Matching Material In-flow with Pace of Production to Avoid Stoppages

ERP – Microsoft AX

New business system software to lay the

foundation to be able to modernize processes and take advantage of tools such as MRP and

planned production orders

Internal Supply Chain Redesign

Reworking the inventory control

process (including receiving and

delivering) and designing a central

warehouse for storage

System Reliability

Proactively searching out problematic areas

within the design architecture and

addressing the most critical and those with

the largest return

Define Concept Design Optimize Verify

Through interviews and observation, we mapped

the system. Once the context was understood,

recognizing that purchasing was the bottleneck became

evident

We were scraping the old ways and redesigning everything.

We had to measure physical dimensions for

warehouse spatial estimates.

Two other designs were considered before selecting the one above.

Next we had to figure out how the warehouse would perform its functions.

Stocking the warehouse ended up as above and next we needed to set the levels according to EOQ model FEMA: We were not able to pilot so we had to outsource EOQ sensitivity analysis and reorder trigger error-proofing to two Yellow Belts.

We did not have the full amount of required resources so we will implement in phases

Will add in visual aids and

routines in addition to system/data monitoring

The front end can get messy; the important thing is see the big picture so you can understand the context. Be quick to

absorb your self into their system.

Don’t assume design is a linear process and that you complete it “one and done”. Design is an extremely

iterative process

Organizations are in these positions because of their

habits; projects last because they change habits

Manual, proactive system to aid ERP

transition

Centralized control of inventory

Quantitative-based ordering method

Consolidated space, inventory, and data

Reactive, “tribal-

knowledge” based ordering

Shortages common

All inventory stored on floor

Lots of NVA time spent looking for parts

Employees take parts from other depts. to stock their areas

Current State

Manual, proactive ordering via Kanban signal

Shortages mitigated with safety stock

Inventory centrally controlled in warehouse

Order quantity based on data

Parts are sent to floor together as a kit or in a replenishment bin

Design State

Sutphen is a family own and run company that prides themselves

on production of high-quality, dependable customizable fire

trucks of iconic design.

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