Acme Stamping Steering: Lead-time & Inventory Reduction Project Status Review

Background Stamping division goals require reductions in lead-time, and inventory of 25% this fiscal year. Bracket value stream was a push style of operations with long leadBracket lead time, excess inventory, over-production, and poor on-time delivery performance. A project was initiated to improve in these dimensions targeting full completion by June 2002. Current C diti C t Condition Results
Lead-time Days
23.6 23 6

Inventory $$ $
36K

On-time delivery %
85% 100% 100%

6.0

5.0

14K

10K

Dec. 01

March Target 02 June 02

Dec. 01

March Target 02 June 02

Dec. 01

March Target 02 June 02

Supplier

Production Control Daily D il Order

Customer

PPH

Productivity (Assy.) Hrs. 16 17 12

Overtime 5 .7 Min.

Stamping C/O Time 60 30 0

Dec. 01

10

Stamping Press 2.0 days 2.0 days

Welding & Assembly Production Cell 54 TT

Shipping Prep Area 2.0 days 6.0 days

Dec. 01

March Target 02 June 02

Dec. 01

March Target 02 June 02

March Target 02 June 02

Production Lead Time

Remaining Issues / Action Items Category Lead-time Inventory Delivery y Productivity Overtime C/O Time Remaining Problem
.5 days over goal $4K over goal N/A 1 PPH under goal .7 Hours over goal 20 min. over goal

Key Concepts Implemented: 1) 2) 3) 4) 5) 6) ) 7) 8) 9) Conversion to an improved flow of operations Establishment of supermarkets for Raw, WIP, & FG inventory Creation of replenishment style pull system with kanban signal Creation of a pacemaker cell combining welding & assembly Pacing of all work to takt time and hourly count boards Creation of detailed standardized work for welding and assembly cell g y Leveling of the production schedule in terms of type and quantity Reduction of changeover time at stamping Reduction of lot sizes in stamping

Countermeasure
Reduce stamping WIP Purchase parts market Maintain performance Eliminate overtime Eliminate minor stops Reduce internal work

Responsibility & Due Date

PC by 5/30 PC by 5/30 Operations Ops. By 5/30 Maint. By 5/30 Eng. By 5/30

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