creating a lean fulfillment stream to meet growing demand · creating a lean fulfillment stream to...
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Creating a Lean Fulfillment
Stream to Meet Growing Demand
Stephane Langevin / Adam Melrose
Sr. Logistics Manager / Director, Warehouse Ops
Bosch Automotive Steering / LeanCor Logistics
HPS Column / I-Shaft EPSdp AFS Heavy Duty EPSapa
Car Steering Systems Other steering components
Customers
Robert Bosch Automotive Steering LLC : Florence, KY : Steering Competence
“We Teach. We Consult. We Do.”
Mission: To advance the world’s supply chains, delivering
exceptional value to our customers.
Trusted supply chain partner that specializes in lean principles to deliver
operational improvement. Three divisions:
What is a Lean Fulfillment Steam?
Planned, stable, visible,
and collaborative
Goal: deliver the highest
value to the customer at the
lowest total cost of
fulfillment
DEMAND
Process
Flow
Inventory
Efficiency
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
Market Growth Sales increase of $549MM (USD) over 3 years
169 237 226
390
586
793
1,000 1,086 1,135
0
200
400
600
800
1000
1200
200
7
200
8
200
9
2010
201
1
201
2
201
3
2014
IP11.1
4 -
2015
Sale
s -
$ M
ils
Project Start Date
Challenges
Market Growth Space Utilization
Process Stability Scalability
Material Flow Safety & Efficiency
Process Discipline Inventory Accuracy
KPI Systems Results Measurement
Changing the culture to put trust in the
process!
Shop Floor Utilization
• 52,000 Square feet of warehouse space
• 18 Assembly lines
Solution
• Dedicated warehouse for raw materials
• SAP driven ordering using Just In Time (JIT)
delivery
• 3 Hours of total inventory between production
and the warehouse
Hourly Delivery : 6 Mile Transit
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
Approach
PLAN
DO CHECK
ACT
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
Project Milestones – Stability
July 2012 – SAP WMS Implementation
• Location management
• Inventory accuracy – 99.8%
by December 2012
• Stable & repeatable process
• Aligned material &
information flow
• ABC counting process
initiated
Dynamic Location:
Directed Putaway for
Reserve Stock
Fixed Location:
Forward Pick –
Replenished from
Dynamic Location
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
DEM
AN
D
PACK QTYHighLow
Hig
hLo
w
Or
COMPARE
Labor Content
Cost by SKU
Project Milestones – Stability
LFC
Topper cart Pallet cart
April 2013 – Plant delivery process : Tuggers
• Standard routes
• Drop off points
• Forklift free
• 5S
Truck every 30 min
Material Flow Increase
* Annual Projection
Year Orders Change %
2012 94,257 -
2013 465,930 394%
2014 1,348,876 190%
2015* 1,588,030 18%
Order Profile
All orders picked & shipped in 60 minutes or less
92% in box/tote quantity
8% delivered in pallet quantity
Plant Inventory Reduction
0
5
10
15
20
25
30
0
10,000
20,000
30,000
40,000
50,000
60,000
2011 Q
4
2012 Q
1
2012 Q
2
2012 Q
3
2012 Q
4
2013 Q
1
20
13
Q2
2013 Q
3
2013 Q
4
2014 Q
1
2014 Q
2
Hrs
in
Pla
nt
Sto
rag
e S
q. F
t.
Sq Ft In Plant Inventory Hours
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
Project Milestones – Optimization April 2015 – Warehouse Picking Optimization
• Productivity increase of 25%
• Wave picking of sequenced deliveries
Current State Space for Growth
Defined & Scalable Process
Improved Material & Info Flow
Increased Inventory Accuracy
Safe & Clean Plant Environment
Transformation Summary Area 2012 2013 2014 2015
Inventory Days 28 26 22 20
Inventory Accuracy 79.0% 99.8% 99.8% 99.9%
In Plant Inventory Hours 24+ 6 4 3
Plant Warehouse Sq. Ft. 52,000 12,000 4,800 4,000
Ordering System ManualSAP
Reservations
SAP E-
Kanban
SAP E-
Kanban
Delivery MechanismForklift &
Tugger
Forklift &
TuggerTugger Tugger
Picks per Month 7,870 36,347 103,146 137,201
Order Types PalletsPallets /
Boxes
Pallets /
Boxes
Pallets /
Boxes
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
Thank You!
Please complete the session survey at:
www.ame.org/survey
Session: (WP/22 )
Creating a Lean Fulfillment Stream to Meet
Growing Demand
Stephane Langevin/Adam Melrose
Bosch Automotive Steering / LeanCor Logistics