SlideShare a Scribd company logo
1 of 20
Lance Bemis - Operations
Caron Road Rochelle, Illinois
Background
• Nestle –
• Shipping/Receiving Clerk
• DHL –
• International Shipping/Receiving
• 3M –
• LTO
Education
• Northern Illinois University – December 2016 Graduation Date
• B.S. in Industrial and Systems Engineering
• Emphasis in Engineering Management
• Coursework in –
• Operations Research
• Stochastic Analysis
• Quality Control
• Lean Six Sigma
• Inventory Control
• Process Control
Initial State:
• Original project was intended to be a product comingling/slotting
process that would add approximately 80 new SKU’s to the 1010
facility’s pick line
• Project was tabled for completion in January timeframe
Collaboration with IE and the CMO process
• Alex MacKinnon (former East Region IE)
• Received Supervisor training on conducting CMO’s and effective
coaching strategies
• Identified Strengths/Weaknesses of the CMO process
• Great coaching tool
• Useful for observing process control issues
• Need large number to be indicative of current state
• Time consuming process
Conducting CMO’s
• While observing LTO’s several process issues were identified
• Comingled product in bays
• Multiple locations for one product/lot (unintentionally)
• Air Picks
• Most significant factor in driving down productivity in case pick
• Two operators delayed to complete task that only one operator gets “credit” for
• Replenishment
• Product overflow/Inadequate inventory slotting
• Skipping replenishments due to no open space generates more air picks
Analytic Void (Enter Bob Courtney)
• Placed in contact with Bob (Sr. Manager of Engineering Analytics)
• Described issues that were observed
• Received data collation tools for operational assessment
• Pick line Audit
• Associate Activity Audit
• Pick line Analysis
Pickline Audit
• Cross-references lot writer report against pick line report to
display discrepancies in product occupancy versus assignment
• Identifies locations with open pallet positions and available
inventory in storage
• Identifies locations with empty pallet positions but no available
inventory in stock to fill the space
Associate Activity Audit
• Identifies non-value added material handling
• Quantifies time spent in indirect (non-billable) job tasks
• Allows for transaction audits of pallet id/lot/location/product
• Flags suspicious moves (i.e. scans on opposite ends of warehouse
in unrealistic time frames)
• Identifies what actions are degrading pickline integrity
• Captures lost time (i.e. long breaks)
Pickline Analysis
• Determines Item Velocity
• Establishes product pick patterns (i.e. % partial pick/full pallet)
• Average Daily Volumes/Pickface Transactions
• Recommends Buffer Inventory Slotting Needs
• Quantifies air pick frequency
Current State:
• Pickline Integrity Restored
• Process Control Measures Implemented
• Managerial Visibility Increased
• Productivity Trending Up
• Cost Savings Realized
Pickline Integrity
• By using a simple line by line set of directed moves the pickline
had inappropriately warehoused items rewarehoused to their
home slots
• A directed list of vacancies cross referenced against most aged
inventory facilitated filling of available pallet locations within
pickline
Pickline Integrity
• Project Target Completion Date – 15/July/2016
• Results:
• Note: The remaining incorrect’s are select racks which by function
have multiple products within them in quantities of three cases or
less (Essentially making the count 621 of 655 correct or 94.8%)
Managerial Visibility
• These tools were placed in the hands of the operations
management team
• Utilization recommendations were given and evaluated
• Training on their use was provided
• Implementation is on-going
• Effect to be determined
Case Pick Productivity Metrics
• Initial State: 05/June/16 – 15/July/16
• Current State: 16/July/16 – 02/August/16
Case Pick Productivity Metrics
• Productivity Summary
• First 6 Week Average Goal Time: 343.55 Hours
• First 6 Week Average Direct Time: 458.61 Hours
• First 6 Week Average Productivity: -25.1
• Last 2 Week Average Goal Time: 408.48
• Last 2 Week Average Direct Time: 471.87
• Last 2 Week Average Productivity: -13.4
Air Picks
• Demonstrable Improvement
• Air Pick Delta: -5.8%
• Take Away?: Pickline Auditing Has Limited Control Of Process
Labor Cost Savings
• Productivity Delta: +11.7
• Last 8 Week Average Goal Time: 359.88 Hours
• Estimated Labor Savings: 359.88(.117)= 42.11 Hours
• Dollars and Cents?:
• Straight Wage Labor Cost: $25/HR(42.11 HR) = $1052.65 * 52 = $54,737.75
• Overtime Labor Cost: $37.5/HR(42.11 HR) = $1579.13 * 52 = $82,114.50
Future State / Recommendations
• Stochastic Modeling/Analysis of Pick lines
• Current Analysis is Deterministic
• Variance in throughput result in same problems on a diminished scale
• Multiplicative cost savings through analytic investment of resources
• Labor Savings/Revenue Generation Benefits
• Hire Me.
Q&A

More Related Content

What's hot

3 work charting_methods
3 work charting_methods3 work charting_methods
3 work charting_methodsTamer Khalaf
 
Cycle counting final
Cycle counting finalCycle counting final
Cycle counting finalsrihari S
 
Planing and control in general 1
Planing and control in general 1Planing and control in general 1
Planing and control in general 1Crina Feier
 
Drive Lean Manufacturing With Your ERP System
Drive Lean Manufacturing With Your ERP SystemDrive Lean Manufacturing With Your ERP System
Drive Lean Manufacturing With Your ERP SystemOptiProERP
 
QMS Calibration Powerpoint
QMS Calibration PowerpointQMS Calibration Powerpoint
QMS Calibration PowerpointDennis J Morgan
 
CONIG 1.6 Process Model Canvas
CONIG 1.6 Process Model CanvasCONIG 1.6 Process Model Canvas
CONIG 1.6 Process Model CanvasYalcin Gerek
 
Peak Review Metrics
Peak Review MetricsPeak Review Metrics
Peak Review Metricsmaxxweiser
 
Wendy Burgess Resume
Wendy Burgess ResumeWendy Burgess Resume
Wendy Burgess ResumeWendy Burgess
 
Auditing Accounting Estimates & Using the Work of Specialists
Auditing Accounting Estimates & Using the Work of SpecialistsAuditing Accounting Estimates & Using the Work of Specialists
Auditing Accounting Estimates & Using the Work of SpecialistsJeffrey Johanns
 
Statistical process control technique with example - xbar chart and R chart
Statistical process control technique with example - xbar chart and R chartStatistical process control technique with example - xbar chart and R chart
Statistical process control technique with example - xbar chart and R chartkevin Richard
 
Project Management Process Groups 101
Project Management Process Groups 101Project Management Process Groups 101
Project Management Process Groups 101Tipsographic . com
 
Tier view presentation web
Tier view presentation webTier view presentation web
Tier view presentation webMike Ledbetter
 
IWP Timeline
IWP TimelineIWP Timeline
IWP TimelineScot Fyfe
 
Business intelligence
Business intelligenceBusiness intelligence
Business intelligenceSuparnaR1
 

What's hot (20)

3 work charting_methods
3 work charting_methods3 work charting_methods
3 work charting_methods
 
ATCO Engineering - Process Evaluation
ATCO Engineering - Process EvaluationATCO Engineering - Process Evaluation
ATCO Engineering - Process Evaluation
 
Cycle counting final
Cycle counting finalCycle counting final
Cycle counting final
 
Planing and control in general 1
Planing and control in general 1Planing and control in general 1
Planing and control in general 1
 
Drive Lean Manufacturing With Your ERP System
Drive Lean Manufacturing With Your ERP SystemDrive Lean Manufacturing With Your ERP System
Drive Lean Manufacturing With Your ERP System
 
Measuring itsm
Measuring itsmMeasuring itsm
Measuring itsm
 
QMS Calibration Powerpoint
QMS Calibration PowerpointQMS Calibration Powerpoint
QMS Calibration Powerpoint
 
CONIG 1.6 Process Model Canvas
CONIG 1.6 Process Model CanvasCONIG 1.6 Process Model Canvas
CONIG 1.6 Process Model Canvas
 
Peak Review Metrics
Peak Review MetricsPeak Review Metrics
Peak Review Metrics
 
Wendy Burgess Resume
Wendy Burgess ResumeWendy Burgess Resume
Wendy Burgess Resume
 
Inventory mgmt
Inventory mgmtInventory mgmt
Inventory mgmt
 
Auditing Accounting Estimates & Using the Work of Specialists
Auditing Accounting Estimates & Using the Work of SpecialistsAuditing Accounting Estimates & Using the Work of Specialists
Auditing Accounting Estimates & Using the Work of Specialists
 
sr cost acct
sr cost acctsr cost acct
sr cost acct
 
Product Operation Planning & Control
Product Operation Planning & ControlProduct Operation Planning & Control
Product Operation Planning & Control
 
Statistical process control technique with example - xbar chart and R chart
Statistical process control technique with example - xbar chart and R chartStatistical process control technique with example - xbar chart and R chart
Statistical process control technique with example - xbar chart and R chart
 
Project Management Process Groups 101
Project Management Process Groups 101Project Management Process Groups 101
Project Management Process Groups 101
 
Tier view presentation web
Tier view presentation webTier view presentation web
Tier view presentation web
 
IWP Timeline
IWP TimelineIWP Timeline
IWP Timeline
 
Business intelligence
Business intelligenceBusiness intelligence
Business intelligence
 
Metrics Sirisha
Metrics  SirishaMetrics  Sirisha
Metrics Sirisha
 

Viewers also liked

52309 cm 9161_nss_sd_review_web_only
52309 cm 9161_nss_sd_review_web_only52309 cm 9161_nss_sd_review_web_only
52309 cm 9161_nss_sd_review_web_onlychrisseth
 
Persuasive Speech
Persuasive SpeechPersuasive Speech
Persuasive SpeechKiana Wiley
 
CHINA’S METRO SYSTEMS (All in One because we are a Team) China Version
CHINA’S METRO SYSTEMS (All in One because we are a Team) China VersionCHINA’S METRO SYSTEMS (All in One because we are a Team) China Version
CHINA’S METRO SYSTEMS (All in One because we are a Team) China VersionKevin Sonico
 
“MISSING HIGGS BIGBANG & PARTICLE STUDY”
“MISSING HIGGS BIGBANG & PARTICLE STUDY”“MISSING HIGGS BIGBANG & PARTICLE STUDY”
“MISSING HIGGS BIGBANG & PARTICLE STUDY”Pushkar Purohit
 
Healthcare Practicum 1
Healthcare Practicum 1Healthcare Practicum 1
Healthcare Practicum 1Jonathan Green
 
Economia Social y Solidaria vista como un fenomeno socioeconómico
Economia Social y Solidaria vista como un fenomeno socioeconómicoEconomia Social y Solidaria vista como un fenomeno socioeconómico
Economia Social y Solidaria vista como un fenomeno socioeconómico0502351687
 
Design of Experiment
Design of ExperimentDesign of Experiment
Design of ExperimentYiming Chen
 
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...Ahmad Syafiq
 
Sejumlah fakta dan data tentang gangguan depresi
Sejumlah fakta dan data tentang gangguan depresiSejumlah fakta dan data tentang gangguan depresi
Sejumlah fakta dan data tentang gangguan depresiBagus Utomo
 
MBA Operations Management Assignment
MBA Operations Management AssignmentMBA Operations Management Assignment
MBA Operations Management Assignmentbntripathy85
 

Viewers also liked (14)

52309 cm 9161_nss_sd_review_web_only
52309 cm 9161_nss_sd_review_web_only52309 cm 9161_nss_sd_review_web_only
52309 cm 9161_nss_sd_review_web_only
 
Persuasive Speech
Persuasive SpeechPersuasive Speech
Persuasive Speech
 
CHINA’S METRO SYSTEMS (All in One because we are a Team) China Version
CHINA’S METRO SYSTEMS (All in One because we are a Team) China VersionCHINA’S METRO SYSTEMS (All in One because we are a Team) China Version
CHINA’S METRO SYSTEMS (All in One because we are a Team) China Version
 
The Cicanesti Village
The Cicanesti VillageThe Cicanesti Village
The Cicanesti Village
 
“MISSING HIGGS BIGBANG & PARTICLE STUDY”
“MISSING HIGGS BIGBANG & PARTICLE STUDY”“MISSING HIGGS BIGBANG & PARTICLE STUDY”
“MISSING HIGGS BIGBANG & PARTICLE STUDY”
 
Healthcare Practicum 1
Healthcare Practicum 1Healthcare Practicum 1
Healthcare Practicum 1
 
Software de un computador
Software de un computadorSoftware de un computador
Software de un computador
 
Marlon C. Bacani
Marlon C. BacaniMarlon C. Bacani
Marlon C. Bacani
 
Yes 1st-issue
Yes 1st-issueYes 1st-issue
Yes 1st-issue
 
Economia Social y Solidaria vista como un fenomeno socioeconómico
Economia Social y Solidaria vista como un fenomeno socioeconómicoEconomia Social y Solidaria vista como un fenomeno socioeconómico
Economia Social y Solidaria vista como un fenomeno socioeconómico
 
Design of Experiment
Design of ExperimentDesign of Experiment
Design of Experiment
 
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...
Design of Experiment (DOE): Taguchi Method and Full Factorial Design in Surfa...
 
Sejumlah fakta dan data tentang gangguan depresi
Sejumlah fakta dan data tentang gangguan depresiSejumlah fakta dan data tentang gangguan depresi
Sejumlah fakta dan data tentang gangguan depresi
 
MBA Operations Management Assignment
MBA Operations Management AssignmentMBA Operations Management Assignment
MBA Operations Management Assignment
 

Similar to Lance Bemis - Operations Capstone

Lesson 10 - Value stream mapping
Lesson 10 - Value stream mappingLesson 10 - Value stream mapping
Lesson 10 - Value stream mappingTunAnhTrnh9
 
Structured NERC CIP Process Improvement Using Six Sigma
Structured NERC CIP Process Improvement Using Six SigmaStructured NERC CIP Process Improvement Using Six Sigma
Structured NERC CIP Process Improvement Using Six SigmaEnergySec
 
Principles of management – mgt101
Principles of management – mgt101Principles of management – mgt101
Principles of management – mgt101Fallahchay Ali
 
6. Process-Flow Analysis.pdf
6. Process-Flow Analysis.pdf6. Process-Flow Analysis.pdf
6. Process-Flow Analysis.pdfRaheelMansoor4
 
Inventory management
Inventory managementInventory management
Inventory managementRajThakuri
 
Pharmaceutical Production Planning and control
Pharmaceutical Production Planning and controlPharmaceutical Production Planning and control
Pharmaceutical Production Planning and controlRaviTeja Netha
 
Measuring Long-Run and Nonfinancial Organizational Performance
Measuring Long-Run and Nonfinancial Organizational PerformanceMeasuring Long-Run and Nonfinancial Organizational Performance
Measuring Long-Run and Nonfinancial Organizational Performancenarman1402
 
Production and management
Production and managementProduction and management
Production and managementMohammadWasique
 
OM1 e06 (1).pptx
OM1 e06 (1).pptxOM1 e06 (1).pptx
OM1 e06 (1).pptxroli13
 
Process flow and process chart
Process flow and process chartProcess flow and process chart
Process flow and process chartParvesh Mittal
 
Lean Process and Production
Lean Process and ProductionLean Process and Production
Lean Process and Productionravina10008
 
Oracle Enterprise Asset Management - Presentation.pptx
Oracle Enterprise Asset Management - Presentation.pptxOracle Enterprise Asset Management - Presentation.pptx
Oracle Enterprise Asset Management - Presentation.pptxUmairIlyas21
 

Similar to Lance Bemis - Operations Capstone (20)

Lesson 10 - Value stream mapping
Lesson 10 - Value stream mappingLesson 10 - Value stream mapping
Lesson 10 - Value stream mapping
 
Structured NERC CIP Process Improvement Using Six Sigma
Structured NERC CIP Process Improvement Using Six SigmaStructured NERC CIP Process Improvement Using Six Sigma
Structured NERC CIP Process Improvement Using Six Sigma
 
Principles of management – mgt101
Principles of management – mgt101Principles of management – mgt101
Principles of management – mgt101
 
TESCO Meter Manager Overview
TESCO Meter Manager OverviewTESCO Meter Manager Overview
TESCO Meter Manager Overview
 
6. Process-Flow Analysis.pdf
6. Process-Flow Analysis.pdf6. Process-Flow Analysis.pdf
6. Process-Flow Analysis.pdf
 
Inventory management
Inventory managementInventory management
Inventory management
 
Pharmaceutical Production Planning and control
Pharmaceutical Production Planning and controlPharmaceutical Production Planning and control
Pharmaceutical Production Planning and control
 
Measuring Long-Run and Nonfinancial Organizational Performance
Measuring Long-Run and Nonfinancial Organizational PerformanceMeasuring Long-Run and Nonfinancial Organizational Performance
Measuring Long-Run and Nonfinancial Organizational Performance
 
15 operations, quality and productivity
15  operations, quality and productivity15  operations, quality and productivity
15 operations, quality and productivity
 
Production and management
Production and managementProduction and management
Production and management
 
OM1 e06 (1).pptx
OM1 e06 (1).pptxOM1 e06 (1).pptx
OM1 e06 (1).pptx
 
Process flow and process chart
Process flow and process chartProcess flow and process chart
Process flow and process chart
 
Motion and time study
Motion and time studyMotion and time study
Motion and time study
 
Controlling
ControllingControlling
Controlling
 
Method Study
Method Study Method Study
Method Study
 
Layered process audit
Layered process audit Layered process audit
Layered process audit
 
Ch9 Jit
Ch9 JitCh9 Jit
Ch9 Jit
 
Unit I.pdf
Unit I.pdfUnit I.pdf
Unit I.pdf
 
Lean Process and Production
Lean Process and ProductionLean Process and Production
Lean Process and Production
 
Oracle Enterprise Asset Management - Presentation.pptx
Oracle Enterprise Asset Management - Presentation.pptxOracle Enterprise Asset Management - Presentation.pptx
Oracle Enterprise Asset Management - Presentation.pptx
 

Lance Bemis - Operations Capstone

  • 1. Lance Bemis - Operations Caron Road Rochelle, Illinois
  • 2. Background • Nestle – • Shipping/Receiving Clerk • DHL – • International Shipping/Receiving • 3M – • LTO
  • 3. Education • Northern Illinois University – December 2016 Graduation Date • B.S. in Industrial and Systems Engineering • Emphasis in Engineering Management • Coursework in – • Operations Research • Stochastic Analysis • Quality Control • Lean Six Sigma • Inventory Control • Process Control
  • 4. Initial State: • Original project was intended to be a product comingling/slotting process that would add approximately 80 new SKU’s to the 1010 facility’s pick line • Project was tabled for completion in January timeframe
  • 5. Collaboration with IE and the CMO process • Alex MacKinnon (former East Region IE) • Received Supervisor training on conducting CMO’s and effective coaching strategies • Identified Strengths/Weaknesses of the CMO process • Great coaching tool • Useful for observing process control issues • Need large number to be indicative of current state • Time consuming process
  • 6. Conducting CMO’s • While observing LTO’s several process issues were identified • Comingled product in bays • Multiple locations for one product/lot (unintentionally) • Air Picks • Most significant factor in driving down productivity in case pick • Two operators delayed to complete task that only one operator gets “credit” for • Replenishment • Product overflow/Inadequate inventory slotting • Skipping replenishments due to no open space generates more air picks
  • 7. Analytic Void (Enter Bob Courtney) • Placed in contact with Bob (Sr. Manager of Engineering Analytics) • Described issues that were observed • Received data collation tools for operational assessment • Pick line Audit • Associate Activity Audit • Pick line Analysis
  • 8. Pickline Audit • Cross-references lot writer report against pick line report to display discrepancies in product occupancy versus assignment • Identifies locations with open pallet positions and available inventory in storage • Identifies locations with empty pallet positions but no available inventory in stock to fill the space
  • 9. Associate Activity Audit • Identifies non-value added material handling • Quantifies time spent in indirect (non-billable) job tasks • Allows for transaction audits of pallet id/lot/location/product • Flags suspicious moves (i.e. scans on opposite ends of warehouse in unrealistic time frames) • Identifies what actions are degrading pickline integrity • Captures lost time (i.e. long breaks)
  • 10. Pickline Analysis • Determines Item Velocity • Establishes product pick patterns (i.e. % partial pick/full pallet) • Average Daily Volumes/Pickface Transactions • Recommends Buffer Inventory Slotting Needs • Quantifies air pick frequency
  • 11. Current State: • Pickline Integrity Restored • Process Control Measures Implemented • Managerial Visibility Increased • Productivity Trending Up • Cost Savings Realized
  • 12. Pickline Integrity • By using a simple line by line set of directed moves the pickline had inappropriately warehoused items rewarehoused to their home slots • A directed list of vacancies cross referenced against most aged inventory facilitated filling of available pallet locations within pickline
  • 13. Pickline Integrity • Project Target Completion Date – 15/July/2016 • Results: • Note: The remaining incorrect’s are select racks which by function have multiple products within them in quantities of three cases or less (Essentially making the count 621 of 655 correct or 94.8%)
  • 14. Managerial Visibility • These tools were placed in the hands of the operations management team • Utilization recommendations were given and evaluated • Training on their use was provided • Implementation is on-going • Effect to be determined
  • 15. Case Pick Productivity Metrics • Initial State: 05/June/16 – 15/July/16 • Current State: 16/July/16 – 02/August/16
  • 16. Case Pick Productivity Metrics • Productivity Summary • First 6 Week Average Goal Time: 343.55 Hours • First 6 Week Average Direct Time: 458.61 Hours • First 6 Week Average Productivity: -25.1 • Last 2 Week Average Goal Time: 408.48 • Last 2 Week Average Direct Time: 471.87 • Last 2 Week Average Productivity: -13.4
  • 17. Air Picks • Demonstrable Improvement • Air Pick Delta: -5.8% • Take Away?: Pickline Auditing Has Limited Control Of Process
  • 18. Labor Cost Savings • Productivity Delta: +11.7 • Last 8 Week Average Goal Time: 359.88 Hours • Estimated Labor Savings: 359.88(.117)= 42.11 Hours • Dollars and Cents?: • Straight Wage Labor Cost: $25/HR(42.11 HR) = $1052.65 * 52 = $54,737.75 • Overtime Labor Cost: $37.5/HR(42.11 HR) = $1579.13 * 52 = $82,114.50
  • 19. Future State / Recommendations • Stochastic Modeling/Analysis of Pick lines • Current Analysis is Deterministic • Variance in throughput result in same problems on a diminished scale • Multiplicative cost savings through analytic investment of resources • Labor Savings/Revenue Generation Benefits • Hire Me.
  • 20. Q&A