Lean Supply Chain lecture at Lean summit - Yves Merel on 30 march 2010

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Lecture done by Yves Merel at the French Lean Summit on March 30th 2010

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Lean Supply Chain lecture at Lean summit - Yves Merel on 30 march 2010

  1. 1. FCI Lean Supply ChainYves Merel, FCI Group Lean Director Lean Summit, March 30th 2010
  2. 2. FCI background and profile Creation in 1988 by Framatome for diversification outside nuclear field 20 acquisitions and 20 years later, FCI is one of the largest connector manufacturers November 3, 2005: FCI is acquired by Bain Capital, a private investment fund With operations in 30 countries and a turnover of 935 million Euros in 2009, FCI is a leading connector manufacturer Its 12,000 employees are committed to providing their customers with high-quality and innovative products for a wide range of consumer and industrial applicationsFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 2
  3. 3. A variety of solutions and products Electronic connectors Microconnections connectors Motorized Vehicle connectorsFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 3
  4. 4. 24 manufacturing sites and 14 R&D centers Europe 7 manufacturing sites 1 Corporate Research Center 6 R&D centers Asia 12 manufacturing sites 6 R&D centers Americas5 manufacturing sites 2 R&D centersFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 4
  5. 5. Lean initiative Lean is not about reducing costs in production or improving cash It is about: First step targets: In 18 months (from Aug.08 to Dec.10) Customer Satisfaction: Quality Cut by HALF the Customer Complaints - 23% Service to Customer Cut by HALF the Missed Deliveries - 32% People Empowerment Safety Cut by THREE QUARTERS the Accidents - 69% Cost and Cash improvement Supply Chain Cut by HALF the Flow Time - 29% Labor Efficiency Cut by a QUARTER the Labour Cost - 9% Capital Expenditure Cut by 30% the Capex - 15%FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 5
  6. 6. Lean tools for continuous improvement Safety Service Efficiency Quality Empowerment Supply Chain Capex Truck Prep Area Production Analysis 5S Red Bin Board Visual control Shop Stock st Suggestions Go 1 Part Production Film Supermarket Safety Barometer First Defect Stop TPA Review Standardized Work Management routines Flash Meeting Red Bin Review Leveled MPS S&Op meeting Complaint 8D SMED Hoshin Accident 8D Problem solving TPM QRQC Milk Run workshops Manager A3 Cardboard Quality Wall Small Train Engineering Accidents MPM Throughput / Wages Quality KPI challenge Complaints Absenteeism Flow Time Capex / SalesFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 6
  7. 7. Just In Time principle Receiving Typical FCI factory today warehouse Shipping warehouse Stock Stock Supplier Stamp Plate Assemble Customer 1 truck 1 change 1 change 1 change 1 truck per week per week per week per week per week 25 days 6 days 4 days 8 daysFlow Time 43 days Difficult to forecast Useless inventories & shortages 25% Late Delivery Typical FCI factory in 2013 Supermarket Shop Stock Shop Stock Shop Stock Truck Prep Supplier Stamp Plate Assemble Customer 1 truck 1 change 1 change 1 change 1 truck per day per day per day per day per day 3 days 1 day 1 day 3 days 2 days Flow Time 10 days Easy to forecast No emergency to manage Full On Time Delivery To better deliver on time, reduce the Flow Time FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 7
  8. 8. Just In Time and FlexibilityFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 8
  9. 9. ELX Division Service & Supply Chain evolution ELX Service 800000 40 700000 600000 35 500000MPM 400000 300000 30 200000 Flow Time in days 100000 25 0 8 Se 8 Ju 9 Se 9 Ju 0 Se 0 M 9 M 0 M 08 N 8 Ja 8 M 9 N 9 Ja 9 M 0 N 0 0 -0 l-0 -0 l-0 -1 l-1 0 -0 -0 0 -0 -1 1 -1 0 1 p- p- p- n- n- - ov ov ov ay ay ay ar ar ar Ju 20 M ELX actual ELX target ELX 6MRA ELX Supply Chain 70 15 60 Plant Flow Time in days 50 10 40 30 20 5 10 0 0 MAT WIP FG DC 8 Se 8 9 Se 9 0 Se 0 M 9 M 0 M 8 N 8 Ja 8 M 9 N 9 Ja 9 M 0 N 0 0 -0 l-0 -0 l-0 -1 l-1 -0 0 -0 -0 0 -0 -1 1 -1 0 1 p- p- p- n- n- ov ov ov ay ay ay ar ar ar Ju Ju Ju M ELX actual ELX target ELX 6MRA Starting point 6M RA actual This month 2010 end Target FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 9
  10. 10. Lean Supply Chain methodology Visual storage Reduce transportation batches Reduce production batches Level pull schedulingFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 10
  11. 11. Components Supermarket for Visual ReOrder Dedicated location per reference with number of boxes min, max, average consumption, and delivery frequency Check inventory before sending each procurement order to supplier Ergonomics if stored from 50 cm to 150 cm high and FIFO flow racks boxes > 12 kg Goals: FIFO, ergonomics, no shelves, no MfgPro back-flushFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 11
  12. 12. Shop Stock and Production Kanban BatchEmpty boxes track Building Box Launcher with Production kanban cards kanban in every box Close to the producing cellFilled boxesFIFO tracks Goals: Flow rack at cells, H&MR kanban, no WIP in warehouse FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 12
  13. 13. Truck Prep Areas for missed shipment alertDedicated location with truck name 50 cm aisle in between Marked area big Totem with loading enough to store list, shipment time, usual shipment and red/green status Goals: All set -24 hours, daily review real problem, no shelves FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 13
  14. 14. Lean Supply Chain methodology Visual storage Reduce transportation batches Reduce production batches Level pull schedulingFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 14
  15. 15. Suppliers daily Milk Run Cheaper even on long One truck going daily distance if several to several suppliers in suppliers can daily the same route load fully a truck Goals: Daily delivery, MOQ at 1 packing unit, lead time at 1 dayFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 15
  16. 16. Plants Receiving Frequency for Mat Flow TimeFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 16
  17. 17. Lean Supply Chain methodology Visual storage Reduce transportation batches Reduce production batches Level pull schedulingFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 17
  18. 18. Single Minute Exchange Die goal SMED is not to increase OEE by decreasing c/o Time … … but it is to decrease c/o Time to give room to an increase of the frequency of c/o ! SMED WORKSHOP BENEFITS PRODUCTION C/O time Goals: 10% OEE for changeovers, produce every part every dayFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 18
  19. 19. Plants EPEI for WIP Flow TimeFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 19
  20. 20. Lean Supply Chain methodology Visual storage Reduce transportation batches Reduce production batches Level pull schedulingFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 20
  21. 21. Leveling Board to pace the flowLevelling kanban cards One reference 24 hours scale return after picking per board line Escalading Shortage procedure in case Pareto of shortage Leveled Master Production Schedule Low Runner Make To Order Kaizen Board for improvement actionsGoals: Visual realistic schedule, alert in advance, visual make to order FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 21
  22. 22. ELX Distribution Centers ELX Plants average FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 22
  23. 23. Plants Indirect Delivery for FG StabilityFCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 23
  24. 24. Group Service evolution (-32%) 400000 350000 300000 250000MPM 200000 150000 100000 50000 0 Ju 8 Se 8 9 Se 09 Ju 0 Se 0 M 9 M 0 M 08 N 8 Ja 8 M 09 N 9 Ja 9 M 10 N 0 0 -0 l-0 -0 -1 l-1 0 -0 0 -0 1 -1 0 1 p- p- p- l- n- n- - - - ov ov ov ay ay ay ar ar ar Ju M Group actual Group target Group 6MRA FCI Lean Supply Chain, Yves Merel, Lean Summit 30th March 2010 24

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