About taking control. John Rosén, Distribution Center Manager Nederman Manufacturing Sweden

Transcription

1 About taking control John Rosén, Distribution Center Manager Nederman Manufacturing Sweden

2 Agenda 1. Introduction & Nederman Group 2. Challenges 3. Historical way of controlling stock levels Filter, clean and recycle in demanding environments creating eco-efficient production throughout the world. 4. Stock Optimization Software SO Results 6. Daily meetings & Change management 2

3 Nederman short facts Established in Helsingborg, Sweden in 1944 by Philip Nederman Listed on Nasdaq OMX Stockholm since 2007 Turnover 2014: SEK 2 827M Approx employees Global presence Sales companies in 26 countries Partners & distributors in 30 countries Manufacturing in 10 countries; Sweden, Denmark, Germany, France, Poland, US, Brazil, China, Thailand and Australia All manufacturing sites are ISO 9001/14000 certified

4 Wide-ranging expertise delivers solutions Product sales Wide range of efficient standard products Configured Solutions Reliable systems for recurring applications Byt bild Engineered Solutions In-depth knowledge and customized solutions Service Professional service eliminates operational downtime Work environment without air cleaning and filtration Work environment with Nederman s solution

5 Industries we serve Solutions for a wide range of applications 5

6 2003: Extraction at source In 2003 Nederman s business was focused on fume extraction at source. 2010: Industrial processes Industrial processes entered the product mix through the company acquisition. 2013: Filter technology Further acquisition broadened the business to include filter technology. Sales SEK 735 million Sales SEK 1,694 million Sales SEK 2,659 million Strong global position AMERICAS EMEA APAC Position: Top 5 Position: 1 Position: Small Competitors: 200+ Competitors: 200+ Competitors:

7 A glimpse at some of our challenges: We are on a journey and travels fast Wrong measurements used for a long period check Basic data was not correct - check Culture, routines & behavior leadership program and process development Quality issues from unopened claims to rapid handling within a few days Material supply from unclear expectations to clear agreements and supplier reductions Supply chain way of thinking vs. silos improved information exchange Tougher marked conditions Market in Europe is flat. Better performance needed Support from Logistics department strongly needed 7

8 Background previous system Home made Simple but limited Not user friendly Forecast functionality is a weakness Forecast = 6 months actual demand*2 All products have the same forecast method (Moving average) Re-order point set by demand, lead time, days safety stock Safety stock set by two matrixes; purchased and manufactured articles. Divided by frequency and stock value More items in the same element increases spread in demand pattern and safety stock must be increased Programmed by a one man consultancy firm Large risk in continuity and documentation Safety days Stock value ranges Frequency A: 0-10 B: C: D: ' E: >10' A: B: C: D: E: F: G: >

9 Previous way of working Delivery accuracy in a matrix, with several articles influences increase / decrease of safety days All articles are controlled even, against a certain level of delivery accuracy. At the same time a majority of the articles doesn t have the same demand pattern. Generates a high number of safety days to cover for articles with lumpy demand Delivery accuracy Stock value ranges Frequency A: 0 B: C: D: ' E: >10' A: 0 B: % C: % 86% 72% D: % 62% 77% E: % 77% 92% F: % 86% 84% G: >300 84% 90% 9

10 Ø-number of order rows per day Total Finished goods, purchased X-axis: Article individuals sorted per Ø-number order rows per days Y-axis: Ø-number order rows per day (counts on 220 days for order intake per year) If we analyze the total picture above we find out that we mainly have around some 20 components on our order rows. After that the order rows / day are very low for the majority, that is many slow movers. Finished goods, manufactured Components 10

11 Ø-number of articles per day Total Finished goods, purchased X-axis: Article individual sorted per Ø-number of articles per order row Y-axis: Ø-number of articles per day. If we analyze the total picture above we can clearly see that there normally are very few articles per order row, except for some of the components Finished goods, manufactured Components 11

12 Implementation of SO99+ Stock optimization, Results: Status after 11 months, Feb 2014 Reduction of 11,5 MSEK Target 10MSEK (+15%) In 11 months (45%) of planned project time, 24 months To keep up a better delivery performance we have distributed the effect differently than first planned Target (24 months) Status (6 feb) Reduction Stock value, MSEK* ,5 Run out time (täcktid), days 45 44,4-8,3 Stocked purchased components -10,0 26,3-7,6 * reduced for transfer to Industriventilation Next step: Continued redistribution of stock enables even more increased focus on delivery performance 12

13 Change management & daily meetings 2000 order rows per week in total We error code every deviation by order row level each day Deviations are carefully monitored and proper counter measures implemented In parallel we have implemented daily meetings with members from all departments. Works extremely well. Improvement teams Continued development within leadership We roll out the same model for our manufacturing units in EMEA 13

14 Questions? & Contact info John Rosén Distribution Center Manager AB PH. Nederman & Co P.O. Box 602 SE Helsingborg, Sweden Mobile: Networking: LinkedIn 14