awd pump project report out

Lean Report

AWD Cycle Time ReductionsAWD Cycle Time Reductions

Suwanee, GA, Smith & Nephew Suwanee, GA, Smith & Nephew September 25, 2009September 25, 2009

2Lean Report

In Scope:All processes associated with the AWD product line from arrival of product at the warehouse to shipment of product will be analyzed, mapped, and, where indicated, process changes will be made.

Out of Scope: There will be no system enhancements or changes to computer hardware or software. No processes outside of this product line will be considered.

Project Team:Champion: Terri TrawickTeam Leader: Dana FranklinCo-Team Leader:Lois MarshallTeam Member: Yvonne PerrymanTeam Member: Michael BedsoleTeam Member: Steve Molini

Business Case: The anticipated throughput increase of the AWD product is expected to be 50% to 100% or more during the 2009-2010 time period. Product does not fit the receiving and distribution process well due to the additional processes that must be performed including the individual manual notations of serial numbers and outfitting per order requirements, as well as the charging process. In order to facilitate the increased customer capacity our goal will be to decrease the processing times.

Problem Statement: Current processing times for product from arrival to put away are currently approximately 17 to 18 hours based on time studies and value stream mapping. The customer sales projections call for a 50% increase in volume of this product line by December 2009 and a potential increase of 100% or more during 2010. Based on these sales projections and processing times the business will need to hire additional personnel or find some way to increase the efficiency of the process to avoid additional costs.

Goal Statement: Our goal is to reduce the processing time of this product line by 50% or more so as to allow for improved efficiencies and avoid additional costs.

Start / Stop Points for Project:

Starting on September 14, 2009 with full testing and implementation of all changes by October 30, 2009.

Project Charter Statements CharterCharter

3Lean Report

MetricsMetrics

Primary Metric:

Time to process, beginning to end of AWD process

Secondary Metric:

No Secondary Metrics Identified

4Lean Report

Primary MetricPrimary Metric

Comparison of Total AWD Pump Cycle Time

0

50

100

150

200

250

300

350

400

Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10

Month-Year

Hour

s

Baseline Total Pallet Cycle Time (hrs) New Process Total Pallet Cycle Time (hrs)

5Lean Report

Lean Project TeamLean Project Team

Name Team Role Expertise Time Commitment

# of Lean Projects

CompletedTerri Trawick Champion GM 100% + SUPPORT 3

Dana Franklin Team Leader Customer Rep 100% + SUPPORT 0

Lois Marshall Co-Team Leader

Floor Supervisor 100% + SUPPORT 2

Yvonne Perryman Team Member

Key Process Member

100% + SUPPORT 0

Michael Bedsole Team Member

Key Process Member

100% + SUPPORT 1

Steve Molini Team Member

On-site Customer Mgr.

100% + SUPPORT 0

Todd Parrish Facilitator Six Sigma Black Belt

100% 100+

6Lean Report

Value Stream Map - CurrentValue Stream Map - Current

7Lean Report

AWD Process Map - CurrentAWD Process Map - Current

AWD Pump Processing- Receiving Process (Current State)

Coordinator InspectionMaterial Handling

Unload Trailer

Stage Pallets

Fill Out “Inbound Inspection Form”;

perform paperwork validation and

check receipts for external damages

Break down pallets ensuring serial/lot

numbers are facing out

Fill out “Blind Tally Form including

sections 1 through 8 and the top

RECEIPT TO INVENTORY (RI): Enter each item

into system

Print receivers and Warehouse ID tag

Fill out “3rd Party Inspection Form”; Validate Lot/Serial

#’s and Certifications

Pass?

Stamp ID tags and copies of all

documents and attach everything to the blind tally.

Write lot/serial number on each

receiver

Provide paperwork to Inspection

Scan each item’s Bar Code and Put

Away location

Complete columns 9 and 10 on the

Blind Talley Form and put product

into location

Provide documentation to Put Away/Material

Handler

END

NO

YES

Release to Put Away and forward

docs to Coordinator

File documentation

Correct the Lot #, Certs, or labeling

as necessary

AWD Pump Processing- Maintenance (Current State)

S & N CoordinatorMaintenance Coordinator

Go into system and identify pumps

over 40 days needing re-

charged

Physically transfer pumps to charging

station

Break down boxes and set up pumps in racks (NOTE:

Boxes and pumps must remain matched!!!)

Re-package each pump then re-

stack onto pallet

Generate new placard and attach

to pallet

Return to Location

Update system with current date of maintenance

END

8Lean Report

AWD Process Map - CurrentAWD Process Map - Current

AWD Pump Processing- Allocation

Order Coordinator

Look in system for open orders

Look for adequate quantities in warehouse,

starting with WH 7

Adequate Qty’s in WH 7?

Check WH 3 for adequate quantities

Adequate Qty’s in WH 3?

E-mail and phone St Pete for

permission to pull from WH 1

Wait for e-mail or return call

approving transfer

Transfer to WH 3

Print Pick Ticket

Deliver Pick Ticket to Puller’s Table

PULL Process

NO

AWD Pump Processing- Kitting/Packing

Packer/Kitter

Material is staged

Validate count on pumps and each

component

Scan the pick ticket into the

system

Place pumps into work station in quantities as space allows

Open pump containers

Scan the pumps and components

Place the components into each box with the

pump(s)

Seal the completed kit

container

Is the order complete?

Manifest the order in the system

SHIPPING

Correct?Go back to

location and pull

International Order?

Validate that the serial number(s) match the pack

item report

NO

YES

YES

NO

9Lean Report

Defects – Affinity ProcessDefects – Affinity ProcessList of DefectsList of Defects

1. Coordinator utilizing phone to communicate with customer prior to material transfers

2. Serial numbers are hand written 5 times during entire process

3. Inadequate inventory causes excessive and time consuming transfers from warehouse to warehouse

4. Expedites

5. Not enough charging stations

6. Five forms containing repetitive data and excessive and un-necessary writing

7. Too many warehouses containing material or no material

8. Space limitations in kitting

9. WH space limitations

10Lean Report

Defects – Affinity ProcessDefects – Affinity ProcessList of Defects (cont.)List of Defects (cont.)

10. Bar codes non-functional

11. S & N does not trust their system requiring writing serial number at pulling

12. Printing is slow

13. Lack of understanding for S & N and APL of cut off times for orders

14. Multiple people doing allocations

15. Lack of equipment

16. IFU’s not ID’d by lot numbers individually

17. Carrying case (compoinent including in kitting process) sticks together and is ugly

18. Inventory inaccuracies (starps, cords, cases, and IFU’s)

11Lean Report

Defects – Affinity ProcessDefects – Affinity ProcessList of Defects (cont.)List of Defects (cont.)

19. Incorrect certs, labels and serial numbers

20. 100% touch policy * 5

21. Maintenance requirement to open and close container results in box deterioration and added, un-necessary work

22. Inventory is excessive for 40 day requirement (186 only)

23. Requirement to provide S & N serial numbers after inventory transfers

24. Walk to Dana identifying those pumps requiring maintenance

25. Pullers writing down lot/serial numbers (6th time number has been written down)

12Lean Report

Defects-Affinity ProcessDefects-Affinity ProcessDefect EliminationDefect Elimination

Team Discussion resulted in the following list of those we determined we could not influence or change:

1. Warehouse space limitations

2. Bar code is not functional (S&N is working)

3. Printing slow (network issue)

4. Lack of equipment (not true; based on monthly analysis adequate equipment is available)

5. Carrying case (it is what it is)

6. Certs, labeling and lot # inaccuracies (rare and handled through existing process)

7. 100% touch policy (required for traceability)

8. Inv excessive for 40 day maintenance requirement (186 only)

13Lean Report

Defects – Affinity ProcessDefects – Affinity ProcessList of Chosen DefectsList of Chosen Defects

1. Phoning customer for authorization for inventory transfers

2. Serial numbers repetitively written (connected to #6: repetitive forms)

3. Need for inventory transfers (connected to #7: too many warehouses)

4. Expedites (connected to #13: APL and S&N lack of understanding of rules associated with order cut off)

5. Number of charging stations too few

6. Space limitations in kitting

7. Multiple people doing allocations

8. IFU’s not id’d by lot number individually

9. Inventory inaccuracies (straps, cases, cords, and IFU’s)

10. Maintenance requirement to open and close cases

11. Requirement to provide S&N serial numbers after inventory transfers

12. Walk to coordinator to inform of pumps requiring maintenance

13. Pullers required to write down lot/serial numbers

14Lean Report

SolutionsSolutions

Issue: Phoning customer for authorization for inventory transfers; This does not comply with the customer’s process

as it is defined. Phone calls are not acceptable as an authorization method. All authorizations must be in writing and/or through e-mail.

Excessive time being spent making phone calls and waiting by the phone for authorization

Solution: E-mail only. Once e-mail is sent, a return e-mail authorizing the transfer is the only acceptable means to allow transfer.

15Lean Report

SolutionsSolutions

Issue: Serial number written repetitively on numerous forms A total of three forms and an additional two times VERY time consuming, especially if one serial number is

written incorrectly which occurs frequently Forms contain duplicate and un-necessary information Bar codes are not utilized effectively

Solutions: Utilize scanning equipment to record serial numbers in the

system and eliminate writing Results

No more writing serial number at receipt Eliminate 2 of 4 forms at receipt by re-ordering process Will validate time savings through use of random time studies

16Lean Report

SolutionsSolutions

Issue: Need for frequent inventory transfers Inventory is placed into one of three warehouses in a

seemingly random fashion OR current levels maintained due to outdated data

A great deal of time is spent searching for materials to fulfill orders, then a great deal of time is spent requesting and receiving authorization for transfers

Solution S&N to research sales out of WH 7 and establish a realistic,

data-based inv level Move all other material into WH 1 Future receipts into WH 1

Results Material will only be moved once to meet order requirements

17Lean Report

SolutionsSolutions

Issue: Expedites S&N and APL do not adhere to existing rules for cut off times

for orders

Solution: S&N to meet with Customer Care to explain rules and gain

consensus for cut off times, then observe APL to train personnel to ensure they adhere to the

established and agreed to cut off times

Issue: Space Limitations in Kitting Team consensus was that any changes to the area would not

result in significant efficiency improvements currently due to volume but that this issue should go into the parking lot for later consideration if necessary

18Lean Report

SolutionsSolutions

Issue: Multiple personnel performing allocations Team determined that this is actually a non-issue

Issue: Requirement to provide S&N serial numbers following inventory transfer

Solution

Report exists that shows serial numbers transferred and is available to S&N

Advantages

No more e-mails listing serial numbers (one less writing of the serial numbers!)

19Lean Report

SolutionsSolutions

Issue: Walk to coordinator to inform of pumps requiring maintenance

Solution: This is an un-necessary process step as the coordinator is informed following completion anyway as the final step in the process when the system is updated

Issue: IFU’s not id’d by lot number individually

Solution: S&N to request that the supplier perform this action

20Lean Report

SolutionsSolutions

Issue: Inventory Inaccuracies These are $0 items that have no impact and each time there

is a variance it requires cycle counting and inventory adjustments. The only real impact is to APL and their ability to ensure meeting the contract required 96% Inventory accuracy. It is assumed that these variances originate at the supplier during packaging.

Solution Establish within S&N an expected variance level that is

acceptable (i.e.: + or – 5%) Eliminate the requirement for cycle counts and inventory

adjustments Take these issues out of the metric for inventory accuracy as

they are $0 items that cannot be controlled at the supplier

21Lean Report

SolutionsSolutions

Issue: Pullers required to write down serial numbers Discussion:

Utilized for a backup record in case of recall Before B-pics this was THE method allowing for recalls

There is no current solution without further discussions with S&N. It was suggested that we broach this topic during the upcoming meeting with S&N. To eliminate this requirement we will need to: Show that traceability is maintained 100% without the need for

the written documents Gain consensus with the customer and establish process Show the potential savings if this step were eliminated from

the process

22Lean Report

SolutionsSolutions

Issue: Open and re-sealing cases following maintenance Constant cutting and re-sealing and tape removal results in

box integrity being lessened Tape removal results in sloppy “look” to packaging Time is wasted doing this repeatedly

Solution: End this practice. Once container is open, do not reseal until pulled and kitted Kitting also requires removing the tape Removing this process step at maintenance eliminates the

step here as well as at kitting To protect the top layer we will place a piece of cardboard or

plastic across the top to provide protection to the contents

23Lean Report

SolutionsSolutions

Inadequate number of charging stations Max that can be charged at one time is 21 and there are 60

per pallet, on average Repeated loading and unloading of pallet wastes time and

causes additional congestion in the area Current set-up was established when volumes were much

less and the result is that as the volume has increased there are numerous electrical cables and support material everywhere causing an eyesore and safety issue

Solutions Add similar rack at end of other aisle to increase capacity to

60 Re-configure stations to be permanent rather than temporary Route and channel electric cables and strips to be safe and

off of floor

24Lean Report

5S Workplace 5S Workplace OrganizationOrganization - Before - Before

Sort What did we do in this phase?

Set In Order What did we do in this phase?

Shine What did we do in this phase?

Standardize What did we do in this phase?

Sustain What did we do in this phase?

5S Audit Form

5S Audit Form Long

25Lean Report

5S Workplace 5S Workplace OrganizationOrganization - After - After

Sort What did we do in this phase?

Set In Order What did we do in this phase?

Shine What did we do in this phase?

Standardize What did we do in this phase?

Sustain What did we do in this phase?

5S Audit Form

5S Audit Form Long

26Lean Report

Process Map – Current/FutureProcess Map – Current/Future

AWD Pump Processing- Receiving Process (Current State)

Coordinator InspectionMaterial Handling

Unload Trailer

Stage Pallets






Fill out “Blind Tally Form including

sections 1 through 8 and the top


into system

Print receivers and Warehouse ID tag



Pass?

Stamp ID tags and copies of all

documents and attach everything to the blind tally.

Write lot/serial number on each

receiver


Scan each item’s Bar Code and Put

Away location

Complete columns 9 and 10 on the

Blind Talley Form and put product

into location

Provide documentation to Put Away/Material

Handler

END

NO

YES

Release to Put Away and forward

docs to Coordinator

File documentation

Correct the Lot #, Certs, or labeling

as necessary

AWD Pump Processing- Receiving Process (Future State)

InspectionCoordinatorMaterial Handling

Unload Trailer

Stage Pallets

Receive Certs from Material

Handler


into system









Go into system RP Screen

1. Scan Lot Number2. Key in Expiration Date (Today plus 40 Days)3. Key into Location

NO

Receipts complete?

YESPaperwork to Coordinator

Put material in location

END

File Documentation

Stack onto pallet

27Lean Report

Process Map – Current/FutureProcess Map – Current/Future

AWD Pump Processing- Maintenance (Current State)


Go into system and identify pumps

over 40 days needing re-

charged


station



Re-package each pump then re-

stack onto pallet


to pallet

Return to Location

Update system with current date of maintenance

END

AWD Pump Processing- Maintenance (Future State)


Return to Location



END

Update system with current date of maintenance PLUS 40 days


station

Do Not re-seal containers. Layer and stack and place a sheet of cardboard or plastic

on top to protect


to pallet

Run report utilizing today’s date for expiration; print

28Lean Report

Value Stream Map - CurrentValue Stream Map - Current

29Lean Report

Value Stream Map - FutureValue Stream Map - Future

30Lean Report

Implementation Plan TemplateImplementation Plan Template

31Lean Report

Benefits SummaryBenefits Summary

Approximately $37,000 hard savings based on customer volume projections and results of time studies and improvements

Additional benefits not calculated relating to lessened cycle counting, reduced walking and waiting times

No cost of implementation

Greatly improved safety in maintenance area

The most important benefit of this project is the pre-emptive actions we have taken, based on customer projections, which have resulted in significant reductions in product cycle time allowing the operation to meet the needs of the customer without additional headcount.

32Lean Report

Safety ReviewSafety Review

Proposed

Improvement

IMPACT Comments

Maintenance Area Positive Effect 1. Organized

2. Electric cables ordered and no longer all over the floor

3. More room for work to be conducted

33Lean Report

Financial Benefits DetailFinancial Benefits Detail

Calculated dollar benefits for the 12 months

34Lean Report

Continuous Improvement IdeasContinuous Improvement Ideas(Parking Lot)(Parking Lot)

Obsolete parts taking up otherwise useful space in a facility at 120% capacity

Can this process be applied to other, similar material receipts?

STILL would like to find some way to avoid writing serial numbers on pick tickets

The kitting area was unchanged because even at volumes of 100% more than current levels it was not seen as adequate value added. This can be reconsidered in the future.

awd pump project report out

Documents