3PSCE Sequencing White paper
Descripción
3PSCE Sequencing White Paper In early 2013 a large manufacturer of consumer goods located in the Midwest approached 3P Supply Chain Engineering (3PSCE) to provide it with an engineering solution to support an upcoming volume increase. At that time, the manufacturing facility produced 25,000 units per day and operated 3 shifts, 5 days per week. The facility consists of 11 final assembly lines. It is also highly vertically integrated, fabricating approximately 40% of the components used in house. Purchased material, not fabricated in house, delivered to the assembly lines consists of small lot parts delivered in hand held totes and large lot bulk material delivered in large returnable or expendable containers, and steel racks. Small lot parts are stored in a central “supermarket” located within the facility and are delivered utilizing trains of tuggers and dollies. Bulk material is stored in an offsite warehouse operated by a 3rd party logistics provider (3PL) and is delivered to the plant in trucks. The bulk material is delivered to the assembly lines with tuggers pulling large dollies, which are displayed directly to the assembly lines. The plant also utilizes automated guided vehicles (AGV’s) to deliver selected commodities to the lines. One assembly line was identified as a bottleneck to the planned 10% volume increase. This line produces 2500 units per day and suffers from a lack of storage space in which to stage inbound bulk material being delivered by the 3PL from the offsite warehouse. 12 bulk commodities consisting of 39 unique part numbers are delivered by the 3PL at a frequency of one trailer per hour, 24 trailers per day. The 3PL loads the trailers in a series of 4 “pods”, or parts groupings, roughly replicating the sequence of parts usage on the assembly line. Contributing to the lack of sufficient storage and adding to congestion on the receiving dock supporting this line is the delivery of finished goods packaging components (shipping bases, protective corner posts, etc.) to the dock. This material consists of 5 components and 7 unique parts. In addition to the lack of inbound bulk material storage space, the plant has identified the under‐ utilization and lack of efficiency of its bulk material delivery drivers as a critical roadblock to achieving the volume increase. Also, because bulk material delivered from the warehouse does not take the location of material on the assembly line into consideration, material used at the end segments of the
line is delivered up to 50 minutes before it is actually required. The plant identified this “roll forward” condition as a driver of excessive material being stored at the line. To address and resolve these issues 3PSCE developed a comprehensive solution to sequence the delivery of bulk material to the assembly line from the warehouse. Utilizing its unique and proprietary software solution along with its long and deep experience in manufacturing supply chains, 3PSCE developed a flexible and agile process to develop a delivery schedule from the actual assembly line’s daily production schedule. This enables material to be delivered directly from the trailers loaded at the warehouse to the specific point of use on the assembly line without the need to be stored in an intermittent in plant storage location. 3PSCE provides detailed loading instructions to the 3PL with calls for the material to be loaded in sequence exactly as it will be required to be consumed on the line. The standardized instructions detail by part number the specific location and sequence in which material is to be loaded. Once received at the dock, the sequenced material is delivered directly to the line by the in‐plant delivery drivers. Whereas previously material would be unloaded, stored, and sorted through to determine which parts need to be delivered; now the material is simply unloaded and taken directly to the line for consumption. The material is in sequence and delivered as it is required. This process also takes the “roll forward” into account by staggering the delivery of material used at the end segments of the line. Because 3PSCE utilizes a “black box” to interface directly with the plant’s ERP system, daily production schedules and schedule changes are read automatically and load instructions are produced automatically. This enables 3PSCE to react within 2 hours with update load instruction to any production schedule change. Proprietary trailer cubing software ensures that the trailers being loaded at the warehouse are fully cubed, eliminating the shipment of partial trailers to the plant. 3PSCE also developed standard circles of work for the in‐plant material delivery drives. The sequence of material delivered establishes a cadence of movement of tuggers and dollies, eliminating driver waiting for material, and searching and sorting of material. Key process indicators (KPI’s) were developed for both the 3PL and in‐plant material delivery drivers. The KPI’s include in‐plant delivery driver utilization (the percentage of available time that the driver is
occupied, not waiting) and the drivers’ efficiency (the percentage of time drivers are performing value added work). KPI’s for the 3PL include trailer loading accuracy as measured by receiving dock audits of the actual loads to the standardized load instructions. A “paper pilot” trail program was developed before full implementation to prove out the process. Run in tandem with the former delivery process, the “paper pilot” ensured that all material was being scheduled in the required quantities and timing to support the line’s production schedule. It also validated the 2 hour reaction time to schedule changes. As a result of its partnership with 3PSCE the plant is able to deliver bulk material in production order sequence directly from trailer to the assembly line without the need to intermittently store the material. This allowed the plant to absorb the 10% volume increase with no facilities modifications. 3PSCE’s proprietary software solution fully cubes trailers being loaded at the warehouse, resulting in a 33% reduction in trailers delivered daily to the plant. The standardized delivery process developed by 3PSCE eliminates the need for drivers to store, sort and double handle material. It also establishes a material delivery cadence in alignment with the assembly line’s production schedule. These actions combined to result in a 25% increase in in‐plant material delivery driver efficiency. 3PSCE is a supply chain engineering partner focusing on developing the lowest total delivered supply chain cost. Its focus is on the integration of optimal packaging design, optimal external delivery processes and optimal in‐plant delivery process to develop the optimal supply chain solution. 3PSCE’s unique and proprietary software and integrated methodology provides rapid and agile solutions to a wide variety of supply chain challenges. For more information please visit 3PSCE.com.
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