Creating a Lean Fulfillment Stream to Meet Growing Demand

Transcription

1 Creating a Lean Fulfillment Stream to Meet Growing Demand Stephane Langevin / Adam Melrose Sr. Logistics Manager / Director, Warehouse Ops Bosch Automotive Steering / LeanCor Logistics

2 Robert Bosch Automotive Steering LLC : Florence, KY : Steering Competence Car Steering Systems Other steering components EPSdp EPSapa HPS Column / I-Shaft AFS Heavy Duty Customers

3 Trusted supply chain partner that specializes in lean principles to deliver operational improvement. Three divisions: We Teach. We Consult. We Do. Mission: To advance the world s supply chains, delivering exceptional value to our customers.

4 What is a Lean Fulfillment Steam? Planned, stable, visible, and collaborative Process Goal: deliver the highest value to the customer at the lowest total cost of fulfillment Efficiency DEMAND Inventory Flow

5 Problem Statement In 2011 Bosch Automotive Steering had sales that exceeded current production capacity 3 years growth projected at 94% increase for emerging technologies Factory footprint at 100% + utilization Campus landlocked by airport property

6 IP Sales - $ Mils Market Growth Sales increase of $549MM (USD) over 3 years ,000 1,086 1,135 Project Start Date

7 Challenges Market Growth Process Stability Material Flow Process Discipline KPI Systems Space Utilization Scalability Safety & Efficiency Inventory Accuracy Results Measurement Changing the culture to put trust in the process!

8 Shop Floor Utilization 52,000 Square feet of warehouse space 18 Assembly lines

9 Solution Hourly Delivery : 6 Mile Transit Dedicated warehouse for raw materials SAP driven ordering using Just In Time (JIT) delivery 3 Hours of total inventory between production and the warehouse

10 Starting Condition Area Stats Inventory Days on Hand 28 Inventory Accuracy 79.0% In Plant Inventory Hours 24+ Plant Warehouse Sq. Ft. 52,000 Ordering System Manual Delivery Mechanism Forklift & Tugger Picks per Month 7,870 Order Types Pallets Only

11 Approach Slow and steady change Develop implementation roadmap (line x line) Implement KPI management (SQDC) Improve inventory accuracy Slowly speed up material flow Build trust on the shop floor Reduce inventory levels ACT PLAN CHECK DO

12 Project Milestones Stability July 2012 SAP WMS Implementation Dynamic Location: Directed Putaway for Reserve Stock Fixed Location: Forward Pick Replenished from Dynamic Location Location management Inventory accuracy 99.8% by December 2012 Stable & repeatable process Aligned material & information flow ABC counting process initiated

13 Low DEMAND High Project Milestones Stability April 2013 SAP E- Kanban Launch Plant inventory 3 hour total loop by April 2014 Pull system based on usage (virtual cards) Right sized lineside storage quantities Or COMPARE Labor Content Cost by SKU Low PACK QTY High

14 Project Milestones Stability April 2013 Plant delivery process : Tuggers Standard routes Drop off points Forklift free 5S Topper cart Pallet cart Truck every 30 min LFC

15 Material Flow Increase Year Orders Change % , , % ,348, % 2015* 1,588,030 18% Order Profile * Annual Projection All orders picked & shipped in 60 minutes or less 92% in box/tote quantity 8% delivered in pallet quantity

16 2011 Q Q Q Q Q Q Q Q Q Q Q2 Storage Sq. Ft. Hrs in Plant Plant Inventory Reduction 60,000 50,000 40,000 30,000 20,000 10, Sq Ft In Plant Inventory Hours

17 Current Shop Floor Utilization Converted 48,000 square feet to assembly 9 Additional assembly lines 4,000 Square feet of bulk Kanban storage Additional free space for new business

18 Project Milestones Optimization April 2015 Warehouse Picking Optimization Productivity increase of 25% Wave picking of sequenced deliveries

19 Space for Growth Current State Defined & Scalable Process Improved Material & Info Flow Increased Inventory Accuracy Safe & Clean Plant Environment

20 Transformation Summary Area Inventory Days Inventory Accuracy 79.0% 99.8% 99.8% 99.9% In Plant Inventory Hours Plant Warehouse Sq. Ft. 52,000 12,000 4,800 4,000 Ordering System Delivery Mechanism Manual Forklift & Tugger SAP Reservations Forklift & Tugger SAP E- Kanban Tugger SAP E- Kanban Tugger Picks per Month 7,870 36, , ,201 Order Types Pallets Pallets / Boxes Pallets / Boxes Pallets / Boxes

21 Next steps Purchasing Logistics : One strategy Develop local suppliers: ship to line (kanban) Develop cross dock Consignment stock for overseas suppliers Have Lean Fulfillment Center closer to the plant: Reduce inventory <1 h Reduce logistics cost Packaging standardization

22 Thank You! Please complete the session survey at: Session: (WP/22 ) Creating a Lean Fulfillment Stream to Meet Growing Demand Stephane Langevin/Adam Melrose Bosch Automotive Steering / LeanCor Logistics Stephane.Langevin@bosch.com AMelrose@LeanCor.com