zero stock out case study
Post on 16-Apr-2017
516 Views
Preview:
TRANSCRIPT
BUEN GUIDO, BSME, ASQ-CQEQA MANAGER
CASE STUDY – ZERO STOCK OUT
NewGen Construction
Case Study• Shortage of Hardware Category C at the Construction Site• Installers having to source or buy parts at local hardware
store to fill shortage• Having to pay premium from buying at local hardware
store – Increased Labor cost• Having to take special trips to hardware store - Causes
delay• COPQ high
CASE #1 – ZERO STOCK OUT
What?
Problem Statement
CASE #1 – ZERO STOCK OUT
Shortage: Category C
Hardware at Construction
Site
DELAYS & INCREASED
LABOR COST=
COPQ
Installers having to buy
from local hardware store to fill shortage!
Possible Causes
CASE #1 – ZERO STOCK OUT
BOM Error:Wrong
Quantity, Wrong P/N
Callout
Kitting Error:
Wrong Quantity
Wrong P/N, etc.
Misplaced Hardware at Construction
Site
Why?
Proposed Solutions
CASE #1 – ZERO STOCK OUT
1Assembly BOM & Final
Design Signoff at NewGen
2Implement
In-Process & Final Audit at
Supplier
3Use KANBAN
at Construction
Site Store
How?
Assembly BOM & Final Design Signoff at NewGen Construction
CASE #1 – ZERO STOCK OUT
1
Asse
mbl
y BO
M &
Fin
al D
esig
n Si
gnoff
at
New
Gen
Cons
truc
tion
Assembly BOM Production Release Review
Signoff Engineering – Design Complete Supply Chain – Purchase Quantity QA – Package Complete & Accuracy
2 ImplementIn-Process & Final Auditat Supplier
CASE #1 – ZERO STOCK OUT
Impl
emen
t In-
Proc
ess &
Fin
al
Audi
t at S
uppl
ier
Develop In-process Audit of Category-C Hardware Kits per Part Number Incoming material inspection Quantities checked per hardware part
number
Incoming Material
QC Ok!
Check MFR. P/NCheck Material
Check QTY
2nd Tier Hardware Supplier
Move parts to Inventory
Location
Yes
No
Impl
emen
t In-
Proc
ess &
Fin
al
Audi
t at S
uppl
ier
Develop Final Inspection of Category-C Hardware Job Site Kits Final Audit of Job Site BOM hardware
Quantities
Pull needed parts for Job
Site Store
QC Ok!
Check P/NCheck QTY
Move parts to shipping
Yes
No
Planner
3 Use KANBAN (Zero Stock Out) at Construction SiteStore
CASE #1 – ZERO STOCK OUT
Use
KAN
BAN
at C
onst
ructi
on
Site
Sto
reKANBAN is Japanese word that means card you can see, posters, signs, etc. and is a visual signal used to trigger an action.
KANBAN was one of several tools Toyota developed to ensure that inventory was based on actual customer orders rather than managerial forecasts.
What is KANBAN
Use
KAN
BAN
at C
onst
ructi
on
Site
Sto
reHardware Store at the Job Site using KANBAN Method for “Zero Stock Out”.
Hardware Store at Job Site
Installers pull parts from store
Replenishment-Supplier to Job Site
Low stock triggers Replenishment
Usage being monitored
Use
KAN
BAN
at C
onst
ructi
on
Site
Sto
reHow does KANBAN work?
Use
KAN
BAN
at C
onst
ructi
on
Site
Sto
reHow are parts replenished or pulled from Supplier?
When container is empty, Signal to source to replenish Kanban
Wait until minimum order Quantity is reached
When order minimum is reached, a Job, PO or Move Order is created
When received, KANBAN status is updated and container is moved to usage area
Planner determines when to add/remove cards
NewGen Construction to work with LSS Black Belt in monitoring Hardware Stores performance (KPI) – Min. weekly report at start of program and less frequent when program achieves it’s “Zero stock out” objective.
Develop a learning organization (NewGen – Supplier) that will find ways to reduce the number of KANBAN and thereby reduce and ultimately eliminate the inventory buffer.
Continuous Improvement
top related