Lean en France 6ENST Presentation

2006October, 6th

Eric Moreau

2006October, 6th

Lean & LogisticsStock Reduction Processes

Eric Moreau

3

Raw Material (Detailed)

3. ReduceLead Time

2. Control Lead Time

1. Understandyour stocks

Pareto

Flat storage FIFO

ABC Analysis

Visualization

Segmentation

Stocks in € or days

Nb of material shortage

4

Raw Materiel inventory segmentation

Stock needed between2 deliveries

Internal flow + supplier MPM

Safety stocks to covertransport risks

Stocks needed to covervariations of demand

5

Raw Material (Detailed)

3. ReduceLead Time

2. Control Lead Time

1. Understandyour stocks

Stocks in € or days

Nb of material shortage

Stocks in days

Pareto

Flat storage FIFO

Excel Software

ABC Analysis

Visualization

Segmentation

6

Detailed check neededat receiving

MPM RISK

Advanced shipmentNotice

Against Lead Time reduction !

Supplier triesto fill up truck

Suppliers paies logistics

DDP Deliveries

Supplier

MILK RUN very difficultto implement

demand => Supplier modifies it

MOI + Stocks

ERP Info (Fluctuation)

RM - Supply most frequent process

7

Supplier

Faurecia decideQuantity

& Lead Time

1st Manifest CheckSupplier

Target = 0 MPM

Receivingprocess issimplified

Less MOI

Faurecia Control

incomingprocessEX WORKS

Leveled demandtrough Manifest

Faurecia Control Lead Time

2nd Manifest checkTruck Driver

Target = 0 MPM

Less stocks

RM - New process to be implemented

Rule : when MPM is not ZERO , Truck can not leave supplier without agreement of Faurecia

8

Raw Material (Detailed)

% suppliers Ex Works

Nb of leveled suppliersManifestLISA

Ex WorksLeveling

3. ReduceLead Time

2. Control Lead Time

1. Understandyour stocks

Pareto

Flat storage FIFO

Excel Software

ABC Analysis

Visualization

Segmentation

Stocks in € or days

Nb of material shortage

Stocks in days

9

Pulversheim

Impact of suppliers leveling

Actual

Nb Leveled supplier

200522

30

9

12

20

7 7

12

1919

12

30

2,5

3,5 3,53,3

3,6 3,6

3,4

3,9

2,9 3,2 2,92,6

0

5

10

15

20

25

30

janv févr mars avr mai juin juil août sept oct nov déc0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

10

Crevin (Seating - JIT plant)

Impact of suppliers leveling

0

500

1000

1500

2000

2500

3000

3500

Janv Févr Mars Avr Mai Juin Juil Août Sept Oct Nov Déc

Mois

K€

Valeur de stock BOP usine

Start of levelling9 suppliers

45 % Sales

Safety stocks (holidays) 14 suppliers

70 % sales 21 Suppliers

96 % Sales

BOP STOCKS 2005

11

Raw Material (Detailed)

Nb deliveries / day

% suppliers Ex Works

Nb of leveled suppliers

Supplier MPM

Milk runs

Switch points

ManifestLISAAlert System

Ex WorksLevelingEducate suppliers

Increase frequency

Reduce transport time

3. ReduceLead Time

2. Control Lead Time

1. Understandyour stocks

Pareto

Flat storage FIFO

Excel Software

ABC Analysis

Visualization

Segmentation

Stocks in € or days

Nb of material shortage

Stocks in days

12

Switch point

Supplier

8h 8h 8h

Full

Empties

Full Full

EmptiesEmpties

13

Raw Material (Detailed)

Nb deliveries / dayLead Time + packaging CapexFrequency of Deliveries

% suppliers Ex Works

Nb of leveled suppliers

Supplier MPM

Milk runs

Switch points

Cross docks

MANIFESTLISAAlert System

Ex WorksLevelingEducate supplier

Increase frequency

Reduce transport timeConsolidate withother plant

3. ReduceLead Time

2. Control Lead Time

1. Understandyour stocks

Pareto

Flat storage FIFO

Excel Software

ABC Analysis

Visualization

Segmentation

Stocks in € or days

Nb of material shortage

Stocks in days

14

Stocks in days

MPMInternal

External

Stock reduction process (WIP, RM, FG)

PPM, Rework, scrap% of breakdownDays of stocks Tool change time

QR/QC7 Quality basicsTPMFix batch Kanban, SMED

Pool stockLevellingboardKanban

Absorb customerfluctuationsPull SystemSplit Stocks

Improve qualityImprove reliabilityReduce batch size everypart / every shift

WIP

FG