subaru’s lean transformation...• 30 minute updates with route and part visibility • enhanced...

SUBARU’S LEAN TRANSFORMATION

Presented By:

Darryl Bol & Michael Meier

Subaru’s Lean TransformationTransformation – Why make a change?

Increased Volume

Bridge Production

Mixed Production

Manage Warehouse

Efficiency

Production Flexibility

Effective & Efficient

Part Separation

Adapt to Schedule Changes

Subaru’s Lean TransformationFactors to Move to Lean Supply Chain

WHSE Space

•Converted for Production Capacity increase

•Reduce Space, Increased Volume, and Additional Complexity

Inventory Policy

•Reduce from 1.2 days -> 4.5 hrs. Standard Inventory

•Less Storage -> High Throughput / Repeatable Delivery Model

Parts Ordering

•Larger Low Freq. delivery-> Small, High Freq. delivery

•Separate Part numbers by A/B Production Line Requirements

•Supplier instructions that are Clear, Concise, and Detailed

•Tie together Part Orders to Transportation Plan, Date, and Time

Capacity Expansion

Efficient Use of Existing

Plant Space

Streamline Processes

Subaru’s Lean TransformationWhat we did and why we partnered with Venture Global Solutions

OCT2015

FEB 2016

JUL 2016

OCT 2016

JAN 2017

APR 2017

BASELINE

•Routing with maps and spreadsheets

•850 DPV•VGS

OPTIMIZATION

• Lean processes/separation ctrs• Technological solutions

•1,000 DPV•VGS EXPANSION

•B Line added•Deliveries specified by Dock and Prod. Line

•1,350 DPV•VGS

NEW PRODUCT

•New Model “Impreza” •50 new suppliers•1,600 DPV•VGS

RE-DESIGN

•New route design for optimum efficiency•1,600 DPV•VGS

INNOVATION

•New cutting edge YMS

•1,600 DPV•VGS

Transformation Timeline

DPV: Daily Production Volume

Subaru’s Lean TransformationDaily Production Timeline

0

200

400

600

800

1000

1200

1400

1600

1800

2015 FEB 2016 JUL 2016 OCT 2016 JAN 2017 2018

AA A A A A

BB B B

Veh

icle

s P

rod

uce

d p

er

Day

2015 - BASELINE• Routing with maps and

spreadsheets• 850 DPV

FEB 2016 - OPTIMIZATION• Lean processes• Technological solutions• 1,000 DPV

JUL 2016 - EXPANSION• B Line added• Dock and Line specific

deliveries• 1,350 DPV

OCT 2016 - NEW PRODUCT• New Impreza • 50 new suppliers• 1,600 DPV

JAN 2017 - RE-DESIGN• New route design for optimum

efficiency• 1,600 DPV

APR 2017 - INNOVATION• New cutting edge YMS• 1,600 DPV

Subaru’s Lean TransformationTotal Alignment: Materials/Logistics - Improved our Supplier Requirements

Managed Transportation

Network

(3PL)

Logistics Optimization

System

Material Management

SIA + 3PL + SupplierStronger Data

Integration

Route Optimization

Carrier/Supplier/Plant Users

Procurement

Finance

WMSWMS

Route Planning & Execution

Supporting Info

ERP/ Purchasing

EDI Info

830862856

21

4

3

5

6

7

81. Plant and supplier location2. Part order quantity3. Baseline route data4. Route optimization results &

updates5. Carrier/Supplier/Plant Interfaces6. Contracted lane information7. Self billed invoices for payment8. Sub/Shuttle/Main Route Schedule

Subaru’s Lean Transformation2015 – Automotive Lean Logistics Optimization Software Implemented

Route planning pre and post network optimization

Daily Production

Value

850

Daily Production

Value

1000

Where we started After optimization

Minimum Flexibility

Direct Routes

Increased Flexibility

Specificdock / line delivery

Subaru’s Lean TransformationFebruary 2016 – New Route DesignRoute planning pre and post network optimization

Network Optimization Lean Logistics Centers Dock Specific DeliveriesAutomotive TMS

Daily Production Value increased from850 to 1,000

N –

10

Wee

ks

Data Collection

N –

9 W

eeks

Data Validation

N –

8 W

eeks

What-if Scenarios

N –

6 W

eeks

N –

2 W

eeks

N –

1 W

eek

N –

0 D

ays

Reporting & Scheduling

Finalize & Execute

Go Live!Transition into New PlanTH

E P

RO

CES

STH

E TO

OLS

New Network Optimization Route PlanningTechnology and process integration: Route design

• New Network Optimization

Tool Launched

• Inbound Optimization Tool

utilized

• System allowed 32 “What-if”

scenarios to be run over a one

week period

• Tool to design high frequency

low inventory lean logistics

network

• Originated from OEM inbound

solution (Global Solution)

• Automotive lean logistics

strategies applied to container

loop

Subaru’s Lean Transformation

New Automotive TMS SystemTechnology and process integration: Route design

• New Automotive TMS system launched (December 2016 -

ALMS/TMW Integration)

• Implemented the Venture Collaboration Suite to receive EDI

214’s including check-calls and 15 minute in-transit check-

calls to show location and time of truck.

• Increased SIA visibility through real time tracking of all

deliveries.

• Reduced standard inventory levels to 4 hours from 1 day

• ALMS Load Forecast allows for daily adjustments.

• 30 minute updates with route and part visibility

• Enhanced driver responsibilities-supplier pallet verification


New Lean Logistics Center

How Lean Logistics Centers reduced in plant material flow

Previous trailers would have mixed

docks and lines

Parts were stored and shuttled

multiple times (Muda/waste)

Now every load that hits the door is line and dock

specific

Key part of the supply network to

drive down wasted moves

and cost

New System utilized with QR

barcode scanning for early problem

detection.


35% Volume increase from 1,000 daily units to 1,350 daily units

Implementation of new Portland, TN Cross Dock

Addition of the B-Line doubled the quantity of Line/Dock Deliveries

Increased internal logistics delivery frequencies –Multiple orders per truck

July 2016Subaru’s Lean Transformation

October 2016 Impreza Launch

New vehicle line which included the addition of over 50 suppliers, 1,000 parts and an increase in planned

vehicle volume from 1,350 cars per day to 1,600

Increased Volume

Bridge Production

Mixed Production

Manage Warehouse

Efficiency

Production Flexibility

Effective & Efficient

Part Separation

Adapt to Schedule Changes


01

02

03

Increased consolidation at Cross Docks for improved trailer utilization

Transportation savings provided through reduction in overall miles driven

Transportation savings through improved driver and trailer utilization.

January 2017 Re-design for Production Volume ChangesSubaru’s Lean Transformation

April 2017 New Yard Management System

The Future of Yard Management: The digital yard is real-time, data-driven, automated, integrated, and connected

1300

1000

1750

850

1600

Uses software to eliminate islands of information

Utilizes automated technologies to locate &

track inventory

Leverages sensor technology to avoid wasting

time, fuel, labor, and product quality

Helps to gain a holistic view of your supply chain


New Yard Management System

300 trailers to 700+

New Yard

Management

System

Drones used to give RFID

reads

Manual system to

automation

Good KPI data to drive

continuous improvement for

Shunting


Yard Operation: Valet

Launched a valet process to streamline yard operations and reduce amount of time drivers spend in the yard before being dispatched on their next route or finishing their day. Improves accuracy of the yard.

Yard Operation: 5S

Dunnage trailers are parked in the same location each day. Improving yard accuracy, reducing the amount of time spent in the yard locating trailers, allowing for yard locations to be shared by several routes throughout the day.

Return Operation: Cross-dock

Successful pilot of dunnage being loaded as sub-routes at SIA. Eliminating the need to handle dunnage at the Cross-dock and reducing the time it takes to get dunnage back to suppliers

Studies: Trailer Yard

Study conducted by a third party organization to find opportunities for improvement in trailer yard operations

Studies: Empty Containers

Study conducted by a third party organization to find opportunities for improvement in empty container handling.

Completed Kaizen ActivitySubaru’s Lean Transformation

Information

✓ New in plant system for returnable container center management Q4 2017

✓ Turnaround time for reroute planning ✓ Order Process enhancements to support

production flexibility✓ In plant systematic material & packaging flow

01

Plant

02

Manage

03

Process

04

Material

Never Complete - Future Kaizen Activity Subaru’s Lean Transformation

Results

Reduced miles p/vehicle by 13%

Created a continuous and even delivery flow (pipeline)

Reduced internal floor space required by 35%

Inbound visibility at the route / part number level

3 Point Check for early part shortage detection

Elimination of waste through dock specific deliveries

Supply Chain visibility for continuous improvement opportunities


Thank YouDarryl Bol & Michael Meier

subaru’s lean transformation...• 30 minute updates with route and part visibility • enhanced...

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