Using ERP in aLean Manufacturing environment
Andy Barnes
Operations Manager
Snell & Wilcox Ltd
Outline Agenda
• About S&W
• Supply Process Improvement
• MFG Pro in a Lean Environment
About Snell & Wilcox
History• 1973: founded by Roderick Snell and Joe Wilcox
– To focus on the preservation and improvement of the television image
• 1988: Joe Wilcox retires, 24 employees
• 1993: Introduction of Alchemist with ‘Ph.C’
• 1994: Acquired CEL Ltd
• 1996: MPEG (Moving Picture Experts Group) activities began
• 1999: MXF (Material Exchange Format) work starts
• 2001: Acquired Post Impressions and PSP
• 2005: Turnover ~£36m, 350 employees worldwide
Products- IQ Modular
Products- Switchers
Award winning record
• Four technical Emmys- Phase correlation motion compensation (Ph.C) - the
key to superior standards conversion
- Prefix MPEG pre-processing - saves storage and transmission costs
- DEFT 3:2 cadence detection and repair - improves Hollywood workflow efficiency
- HD up and down conversion - for flexibility in production and broadcast
• Many other awards:- Eight Queens Awards
- First to win two IABM Peter Wayne Technology and
Innovation Awards
Customers including...
Locations
Southleigh Park
HQ, R&D, ManufacturingSouthleigh Park, Havant
R&D, ManufacturingSaffron Walden
R&DNewbury, Liss, Montreal
Sales and ServiceUK, France, Germany, Russia,USA, Hong Kong, China, Japan, India, Lebanon
Supply Process Improvement
Historical Process
• Forecast driven batch build process (push)• Long lead times ~4-6wks• Poor levels of customer service - OTD
~55%• High levels of inventory - stock turns
~4/annum• Quality issues highlighted late in build
process - Rework
Objective
Improve historical levels of on time
delivery, lead time and quality to world
class levels:S&W Target
On time 55% >98%
Response 4-6 wks <5 days
Quality ??? ppm
Time for Change- Spring 2004
• Established a full time multi-functional team
• Capability through intensive training
• External support - Cranfield Consultants
• Pilot project using simple product family - Kudos+
TheSevenWastes
Energy Untapped human resources By-products Inappropriate IT support
OtherCommonWastes
Types of Waste
Motion Transportation Waiting time Overproduction Inventory Processing time Defects
Value Stream Mapping- 1U Gateway Card
Monthly
W eekly
Solder Paste
C/T - 30C/O -FTT - 100%U/T - 100%OPS - 1
SurfaceMount
C/T - 183C/O -FTT -U/T -OPS - 3
Flow Solder
C/T - 330C/O - 0FTT -U/T -OPS - 1
Roving Probe
C/T - 60C/O -FTT -U/T -OPS - 1
Hand Build
C/T - 1447C/O -FTT -U/T -OPS -
Program m ingDownload
C/T - 1200C/O - 396FTT - 89%U/T -OPS - 1
Prim ary Test
C/T - 540C/O -FTT -U/T -OPS - 1
Mech Assy
C/T - 3120C/O -FTT -U/T -OPS - 3
SecondaryTest
C/T - 4620C/O -FTT -U/T -OPS - 1
24 HourSoak
C/T - 86400C/O -FTT -U/T - 100%OPS - 1
Conform anceTest
C/T - 4500C/O -FTT -U/T -OPS - 1
Packing &Shipping
C/T - 300C/O -FTT -U/T -OPS -
63
CUSTOMER
Sales O ffice
Packaging
Shipping
SOP & PLANNING
DAILYMRP
30 Day Forecast
Daily Orders
SUPPLIERS
Monthly Orders
W eekly Orders
Receiving
Distribution
17.530 183 330 60
10.81447
4.11200
3.8900 3120
6.39300 86400 5400 300
39 15 14
10
13
Test
S hopF loor
ocessTimesPr
dtomerdemanbasedoncusLeadTime(
102730 S econds28.53 H ours
(E xclud ing 24h Soak 4 .5 H ours)
42.5 D ays o f S tock = 2.8% VA(is 1020 H ours)
TA KT T im e=72U nits/20
=3.6U nits P er D ay1 E V E R Y 2 H ours
B ased on 36.25/5 N E Thours
VALUE STREAM MAP FOR THE GATEW AYCARD USED IN KUDOS+ PRODUCTS
Batches
Space Transport / handling problems (damage)
Time to make batch - some of which aren’t needed
The Problem with Batches
SMTRobotasFlow Solder
ElectricalAssembly
Mechanical Assembly
TestSoak
Distance travelled between remote “silos” = 470mEach ‘silo’ making batches independentlyDelays and difficult to align production to actual orders – customer lead time 4-6 weeks
Pushing Batches Through• Cycle time to make whole batch – not just what customer ordered• Waiting for other batches• “Pinching” from one batch to fulfil “more urgent” order• High inventory everywhere• Response time = time for complete batch to move through complete process, queuing behind other batches
Inventory
Customer Lead Time
Pull / Flow
SMTRobotasFlow Solder
Cell: Elec/Mech/Test/Soak
Distance travelled between shared resources and cell = 70m (85% reduction)Customer lead time down to final process time <5 days (subject to volume)
Pull only what the customer orders• Cycle time to make quantity actually needed (x) • Flex capacity by moving operators / adding work-stations• No waiting for other batches• No “Pinching” to fulfil “more urgent” order• Only tactical inventory that is not committed to any specific order• Response time = time for each unit required to move through the final process only
Tactical Inventory – Part-built in kanbans &Uncommitted to orders
Customer Demand = x
Customer Lead Time
Work Content
GatewayRear
InterconnectAssy
Mega CardAssy
Front PanelAssy
TestMechanical
AssyFinalTest
Customer
SurfaceM ount
SurfaceM ount
Robotas
3270 m ins
1419 m ins
2660 m ins4465 m ins
7600 m ins 6000 m ins
8700 = m ins ava ilab le pe rpe rson pe r m on th
KANBAN BINS
W ORK STATIONS
T im es show n a re in m inu tes and rep resen tcapac ity o f the w orks ta tion , based on pas tcus tom er dem and o f 80 un its pe r m on th
24hoursoak
Draft Capacity/W orkstation Layout
Actual Cell layout
Gat
eway
LED
Ass
yIQ
Fro
nt P
ane
l
Rea
r P
anel
PS
U A
ssy
Fro
nt P
anel
A
Fro
nt P
anel
B
450
550
600
180
M echan ica l B ox B u ild
P rim ay/F ina l Test
C onform ance Test
P C B A ssy B ench A
P C B A ssy B ench B
5062 m ins
5379 m ins
9486 m ins
3708 m ins
5396 m ins
5674 m ins (w ithgateway & f/p )
24hr
P C B 's From S M T& R obotas
= K anban P art B ins
P ack & S hip
Before After
ClutteredPoor LightingPoor VentilationSearch for tools & parts
OrganisedBrightCleanEverything to hand
PCB Before
PCB After
Test Before
Test After
Kudos+ Workstation
Parts for the build
Build Instruction
Clean & clear place to build the product
Build Instructions
MANUAL No DESCRIPTION 1U Rear Panel Interconnect PCB
ASSY No. SAAN RCIC1U2Z LOCATION ZCELLK A DATE 23/ 08/ 04
10 RMK7 P2RA39 RMK0 0731 RMK6 P1040 RMK0 19
31
40
39
10
STEP – 2Solder components to PCB in thefollowing order:-Item Cct Ref10 CN1039 CN931 CN840 CN7
Numbers in build instruction match those
on the part bins
2 Bin Kanban System
Numbers in build instruction match those
on the part bins
Signal to Build
Empty space is the signal to build
Bin Replenishment
Refilled bins are placed here by stores
Empty bins are placed here for stores to collect
ATE Test Jig
Product can be tested by the person who made it in the cell
Benefits - Kudos+ KPI’s
KUDOS+ PRODUCT CELLWEEKLY KPI'S - OUTPUT
0
5
10
15
20
25
30
35
40
WEEK COMMENCING
LE
AD
TIM
E (
DA
YS
) /
NU
MB
ER
OF
O
RD
ER
S
0%
20%
40%
60%
80%
100%
120%
OT
D %
LEADTIME
NO. OFITEMS
ON TIMEDELIVERY
Extra Benefits
• Improving the process has uncovered more ‘opportunities’ that were hidden
• Helped identify key training requirements within the cell
• Improved floor space utilisation• New Kanban philosophy• Transactions reduced• Continuous improvement ‘culture’ developing
Benefits - Reduced WIP
132 Units
~£400 Each
£52,800
Benefits - Space
274.125m2
20% Overall Reduction
Lean Projects Roadmap
• Kudos+ cell - Completed July 04• IQ Modular - 80% complete
– Box build cell– PCB build & test cell– Box configuration & conformance test cell
• Kahuna cell - 90% complete• Other product cells - December 05• Surface Mount line - 2006
MFG Pro in a Lean Environment
History
• 1994: Introduced Release 7.1 on a UNIX operating system
• 1996: Upgraded to 7.4
• 2002: Upgraded to eb
• 2005: Still bloody character screens!
Supply Process- Pre Lean
SOP
MPS
MRP
WORK
ORDERS
PURCHASE
ORDERS
MRP Planned Orders
determine what we
ACTUALLY
Purchase (PO’s)
and
Manufacture (WO’s)
Supply Process- Post Lean
SOP
MPS
MRP
CRP
VENDOR
SCHEDULES
MRP Planned Ordersdetermine what weMIGHTPurchase (VS)andManufacture (CRP)
Demand Pull (SO,Kanban, Faxban)determines what weACTUALLY Purchase& Manufacture
Supply Process- Vendor Schedules
Delivery Schedule
TOBY ELECTRONICS LTD
Deliver To:
TOBY ELECTRONICS LTD Snell & Wilcox Ltd
BEAUMONT ROAD IND EST Southleigh Park House
BANBURY Eastleigh Road
OXON Havant
OX16 1TU PO9 2PE
GREAT BRITAIN GREAT BRITAIN
Purchase Order:VS00005
Week Commencing...
ItemFab Auth
Raw Auth
RMG9 ELM5/04 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMG9 ELM5/10 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 10WMTSW105 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 10WMTSW110 0 0 0 F 0 F 22 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 20017AR-16G2 0 0 0 F 0 F 500 F 1000 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 24WBOXED 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 399R/A 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 BBS10 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 HW0511GS 0 0 0 F 0 F 450 F 0 P 900 P 1584 P 744 P 0 P 0 P 336 P 336 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 QTE02003 0 0 0 F 0 F 278 F 0 P 0 P 0 P 144 P 72 P 0 P 0 P 180 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 QTE02005 0 0 0 F 0 F 100 F 96 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 198 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 TSW1914TD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 17 0 0 0 F 0 F 0 F 0 P 77 P 28 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 1712001SD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 1712002SDLC 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 36 P 0 P 0 P 70 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 1713001SD 0 0 0 F 0 F 13 F 0 P 0 P 8 P 0 P 6 P 0 P 0 P 12 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 1713002SDLC 0 0 0 F 0 F 0 F 0 P 0 P 17 P 0 P 0 P 0 P 0 P 24 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 19 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 20 0 0 0 F 0 F 4 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 BSW-10204-G-S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 M22-6120822 0 0 0 F 0 F 16 F 0 P 0 P 0 P 1 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 QSE02001 0 0 0 F 0 F 0 F 35 P 0 P 240 P 0 P 240 P 0 P 240 P 176 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 SFML130T2S 0 0 0 F 0 F 39 F 0 P 0 P 0 P 48 P 0 P 16 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 SQT11203FD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 SSQ12001 0 0 0 F 0 F 0 F 0 P 0 P 4 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 SSQ13201 0 0 0 F 0 F 0 F 0 P 0 P 1 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK1 TFML13002 0 0 0 F 0 F 206 F 0 P 68 P 124 P 0 P 68 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK6 SFM105-01 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 14 0 0 0 F 0 F 29 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 16 0 0 0 F 0 F 50 F 0 P 0 P 0 P 25 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 20 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 24/.3 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 28 0 0 0 F 0 F 280 F 168 P 168 P 238 P 154 P 168 P 196 P 0 P 210 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 32.6 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 6PDIL 0 0 0 F 0 F 0 F 345 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK8 8PDIL 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMKA 24/.3SMT 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMKA FTSH10501 0 0 0 F 0 F 500 F 250 P 375 P 0 P 250 P 250 P 0 P 250 P 375 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMKA TFM10522S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMKA TFM12022S 0 0 0 F 443 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMKA SFM12002S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMW4 7642430A 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK3 RCAJACK 0 0 0 F 0 F 0 F 0 P 0 P 0 P 21 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK0 34 0 0 0 F 0 F 0 F 0 P 0 P 12 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
RMK5 16 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0
01/05/06 05/06/06 03/07/0602/01/06 06/02/06 06/03/06 03/04/0605/12/05 12/12/05 19/12/05 26/12/0507/11/05 14/11/05 21/11/05 28/11/05Prior 17/10/05 24/10/05 31/10/05
Supply Process- CRP
Supply Process- Sales Order Processing
PRE LEAN
MPS ATP
POST LEAN
Finite Capacity SchedulingFGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41539 - Line 2FGADG 3768050AARC20:20S ASPECT RATIOSO41345 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11
FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41284 - Line 1
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41243 - Line 3
FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41403 - Line 2
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41284 - Line 1
FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8
FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41402 - Line 2
FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41229 - Line 2
FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8
FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1
FGAN IQH1S-RC-AP-BMOD-1U FRAME+ACTIVE F/P+SO41326 - Line 1
FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41158 - Line 2
FGACU 3548300BTBS180 ADVANCED TIMEBASESO41162 - Line 7
FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1
FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41321 - Line 13
FGACZ 3598300BCVR250 ACTIVE F/P 10-BITSO41273 - Line 1
FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41158 - Line 2
FGACU 3548500BNRS70 ACTIVE F/P 1RUSO41162 - Line 6
FGACU 3548410BTBS185AV ADVANC TBC WITHSO41545 - Line 1
FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1
FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41321 - Line 13
24/10/05 25/10/05 26/10/05 27/10/05 28/10/05 31/10/05 01/11/05 02/11/05 03/11/05M T W T F M T W T
Supply Process- Material Transactions
PRE LEAN• MRP Planned Orders Report (23.12)
• Check for shortages (13.8.18)
• Firm Plan Work Order (16.1)
• Release Work Order (16.6)
• Kit Work Order (16.10)
• Make Product / Assembly
• Receipt Work Order into stock (16.11)
POST LEAN• Make Product / Assembly
• Advanced Repetitive Backflush Product / Assembly (18.22.13):
– Cumulative Work Order– Consume materials– Consume labour @ standard– Receipt into stock
ANY QUESTIONS?
Thank you
Top Related