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COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
INTERNSHIP REPORT
TACTICAL SUPPLY CHAIN IMPROVEMENTS
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
PROJECT SCOPE DEVELOPMENT
WITH LASTING EFFECTS AND OPERATIONAL
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Returns
1 MRP Parameters – Review and
ajustments
2 Wurth material kits for assembly
(coordinated team task)
3 Material shortage Andon
implementation - Warehouses
4 Kanban implementation – Raw
Materials Warehouse (Canopy)
5 Creation and dissolution of
purchased KITS
6 BPMN 2.0 in process modeling
7 Documentation management
OPERATIONAL
PROJECTS
Impact daily/weekly
processes
4
SAP data extraction and
Power BI processing
5
Picking karts identification
and missing parts monitoring
6 Labelling
7
Automated MBOM extraction
from SAP
8
Daily Shortages registry and
control
9
Warehouse zoning by
material type
10 Rack optimization
Returns
1 Obsolete materials analysis
2 Procedure – Small Parts Monitoring
– Welding Milkman
3
Welding supply control and
monitoring – L-mast
Safety Financial gains Warehouse efficiency
Process
improvements
Return scope
Finished In progress
Status
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
State:
Finalized
Raw Materials
warehouse
Methodology used
• For MDT 219 mast cabs and fixed towerhead
part 1.6M, the following MRP parameters were
analyzed and adjusted:
1. Goods receipt time;
2. Safety margin;
3. Safety stock (equivalent in days of
stock).
• The methodology used was measuring
manufacturing times for the structures,
extracting data on SAP programmed
manufacturing times (routing times + 1,2 and
3), analyzing whether there are discrepancies
between both durations and highlighting the
margin which is possible to adjust.
• By reducing the SAP programmed
manufacturing times and material management
times, it was possible to reduce the inbound
level of stock for raw materials allocated
identified Manufacturing Bill of Materials -
MBOMs of structures since backward scheduling
order dates are set closer to current date.
Improvements
• Reduced level of stock for raw materials
(mainly cab mast ferrules and plates as
well as fixed towerhead part ferrules and
sheet metal – bottom and top);
• Warehouse space occupation improved
(mainly for cab mast’s plates and
towerhead part sheet metal – bottom and
top);
Estimated gains
33,5% reduction to monthly stock for
materials;
12,4% reduction to monthly overall raw
material’s warehouse (Canopy) stock;
110 000 euros monetary monthly gains
(estimated at the time of
implementation).
MDT219 mast cab
6 days 9 days
7 days
8 days
Explanation
MRP PARAMETERS REVISION
REVIEW AND ADJUSTMENTS TO REDUCE INBOUND STOCK
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
WURTH KITS FOR ASSEMBLY
ELIMINATING WORKERS MOVEMENTS TO PICK MATERIAL AND REDUCING INVENTORY DISCREPANCIES - COORDINATED TEAM TASK
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Methodology used
• The task force created extracts data on materials
supplied by Wurth for every crane model and
equipped structure (including yard box), does
groundwork evaluating discrepancies in what
is programmed in SAP and what is used by
assembly, making adjustments;
• Materials are divided by assembly phase and
organized in boxes (as shown in the picture);
• Scope included optimizing warehouse storing
of said materials to ensure those kits are
assembled as swiftly as possible.
Improvements
• Removes assembly workers
movements to pick material;
• Reducing inventory discrepancies,
assures that materials supplied to assembly
are those programmed in SAP in the right
quantity;
• Improves assembly productivity;
• Eliminates engineering errors
programmed in SAP.
Each compartment
contains the materials
needed in one
assembly phase
Finalized kit is then coupled
into the picking kart for
specific production cell
Future work
• Developing an easy way to generate all
the kit picking lists needed for each crane
sales order and distributing them for
warehouse workers.
Material
rack
location
Material
reference
and
description
Material
quantities
Material
box
location
Assembly
phase
for
each
material
Information about crane
model, production cell
and kit reference
KIT
box
scheme
Material
needed
for
KIT
assembly
Notes
• The project includes
developing a database
where kits picking lists are
stored and develop a
document that is easy to
interpret and follow both for
warehouse workers who
assemble the kit and
assembly workers who
receive the kit.
State:
In progress
Comercial
warehouse
Example
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
MATERIAL SHORTAGE ANDON
IMPROVING INFORMATION FLOW AND REDUCING MRP CONTROLLER REACTION TIME TO MATERIAL SHORTAGES
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Methodology used
• In order to improve information flow between
production and warehouses regarding material
shortages, alerts are emitted by production
workers, through Easy Prod;
• The alert is received by warehouse supervisors
team leaders and select Supply Chain members
(by e-mail and SMS), triggering a response
that may involve supplying the material if it is
available or informing MRP controllers when not
available;
• The alerts are also constantly visible on a
screen displayed centrally in the warehouse,
making it possible by everyone in the warehouse
to have the same information.
Improvements
• Optimized information flow between
production and warehouses;
• Clearer information about material
shortages;
• Faster reaction time by MRP controllers;
• Allows data warehousing for future
analysis and patten acknowledgement;
• Improves inter-shift information flow.
Future work
• Using the same methodology for exterior
warehouse (it is currently implemented
exclusively in raw materials warehouse –
Canopy and Commercial Warehouse).
State:
Finished
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Current Andon
status (red if it
implies production
stoppage and
orange if production
stoppage is
imminent
Production cell
where the material
shortage Andon was
emitted
Date and
time when
the Andon
was
initiated
Date and
time when
the Andon
was
initiated Material reference and
quantity
Notes
• Whenever a material is
replenished, the warehouse
worker may highlight that
replenishment, switching the
alert’s current status to “Ok”
followed by the reason for the
shortage.
Explanation
Material shortage display at Canopy
Material shortage display at Commercial
warehouse
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
KANBAN SUPPLYING SYSTEM
SMALL PARTS RACKS OPTIMIZATION AND REDUCING MATERIAL SHORTAGES
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
State:
In progress
Methodology used
• Preparation of small parts racks for
Welding (setting material locations, setting
standard plastic box size, setting Kanban
quantities);
• Training employees;
• Implementing a supplying strategy for
small parts for Welding.
Improvements
• Reducing small parts shortages,
since these parts are more
susceptible to have stock
discrepancies;
• Cleaner and more organized racks
(step into 5S ideology);
• Paving the way for a just-in-time
production for welding;
• Assuring there are fewer accumulation
of obsolete materials.
Raw materials
warehouse
Canopy
Future work
• Extending project scope to other
materials where kanban
implementation is beneficial;
Previous state
Current state Rack level for
empty kanban
boxes
Rack
level
Rack row and label
with information
about number of
Kanban boxes per
reference
Otimized number of
Kanban boxes, material
quantities and rack slots
(allowing boxes to be
stackable)
Identification
of the rack
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
PURCHASED KITS ANALYSIS
CREATION AND DISSOLUTION FOR STORAGE AND PROCESSING GAINS AND FINANCIAL OPTIMIZATION
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Methodology used
• Constant analysis and identification of situations
where kits are beneficial in terms of space,
transport, unload and storage safety,
production Supply and MRP management;
• In addition, there are analysis of situations
where kits already purchased are not
beneficial, representing extra cost without
return.
Improvements
• Safer transportation, unloading and
storing;
• Warehouse area gains;
• Fewer number of references for
MRP controllers to manage;
• Assurance that materials needed in
the same structure have the same
level of stock;
• Quicker supply for production cells.
Future work
• Programming in SAP kits
assembled internaly with similar
gains.
Future warehouse area gains
Area gained
Future warehouse area gains
Area
gained
Future MRP controller gains
SAP allocation of materials
to kits (with production
orders) instead of scattered
materials
State:
In progress
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Administrative
Situation status
Identified 13
In progress 9
Finished 4
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
BPMN 2.0
BUSINESS PROCESS MODELING FOR HOLISTIC SOLUTION RECOGNITION
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Methodology used
• To improve Tactical Supply Chain’s business
process modeling, Business Process Modeling
Notation 2.0 is introduced;
• As processes are modeled with this notation it’s
possible to simulate processes in the future
with proper data gathering.
• It’s then possible to identify bottlenecks,
resource pressure and margin gains by
increasing and reducing resources.
Improvements
• Clearer and holistic notation for
process modeling;
• Allows future simulation of business
process, identification of
bottlenecks and margin gains by
increasing or decreasing resources.
Beginning
of the
process
Notation for
a task
Notation for
a OR
gateway,
only one
path is taken
based on a
condition
End of
process
Notation for
an
exception.
Task is
executed
unless
what’s
described in
the
exception
happens
Notation for
some form of
output
Notation for
some form of
input
Notation for
some form of
document
originited
from a task
State:
In progress
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Administrative
Example
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
DOCUMENTATION MANAGEMENT
DIGITALIZATION AND DOCUMENT RESEARCH TO FURTHER IMPROVE AND MAKE EASILY ACCESSIBLE REPORTS
7
6
5
4
3
2
1
PROJECTS
WITH LASTING
EFFECTS
Impact processes in the long run
Methodology used
• Updating existent documents to latest
document templates and analyzing if contents
are up-to-date;
• Assessment of needs with the warehouse
workers and department members of new
documents with information that facilitate their
work;
• Constant reviewing of documents to make
sure they are up-to-date and meet warehouse
workers and department members needs.
Improvements
• Documents in agreement with ISO
9001 norm;
• Documents in line with workers needs;
• Documents up-do-date minimizing
situations where the purvey incorrect
or inaccurate information;
• Making sure information flow
between the department and
warehouses is clear of clatter and
minimizes waste in that order.
State:
Finished
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Administrative
DP BLR WM 0026
Chord document
DP BLR WM 0016
Jibs 3D and sommier
tube kits for each
produced at Baltar
DP BLR WM 0006
Jibs round bar reference
and dimensions information
DP BLR WM 0014
Mast cab, fixed and
rotative towerhead metal
plate kits for every crane
model produced at Baltar
DP BLR WM 0018
Yard box missing parts
registration and monitoring
DP BLR WM 0019
Picking karts missing parts
registration and monitoring
Tactical Supply Chain Qualios front page
Tactical Supply Chain Qualios documents by warehouse
Example
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
OBSOLETE MATERIALS
ANALYSIS AND TREATMENT
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• For every material in every warehouse (Canopy,
Commercial and Exterior Warehouse), the
previous years entries and exits are
analyzed;
• Materials with no exits are highlighted and for
those materials, following years needs are
also analyzed;
• Materials with no entries in the previous year
and no needs for the following year are
segregated and quarantined for three
months;
• After the quarantine period if there are no further
changes the materials have one of three
solutions: intercompany sale, a 3rd party sale
or scrapping.
Improvements
• Freeing warehouse space occupied
by materials that do not have
forecasted needs;
• Identification of possible SAP
MBOMs errors (materials that are
generating needs but are not used
physically by production workers);
• Removes wasteful materials from
warehouses, creating the possibility
of reorganizing them.
State:
Finished
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Administrative
ZDTB_LISTMAT
MB51
Excel file
MC47 for intercompany
centres
• Intercompany sale
• 3rd part sale
• Scrapping
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
PROCEDURE SMALL PARTS MONITORING
WELDING MILKMAN TO PREVENT PART STORAGE AND TIMELY REACTIONS
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Twice a week, welding milkmen follow the
route established, evaluating whether small
part racks require replenishment;
• Material that require replenishment are pin
pointed, allowing MRP controllers to have 2
weeks of reaction time to assure those
materials do not become unavailable, reducing
the probability of shortage significantly.
Improvements
• Significant reduction of small
part shortages;
• Small part racks labelling
optimization;
• Better MRP controller
reaction time to shortages.
State:
Finished
Raw materials
warehouse
Canopy
Welding Milkman small parts monitoring wall
Structure
whose
production cell
will be
monitored
Checklist
Information
about small
parts rack
Place where the milkman
leaves the checklists,
waiting to be digitalized
and sent by e-mail to
every MRP controller.
Information
about rack
location
3D drawing
of the
material
Whether the material
has stock location inside
the raw materials
warehouse
MRP Controller
asigned to the
material’s main
supplier
Whether the
material’s stock is
above or below the
reorder point
defined for said
material
Whether
the
material’s
stock was
supplied
Whether the
material’s stock
was supplied
above the reorder
point
Welding Milkman small parts checklist
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
WELDING SUPPLY – L-MAST
CONTROL AND MONITORING THROUGH A CLEAR WAY TO HELP PREVENTING MATERIAL SHORTAGE ON PRODUCTION RESCHEDULING
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Based on the Welding production plan
provided daily with the following three L-masts,
a warehouse worker uses L-mast
checklist, filling in information as shown on
the explanation.
• The process consists in three different phases :
segregation, verification and supply.
• The process ends by digitalizing the
checklist and sending it to the Tactical Supply
Chain department.
Improvements
• Clearer information flow between
welding and raw materials warehouse,
removing clatter;
• Unequivocal confirmation that the
MBOM components for said L-mast
were segregated, verified and supplied;
• Highlights situations where MBOM
components are unavailable,
making it possible to reorganize the
production plan.
State:
Finished
Raw materials
warehouse
Canopy
Reference of
the L-mast
to be
supplied
Warehouse
worker who
segregated
the material
for said L-
mast (date
and time)
Warehouse
worker who
confered the
material
previsiouly
segregated
for said L-
mast (date
and time)
Welding
worker/team
leader who
received the
segregated
material (date
and time)
MBOM for said
L-mast
(reference,
denomination
and quantity)
3D drawings
of MBOM
constituents
Checklist used by the worker
who segregated the material to
verify that all MBOM
componentes are available
Blank checklists to be used, for
every L-mast produced at Baltar
Filled in checklists with the
information of the previous
L-mast supplied, after being
digitized and sent by e-mail
L-Mast checklists – clear and filled in
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
DATA EXTRACTION AND PROCESSING
SAP AND POWERBI FOR UP-TO-DATE AND BETTER VISUALIZATION FOR REPORTS AND OBJECTIVE FOLLOW UP
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Data extracted directly from SAP transactions
is processed in PowerBI and displayed in
form of dashboards or other statistical tools;
• The dashboard is automatically updated as
the data is extracted from SAP which allows
up-to-date, swiftly available information to
allow better decision making.
Improvements
• Faster data processing;
• Cleaner and easier to interpret
visualization tools;
• Better support for decision making;
• Easy and quick to update
dashboards and/or other statistical
tools (tables, graphs, etc.)
State:
Finished
Administrative
Data extraction from
SAP – MB52
Data
processing in
Power BI
Dashboard
Explanation
1
Stock value
by
warehouse
1
2
Stock value
by MRP
controller
2
3
3 Stock value
by special
stock E or O
4
4
Intercompany
and 3rd party
stock values
5
5
Overall stock
value and
Gauge
diagram with
stock value
target
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
Document with the
kits missing parts
Picking kart label,
with information
about production cell
and crane serial
number
PICKING KARTS
IDENTIFICATION AND MISSING PARTS MONITORING
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Warehouse workers label, after
segregating the material for production
orders by picking, the different karts;
• If there are missing parts identified
while segregating material, the document
is filled in with information about the
respective crane serial number, colis,
reference, quantity and location (if
applicable);
• The document also has a field where the
warehouse worker can refer if the material
was replenished.
Improvements
• Clearer labeling of the picking
karts;
• Clearer information flow between
assembly and commercial warehouse
about missing parts;
• Removes clatter on the information
flow, removing time and information
wasted.
State:
Finished
Comercial
warehouse
Date when
the material
was
segregated
10
Warehouse
worker who
segregated
the material
Crane serial
number
Colis
Reference
of the
material in
shortage
Quantity
Material
location
Warehouse
workers who
replenished the
material 10
Explanation
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
LABELLING
LABEL LAYOUT UPDATE AND FULL LABELLING COVERAGE FOR EVERY WAREHOUSE
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• First, a label layout was developed to
include all the information needed my
warehouse and production workers when
identifying a material;
• Then it is analyzed whether a certain
rack’s layout needs readjustments or
materials may be organized in a different
way (by crane model, crane structure or
other criteria;
• Finally, and when racks are organized in the
optimal way, previous labels are replaced
by current ones.
Improvements
• Improvement to the information
available for warehouse and
production workers through labels;
• Ease of locating materials by
defining localizations for materials;
• First step in picking material
segregation for production orders at
raw materials warehouse (Canopy);
• Reducing the occurrence of
situations where welding workers swap
parts by introducing the 3D drawing,
allowing first grade differentiation.
State:
In progress
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Previous label
Whether the
material is
upwards of
downwards
to the label
Minimum and
Maximum
number of
Kanban
boxes
Location
of the
material
Field for an
eventual
use of color
code by
crane model
3D
drawing
of the
material
Raw materials warehouse - Canopy Welding Comercial warehouse
Explanation
Current label
1
2
3
4
5
6
1 Material
reference,
description
and bar code
2
3
4
5
6
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
MANUFACTURING BILL OF MATERIALS
AUTOMATED EXTRACTION FROM SAP
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• This project allows supplying warehouse
workers with more complete
information about MBOMs than the
ones extracted directly from SAP (MRP
controllers for each material and 3D
drawings);
• Furthermore, it is a way to make sure
distributed MBOM’s aren’t
outdated/incorrect since data is
extracted to Excel directly from SAP and
there is information in the document
about when it was printed and its
expiration date.
• Every time a MBOM is printed, a registry is
made on the date it was printed and who it
was given to.
Improvements
• Providing warehouse workers with
more complete information;
• Allows warehouse workers to checklist
the materials needed for a certain
structure and pinpoint eventual
material shortages, informing the
respective MRP controller immediately;
• Removes incorrect or outdated
MBOM’s from circulation.
State:
In progress
Comercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Example
Structure
reference
and name
1
1 2
3 4
MRP
controller
5 6 7
Checklist
3
MBOM’s
component
reference,
description
and
quantity
MBOM’s
printing and
expiration
date
4
3D drawing
Supplier
2
5
6
7
2
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
DAILY MATERIAL SHORTAGES
REGISTRY, CONTROL AND MONITORING
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Daily, a routine ranging all the production
sections/team leaders is done to evaluate
there are material shortages that represent
production stoppages;
• In case of shortage, the shared document is
filled in with all the relevant information;
• Once shortages are solved, they are archived
for future analysis and eventual
identification of patterns and respective
solutions.
Improvements
• Faster and cleaner information flow
between warehouses and Supply Chain
department;
• Removes clatter concerning material
shortages;
• Allows archived information about
how many times each reference is in
shortage and the respective reaction
time (time between shortage
identification and shortage relief).
State:
Finished
Commercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Future work
• Allowing warehouse workers and
production team leaders to fill in the
document autonomously.
Administrative
Filled in document for material shortages
Date of shortage
and expected
delivery date Information about production section and cell Material shortage reference and description Material shortage main supplier
Crane
Serial
Number
Material
MRP
controler
Whether
material
is
intercompany
or
not
Example
1 2 3 4 5 6 7
1
2 3 4
5
6
7
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
WAREHOUSE ZONING
BY MATERIAL TYPE
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• Warehouse layouts are structured in order
to segregate materials by categories on a
macro level and by crane model and structure
on a micro level (when applicable);
• Locations for materials are defined in SAP
facilitating MRP controllers/warehouse workers’
task of locating the materials.
Improvements
• Improvement to warehouse zoning;
• Faster locating of materials;
• A step further into 5S ideology;
• Facilitates annual inventory
procedure.
State:
Finished
Commercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Future work
• Developing same structure in the
Exterior Warehouse.
General layout – Raw Materials Warehouse
Warehouse
zone
Warehouse
subzone
Type of material
General layout – Comercial Warehouse
Example
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
RACK OPTIMIZATION
CLEARING OBSOLETE MATERIALS AND SEGREGATING MATERIAL BY CERTAIN CRITERIA
10
9
8
7
6
5
4
3
2
1
OPERATIONAL
PROJECTS
Impact daily/weekly processes
Methodology used
• For every rack, the existence of
obsolete materials is analyzed,
highlighting them for future deliberation;
• Segregating and identifying materials
by crane model and crane structure;
• Defining locations for materials and
maximum quantities.
Improvements
• Cleaner and more organized racks;
• Less time spent by workers finding
materials, segregating them by crane
model and structure;
• Minimizing occurrence of obsolete
stock by defining maximum
quantities based on production
demand;
• Facilitating analysis of future
potential obsolete materials by
segregating those of low runner
structures.
State:
Finished
Commercial
warehouse
Raw materials
warehouse
Canopy
Exterior
warehouse
Future work
• Developing same structure in the
Exterior Warehouse.
Crane
model
Crane
structure
Rack
identification
Low runner
section of
the rack
Example
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE
FUTURE PROJECTS AND IDEAS
Production orders for kits
assembled at Canopy and
picking lists for Exterior
Warehouse issued by SAP
Defining a clear supplying
ideology for each warehouse
(adapting it to warehouse
specificities and needs)
Stock transfer in SAP when
material is supplied to
production (clearer view for
MRP controllers of on-hand
and work-in-process stocks)
Reviewing and developing an
automated way to calculate
and review safety stocks
COMPANY CONFIDENTIAL – HIGHLY SENSITIVE

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Internship Report - Tactical Supply Chain Improvements.pptx

  • 1. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE INTERNSHIP REPORT TACTICAL SUPPLY CHAIN IMPROVEMENTS
  • 2. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE PROJECT SCOPE DEVELOPMENT WITH LASTING EFFECTS AND OPERATIONAL PROJECTS WITH LASTING EFFECTS Impact processes in the long run Returns 1 MRP Parameters – Review and ajustments 2 Wurth material kits for assembly (coordinated team task) 3 Material shortage Andon implementation - Warehouses 4 Kanban implementation – Raw Materials Warehouse (Canopy) 5 Creation and dissolution of purchased KITS 6 BPMN 2.0 in process modeling 7 Documentation management OPERATIONAL PROJECTS Impact daily/weekly processes 4 SAP data extraction and Power BI processing 5 Picking karts identification and missing parts monitoring 6 Labelling 7 Automated MBOM extraction from SAP 8 Daily Shortages registry and control 9 Warehouse zoning by material type 10 Rack optimization Returns 1 Obsolete materials analysis 2 Procedure – Small Parts Monitoring – Welding Milkman 3 Welding supply control and monitoring – L-mast Safety Financial gains Warehouse efficiency Process improvements Return scope Finished In progress Status
  • 3. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run State: Finalized Raw Materials warehouse Methodology used • For MDT 219 mast cabs and fixed towerhead part 1.6M, the following MRP parameters were analyzed and adjusted: 1. Goods receipt time; 2. Safety margin; 3. Safety stock (equivalent in days of stock). • The methodology used was measuring manufacturing times for the structures, extracting data on SAP programmed manufacturing times (routing times + 1,2 and 3), analyzing whether there are discrepancies between both durations and highlighting the margin which is possible to adjust. • By reducing the SAP programmed manufacturing times and material management times, it was possible to reduce the inbound level of stock for raw materials allocated identified Manufacturing Bill of Materials - MBOMs of structures since backward scheduling order dates are set closer to current date. Improvements • Reduced level of stock for raw materials (mainly cab mast ferrules and plates as well as fixed towerhead part ferrules and sheet metal – bottom and top); • Warehouse space occupation improved (mainly for cab mast’s plates and towerhead part sheet metal – bottom and top); Estimated gains 33,5% reduction to monthly stock for materials; 12,4% reduction to monthly overall raw material’s warehouse (Canopy) stock; 110 000 euros monetary monthly gains (estimated at the time of implementation). MDT219 mast cab 6 days 9 days 7 days 8 days Explanation MRP PARAMETERS REVISION REVIEW AND ADJUSTMENTS TO REDUCE INBOUND STOCK
  • 4. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE WURTH KITS FOR ASSEMBLY ELIMINATING WORKERS MOVEMENTS TO PICK MATERIAL AND REDUCING INVENTORY DISCREPANCIES - COORDINATED TEAM TASK 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run Methodology used • The task force created extracts data on materials supplied by Wurth for every crane model and equipped structure (including yard box), does groundwork evaluating discrepancies in what is programmed in SAP and what is used by assembly, making adjustments; • Materials are divided by assembly phase and organized in boxes (as shown in the picture); • Scope included optimizing warehouse storing of said materials to ensure those kits are assembled as swiftly as possible. Improvements • Removes assembly workers movements to pick material; • Reducing inventory discrepancies, assures that materials supplied to assembly are those programmed in SAP in the right quantity; • Improves assembly productivity; • Eliminates engineering errors programmed in SAP. Each compartment contains the materials needed in one assembly phase Finalized kit is then coupled into the picking kart for specific production cell Future work • Developing an easy way to generate all the kit picking lists needed for each crane sales order and distributing them for warehouse workers. Material rack location Material reference and description Material quantities Material box location Assembly phase for each material Information about crane model, production cell and kit reference KIT box scheme Material needed for KIT assembly Notes • The project includes developing a database where kits picking lists are stored and develop a document that is easy to interpret and follow both for warehouse workers who assemble the kit and assembly workers who receive the kit. State: In progress Comercial warehouse Example
  • 5. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE MATERIAL SHORTAGE ANDON IMPROVING INFORMATION FLOW AND REDUCING MRP CONTROLLER REACTION TIME TO MATERIAL SHORTAGES 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run Methodology used • In order to improve information flow between production and warehouses regarding material shortages, alerts are emitted by production workers, through Easy Prod; • The alert is received by warehouse supervisors team leaders and select Supply Chain members (by e-mail and SMS), triggering a response that may involve supplying the material if it is available or informing MRP controllers when not available; • The alerts are also constantly visible on a screen displayed centrally in the warehouse, making it possible by everyone in the warehouse to have the same information. Improvements • Optimized information flow between production and warehouses; • Clearer information about material shortages; • Faster reaction time by MRP controllers; • Allows data warehousing for future analysis and patten acknowledgement; • Improves inter-shift information flow. Future work • Using the same methodology for exterior warehouse (it is currently implemented exclusively in raw materials warehouse – Canopy and Commercial Warehouse). State: Finished Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Current Andon status (red if it implies production stoppage and orange if production stoppage is imminent Production cell where the material shortage Andon was emitted Date and time when the Andon was initiated Date and time when the Andon was initiated Material reference and quantity Notes • Whenever a material is replenished, the warehouse worker may highlight that replenishment, switching the alert’s current status to “Ok” followed by the reason for the shortage. Explanation Material shortage display at Canopy Material shortage display at Commercial warehouse
  • 6. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE KANBAN SUPPLYING SYSTEM SMALL PARTS RACKS OPTIMIZATION AND REDUCING MATERIAL SHORTAGES 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run State: In progress Methodology used • Preparation of small parts racks for Welding (setting material locations, setting standard plastic box size, setting Kanban quantities); • Training employees; • Implementing a supplying strategy for small parts for Welding. Improvements • Reducing small parts shortages, since these parts are more susceptible to have stock discrepancies; • Cleaner and more organized racks (step into 5S ideology); • Paving the way for a just-in-time production for welding; • Assuring there are fewer accumulation of obsolete materials. Raw materials warehouse Canopy Future work • Extending project scope to other materials where kanban implementation is beneficial; Previous state Current state Rack level for empty kanban boxes Rack level Rack row and label with information about number of Kanban boxes per reference Otimized number of Kanban boxes, material quantities and rack slots (allowing boxes to be stackable) Identification of the rack Explanation
  • 7. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE PURCHASED KITS ANALYSIS CREATION AND DISSOLUTION FOR STORAGE AND PROCESSING GAINS AND FINANCIAL OPTIMIZATION 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run Methodology used • Constant analysis and identification of situations where kits are beneficial in terms of space, transport, unload and storage safety, production Supply and MRP management; • In addition, there are analysis of situations where kits already purchased are not beneficial, representing extra cost without return. Improvements • Safer transportation, unloading and storing; • Warehouse area gains; • Fewer number of references for MRP controllers to manage; • Assurance that materials needed in the same structure have the same level of stock; • Quicker supply for production cells. Future work • Programming in SAP kits assembled internaly with similar gains. Future warehouse area gains Area gained Future warehouse area gains Area gained Future MRP controller gains SAP allocation of materials to kits (with production orders) instead of scattered materials State: In progress Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Administrative Situation status Identified 13 In progress 9 Finished 4 Explanation
  • 8. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE BPMN 2.0 BUSINESS PROCESS MODELING FOR HOLISTIC SOLUTION RECOGNITION 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run Methodology used • To improve Tactical Supply Chain’s business process modeling, Business Process Modeling Notation 2.0 is introduced; • As processes are modeled with this notation it’s possible to simulate processes in the future with proper data gathering. • It’s then possible to identify bottlenecks, resource pressure and margin gains by increasing and reducing resources. Improvements • Clearer and holistic notation for process modeling; • Allows future simulation of business process, identification of bottlenecks and margin gains by increasing or decreasing resources. Beginning of the process Notation for a task Notation for a OR gateway, only one path is taken based on a condition End of process Notation for an exception. Task is executed unless what’s described in the exception happens Notation for some form of output Notation for some form of input Notation for some form of document originited from a task State: In progress Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Administrative Example
  • 9. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE DOCUMENTATION MANAGEMENT DIGITALIZATION AND DOCUMENT RESEARCH TO FURTHER IMPROVE AND MAKE EASILY ACCESSIBLE REPORTS 7 6 5 4 3 2 1 PROJECTS WITH LASTING EFFECTS Impact processes in the long run Methodology used • Updating existent documents to latest document templates and analyzing if contents are up-to-date; • Assessment of needs with the warehouse workers and department members of new documents with information that facilitate their work; • Constant reviewing of documents to make sure they are up-to-date and meet warehouse workers and department members needs. Improvements • Documents in agreement with ISO 9001 norm; • Documents in line with workers needs; • Documents up-do-date minimizing situations where the purvey incorrect or inaccurate information; • Making sure information flow between the department and warehouses is clear of clatter and minimizes waste in that order. State: Finished Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Administrative DP BLR WM 0026 Chord document DP BLR WM 0016 Jibs 3D and sommier tube kits for each produced at Baltar DP BLR WM 0006 Jibs round bar reference and dimensions information DP BLR WM 0014 Mast cab, fixed and rotative towerhead metal plate kits for every crane model produced at Baltar DP BLR WM 0018 Yard box missing parts registration and monitoring DP BLR WM 0019 Picking karts missing parts registration and monitoring Tactical Supply Chain Qualios front page Tactical Supply Chain Qualios documents by warehouse Example
  • 10. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE OBSOLETE MATERIALS ANALYSIS AND TREATMENT 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • For every material in every warehouse (Canopy, Commercial and Exterior Warehouse), the previous years entries and exits are analyzed; • Materials with no exits are highlighted and for those materials, following years needs are also analyzed; • Materials with no entries in the previous year and no needs for the following year are segregated and quarantined for three months; • After the quarantine period if there are no further changes the materials have one of three solutions: intercompany sale, a 3rd party sale or scrapping. Improvements • Freeing warehouse space occupied by materials that do not have forecasted needs; • Identification of possible SAP MBOMs errors (materials that are generating needs but are not used physically by production workers); • Removes wasteful materials from warehouses, creating the possibility of reorganizing them. State: Finished Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Administrative ZDTB_LISTMAT MB51 Excel file MC47 for intercompany centres • Intercompany sale • 3rd part sale • Scrapping Explanation
  • 11. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE PROCEDURE SMALL PARTS MONITORING WELDING MILKMAN TO PREVENT PART STORAGE AND TIMELY REACTIONS 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Twice a week, welding milkmen follow the route established, evaluating whether small part racks require replenishment; • Material that require replenishment are pin pointed, allowing MRP controllers to have 2 weeks of reaction time to assure those materials do not become unavailable, reducing the probability of shortage significantly. Improvements • Significant reduction of small part shortages; • Small part racks labelling optimization; • Better MRP controller reaction time to shortages. State: Finished Raw materials warehouse Canopy Welding Milkman small parts monitoring wall Structure whose production cell will be monitored Checklist Information about small parts rack Place where the milkman leaves the checklists, waiting to be digitalized and sent by e-mail to every MRP controller. Information about rack location 3D drawing of the material Whether the material has stock location inside the raw materials warehouse MRP Controller asigned to the material’s main supplier Whether the material’s stock is above or below the reorder point defined for said material Whether the material’s stock was supplied Whether the material’s stock was supplied above the reorder point Welding Milkman small parts checklist Explanation
  • 12. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE WELDING SUPPLY – L-MAST CONTROL AND MONITORING THROUGH A CLEAR WAY TO HELP PREVENTING MATERIAL SHORTAGE ON PRODUCTION RESCHEDULING 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Based on the Welding production plan provided daily with the following three L-masts, a warehouse worker uses L-mast checklist, filling in information as shown on the explanation. • The process consists in three different phases : segregation, verification and supply. • The process ends by digitalizing the checklist and sending it to the Tactical Supply Chain department. Improvements • Clearer information flow between welding and raw materials warehouse, removing clatter; • Unequivocal confirmation that the MBOM components for said L-mast were segregated, verified and supplied; • Highlights situations where MBOM components are unavailable, making it possible to reorganize the production plan. State: Finished Raw materials warehouse Canopy Reference of the L-mast to be supplied Warehouse worker who segregated the material for said L- mast (date and time) Warehouse worker who confered the material previsiouly segregated for said L- mast (date and time) Welding worker/team leader who received the segregated material (date and time) MBOM for said L-mast (reference, denomination and quantity) 3D drawings of MBOM constituents Checklist used by the worker who segregated the material to verify that all MBOM componentes are available Blank checklists to be used, for every L-mast produced at Baltar Filled in checklists with the information of the previous L-mast supplied, after being digitized and sent by e-mail L-Mast checklists – clear and filled in Explanation
  • 13. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE DATA EXTRACTION AND PROCESSING SAP AND POWERBI FOR UP-TO-DATE AND BETTER VISUALIZATION FOR REPORTS AND OBJECTIVE FOLLOW UP 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Data extracted directly from SAP transactions is processed in PowerBI and displayed in form of dashboards or other statistical tools; • The dashboard is automatically updated as the data is extracted from SAP which allows up-to-date, swiftly available information to allow better decision making. Improvements • Faster data processing; • Cleaner and easier to interpret visualization tools; • Better support for decision making; • Easy and quick to update dashboards and/or other statistical tools (tables, graphs, etc.) State: Finished Administrative Data extraction from SAP – MB52 Data processing in Power BI Dashboard Explanation 1 Stock value by warehouse 1 2 Stock value by MRP controller 2 3 3 Stock value by special stock E or O 4 4 Intercompany and 3rd party stock values 5 5 Overall stock value and Gauge diagram with stock value target
  • 14. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE Document with the kits missing parts Picking kart label, with information about production cell and crane serial number PICKING KARTS IDENTIFICATION AND MISSING PARTS MONITORING 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Warehouse workers label, after segregating the material for production orders by picking, the different karts; • If there are missing parts identified while segregating material, the document is filled in with information about the respective crane serial number, colis, reference, quantity and location (if applicable); • The document also has a field where the warehouse worker can refer if the material was replenished. Improvements • Clearer labeling of the picking karts; • Clearer information flow between assembly and commercial warehouse about missing parts; • Removes clatter on the information flow, removing time and information wasted. State: Finished Comercial warehouse Date when the material was segregated 10 Warehouse worker who segregated the material Crane serial number Colis Reference of the material in shortage Quantity Material location Warehouse workers who replenished the material 10 Explanation
  • 15. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE LABELLING LABEL LAYOUT UPDATE AND FULL LABELLING COVERAGE FOR EVERY WAREHOUSE 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • First, a label layout was developed to include all the information needed my warehouse and production workers when identifying a material; • Then it is analyzed whether a certain rack’s layout needs readjustments or materials may be organized in a different way (by crane model, crane structure or other criteria; • Finally, and when racks are organized in the optimal way, previous labels are replaced by current ones. Improvements • Improvement to the information available for warehouse and production workers through labels; • Ease of locating materials by defining localizations for materials; • First step in picking material segregation for production orders at raw materials warehouse (Canopy); • Reducing the occurrence of situations where welding workers swap parts by introducing the 3D drawing, allowing first grade differentiation. State: In progress Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Previous label Whether the material is upwards of downwards to the label Minimum and Maximum number of Kanban boxes Location of the material Field for an eventual use of color code by crane model 3D drawing of the material Raw materials warehouse - Canopy Welding Comercial warehouse Explanation Current label 1 2 3 4 5 6 1 Material reference, description and bar code 2 3 4 5 6
  • 16. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE MANUFACTURING BILL OF MATERIALS AUTOMATED EXTRACTION FROM SAP 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • This project allows supplying warehouse workers with more complete information about MBOMs than the ones extracted directly from SAP (MRP controllers for each material and 3D drawings); • Furthermore, it is a way to make sure distributed MBOM’s aren’t outdated/incorrect since data is extracted to Excel directly from SAP and there is information in the document about when it was printed and its expiration date. • Every time a MBOM is printed, a registry is made on the date it was printed and who it was given to. Improvements • Providing warehouse workers with more complete information; • Allows warehouse workers to checklist the materials needed for a certain structure and pinpoint eventual material shortages, informing the respective MRP controller immediately; • Removes incorrect or outdated MBOM’s from circulation. State: In progress Comercial warehouse Raw materials warehouse Canopy Exterior warehouse Example Structure reference and name 1 1 2 3 4 MRP controller 5 6 7 Checklist 3 MBOM’s component reference, description and quantity MBOM’s printing and expiration date 4 3D drawing Supplier 2 5 6 7 2
  • 17. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE DAILY MATERIAL SHORTAGES REGISTRY, CONTROL AND MONITORING 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Daily, a routine ranging all the production sections/team leaders is done to evaluate there are material shortages that represent production stoppages; • In case of shortage, the shared document is filled in with all the relevant information; • Once shortages are solved, they are archived for future analysis and eventual identification of patterns and respective solutions. Improvements • Faster and cleaner information flow between warehouses and Supply Chain department; • Removes clatter concerning material shortages; • Allows archived information about how many times each reference is in shortage and the respective reaction time (time between shortage identification and shortage relief). State: Finished Commercial warehouse Raw materials warehouse Canopy Exterior warehouse Future work • Allowing warehouse workers and production team leaders to fill in the document autonomously. Administrative Filled in document for material shortages Date of shortage and expected delivery date Information about production section and cell Material shortage reference and description Material shortage main supplier Crane Serial Number Material MRP controler Whether material is intercompany or not Example 1 2 3 4 5 6 7 1 2 3 4 5 6 7
  • 18. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE WAREHOUSE ZONING BY MATERIAL TYPE 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • Warehouse layouts are structured in order to segregate materials by categories on a macro level and by crane model and structure on a micro level (when applicable); • Locations for materials are defined in SAP facilitating MRP controllers/warehouse workers’ task of locating the materials. Improvements • Improvement to warehouse zoning; • Faster locating of materials; • A step further into 5S ideology; • Facilitates annual inventory procedure. State: Finished Commercial warehouse Raw materials warehouse Canopy Exterior warehouse Future work • Developing same structure in the Exterior Warehouse. General layout – Raw Materials Warehouse Warehouse zone Warehouse subzone Type of material General layout – Comercial Warehouse Example
  • 19. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE RACK OPTIMIZATION CLEARING OBSOLETE MATERIALS AND SEGREGATING MATERIAL BY CERTAIN CRITERIA 10 9 8 7 6 5 4 3 2 1 OPERATIONAL PROJECTS Impact daily/weekly processes Methodology used • For every rack, the existence of obsolete materials is analyzed, highlighting them for future deliberation; • Segregating and identifying materials by crane model and crane structure; • Defining locations for materials and maximum quantities. Improvements • Cleaner and more organized racks; • Less time spent by workers finding materials, segregating them by crane model and structure; • Minimizing occurrence of obsolete stock by defining maximum quantities based on production demand; • Facilitating analysis of future potential obsolete materials by segregating those of low runner structures. State: Finished Commercial warehouse Raw materials warehouse Canopy Exterior warehouse Future work • Developing same structure in the Exterior Warehouse. Crane model Crane structure Rack identification Low runner section of the rack Example
  • 20. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE FUTURE PROJECTS AND IDEAS Production orders for kits assembled at Canopy and picking lists for Exterior Warehouse issued by SAP Defining a clear supplying ideology for each warehouse (adapting it to warehouse specificities and needs) Stock transfer in SAP when material is supplied to production (clearer view for MRP controllers of on-hand and work-in-process stocks) Reviewing and developing an automated way to calculate and review safety stocks
  • 21. COMPANY CONFIDENTIAL – HIGHLY SENSITIVE

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