Materials Management - Areas of Responsibilities - TPS Model
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The document discusses the areas of responsibility for materials management. It describes materials management as the process for managing all materials through a factory from receiving to shipping finished goods. The key areas of responsibility identified include customer orders, production planning and scheduling, purchasing parts warehouses, material deliveries, production line storage, work in process inventory, inventory control, finished goods warehouses, and shipping. Examples and questions are provided for each area to understand how well defined and standardized the processes are.
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Materials Management - Areas of Responsibilities - TPS Model
- 1. 1Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management Areas of Responsibilities Marek Piatkowski – November 2016 Thinkingwin, Win, WIN
- 2. 2Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Introduction - Marek Piatkowski Professional Background Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994 TPS/Lean Transformation Consulting - since 1994 Professional Affiliations TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME Lean Manufacturing Solutions - Toronto, Canada http://twi-network.com
- 3. 3Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN
- 4. 4Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN What is Materials Management? Material Management is a process describing, with great precision, how every part, every component, every type of a material is managed through out a factory from the Receiving Dock to the moment when a final product is shipped to the Customer Materials Management Organization is responsible for: 1. Managing Raw Materials (Purchased Parts) – how they are ordered from the Suppliers, how they are delivered to our site, how they are received and stored 2. Scheduling Production – providing Production Lines with Production Plans. Controlling and monitoring execution of these plans to assure on-time deliveries. 3. Material Movement (Material Flow) – a well defined and standardized delivery process for moving materials between warehouses and production lines. Assuring that Production Lines have the necessary material to execute Production Plans 4. Managing Finished Goods – how Finished Product is received, stored and shipped to the Customer to meet 100% on-time-deliveries.
- 5. 5Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Supply Chain Management Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 6. 6Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 7. 7Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Customer Orders Who (which department) is responsible for taking Customer Orders? How are the Lead Times defined? How are the “promised” delivery dates defined? How do they deal with “rush” orders? How do they answer Customer questions?
- 8. 8Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 9. 9Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Production Planning Who (which department) is responsible for Planning Production? Are production plans based on a forecast or real orders? How frequently are production plans distributed? Do they change? How often? Do planners check availability of parts and machines before planning production?
- 13. 13Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 14. 14Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Purchased Parts Warehouse Is there a centralized Purchased Parts warehouse? Is it clean, well defined, Standardized and organized? Is it easy to tell who is responsible for the warehouse? Is it easy to find parts in the warehouse Is there a methodology for delivering parts to the factory?
- 19. 19Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 20. 20Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Material Deliveries Is there a well defined process for delivering materials to production lines? Is it easy to understand and follow? Is it clear to understand who is responsible for delivering materials? Are there roles and responsibilities well defined? Is it safe and reliable?
- 21. 21Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Material Deliveries Is there a structure to material deliveries? Are the procedures and guidelines? Is there a process in place? 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy 12 mm Assy 2 hr 921 Lift Assy T-Car Lift Assy 2 hr2 hr 2 hr T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 3 day 3 day 3 day 3 day 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH Assy2 hr 2 hr 2 hr 2 carts 800 ofmatl. 1 hr 45 min in a tour Proposed value stream small components toassy. lines 12 mm Assy I 921 Lift Assy T-Car Lift Assy II I T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy I I I I I I I I I I I I I I I I I I I I I 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH AssyI I Supermarket Roller Sup. DAH Supl. Rec. Insp Penny Vendor Sup. 12 mm 11 mm Sup. T-Car Janet ACI Sup. GF Manuf. Services “Milk Run” Condition 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy 12 mm Assy 2 hr 921 Lift Assy T-Car Lift Assy 2 hr2 hr 2 hr T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 3 day 3 day 3 day 3 day 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH Assy2 hr 2 hr 2 hr 2 carts 800 ofmatl. 1 hr 45 min in a tour Proposed value stream small components toassy. lines 12 mm Assy I 921 Lift Assy T-Car Lift Assy II I T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy I I I I I I I I I I I I I I I I I I I I I 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH AssyI I Supermarket Roller Sup. DAH Supl. Rec. Insp Penny Vendor Sup. 12 mm 11 mm Sup. T-Car Janet ACI Sup. GF Manuf. Services 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy 12 mm Assy 2 hr 921 Lift Assy T-Car Lift Assy 2 hr2 hr 2 hr T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 2 hr 3 day 3 day 3 day 3 day 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH Assy2 hr 2 hr 2 hr 2 carts 800 ofmatl. 1 hr 45 min in a tour Proposed value stream small components toassy. lines 12 mm Assy I 921 Lift Assy T-Car Lift Assy II I T-Car Plg. Assy ACI Lift Assy ACI Lift Assy ACI Plg Assy Short Assy I I I I I I I I I I I I I I I I I I I I I 842 Plg Asst Sat Plg Assy 846 Plg Assy 842 Plg Assy 842 Plg Assy 842 Plg Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy 842 Lift Assy Sat Lift Assy Short Plg Assy Short Plg Assy Cevt. Ball Storage “D” Rec. Insp “A” 952 Spring “B” 972 Brutor Area “C” 11 mm Assy DAH AssyI I Supermarket Sup. DAH Supl. Rec. Insp Penny Vendor Sup. 12 mm 11 mm Sup. T-Car Janet ACI Sup. GF Manuf. Services Original Condition
- 27. 27Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 28. 28Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Production Line Storage Is material stored on designated racks or is it simply placed on the floor? Are the inventory levels controlled? Is the material easy to find or do operators have to look for it? Is well identified and easy to find? Is it clear who is responsible for replenishing line materials? Is 5S followed?
- 34. 34Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 35. 35Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN WIP Work-in- Process Inventory Is WIP inventory well organized and controlled? Is WIP Inventory stored in designated locations? Is it clear who is responsible for that inventory? Is 5S in place? Are Min/Max levels controlled?
- 36. Work in Process Inventory
- 37. Work in Process Inventory
- 38. Work in Process Inventory
- 39. Work in Process Inventory
- 40. Work in Process Inventory
- 41. 41Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 42. 42Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Inventory Control Is there inventory management system in place? Are the inventory levels well defined? Are the inventory rules easy to see and follow? Is there Visual Management in place for inventories?
- 47. 47Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 48. 48Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Finished Goods Warehouse Is there a central warehouse for all finished goods? Are all finished goods well organized? Are proper storage racks in place?
- 49. 49Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Finished Goods Warehouse Is the FG warehouse clean and well organized? Is it a Safe environment? Is it easy to locate products?
- 50. 50Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Finished Goods Warehouse as a Supermarket Is the FG warehouse designed as a Supermarket? Is material easy to find and locate? Are parts shortages easy to identify?
- 53. 53Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Packaging of Finished Goods Is there a designated Packaging Area? Is it well organized and controlled? Is material flow and information flow easy to understand and follow?
- 55. 55Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 56. 56Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Is there a designated shipping area - no other materials activities? Is shipping traffic controlled? Are responsibilities well defined? Is material flow clear and easy to understand? Shipping Area
- 57. 57Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Are materials pre-staged prior to shipping? Is there a staging area used to prepare load and find shortage prior to shipping? Is the next load staged at a fixed time before shipping? Are shipping responsibilities clearly defined? Is a shipping schedule available and easy to see? Shipping Pre-Staging
- 58. Pre-staging of Shipping Goods
- 59. Shipping Boards
- 60. 60Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Shipping Are all materials loaded directly onto delivery trucks? Do the process one shipment at a time? Is the shipping process easy to follow and understand?
- 61. 61Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN All materials are verified prior to shipping There is a transaction for every shipment Shipping data is entered immediately into a system Information is verified Shipping Management
- 62. 62Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Materials Management – Areas of Responsibilities Customer Orders Production Plans/Schedules Purchased Parts (Raw Material) Warehouse Material Deliveries Production Line Storage Work-in-Process (WIP) Inventory Storage Inventory Control Finished Goods Warehouse Shipping
- 63. 63Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Changing the World. One Transformation at a time This presentation is an intellectual property of W3 Group Canada Inc. No parts of this document can be copied or reproduced without written permission from: Marek Piatkowski W3 Group Canada Inc. iPhone: 416-235-2631 Cell: 248-207-0416 Marek.Piatkowski@rogers.com http://twi-network.com
- 64. 64Marek.Piatkowski@Rogers.com Materials Management Areas of Responsibilities Thinkingwin, Win, WIN Presentations in this Workshop 1. Log in to: www.slideshare.net 2. Type in my name in search area: Marek Piatkowski 3. Select a presentation you want to see 4. Learn and Enjoy