alex simmonds yellow belt final presentation
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Reduce and Manage Miscellaneous Receipts In The SL55 Warehouse
Yellow Belt Project
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Alex SimmondsHN Warehouse Coordinator
03/10/2016
Define Problem Statement
Miscellaneous receipt adjustments in the SL55 Warehouse have a negative impact on stock accuracy when performed without proper research and add an average of 6 minutes to cycle completion per instance. Baseline data shows that approximately 4200 miscellaneous receipt adjustments were performed in SL55 during the past twelve months (July/2014 – July/2015). Left unchecked, miscellaneous receipt adjustments will negatively impact OTD as well as costs.
Proprietary & Confidential: Property of Greene, TweedFor Internal Use Only
Define Background
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Normal Process Flow
Deviation Point
This deviation point is the cause of miscellaneous transactions
Measure
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Breakdown of All Misc. Transactions
Misc. Receipts comprise nearly 3/4 of all Misc. Transactions.
The scope is narrowed to these transactions
Measure
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Over 4/5 of all Misc. Transactions did not give a clear reason as to why the transaction took place
Breakdown of Misc. Receipts
Why are there so many unknown miscellaneous receipts?
Analyze 5 Why Analysis
Why are Miscellaneous Receipts happening?
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Surplus material is found
Why is surplus material present?The same material is being pulled from other locations
Why is material being pulled from other locations?There is no information to determine which location SAP will pick first
Why is there no information to show which location to pick from? The picking screen in SAP is not formatted to show First-In-First-Out (FIFO)
Root Cause:FIFO is not being physically followed, causing ‘surplus' material to be found in locations. These found materials are then erroneously Miscellaneously Received.
Hypothesis Statement:If material to be issued is pulled in FIFO order, or Quant order (SAP), then the amount of Miscellaneous Receipts will decrease by at least 75%.
Proprietary & Confidential: Property of Greene, TweedFor Internal Use Only
Analyze Root Cause and Hypothesis Statement
Improve
• SAP screen LS26 has been formatted to show Quant information to determine FIFO
• Standard Work Instruction has been created for issuing material
• If a Miscellaneous transaction is required, a description must be added for why it is happening
ImproveResults
Misc. Receipts per Week
Baseline: 80/week (Avg) 07/01/14 - 07/25/15 Target: 19/week (Avg) Pace: 18/week (Avg)
-average reduction of 62 occurrences per week (77% reduction from baseline)(77% reduction from baseline)
Nov. 2-6
Nov. 9-13
Nov. 16-20
Nov. 23-25
Nov. 30 -
Dec. 4
Dec. 7 - 11
Dec. 14-18
Dec. 28-31
Jan. 4-8
Jan. 11-15
Jan. 18-22
Jan. 25-29
Feb. 1-5
Feb. 8-12
Feb.15-19
Feb. 22-29
Grand Total
0
50
100
150
200
250
300
2% above the established target of 75%
Prior to Improvement After Improvement
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Improve Results Continued
Base of 80 Misc. Transactions per Week64 of which were unknown
Improvement to 18 Misc. Transactions per week1 of which is unknown
98% Reduction of Unknown Misc. Receipts
ImproveImpact
• More accurate inventory and associated costing• Reduction in excess material ordering from
Kulpsville and vendors• Reduction in cyclecount adjustments• Fewer discrepancies during inventory audits• Estimated hard savings of at least $8,000 per year!
Proprietary & Confidential: Property of Greene, TweedFor Internal Use Only
Control Sustaining Improvements
The SL55 Lead will continue to ensure compliance of the standard work for existing employees and train any new employees.
The SL55 Lead will continue to monitor the misc. transactions on a weekly basis for deviations from the set requirements.
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Key Learnings
• Creating and Utilizing Pie Charts to analyze data• Creating and Utilizing Process Flow Maps• Understanding and applying Categorical,
Continuous, and Count data.
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Special Thanks
James Mikulski & Yvonne Young – Initial training with the concepts of Lean / Six Sigma
Dustin Carroll & Yvonne Young – Coaching and guidance throughout the process
Matthew Bryan – Working with me to keep moving forward on the project despite heavy work flows
John Williams – Helping with setting the scope and attaining the needed data to bring the project together
The SL55 Warehouse Team – Being open to change and performing their best with integrating the proposed changes
Proprietary & Confidential: Property of Greene, TweedFor Internal Use Only
Questions
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