Lean Warehouse Strategy• Create an empowered and

self directed work force, managed by exception, using visual controls and standard work.

• Elimination of Waste and reduction of variation by striving for clean, professional environment; using Lean Sigma philosophies and tools.

Receiving CharterBusiness Case• All purchased material delivered to

Loram needs to be received same day.

• Customer expectations of presentation, delivery, and ease of consumption.

• Aligns with Speed and Performance critical success factor and 2014 Lean Initiative.

Opportunity Statement• Current resource needs are 1-4

resources to receive 300-600 lines per day.

• Average time per line received is 2.5 minutes ($3.25 per line).

• Material is touched up to 9 times before being put away.

• Material is traveling thousands of feet before being picked.

Goal StatementY = Move receiving to south bay, 5S area, and streamline processes by 3/31/2014.

X1: Reduce the time it takes to receive a non-inspection line item by 50%.

X2: Reduce the distance receiving material travels to picking process by 50%.

X3: Reduce the number of times material is touched from delivery to beginning of picking process.

Project Scope• Process steps from delivery to

material put away.

• Areas directly affected are Receiving and Warehouse, Inspection location

• Creation of Visual controls to enable management by exception.

• Out of scope :• Picking process and Locating• Inspection process• All other departments

Project Plan• Kaizen Event start date of 3/10/14 with

a completion date 3/21/14 with 4 hour days.

The steps will include:• 5S event• Spaghetti Map• Value Stream Map• Visual Metrics• Standard Work

Team MembersSponsor- Scott HeilmanProject Lead- Jim Cox

8 cross-functional teammates - Ian Torning (Material Handler) - Robert Hilger (Material Handler) - Brent Hobert (Cost Accounting) - Barb Christensen(Logistics) - Keith Rhein (Production Planner) - Bryan Budahn (Lean) - Jennifer Kortekaas (Procurement) - Joe Mutua (MPE)Subject matter experts – On call

RECEIVING BEFORE PICTURES

RECEIVING BEFORE PICTURES

To be received (no Receiving Lanes)

What is Next?

• Shipping Kaizen• Bay 2 Renovation

Shipping Kaizen CharterBusiness Case• All material shipped to customers to be

picked, packed and shipped same day or next day

• Future layout requests “Nothing on the Floor”

• Customer expectations of presentation, delivery and ease of delivery

• Aligns with Speed and Performance critical success factor and 2015 Lean Initiative.

Opportunity Statement• Current resource needs are 1-4

resources to stage, audit, pick pack and ship 100-250 lines per day

• Average cycle time per line shipped is XXX minutes

• Material is touched up to XXX times before being shipped out

• Material is traveling XXX thousands of feet before being shipped

• Accuracy expectation is 100% accuracy; currently XXX

• Average Cycle time per Order to ship is XXX minutes

Goal StatementY = Reduce the Non-Value added time by 50% by Streamline & align shipping department processes. X1: designated space for WIP and FG

X2: Implement one piece flow: pick, pack and ship of an order

X3: Reduce the distance material travels in warehouse before being shipped by 50%

Project Scope• Process starts: Shipping Pick order

• Process Ends: Material shipped, Transacted, and on a truck to customer

• Areas directly affected are Shipping, Warehouse and Logistics

• Establish KPI’s in webfocus to enable management by exception

• Out of scope :• Inventory Control Functions• Receiving Inspection Processes• Customer Service

Project Plan• Kaizen Event start date of Feb 16 with

a completion date Feb 20 with 8 hour days.

Day 1 – Orientation See Link on slide 3 Day 2 - Understand the current situation Day 3 - Develop the future state design Day 4 - Make the improvements Day 5 - Report and celebrate

The steps will include:• Value Stream Maps

• Standard Work• Spaghetti Map• Visual Metrics

• 5S activity

Team MembersLean Coach – David BadgerSponsor- John PilarskiProject Lead- Scott Helmancross-functional teammates - Dan Ullsperger (Material Handler) - Curt Lindsley (Material Handler) - Kim Berg (Manager, Financial - Dan Leverenz (Logistics Specialist) - Aaron Lewis(Safety Specialist)

Subject matter experts – On call