align responsibilities to Fully utilize existing staff Establishing merge deliveries and DTL (Direct To Line) internal material flow Order parts based on actual line Usage Creating a pull system Ideally to Eliminate in-Plant WH (Reduction of Gains and Loses) Improve shop floor supervisor Skill set By creating marshaling lanes to improve material accuracy and check plan is well executed (Hot Calls Control) POLL: Which of these advantages do you need most?
  15. 15. Copyright © LeanCor 2015  Based on the Shingo-Award winning book, PEOPLE  Leverage lean principles to become a more effective leader, build teams, and drive operational excellence.  Start today: ◦ www.leancor.com/online-lean-training/  Coming soon: 90-Min Lean Fundamentals! Exclusive 20% Discount Code for Webinar Attendees! Use “leanleader” at checkout!
  16. 16. Copyright © LeanCor 2015 Next Webinar: Inventory Reduction WED, June 24 | 11:00 – 12:00 EDT Register Now! www.leancor.com/events
  17. 17. Copyright © LeanCor 2015 Derek Browning dbrowning@leancor.com 859.652.1812 Let’s connect on Hussein Sadek hsadek@leancor.com 712.336.6776 Let’s connect on

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