SYSPRO/SUPPLY CHAIN KAIZEN EVENTPROCESS IMPROVEMENTS:

NOT JUST FOR THE SHOP FLOOR

Leslie Galbraith, CMAVP Finance/Administration

Argus Industries

Presentation OutlineArgus Industries –

oWelcome to the Tribe

Argus & SYSPRO – o a look back in time

Argus & SYSPRO – owhere the future will take us

WELCOME TO OUR TRIBE!

ARGUS 101:Incorporated in 1962Privately owned (SME) Located in MB & ON50k sq/ft, 3x Facilities80+ Employees

The ArgusJourney

1962 – 85: Portable Toilet Kings1981 – 96: Building Molding & Gasket Division1992: Received first certification for ISO90031997 – 99: Building Quality Systems, ISO9002 Y2K: One of 1st in Canada to get ISO9001:20002002: Purchased Snappi-Hookers Division2003 – 05: Building brands, Processes, Culture2005: Acquired Canadian Controlled Goods Certification2007: Won MAA Award for Quality & Teamwork2008: Purchased EPT Mfg – Now METALS Division2008: AS9100 – First Certified in MB, ~20th in Canada2009: 2nd Generation takes President & CEO role2009 – 10: Established Executive Team & Started LEAN Journey 2010: Competitive Edge Program Started January – NWAA2011: VIP Certification for Bombardier Aerospace Supplier Program2012: AS9100 Certification (Rev C) – one of the 1st in Canada2012: CEO asked to speak in largest LEAN conference in North

America. Ranked Top Talk.2013: Article in the Winnipeg Free Press, A Journey to Excellence2013: 1st to achieve “Contender Level” in the CE program in MB.

(Leadership Foundation)2013: We were interviewed for the Wall Street Journal because of

our Tribal Rituals.

Markets Servedfrom Agriculture to Aerospacefrom Agriculture to Aerospace

Rubber Injection Molding

CNC Cut & Die CutMaterials

Aerospace & Defense

CNC Metals Division

MissionStatement

Making Tomorrow Better than Today,

Through Great People & Great Products

Vision Statement

20/20 PERFECT VISION

In the “Perfect Vision” we continue to:

ContinuousImprovement Initiatives

BEFORE

AFTER

SYSPRO through the years

20 + years with SYSPRO software Impact Award Encore SYSPRO

2004 – moved from traditional time cards to Shop Clock and began importing labour hours directly into SYSPRO.

2006 – left our stand alone ACT Customer Relationship Management and implemented SYSPRO CRM (formerly known as ADAPT)

2008-09 – Began to question SYSPRO as our ERP system .

Late 2010 - attended the SYSPRO User Conference in Dallas and solidified our decision to stay with SYSPRO

Spring 2011 - attended training courses in SRS, System Administration, Power Tailoring

Fall 2011 - Lean Journey moved to the Office environment Developed a team to move Argus’ processes, with the help of SYSPRO, to

the next level

SYSPRO Lean Journey Begins:

Brainstorming event with All users.

Identified a list of 76 “wishes” or opportunities for improvement Met with Dale Kehler and Lynn Green from SYSPRO to outline what we hoped to

accomplish.

The project was lit up and the work began.

Developed a plan to move to 6.1 in June 2012 with some of the wishes covered off prior to the upgrade.

Team attended training in Halifax in Spring 2012

Team began working on quick hits/gems to be ready for Upgrade Day

Upgrade Day: on site training and introduction to Quick Hits & Gems

Lynn Green in Winnipeg and Nallanie Manick in Pickering

Ajay Saxena worked with the team on site identifying opportunities and other potential Lean initiatives

Japanese for "improvement" or "change for the best", refers to philosophy or practices that focus upon

continuous improvement of processes

SYSPRO Kaizen Event Team

• Christa • Mario • Ajay• Lance • George • Leslie• Carlos

Purpose & Scope

Purpose: Is MRP full fit, partial fit or not a fit for Argus.

Scope: Sales order entry to order release

Deliverables MRP for Purchasing requirements MRP for MIN & Max requirements MRP for scheduling PWO’s MRP for scheduling SO’s MRP for blanket SO’s MRP for “Rush” SO’s MRP for releasing orders MRP Vs. Lean. Integration with lean mfg.

practices Conclusions

What is MRP

INPUTS• Demand• Forecast• Safety Stock• Quotations• Sales Order

MRPTools:• Load

Leveling

OUTPUTS• What to Buy

• What to Make

• When to Buy

• When to Make

• How much to Buy

• How Much to Make

• Resource Planning

• Capacity Planning

What is Load Leveling

Load Leveling

Machine Capacity per day

Jobs scheduled for specific day

Available Time, Scheduled Time and Free Time

Value Stream Map for current state of business processes from SO entry to SO fulfilment Team gained visibility of the entire cycle and the gaps

that are in our current process.

Outcome

Identified Assumptions required to work in an MRP environment.Demand is created by Forecast, SO,

Safety Stock and Min/MaxBOM and Drawings have been

confirmed and are accurateInventory is issued to WIP at time

material is moved to production

Outcome

Outcome Sales Order Entry - Current State

2-1/2 minutes to enter order, create PWO and print PWO and drawing

Customer Required Date was not confirmed with Production and there was no visibility to raw materials available

Jobs were created with no confirmation from Production for capacity and no visibility to raw material availability.

Wait time - ~ 48 hrs to get confirmation for material delivery and then confirm capacity available.

Outcome

Sales Order Entry - Future State Visibility of Production Time

MTF – Manufacturing Time Fence – How long to manufacture

PTF – Planning Time Fence – How long to procure material and manufacture based on load and leadtimes

Outcome

Sales Order Entry - Future State Visibility of Material Availability

Quantity Available Supplier Lead Time EBQ – Min Order Qty

Outcome

Sales Order Entry - Future State Visibility of Capacity Available

Print Dummy Job for Qty to make to determine machine and time

Outcome

Sales Order Entry - Future State Visibility of Capacity Available

Check capacity by resource and machine for requested production date

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Outcome

Sales Order Entry - Future State3 minutes

to enter order confirm material availability or supplier leadtime confirm machine capacity through load leveling create PWO and print PWO and drawing. Schedule a realistic delivery date and provide

estimated ETA for customerEliminates 48 hours wait time to confirm non-rush

ordersProvides more visibility to resource and machine

availability

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Outcome

PO Entry Current StateMinimum of 3 separate Inputs

PWO (work Order)

Sales Order

PO Worksheet (which took at least 5 minutes just to run the report)

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PO Entry Current State

Need to check individual stock codes to find Job Allocations and Sales Orders

Need to consolidate demand. Need to confirm required in-house dates Need to confirm accuracy of demand Then – begin order entry process

Enter PO by Supplier – one order at a time

Outcome

Outcome

PO entry Future StateMRP Purchase Order Review Report

Identifies suggested POs based on full demand – PWO, SO, Safety Stock, Min/Max – existing and suggested

Outcome

PO Entry – Future StatePO Review – identifies source of

demand

Outcome

PO Entry - Future State From PO Review – select, change, ignore, create

Multiple POs & Multiple Suppliers at one time

Eff

ort

s R

equ

ired

Value/Benefits Big ValueSmall Value

Big

Eff

ort

Sm

all

Eff

ort

StrategicDon’t Do

Quick Hits GemsDrawing attached

to PWO’s

Syspro Kaizen Event Value Graph

5S Project in Whse.• More Kanban• Fix Raw & Finish

Goods

Implement GRN (Goods Receiving

Notice) Module

Clean Master Data• BOM• Structures• Supplier lead tImes• Mfg lead times• Incorporate EBQ’s• Safety stock qty’s• Utilize tool set option

Create Argus EBQ Process

Deploy Training on how to use

Work levelingAdvance KittingModify templates

Use printing multi-level PWO’s at one time

Quick Hits without MRP Start printing Multi level PWOs at one time Change Information on Job Card and Reprint Add Buttons to Sales Order Entry screen to query

material availability Add Field to PO Entry to include Ship Date for

Expediter Report Modify PO template for Supplier to confirm ETA, Price,

Qty, ShipVia Implement GRN Embrace F8 – it is an important tool within SYSPRO

Lessons Learned MRP only Partial Fit for Argus Quotation & Estimates Module is worth further

testing Broadened our understanding of what tools

SYSPRO has to offer right out of the box Ongoing Training to develop standardization for

processes within SYSPRO Develop housekeeping practices to maintain data

integrity

Roadblocks & follow up

Discipline/standardizationResourcesData integrityEmbracing changeAvailability of SYSPRO Expert

Conclusions

MRP is a partial fit for Argus MRP is a capacity/requirement planning tool and not a

scheduling tool Develop a plan and execute with diligence

1. Clean Inventory leadtimes, batching rules, safety stock

2. Maintain BOM structures Work centres and routings Operations and Materials

3. Develop Training Plan4. Maintain Data integrity – daily

housekeeping

Leader SummaryThe Kaizen event was not only MRP

but a full evaluation/review of the Supply Chain process – order entry to fulfilment

Respect for team and timeSupport and participation from all

corners of the organizationConstructive Challenges

Leader SummaryFor MRP to work we need to keep the

momentum and commitment going that we have started this week.

Team Building ExperienceThe team going into this event was not

the same one coming out of the event.

SYSPRO Looking Forward:Quotes and estimates with Product

ConfigurationContinue to implement events, triggers,

Pop ups and reminders using VB Scripting

Gain Further Training with SBSUpgrade to SYSPRO 7