Reid Lifting - QuickScan Feedback Session Friday 11 July 2014.

Reid Lifting - QuickScan Feedback Session

Friday 11 July 2014

IDENTIFY A SUITABLE SUPPLY CHAIN

ON-SITE INVESTIGATION USING FOURDATA COLLECTION TECHNIQUES (2 Days)• Completing and collecting questionnaires• Process mapping• Structured interviews• Data collection - Supply/ Demand/ Process

& Control Uncertainties• Then brainstorm initial findings and conduct a more detailed investigation via the 4 techniques

THE QUICK SCAN PROCESS

ANALYSING THE FINDINGS (2 Days)• Agree outline of the supply chain• Identify the key business cost drivers• Cause & Effect analysis• Brainstorm• Further identify improvement opportunities• Rank by EVA benefit / cost to implement/ time to implement• Select key points with most leverage

GET BUY IN FROM THE BUSINESS CHAMPION

FEEDBACK PRESENTATION (Half a day)• Present findings to management & business champion• Initiate a round table discussion of findings• Develop an agreed action plan

PRELIMINARY PRESENTATION (Half a Day)• Identify product/ Issue questionnaires• Identify personnel for interview/ Develop interview Plan• Quick tour/ Agree dates for feedback• Explain purpose/ Issue requests for data requirements

IDENTIFY A QUICK SCAN TEAM

RE-ENGINEER SUPPLY CHAIN

SET-UP TASK FORCE

IMPLEMENT THE QUICK HITS

IDENTIFY IMPLEMENTATIONTEAM

MEDIUM-LONG TERM ACTIONS SHORT TERM ACTIONS

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Quick Scan Process











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Naim et el. (2002) A supply chain diagnostic methodology’

3

Objectives of the Quick Scan

• To understand the nature of demand• To examine the operations of Reid Lifting• To understand the challenges and constraints that

affect Reid Lifting• To identify opportunities to better satisfy demand:

– Now – New Factory– Beyond

• Support for servitization project (KTP)

4

Focal Products

• Porta-Gantry RAPIDE– Annual volume– Variety– Stats

• Porta-Gantry 5000kg– Annual volume– Variety– Stats

F lo w O f M a ter ia l

P u sh P la nP u ll E x e cu tio n

P u ll

Num

ber

of

Mat

eria

l Flo

ws

D e m a n d D o w n stre a m fr o mth e D e c o u p lin g P o in t

D e m a n d U p str e a m fr o mth e D e c o u p lin g P o in t

S to c k L e v e ls a tth e D e c o u p lin g P o in t

T h e D e co u p lin g P o in t

Impact of the Supply Chain Decoupling Point

Agile responseLean supply

(Naylor, Naim and Berry, 1999)

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Current State Value Stream Map

• Steve to add

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Slide on demand for Rapide

• Explains why you can’t really do MTS effectively

Cheek Plates: A proxy for total demand

1 3 5 7 9 111315171921232527293133353739414345474951 2 4 6 8 1012141618202224262830323436384042444648505219212325270

20

40

60

80

100

120

140

Demand For Cheek Plates Against Weeks 2012-2014

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Lead times for Anodizing

• Explains why you can’t really do MTS effectively

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Water jetting

• Batches of 560• Lead-times of 10 days to 1 month

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Perceived Long Lead Times relative to customer requirements (Losing orders)

Drilling Bottleneck

Variety Management

Complexity Issues

Component Commonality

Control Issues

WIP Control

Lead Times in Outsourced Processes

Water Cutting Lead Times

Anodizing Lead Times

Batching Logic

Lack of Visibility of WIP

No SOPs

Lacks Systematic Analysis of Product Families and

Assemblies

Lack of Formal Planning Cycle

This there a Service Level Agreement?

Active Management of Lead times ?

Knowledge in experienced heads, rather than in documented / shared systems

Lack of defined ‘to order’ and ‘to stock’

No Integrated IT Systems

Inventory management

process

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On-time Delivery Performance (8 days late average)

Variable Lead Times (see previous

diagram)

Lack of Visibility of Metric to all

employees

Target date is Subjective and

Changes

OTDP stats for manufactured

parts

All product lines treated the same

Different ways of defining OTDP

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Future state Value Stream Map 1

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Assembly To Order• Assembly is a pacemaker. What is assembled is tested, wrapped

and placed in GO as a flow • Spares and subassemblies could be MTS • Cellular layout, short lead-time 3-4 hours• Supermarket held before assembly.

– Allows batching to occur upstream, downstream is single piece flow– Replenished by a Kanban system – Stock in supermarket sized to cover the demand variable over the supply

lead-time• Three options upstream from the supermarket

– Kanban pull system– Another Pacemaker (cutting)– Outsource all upstream operations, buy in anodized components

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Future state Value Stream Map 2

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The good news

• Great products• Relatively simple manufacturing process as a result of good

product design• Good working relationship with supply base• Positive working environment• Opportunities to offer short lead-times to customers for

standard, off the book products• Opportunities to increase capacity to do more custom work

if increase design capacity• New factory will create the prefect to make positive change

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Some recommendations

1. Outsources the operations upstream from the pacemaker– Suppliers deliver cut, drilled, welded, anodizing

components for assembly– Frees up the upstream activities for more custom work– Core skill the is ATO of products in short lead-time

2. Bottleneck management– Utilization of man and machine

3. Move to Assemble-to-Order for Porta-Gantry– See VSM

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Some recommendations

4. Improved Layout– Move people to work, not work to people– Cellular layout around product families – Kitting of small components– Line-side delivery of larger components– Stores of common components

5. Look for product design-optimization opportunities– Exploit component commonality in the design of product

portfolio– Eliminate out welding operations

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Echelon Elimination

Information Transparency

Time Compression

Control and Synchronisation

Engineering / Product

Short

Term

- Share WIP information within internal departments

- More granularity in the OTDP

- Optimise use of drilling bottleneck

- Active management of lead times for outsourced processes

- 2 bin systems- Replenishment

Kanban- Establish buffer

stock policy for decoupling point

- Review and define subassemblies

Medium

Term

- Share forecasts with Aalco

- ’Tough’ Books- Use Heijunka

boards to communicate production plan and to load level

- MOPs for lead times of outsourced processes

- Optimise push/pull elements of ATO system

- SOPs for processes

- Standardization of Part numbers

- Review component commonalities

- Product lines anodized as well as non anodized product range

Long

Term

- Review subcontracting arrangements for delivered subassemblies (to focus on bespoke work)

- Investment in integrated IT systems

- New drilling equipment

- Business system for all SOPs

- Service level agreements for long lead time items

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The pacemaker process • The pacemaker process is the process that is controlled by

the customers orders• All processes upstream from the pacemaker are controlled

with supermarkets (kanbans)• You need to use a supermarket pull system (Kanban) where

continuous flow is interrupted and upstream processes must still operate in batch mode

• In a factory, supermarkets should be located near the supplying process so that they can see customer usage

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The pacemaker process

Customers

Supermarket Pull systemProcess 2Process 1 Process 3 Process 4

Pacemaker process

Flow

Customers

Process 2Process1 Process 3 Process 4

Pacemaker process

Flow

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Supermarket pull systems (kanbans)

• Customer process goes to the supermarket and withdraws what it needs when it needs it

• Supplier process produces to replenish what was withdrawn• Purpose. This controls production at the supplying process without trying to

schedule.

Process 2Process 1

Product

Production Kanban Withdrawal Kanban

Product

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Reid Lifting - QuickScan Feedback Session Friday 11 July 2014.

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