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  1. 1. Shipping: Process to Pull MRL’s & Requisitions November 2011 Kaizen Event
  2. 2. <ul><ul><li>Preparation Work: </li></ul></ul><ul><ul><ul><li>Establish the Need (Business case). </li></ul></ul></ul><ul><ul><ul><li>Performance Metrics. </li></ul></ul></ul><ul><ul><ul><li>Demand </li></ul></ul></ul><ul><ul><ul><li>Value Statement, Key Reqm’ts, </li></ul></ul></ul><ul><ul><ul><li>Collect Team Member Ideas </li></ul></ul></ul>Outline of the Week
  3. 3. <ul><li>Day 1 : Grasp the Current State </li></ul><ul><ul><li>Map the current state </li></ul></ul><ul><ul><ul><li>Spaghetti Diagrams </li></ul></ul></ul><ul><ul><ul><li>Map the Information & Material Flow </li></ul></ul></ul><ul><ul><li>Study each process step. </li></ul></ul><ul><ul><ul><li>Process cycle times, WIP, total flow time, etc </li></ul></ul></ul><ul><ul><li>Statement of the Ideal </li></ul></ul><ul><ul><li>Create Future State </li></ul></ul><ul><li>Day 2: Big Changes (make the change) </li></ul><ul><li>Day 3: Run the new process </li></ul><ul><li>Day 4: Standardize & Train – Stabilize new process </li></ul><ul><li>Day 5: Report results. </li></ul>Outline of the Week
  4. 4. Business Case <ul><ul><ul><li>Growth is expected: From $120 M to $200 M </li></ul></ul></ul><ul><ul><ul><li>approx 15-20% / year </li></ul></ul></ul><ul><ul><ul><li>Market Pressures Drive: </li></ul></ul></ul><ul><ul><ul><ul><li>Complexity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Speed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Quality </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pricing </li></ul></ul></ul></ul><ul><li>Create a process capable of making: </li></ul><ul><li>perfect shipments, </li></ul><ul><li>more often, </li></ul><ul><li>with less effort. </li></ul>Shipments 2010 2011 2012 Parts Shipped / month 210,000 220,000 235,000
  5. 5. Value Statement <ul><li>What Value does the Shipping Team bring to HF and The customers? </li></ul><ul><li>Product Knowledge </li></ul><ul><li>JIT Delivery in Perfect Condition </li></ul><ul><li>With product knowledegable personnel we will deliver to our customer the products when wanted, where wanted, and in perfect condition. </li></ul>
  6. 6. Stand Up Rack V S M
  7. 7. Requisition V S M
  8. 8. Key Requirements <ul><li>Billing and shipping Must be in the same month </li></ul><ul><li>Transport Weight Rqmt’s (DOT) </li></ul><ul><ul><li>4,000#/ Basket </li></ul></ul><ul><ul><li>3,500# Basket for CA (only) </li></ul></ul><ul><li>HF Basket / handling system (Physical /Mech) </li></ul><ul><li>API Aware of 8’ support Rqm’t </li></ul><ul><li>Maintain FIFO </li></ul>
  9. 9. Performance Metrics Quality: Order Accuracy Current : 35-65 errors / Wk Target: Less than 5 errors / Wk Delivery: Time to Pull (Single route) Current: Brownsfield Range from 3:20’ - 5:30’ Hobbs Range 4:45’ - 7:20’ Productivity: Parts / man hour Line Items / man hour
  10. 10. Statement of the Ideal <ul><li>On Demand: JIT </li></ul><ul><li>Flow: Simple & Direct </li></ul><ul><li>Defect Free </li></ul><ul><li>1 by 1 </li></ul><ul><li>Easy & Low Cost methods </li></ul>
  11. 11. Was
  12. 12. Shipping Dock
  13. 13. Bundling Area
  14. 14. Ideas from the workers <ul><li>On Demand: JIT </li></ul><ul><li>Flow: Simple & Direct </li></ul><ul><li>Defect Free </li></ul><ul><li>1 by 1 </li></ul><ul><li>Easy & Low Cost methods </li></ul>
  15. 15. Communications with team
  16. 16. Moving the racks
  17. 17. Current State
  18. 18. After Kaizen Bundling
  19. 19. After Kaizen MRL Stations
  20. 20. After Kaizen Stand Up
  21. 21. After Kaizen Dock Area