wcm logistics
TRANSCRIPT
Page 2
WCM – ‘World class manufacturing’ house with 10 pillars
10 Managerial Pillars (divided in 5 clusters)
10 Technical Pillars having 7 seven steps approach
Safety Cost
Deployment Focused
Improvement Autonomous
Activities Professional Maintenance
Quality Control
Logistics Early
Equipment Management
People Development
Environment / Energy
Management Commitment
Clarity of Objectives
Roadmap to WCM
Allocation of Highly
Qualified People
Commitment of
Organization
Competence of
Organization
Time & Budget
Level of Detail
Level of Expansion
Motivation of
Operators
Page 3
WCM tools for losses identification
Manufacturing (WCM), based on the following concepts:
Total Quality Control (TQC)
Total Productive Maintenance (TPM)
Total Industrial Engineering (TIE)
Just In Time (JIT)
WCM… way towards manufacturing excellence!!!
Step wise approach
Page 4
World class logistics stepwise approach
Step 6
Step 7
Integrate the
purchasing
departement
Adopt a
defined time
sequence
programming
Create flow Create a smooth flow Create an
accurate flow
Create a
controlled flow
Step 1
REACTIVE
Step 2
Step 3
Reengineer
assembly to
satisfy the
customers
Reorganize
internal
logistics
Reorganize
external
logistics
Step 1
MODEL AREA
“A” AREA
Step 4
Level out
production
Step 5
Refine internal
and external
logistics
“AA” AREA
Class /
Expansion
Step
1
Step
2
Step
3
Step
4
Step
5
Step
6
Model Area AA A
PROACTIVE PREVENTIVE
Page 5
Steps with base as cost deployment factors
World Class Manufacturing 2
Seven Step Approach
Step – 1 to 3 Reactive Phase
Step – 6 to 7 Proactive Phase
KPI
World Class Logistics 3
Step – 4 to 5 Preventive Phase
Plant & WCL Cost Deployment
Introduction 1
Page 6
WCL cost deployment
LOGISTICS PERIMETER
Page 7
Plant level losses identification
Page 8
Logistics losses identification
B/C of
each
project
In E matrix we
have detailed
list of projects
Yearly Potential
of Saving Leader of the
project to
attack Loss
Cost incurred
to complete the
project
Page 9
Losses identification –Yard management
80%
85%
90%
95%
100%
105%
0
20
40
60
80
100
Land Cost Power / energy Manpower consumables
Value
%
In case of yard major loss identified is space
followed by energy, manpower
Page 10
0
1
2
3
4
5
6
Target FG inventory
Avg FG inventory
No
of d
ays
Excess 2 days
FG inventory 10.5%
59% 19%
11% 9%
2% FG Stock The major share of stock reduction actions
• Our Sales and operation process
reviewed with both customers and agreed
with revisions
• Based on this internal processes also fine
tuned
• Effecting reduction on FG inventory
and releasing space
Case 1 -Yard Space optimisation
Page 11
Reduction in space requirement by controlling FG inventory
As the Space is made available introduction new models was feasible in the
same space
M1 M4 M3 M2 M5
A
B
C
D
E
Page 12
Automation of process based on Invoicing trend
Product A Volume is 59 % of total volume and hence considered for study
59% 19%
11%
9%
2% FG Stock
80%
90%
100%
110%
0
50
100
Page 13
Optimised process with reduction in process time
SAP
INOVICE
IDOC
IDOC PO
TO SO
INBOUND
DELIVERY
+ G.R
IDOC
FIAT SAP
DEALERS CUST CRM
PO
P.O In Excel Sheet
P.O Through E - Mail
FIAT
S.O Creation (Manual)
S.O. Processing
Invoice Data
Information (Excel Sheet)
TML GRN Delivery Creation (Manual)
CUST
CRM
Through E-mail
INCOMING ORDERS
P.O Matching in Sap (Manual)
DEALERS CUST CRM
CUST SAP
CUST WOW
CUST
SERVE
R XI
FIAT
SERVE
R XI
Start of
Warranty
Registratio
n
PO INCOMING
ORDERS
Start Warranty Data
Bef
ore
A
fter
Page 14
Reduction in processing time helped for synchronised
invoicing on daily basis and reduction manpower resources
0
500
1000
1500
2000
2500
3000
1 / A u g / 1 0
3 / A u g / 1 0
5 / A u g / 1 0
7 / A u g / 1 0
9 / A u g / 1 0
1 1 / A u g / 1 0
1 3 / A u g / 1 0
1 5 / A u g / 1 0
1 7 / A u g / 1 0
1 9 / A u g / 1 0
2 1 / A u g / 1 0
2 3 / A u g / 1 0
2 5 / A u g / 1 0
2 7 / A u g / 1 0
2 9 / A u g / 1 0
3 1 / A u g / 1 0
Invoice Trend M 1
Stock
Cu Assignments
Cu Invoice
0
500
1000
1500
2000
2500
3000
3500
4000
4500
1 / J u l / 1 0
3 / J u l / 1 0
5 / J u l / 1 0
7 / J u l / 1 0
9 / J u l / 1 0
1 1 / J u l / 1 0
1 3 / J u l / 1 0
1 5 / J u l / 1 0
1 7 / J u l / 1 0
1 9 / J u l / 1 0
2 1 / J u l / 1 0
2 3 / J u l / 1 0
2 5 / J u l / 1 0
2 7 / J u l / 1 0
2 9 / J u l / 1 0
3 1 / J u l / 1 0
Invoice Trend M4
Stock
Cu Assignments
Cu Invoice
Benefits
The sales requirement for product A synchronised - Car invoicing with production
on daily basis
• Sales yard resources utilized uniformly avoiding rush in last few days resulting
overall reduction in manpower
• Service level is improved M1- M6 - AVG 91.2 %
M7- M12 - AVG 98.0 %
earlier improved
Benefit to cost ratio –B/C = 5.1
Page 15
Case 2 -Horizontal deployment of improvements through
the methodology for optimising the transportation
15
In earlier method one vehicle carries
one body only.
Body shells are protected through
plastic covers only.
Truck Traffic very high inside the plant.
Truck waiting time high
CD 6
Page 16
New method to carry 8 bodies / container
AFTER
Unloading of
Trailer
Trai
l
e
r
In new method one carrier carries eight bodies/Truck.
Body shells are protected due to closed carrier.
Action Taken
- Formation of Joint Team
(TML+FIAL)
- Concept finalization
- Safety Point
- Selection of Supplier
- Trials
- Negotiations
- Implementation
Page 17
Benefits to cost ratio more than 4
CD Losses reduction due to Body not Available
Body unloading possible within TAKT time.
In plant Traffic management is easier.
Fuel saving of 5 liter's/body.
Smoke density is reduced by 57 to 56 Hart ridge units per car.
Transportation Cost saving of supplier.
Documentation paper saving.
Quality issues got resolved.
Benefits
Benefit to cost ratio –B/C = 4.65
Page 18
WCL the way we move on
Measurement and booking of losses
Analysis in terms of cost
Deciding priorities of projects based on amount of losses
Develop team members in WCL tools
Apply WCL tools to resolve the issues
Track the results and benefits and get it approved from finance
Horizontally deploy the improvements in other areas