designing a manufacturing supermarket - november 2016

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Supermarket Design Definitions

Thinking win, Win, WIN

Supermarket DesignSupermarket Design

Marek Piatkowski – November 2016


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Introduction - Marek Piatkowski Professional Background

Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994

TPS/Lean Transformation Consulting - since 1994 Professional Affiliations

TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME

Lean Manufacturing Solutions - Toronto, Canada

http://twi-network.com

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Supermarkets – Future State Objectives One Purchased Parts Supermarket near Receiving Small WIP Mini-Markets at Point of Use One Finished Goods Supermarket near Shipping WIP Mini-Markets located along main delivery aisles to allow

timely delivery of parts Visual management in place – address locations, min/max levels

identified, parts shortage indicators, inventory controlled by Kanban cards

All ergonomic and safety rules followed

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Who designs Supermarkets?

Design Team

Industrial Engineering Manufacturing

Materials Management

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Design Considerations

Concepts Layout Categorization Storage / Racking Addressing Stock Rotation Couple/De-couple Tugging Rightsizing / Repacking Information Flow System Visual Controls

Enablers Materials Organization Location / Layout PFEP – Plan-for-Every-Part Standard Work WPO – Work Place Organization Receiving Window Compliance Escalation Plans

There are several basic activities that need to be understood in order to develop a material movement/supermarket plan

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Design Principle # 1

All parts, materials and components must be delivered to and stored in single centralized warehouse locations – called Supermarkets

Rule # 1

Insert picture of plant here.Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Insert picture of plant here.Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Storage

Current State

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IM-11 IM-9 IM-7 IM-5 IM-3 IM-1

IM-12 IM-10 IM-8 IM-6 IM-4 IM-2

Paint

Booth

DC-1

DC-2

MC-1

MC-2

ReceivingDock

ShippingDock

Legend

Cell #3 Cell #2 Cell #1

Assembly CellIM Injection MoldingDC Die CastMC Machining Center

Inventory Location

Cell #6 Cell #5 Cell #4

PB Paint Booth

Value stream area

Finished GoodsStorage

Value stream inventory

PurchaseParts

PaintedParts

MoldedParts

Value Stream Market

Open Space

Open Space

Molded

Open Space


IM-12 IM-10 IM-8 IM-6 IM-4 IM-2

Paint

Booth

DC-1

DC-2

MC-1

MC-2

ReceivingDock

ShippingDock

Legend

Cell #3 Cell #2 Cell #1Cell #3 Cell #2 Cell #1

Assembly CellIM Injection MoldingDC Die CastMC Machining Center

Inventory Location

Cell #6 Cell #5 Cell #4Cell #6 Cell #5 Cell #4

PB Paint Booth

Value stream area

Finished GoodsStorage

Value stream inventory

PurchaseParts

PaintedParts

MoldedParts

Value Stream Market

Open Space

Open Space

Molded

Open Space

Current State Layout

Rule # 1

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IM-12 IM-10 IM-8 IM-6 IM-4 IM-2

Paint

Booth

DC-1

DC-2

MC-1

MC-2

ReceivingDock

ShippingDock

Legend

Finished Goods

WIP - PaintWIP - MoldedWIP - Die Cast

Purchase Parts

Raw Material

Assembly Cell

Resin storefor molding

Raw ingotarea for diecast area

Paintedproduct store

Purchasedparts store

Molded Parts(non painted)

Die cast /machined parts

Finished Goods Storage Area

Overflowarea

Aisle Way

IM

DC

MC

Injection MoldingDie CastingMachining

Cell #2 Cell #1

Cell #5

Cell #3Cell #4

Cell #6ReservedReservedOpen

Open

Open

WA Washer

WA

Future State Layout

Rule # 1

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Supermarket Layout

Supermarket layout must optimize Man/Machine/Material flow Material – family groupingd, overflow, safety stock, normal, stock

rotation, parts utilization, cardboard, empty containers Man /Machine - minimize walk patterns (shopping), minimize

mixing of Tugger (Milk Run) and forklift traffic, create “one-way streets”, information flow management

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8

9

1 2 3 4 5 6 7 8 9

Stocking Aisle

Stocking Aisle

Picking Aisle

Picking Aisle Traffic Flow

Traffic Flow

Rule # 1

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Storage Methodology

“Picking Level”Static Designated Locations

Bulk Storage LevelDynamic Random Locations

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All parts, materials and components must be grouped into some sort of logical fashion: Either by family type, frequency of use, destination or suppliers

Rule # 2

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Each part (container) must have a unique, designated, well identified storage location and address

BadGood

Duplicate Storage Address

Rule # 3

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8 16 20 28 32 36

3 7 11 154 198 27

2 6 14 22 26 30 34

25 29 33N4

N3

N2

N1

1

1 2 3 4 5

24

6 87 9

1311333332

124

A1

DCBA

DCBA

1 2 3 4 5 6 7 8 9 10 111 2 3 4 5 6 7 8 9 10 11

This part number’s

address is D10

This part number’s address is C5

This part number’s address is C3

This part number’s address i B2

Supermarket Addressing System

Rule # 3

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Storage Address System

Level Indicator Location Indicator

Rule # 3

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Storage Address Labels

Rule # 3Good and BadGood

Are these parts in a right location? This location only.

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Storage Address Labels

Rule # 3Good and BadGood

What parts do we keep in this location?

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2 Bin System

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Rack Labeling System

Rule # 3

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All boxes and containers stored in the Supermarket must be “Line or Customer Ready”: meaning right size and weight 100% Quality acceptable any re-packing, to make boxes Customer Ready must be done in a centralized

location outside the Supermarket.


BadGood

Rule # 4

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Repacking - Not acceptable

Repacking

Rule # 4

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Repacking

Rule # 4

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Single Box Flow Rack

Advantages: Maximum utilization of

storage space Disadvantages:

Double handling of boxes Safety / Ergonomics

Best application: Low volume consumption Small / light boxes

FullSkid

Individual Boxes -Hand loaded

Full skids storedon upper levels

Rollers

FullSkid

Fo r k T ruc k

Supermarket Racks

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Single Box Flow Rack

Supermarket Racks

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Bulk Flow Racks

Advantages: Elimination of unnecessary

double handling of boxes (loading and unloading the rack)

Disadvantages: Not the best utilization of floor

space Best application:

High volume demand

FullSkid

FullSkid

Open skids storedon a floor level


Rollers

FullSkid

FullSkid

FullSkid

F or k T r uck

Supermarket Racks

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Bulk Flow Racks

Supermarket Racks

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Bulk Shelf Storage

Advantages: Elimination of double

handling of boxes Disadvantages:

Material Handler (Tugger) and Forklift working in the same aisle

Best application: Low volume consumption (ex.

Service Parts) Heavy boxes

FullSkid

FullSkid

FullSkid

FullSkid

FullSkid

FullSkid


Open skids storedon a f loor level

Supermarket Racks

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Bulk Shelf Storage

Supermarket Racks

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• Well organized material storage• Timely material deliveries• Reduced inventory levels• Zero down time due to parts

shortage

TPS - 5S Process

1. SEIRISEPARATE

Separate the necessary items from the unnecessary

2. SEITONORGANIZE

Organize each item in its optimal position in the storage area and label it.

3. SEISOCLEAN

Clean thoroughly the relevant work items and the surrounding environment

4. SEIKETSUSTANDARDIZE

Standardize work procedures in order to assure correct material deliveries and withdrawals ( pulls) . Define inventory levels – Min/ Max

5. SHITSUKEDISCIPLINEDisciplined application of the previous steps to maintain a well organized Supermarket

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Supermarket - Design Principles

All materials must be delivered to and stored in centralized warehouse locations – called Supermarkets.

All parts must be stored in a unique (designated) storage locations.

All boxes and containers stored in the Supermarket must be “Customer Ready” - meaning right size and weight and 100% Quality acceptable Any re-packing, to make boxes Customer Ready must be done in a

centralized location outside the Supermarket.

34

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Supermarket - Design Principles

Once parts are produced and identified with a Master Label (Pallet/Skid Label) they are immediately moved to the Supermarket

The system must be designed so the oldest parts are moved first – FIFO.

A very strong effort should be made to eliminate any unnecessary pedestrian traffic in the Supermarket.

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36

Master Shipping Label

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37

Storage Rack Label

Master Shipping Label – Production Week Number

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Purpose of a Supermarket

The purpose of a Supermarket is to create a Buffer of inventory (Purchased Parts, WIP or Finished Goods) in order to safeguard against process or delivery variations

Process variation can be caused by: Batch (large lot) production process Variation in working hours Equipment breakdown or problems Etc …

Delivery variation can be caused by: Large lot and non-frequent deliveries Transportation costs and distance Delivery schedule changes Weather Etc …

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Supermarket and Lean Transformation

Supermarket is NOT a final stage of Lean Transformation Supermarkets are constructed at the beginning of Lean

Transformation in order to: Stabilize the operation by eliminating parts shortages “Protect the Customer” – short Lead Time and 100% on time

Customer deliveries Gain control of inventory problems – not enough of what we need

and too much of what we do not need Ideal State is - No Supermarket !!!

Supply chain able to move at pace of manufacturing in component model, sequence, and mix.

Therefore, the little inventory that exists would be a ‘rolling inventory” delivered frequently to point of use in the manufacturing facility

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Changing the World. One Transformation at a timeThis presentation is an intellectual property of W3 Group Canada Inc.

No parts of this document can be copied or reproducedwithout written permission from:

Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631

Cell: 248-207-0416

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