moen’s story: how they increased service levels & reduced ... ac slide decks...
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Moen’s Story: How They Increased Service Levels & Reduced Supply Outages by Implementing Discrete Manufacturing
Functionality Within Standard SAP ECC
David Carroll, Thought Leader, RevealSession ID #556932
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Key Outcomes/Objectives
• Gain insight into Moen’s challenges from using custom planning tools and processes
• See first hand how the use of standard SAP is driving results
• Understand how standard SAP can help measure performance
• Learn how standardization and process improvement has transformed Moen’s business
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Agenda
• Moen Site & Supply Chain Overview• Site & Supply Chain Challenges• Discrete Conversion – Technical Solutions• Wrap-up
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Moen Site & Supply Chain Overview
• Started production in Sanford in 1973 under the Stanadyne name• 350,000 square-foot facility, expanded 7 times• Over 400 associates operating 5/24• High complexity under one roof
– Over 4,000 individual component parts– Over 400,000 parts shipped every day
Suppliers Fabrication
Finishing
Assembly
Distribution CustomerOrder Fulfillment
Consumer
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Sanford Facility Manufacturing Process
FUNCTIONAL‒ Injection Molding‒ CNC & Automatic Screw
Machining‒ Automated Assembly
FINISHING‒ Robotic Texturing‒ Electro Plating‒ Color Powder Coating‒ Physical Vapor Deposition
Functional Breakdown
• 22 Molding Machines (80T-300T)
• 25 active resins• 49 machines across 4
technologies: ‒ Hydromat‒ Davenport‒ Multi-spindle‒ CNC
• 5 Cartridge Assembly processes
• 130M units annually
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Sanford Facility Manufacturing Process (cont.)
FUNCTIONAL‒ Injection Molding‒ CNC & Automatic Screw
Machining‒ Automated Assembly
FINISHING‒ Robotic Texturing‒ Electro Plating‒ Color Powder Coating‒ Physical Vapor Deposition
Finishing Breakdown
• 20+ finishes• 5 Plating Machines• 1 Powder Coating System• 6 PVD Chambers• 9 Texturing robots• High Mix/Low Volume• 19M units annually
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Sanford Facility Manufacturing Process (cont.)
FUNCTIONAL‒ Injection Molding‒ CNC & Automatic Screw
Machining‒ Automated Assembly
FINISHING‒ Robotic Texturing‒ Electro Plating‒ Color Powder Coating‒ Physical Vapor Deposition
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Sanford Facility
Office area
Maint.
Molding Area
ColorPowderCoating
PVDBoiler room
BuffingArea
Texturing
Office area
Officearea
MachiningArea
PlaterI Plater
IIStrip line
PlaterIII
Finishing Matl.
Vibratory Bowls
Waste Treatment
PPAP Area
PVD
Finishing R&D
High Bay Warehouse
Plater IVRack-Unrack
Area
WarehouseAnnex
Plater VI
Toolroom
Molding
Manual Assembly,Carded Parts
1-Handle Cartridge 2-Handle Cartridge,
Posi-Temp CartridgeDuralast Cartridge
Cafeteria
QANCM
n350,000 sq. ft.
FINISHING
FUNCTIONAL
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Finishing Processes
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Agenda
• Moen Site & Supply Chain Overview• Site & Supply Chain Challenges• Discrete Conversion – Technical Solutions• Wrap-up
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Sanford Facility Challenges (cont.)
• Variation in planning processes–Use of custom tools–Nonexistent capacity
planning
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• Variation in planning processes–Use of custom tools–Nonexistent capacity
planning (cont.)
Sanford Facility Challenges (cont.)
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Sanford Facility Challenges (cont.)
• Variation in planning processes–Use of custom tools–Nonexistent capacity
planning (cont.)
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Sanford Facility Challenges (cont.)
• Variation in planning processes–Use of custom tools–Nonexistent capacity
planning (cont.)
5 – 6 hour daily
scheduling process
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Sanford Facility Challenges (cont.)
• Variation in planning processes– Use of custom tools– Nonexistent capacity planning
• Lack of shop floor control (cont.) • Excess WIP inventory
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Sanford Facility Challenges (cont.)
• Variation in planning processes– Use of custom tools– Nonexistent capacity planning
• Lack of shop floor control • Excess WIP inventory• Poor execution ª Poor service (cont.)• Data outside of SAP (relevant)
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Supply Chain Challenges
• Unstable forecast – “Demand Bubble”
• Component shortages
• Non-executable production plans and schedules
• Poor reliability and execution leading to poor service
• Supply chain silos
E2E Supply Chain Pilot“Creation of executable MPS”
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End-to-End Supply Chain Journey
• Improve service levels and reduce costs with systemic, and sustainable fixes
• Improve the effectiveness of our inventory investments• Enhance the global E2E planning capabilities• Create business value• Make SAP one system of record
• Exception Monitoring & Optimization• Discrete Manufacturing Conversion
oVo® Methodology
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People, Process, and Technology
Process Integration
Functional Integration
Performance Integration
LIVE the PLAN
Job DescriptionsCertificationKPIs
Move from Strategic toTactical planning all through standard SAP
Source: Reveal
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Integrate Supply Chain Functions
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oVo® Initiative Organization Structure
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Supply Chain Process: Production Planning
Exception Monitoring is the first step in the production planning process
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Agenda
• Moen Site & Supply Chain Overview• Site & Supply Chain Challenges• Discrete Conversion – Technical Solutions• Wrap-up
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Key Project Objectives
• Make SAP one system of record
• All planning-related data in SAP
• Use solutions we already own
• Deliver a constraint-free, executable production schedule
• Assign ownership and drive accountability
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Planning Constraints
• Component availability• Capacity availability
– Machine– Labor
• Finishing areas– Rack availability– Recipes
• Other areas– Setter availability– Set up optimization
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Master Data
• Clean slate – Create new master data
• Work centers – Create new production work centers– Rack (key constraint) will be managed as work center in SAP
• Routings– Create new routings with all key operations represented– All routing times will be trued up for effective system scheduling– Additional key planning data like setup time, pieces per rack, setup optimization
data will be added to routings• Ownership commitment
– Engineering and Planning will own data maintenance
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Planning Scenario Example
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Planning Scenario Example
Plater 4
Rack A
Material – ABC
Can turnrack 1 time
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Planning Scenario (cont.)
Plater 4
Rack A
Material – ABC
Can turn rack 1 time
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Planning Scenario (cont.)
Plater 4 Plater 6
Rack A Rack A
Material – ABC Material – XYZ
Can turn rack 1 time Can turn
rack 6 times
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Planning Scenario (cont.)
• Planning challenge for rack availability– Rack A is used at multiple platers (Plater 4 and Plater 6)– Rack A is physically stored at Plater 4 and Plater 6; each
plater has certain number of racks allocated– Rack A can be turned different number of times at each
plater–What is rack turn? It represents how many times a rack will
be available to run through a plater in a day.– Example: To make 108 pieces of • Material – ABC we need 6 racks at Plater 4• Material – XYZ we need 1 rack at Plater 6
Plater 4 Plater 6
Rack A Rack A
Material – ABC Material – XYZ
Can turn rack 1 time Can turn
rack 6 times
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Use of Standard Capability
• Use of capacity categories to maintain rack allocation at each plater • Use work center formula constant to maintain number of turns of a
rack at each plater • Planning data in SAP
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Use of Standard Capability (cont.)
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Work Center Capacity
• All master data in the system• Use standard transactions to “only” address issues (CM05 – Overload)
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Schedule Optimization — Planning Board (CM25)
• System enforced logic to not over schedule a work center• Work sequenced to enable production efficiencies• Optimize number of setups required• Use of setup matrix where appropriate• Result – Executable/achievable schedule for production floor. Let SAP do the
work.
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Component Constraint
• Configure standard material checking based on business requirements• Transaction MDVP – Planned order and production order component check• Automatic material check during production order creation and release• System configured to not allow release when shortages exist• System provides information needed when there is a shortage• Result: Constraint free production schedule. Let SAP do the work for you.
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Project Goals and Results
• Make SAP one system of record• All planning-related data in SAP• Use solutions we already own• Let the system do the work for you• Common transactions to plan/schedule
– Exception monitoring (MD06)– Long-term component availability check (MDVP results)– CM01 and CM05 to evaluate capacity– CO41 to convert planned orders to production orders– COOIS to review shortages, how much we can build, what date to move to– CM25 to sequence orders with in a day/week– CO05N to release orders
• Master data in SAP provides system supported data to make long-term decisions – Example – buy more racks, add another operation shift, add labor, etc.
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Results
• Capacity Constraints – Machine, Labor & Rack
• Poor Schedule Attainment • Low predictability leading to poor service
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Results (cont.)
• Scheduling within capacity• Driving control and stability on the floor• Increased productivity and predictability
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Results (cont.)
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Results (cont.)
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Results (cont.)
Use of MCPK –Gantt Chart
Before After
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Results (cont.)
Before
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After
Results (cont.)
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Results (cont.)
Before
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Results (cont.)
After
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Results (cont.)
59%62% 62%
65%62%
69%72%
77%
83%
89%91%
93% 93% 93% 93% 93% 93%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Plant Schedule Attainment
Plan
Act
Linear (Act)
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Results — Inventory Accuracy
$908,809
$858,503
$781,626
$354,522
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,0002013 2014 2015 2016
Total Plant Inventory Adjustment
$503,876
$318,647
$144,457
$5,965 $0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,0002013 2014 2015 2016
Physical Inventory Adjustment
$427k better
$138k better
• Significant improvement in transactions
• Inventory reduction leading to better control of cycle counting processes
• Outstanding Physical Inventory improvements year over year
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Results — Inventory Accuracy (cont.)
• 38% WIP reduction ($275K)
• 20% Total Plant reduction (~$1.5M)
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Results — Supply Chain Health
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Results — Supply Chain Health (cont.)
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Results — Supply Chain Health (cont.)
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Key Points to Take Home
• Make SAP the one true system of record• Align business rules and planning processes to shop-floor processes
– People, process, and technology• Leverage standard SAP transactions and tools – let it do the work• Use optimization of master data to reduce misalignment of
supply/demand signals• Break down silos to transform your business
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How to Contact Us With Questions After This Session
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David [email protected]@RevealUSA+1 630-841-1511
Brian [email protected]
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