Using ERP in aLean Manufacturing environmentAndy BarnesOperations ManagerSnell & Wilcox Ltd

Outline AgendaAbout S&WSupply Process ImprovementMFG Pro in a Lean Environment

About Snell & Wilcox

History1973: founded by Roderick Snell and Joe WilcoxTo focus on the preservation and improvement of the television image1988: Joe Wilcox retires, 24 employees1993: Introduction of Alchemist with Ph.C1994: Acquired CEL Ltd1996: MPEG (Moving Picture Experts Group) activities began1999: MXF (Material Exchange Format) work starts2001: Acquired Post Impressions and PSP2005: Turnover ~36m, 350 employees worldwide

Products- IQ Modular

Products- Switchers

Award winning recordFour technical EmmysPhase correlation motion compensation (Ph.C) - the key to superior standards conversionPrefix MPEG pre-processing - saves storage and transmission costsDEFT 3:2 cadence detection and repair - improves Hollywood workflow efficiency HD up and down conversion - for flexibility in production and broadcast

Many other awards:Eight Queens AwardsFirst to win two IABM Peter Wayne Technology and Innovation Awards

Customers including...

LocationsSouthleigh ParkHQ, R&D, ManufacturingSouthleigh Park, Havant

R&D, ManufacturingSaffron Walden

R&DNewbury, Liss, Montreal

Sales and ServiceUK, France, Germany, Russia,USA, Hong Kong, China, Japan, India, Lebanon

Supply Process Improvement

Historical ProcessForecast driven batch build process (push)Long lead times ~4-6wksPoor levels of customer service - OTD ~55%High levels of inventory - stock turns ~4/annumQuality issues highlighted late in build process - Rework

ObjectiveImprove historical levels of on timedelivery, lead time and quality to worldclass levels:S&WTargetOn time55%>98%Response4-6 wks

Time for Change- Spring 2004Established a full time multi-functional teamCapability through intensive trainingExternal support - Cranfield ConsultantsPilot project using simple product family - Kudos+

Types of WasteTheSevenWastesOtherCommonWastes

Value Stream Mapping- 1U Gateway Card

BatchesSpaceTransport / handling problems (damage)Time to make batch - some of which arent needed

The Problem with BatchesSMTRobotasFlow SolderElectricalAssembly

Mechanical Assembly

TestSoak

Distance travelled between remote silos = 470mEach silo making batches independentlyDelays and difficult to align production to actual orders customer lead time 4-6 weeksPushing Batches Through Cycle time to make whole batch not just what customer ordered Waiting for other batches Pinching from one batch to fulfil more urgent order High inventory everywhere Response time = time for complete batch to move through complete process, queuing behind other batches

InventoryCustomer Lead Time

Pull / FlowSMTRobotasFlow SolderCell: Elec/Mech/Test/Soak

Distance travelled between shared resources and cell = 70m (85% reduction)Customer lead time down to final process time

Work Content

Actual Cell layout

Before AfterClutteredPoor LightingPoor VentilationSearch for tools & partsOrganisedBrightCleanEverything to hand

PCB Before

PCB After

Test Before

Test After

Kudos+ WorkstationParts for the buildBuild InstructionClean & clear place to build the product

Build InstructionsNumbers in build instruction match those on the part bins

MANUAL No

DESCRIPTION

1U Rear Panel Interconnect PCB

ASSY No.

SAAN RCIC1U2Z

LOCATION

ZCELLK A

DATE

23/08/04

10

RMK7 P2RA

39

RMK0 07

31

RMK6 P10

40

RMK0 19

39

EMBED Word.Picture.8

31

40

STEP 2

Solder components to PCB in the following order:-

Item Cct Ref

CN10

CN9

31CN8

40CN7

10

_1154781847.doc

2 Bin Kanban SystemNumbers in build instruction match those on the part bins

Signal to BuildEmpty space is the signal to build

Bin ReplenishmentRefilled bins are placed here by storesEmpty bins are placed here for stores to collect

ATE Test JigProduct can be tested by the person who made it in the cell

Benefits - Kudos+ KPIs

Chart1

38082380820.5

38089380890.6

38096380960.4

38103381030.67

38110381100.64

38117381170.67

38124381240.75

38131381310.47

38138381380.5

38145381450.5

38152381520.57

38159381591

38166381661

2691

20111

20221

15301

19161

17260.85

14340.89

19180.89

30240.96

18300.87

15200.95

12200.95

14151

12291

16171

18281

15261

13301

13311

10181

11161

11300.91

11141

LEAD TIME

NO. OF ITEMS

ON TIME DELIVERY

WEEK COMMENCING

LEAD TIME (DAYS) / NUMBER OF ORDERS

OTD %

KUDOS+ PRODUCT CELLWEEKLY KPI'S - OUTPUT

DATA

MFG7.15.8.12?

WEEKON TIMELEADNO. OFINVENTORYINVENTORY

COMMENCINGDELIVERYTIMEITEMSACCURACY

5-Apr-0450%

12-Apr-0460%

19-Apr-0440%

26-Apr-0467%

3-May-0464%

10-May-0467%

17-May-0475%

24-May-0447%

31-May-0450%

7-Jun-0450%

14-Jun-0457%

21-Jun-04100%

28-Jun-04100%

5-Jul-04100%269

12-Jul-04100%2011

19-Jul-04100%2022

26-Jul-04100%153095%1,000

2-Aug-04100%1916

9-Aug-0485%1726

16-Aug-0489%1434

23-Aug-0489%1918

30-Aug-0496%3024

6-Sep-0487%1830

13-Sep-0495%1520

20-Sep-0495%1220

27-Sep-04100%1415

4-Oct-04100%1229

11-Oct-04100%1617

18-Oct-04100%1828

25-Oct-04100%1526

1-Nov-04100%1330

8-Nov-04100%1331

15-Nov-04100%1018

22-Nov-04100%1116

29-Nov-0491%1130

6-Dec-04100%1114

13-Dec-04100%1335

20-Dec-04100%11

27-Dec-04

3-Jan-05100%1645

10-Jan-05100%2250

17-Jan-05100%1734

24-Jan-05100%716

31-Jan-0590%1624

7-Feb-05100%4228

14-Feb-0563%2037

21-Feb-0592%2221

28-Feb-05100%1511

7-Mar-0570%3362

14-Mar-05100%1626

21-Mar-0587%2023

28-Mar-05100%2736

4-Apr-05100%3118

11-Apr-05100%1516

18-Apr-05100%821

25-Apr-05100%1416

2-May-05100%1024

9-May-0598%6139

16-May-05100%1641

23-May-05100%1121

30-May-0594%1018

6-Jun-05100%7434

13-Jun-05100%3726

20-Jun-05100%1025

27-Jun-05100%1122

4-Jul-05100%1023

11-Jul-0583%1824

18-Jul-0586%2517

25-Jul-0596%1243

1-Aug-0593%926

8-Aug-05100%5134

15-Aug-05100%1843

22-Aug-0585%1030

29-Aug-05100%189

5-Sep-0564%2518

12-Sep-0544%1215

19-Sep-05100%1215

26-Sep-0510%1234

3-Oct-0510%1234

45%1023

50%515

GRAPH #1

GRAPH #1

38082380820.5

38089380890.6

38096380960.4

38103381030.67

38110381100.64

38117381170.67

38124381240.75

38131381310.47

38138381380.5

38145381450.5

38152381520.57

38159381591

38166381661

2691

20111

20221

15301

19161

17260.85

14340.89

19180.89

30240.96

18300.87

15200.95

12200.95

14151

12291

16171

18281

15261

13301

13311

10181

11161

11300.91

11141

&A

Page &P

LEAD TIME

NO. OF ITEMS

ON TIME DELIVERY

WEEK COMMENCING

LEAD TIME (DAYS) / NUMBER OF ORDERS

OTD %

KUDOS+ PRODUCT CELLWEEKLY KPI'S - OUTPUT

GRAPH #2

GRAPH #2

10000.95

38201

38208

38215

38222

38229

38236

38243

38250

38257

38264

38271

38278

38285

38292

38299

38306

38313

38320

38327

38334

38341

38348

INVENTORY

INVENTORY ACCURACY

WEEK COMMENCING

INVENTORY

INVENTORY ACCURACY %

KUDOS+ PRODUCT CELLWEEKLY KPI'S - INVENTORY

Extra BenefitsImproving the process has uncovered more opportunities that were hiddenHelped identify key training requirements within the cellImproved floor space utilisationNew Kanban philosophyTransactions reducedContinuous improvement culture developing

Benefits - Reduced WIP132 Units~400 Each52,800

Benefits - Space274.125m220% Overall Reduction

Lean Projects RoadmapKudos+ cell - Completed July 04IQ Modular - 80% completeBox build cellPCB build & test cellBox configuration & conformance test cellKahuna cell - 90% completeOther product cells - December 05Surface Mount line - 2006

MFG Pro in a Lean Environment

History1994: Introduced Release 7.1 on a UNIX operating system1996: Upgraded to 7.42002: Upgraded to eb2005: Still bloody character screens!

Supply Process- Pre LeanMRP Planned Ordersdetermine what weACTUALLYPurchase (POs) andManufacture (WOs)SOPMPSMRPWORKORDERSPURCHASEORDERS

Supply Process- Post LeanMRP Planned Ordersdetermine what weMIGHTPurchase (VS)andManufacture (CRP)

Demand Pull (SO,Kanban, Faxban)determines what weACTUALLY Purchase& ManufactureSOPMPSMRPCRPVENDORSCHEDULES

Supply Process- Vendor Schedules

VS00005

Delivery Schedule

TOBY ELECTRONICS LTD

Deliver To:

TOBY ELECTRONICS LTDSnell & Wilcox Ltd

BEAUMONT ROAD IND ESTSouthleigh Park House

BANBURYEastleigh Road

OXONHavant

OX16 1TUPO9 2PE

GREAT BRITAINGREAT BRITAIN

Purchase Order:VS00005

Week Commencing...

ItemFab AuthRaw AuthPrior17/10/0524/10/0531/10/0507/11/0514/11/0521/11/0528/11/0505/12/0512/12/0519/12/0526/12/0502/01/0606/02/0606/03/0603/04/0601/05/0605/06/0603/07/0607/08/06

RMG9 ELM5/04000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMG9 ELM5/10000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 10WMTSW105000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 10WMTSW110000F0F22F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 20017AR-16G2000F0F500F1000P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 24WBOXED000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 399R/A000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 BBS10000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 HW0511GS000F0F450F0P900P1584P744P0P0P336P336P0P0P0P0P0P0P0P0P0P

RMK0 QTE02003000F0F278F0P0P0P144P72P0P0P180P0P0P0P0P0P0P0P0P0P

RMK0 QTE02005000F0F100F96P0P0P0P0P0P0P0P198P0P0P0P0P0P0P0P0P

RMK0 TSW1914TD000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 17000F0F0F0P77P28P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 1712001SD000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 1712002SDLC000F0F0F0P0P0P0P36P0P0P70P0P0P0P0P0P0P0P0P0P

RMK1 1713001SD000F0F13F0P0P8P0P6P0P0P12P0P0P0P0P0P0P0P0P0P

RMK1 1713002SDLC000F0F0F0P0P17P0P0P0P0P24P0P0P0P0P0P0P0P0P0P

RMK1 19000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 20000F0F4F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 BSW-10204-G-S000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 M22-6120822000F0F16F0P0P0P1P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 QSE02001000F0F0F35P0P240P0P240P0P240P176P0P0P0P0P0P0P0P0P0P

RMK1 SFML130T2S000F0F39F0P0P0P48P0P16P0P0P0P0P0P0P0P0P0P0P0P

RMK1 SQT11203FD000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 SSQ12001000F0F0F0P0P4P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 SSQ13201000F0F0F0P0P1P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK1 TFML13002000F0F206F0P68P124P0P68P0P0P0P0P0P0P0P0P0P0P0P0P

RMK6 SFM105-01000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 14000F0F29F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 16000F0F50F0P0P0P25P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 20000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 24/.3000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 28000F0F280F168P168P238P154P168P196P0P210P0P0P0P0P0P0P0P0P0P

RMK8 32.6000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 6PDIL000F0F0F345P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK8 8PDIL000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMKA 24/.3SMT000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMKA FTSH10501000F0F500F250P375P0P250P250P0P250P375P0P0P0P0P0P0P0P0P0P

RMKA TFM10522S000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMKA TFM12022S000F443F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMKA SFM12002S000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMW4 7642430A000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK3 RCAJACK000F0F0F0P0P0P21P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK0 34000F0F0F0P0P12P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

RMK5 16000F0F0F0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P0P

Sheet2

Sheet3

Supply Process- CRP

Supply Process- Sales Order ProcessingPRE LEAN MPS ATP

POST LEANFinite Capacity Scheduling

Sheet1

FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41539 - Line 2

FGADG 3768050AARC20:20S ASPECT RATIOSO41345 - Line 1

FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11

FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11

FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41284 - Line 1FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41243 - Line 3FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41403 - Line 2FGADG 3768050AARC20:20S ASPECT RATIOSO41506 - Line 1

FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41284 - Line 1FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41402 - Line 2FGADG 3768050AARC20:20S ASPECT RATIOSO41506 - Line 1

FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41229 - Line 2FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1FGAN IQH1S-RC-AP-BMOD-1U FRAME+ACTIVE F/P+SO41326 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41329 - Line 10

FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41158 - Line 2FGACU 3548300BTBS180 ADVANCED TIMEBASESO41162 - Line 7FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41321 - Line 13FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41299 - Line 2

FGACZ 3598300BCVR250 ACTIVE F/P 10-BITSO41273 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41158 - Line 2FGACU 3548500BNRS70 ACTIVE F/P 1RUSO41162 - Line 6FGACU 3548410BTBS185AV ADVANC TBC WITHSO41545 - Line 1FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41321 - Line 13FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO40871 - Line 24

24/10/0525/10/0526/10/0527/10/0528/10/0531/10/0501/11/0502/11/0503/11/0504/11/05

MTWTFMTWTF

Sheet2

Sheet3

Supply Process- Material TransactionsPRE LEANMRP Planned Orders Report (23.12)Check for shortages (13.8.18)Firm Plan Work Order (16.1)Release Work Order (16.6)Kit Work Order (16.10)Make Product / AssemblyReceipt Work Order into stock (16.11)

POST LEANMake Product / AssemblyAdvanced Repetitive Backflush Product / Assembly (18.22.13):Cumulative Work OrderConsume materialsConsume labour @ standardReceipt into stock

ANY QUESTIONS?Thank you

High volume product range low costInstalled in broadcast studiosLow volume high costStudiosLive eventsBrief overview of Kudos + project Showing new KPIs achieved through the change process, from forecast batch build to customer demand pull manufacture.Productivity gains through the use of standard operating procedures (photographic build documents)Increased control of raw material through KanbansPhoto showing PCB workstation in the forecast batch build culture.PCB workstation in the manufacturing cellCleanClearAll raw materials required for product at the point of use (Kanbans)Photo showing test workstation in the forecast batch build culture.Not easy to see where product is or where it flowsTest workstation in the manufacturing cellCleanClearDedicated place for productEach foam used to hold productAfter the Kudos+ project all these foam were not requiredThe one of saving of work in progress was ~52KThere was a considerable amount of floor space saved as wellPhoto of first floor test showing the space generatedCurrently a 20% reduction in manufacturing space