This document proposes a new "Lean" organizational structure for materials management. It describes each role in the structure including the materials manager, production planning, purchasing, logistics/material handling, and warehouse management. The materials manager oversees the entire operation and is responsible for on-time customer deliveries, inventory control, and eliminating line stops. Production planning focuses on master planning and inventory analysis. Purchasing manages suppliers and daily orders. Logistics handles internal deliveries and material handling. Warehouse management oversees receiving, shipping, and facility layout. The goal is to deliver only what is needed, when it is needed, in the required quantities.

1. 1Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Management
New “Lean” Organizational Structure
Marek Piatkowski – November 2016
Thinkingwin, Win, WIN

2. 2Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
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
New Materials
Organization
Introduction
Thinkingwin, Win, WIN

4. 4Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Management Organization
Materials
Manager
Operations
Manager
Financial
Manager
Plant
Director
Three Legged
Stool

5. 5Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Management Organization
Operations
Manager
Financial
Manager
Plant
Director
Purchasing
Production
Planning
Warehouse
Management
Logistics
Material Handling
Materials
Manager

6. 6Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Manager
 Materials Manager’s responsibilities
 On-Time Customer deliveries
 Accurate and executable Production Schedule
 Supplier Development and Control
 Reduction and Inventory control
 Reduction of Lead Times
 Quick response to Customer needs
 Total elimination of line stops due parts shortage
 Deliver to Manufacturing only:
 What is needed
 When it is needed and
 In the quantity that it is needed

7. 7Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Management Metrics - What to Measure
Site Measures Trend Goals
On time shipment up 100%
Inventory turns up TBD
Inventory levels down TBD
Inventory accuracy up 100%
Throughput to Sales up TBD
Forecast Error down 0%
Customer complaints down 0%
Schedule adherence up and leveled 100%
Leveled production up and steady +/- 5%
Production lot sizes down (single piece) Kit Size
Frequency of changeovers up EPED
Unscheduled changeovers down and eliminated 0%

8. 8Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Production Planning
- Production Planner
- Inventory Analyst
- Material Handling
Leader
- Order Entry
- Material Handling Leader -
Material Handling Leader
Purchasing
Production
Planning
Warehouse
Management
Materials
Manager
Logistics
Material Handling

9. 9Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Production Planning
 Production Planner - Responsibilities
 Master Planner
 Customer Orders
 Production lot sizes
 Production sequence and quantity
 Overtime schedule
 Inventory Analyst - Responsibilities
 Maintenance of MRP system – lead times, order quantities, re-order points, min/max
levels, production lot sizes, delivery lot sizes, etc…
 Maintenance of BOM, “Shopping List/Pick List/Kit List”
 Management of new and obsolete parts and components
 Plan-for-Every-Part (PFEP)
 Introduction and maintenance of a Kanban system
 Inventory reporting and inventory policies (levels, controls and management)
New

10. 10Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Purchasing Department
- Buyers
- Daily Orders
- Supplier Management
Purchasing
Production
Planning
Warehouse
Management
Materials
Manager
Logistics
Material Handling
- Production Planner
- Inventory Analyst
- Material Handling
Leader
- Order Entry

11. 11Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Purchasing Department
 Traditional organization – no major changes
 Corporate Buyer
 Purchasing guidelines and policies
 Inventory Strategy
 Supplier selection, evaluation, development and control
 Long term Supplier contracts, including Logistics
 Annual price, delivery and contract negotiations
 Buyers
 Daily orders
 Daily deliveries
 External Logistics management
 Expedites if necessary

12. 12Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Logistics – Material Handling
- Material Handling Leader
- Shipping / Receiving
- Internal material deliveries
- Line Feeders
Purchasing
Production
Planning
Warehouse
Management
Materials
Manager
Logistics
Material Handling
- Buyers
- Daily Orders
- Supplier Management
- Material Handling Leader -
- Production Planner
- Inventory Analyst
- Material Handling
Leader
- Order Entry

13. 13Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Logistics – Material Handling
 Material Handling Leader
 Monitor and review schedule attainment
 Update Production Scheduling Boards
 Address any schedule issues or changes
 Address any parts shortage issues - troubleshooting
 Review and communicate any Production Plan issues and changes with Line
Management or Production Shift Supervisors
 Plan all sequential pulls and level loading
 Dispatch of forklift drivers, material handlers and Tuggers – all internal deliveries
 Address any manpower or attendance issues/shortages within the Material Handling
organization
New

14. 14Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Warehouse Management
- Materials Engineer -
- Warehouse Supervisors
- Materials Engineer
Purchasing
Production
Planning
Warehouse
Management
Materials
Manager
Logistics
Material Handling
- Buyers
- Daily Orders
- Supplier Management
- Production Planner
- Inventory Analyst
- Material Handling
Leader
- Order Entry
- Material Handling Leader
- Shipping / Receiving
- Internal material deliveries
- Line Feeders

15. 15Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Warehouse Management
 Supervisor Receiving & Shipping Warehouses - Responsibilities
 Receiving process and data entry
 Warehouse policies and procedures
 Warehouse management and dispatching of materials for all deliveries
 Materials Engineer - Responsibilities
 Overall Plant layout from the materials storage and delivery point of view
 Design and layout of all material storage facilities, warehouses, supermarkets, storage
racks, point-of-use racks, parts presentation, etc …
 Design of all material delivery equipment, material handling methods, delivery points,
delivery routes and standards
 Manpower planning for the Material Handling organization
 Development of standard containers and packs – supplier link
 Process and efficiencies improvements for Material Handling organization
New

16. 16Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
Materials Management Organization
- Warehouse Supervisors
- Materials Engineer
Purchasing
Production
Planning
Warehouse
Management
Materials
Manager
Logistics
Material Handling
- Buyers
- Daily Orders
- Supplier Management
- Production Planner
- Inventory Analyst
- Material Handling
Leader
- Order Entry
- Material Handling Leader
- Shipping / Receiving
- Internal material deliveries
- Line Feeders

17. 17Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
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

18. 18Marek.Piatkowski@Rogers.com
New Materials
Organization
Introduction
Thinkingwin, Win, WIN
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