PowerPoint Presentation

Team membersBowen DaiYiteng ZhangMengzhe ZhaoVishal HonavarManinder Singh

Raw Material Management: GEP East Wall

1

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

2Agenda

2

3

FOUNDERS:Henry Sherwin and Edward WilliamsESTD: Founded in 1866 and incorporated in Ohio in 1884PRIMARY BUSINESS: manufacture, distribution and sale of paint, coatings and related productsASSET CAPABILITY:The biggest paint manufacturing facility in North America.MATERIALS:164 raw materials are used in this division, out of which 63 are the primes ones which are used in GEP for the production.

4

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

5

Agenda

6

6

Introduction

Supply Chain Network

Problem Statement : Process Map

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

7

Agenda

Understand the Raw Material Management process followed at the Sherwin Williams facility and conduct an assessment of the existing process. Additionally, provide business recommendations around the most critical raw materials that affect manufacturing productivity.

The storage location is not structurally well organized . AndRaw materials are in excess quantity against existing space availability.

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

11

Agenda

Research and study industry practicesStudy As-Is Process MapData gathering

DMAIC 12

Fishbone AnalysisPareto AnalysisABC Analysis

13

Source: Sherwin Williams GEP officials and employees

13

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

14

Agenda

15

Raw Materials Breakup

16

ABC Analysis

Source: Company data

16

Zhang, Yiteng (ZY) - Add cumulative percentage coloumn in this.17

Pareto Chart

18

Data Analysis : Docking and Storing

Source: Company dataCondition criteria

ConstraintsPallet Area (Sqft.)13.33Load per pallet (lbs)2000Month30 DaysHolding cost12% annuallyPallets per lane12Order per month140DOCKING CONDITIONTRUEWAREHOUSE AREA (Sqft.)11781658220STORING CONDITIONFALSE

18

19

Data Analysis : Material Allocation

ORDERS PER MONTH140ORDERS PER YEAR1695Pallet Dimensions (Sqft.)13.33Pallet Weight (lbs)2000Total Pallets per year34913Total Pallets per month2909

Storage LocationPallet AvailibilityStorage 1 (Sqft.)1908Storage 2 (Sqft.)105Storage 3 (Sqft.)30Total (Sqft.)2043Excess pallets per month866

Class A pallet allocation1430Class B pallet allocation511Class C pallet allocation102

Demurrage cost per truck (USD)$300Excess orders in total41Total valuation $12,377Yearly valuation$148,5294 year evaulation$594,117

Source: Company data

Zhang, Yiteng (ZY) - Put dollar signsIntroduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

20

Agenda

Implementation EffortDifficult

Value PotentialLowHighEasyLane Classification based on ABCDrive-In Racking SystemBetter Visibility of StockBuilding New WarehouseSafety Stock reduction

Low hanging fruitDont botherLeast worthyMore Analysis Needed

Drive-In Racking SystemLane classification based on ABC

Existing process

Build a Warehouse

24

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

25

Agenda

Continue with existing process and design lane classification, ABCStep I4 6 Weeks(Approx.) Implement ABC lane classification and measure its benefits

Step II4 7 Weeks(Approx.) Get approval for building a new warehouse, if not then follow step 4Step III10 20 Weeks(Approx.) Get approval for Drive-In Racking System and get it built

Step IV10 12 Weeks(Approx.) 26

Introduction

Supply Chain Network

Problem Definition

Research Methodology

Quantitative Analysis

Recommendations

Implementation Roadmap

Summary

27

Agenda

Root cause of the problemQuality Control toolsProcess ImprovementsRecommendations Mitigation Plans

28

Prof. Gene Deluke| Instructor: Capstone Project| UT Dallas29Special Thanks

Kenny Linger| Continuous Improvement Manager| Sherwin Williams

30

31

Supplier: Raw Material

Garland Emulsion Plant (GEP)

Distribution Center at Waco,TX

Sherwin-Williams Stores

Building Constructors

Retail Stores (Wal-Mart, Sears etc.)

Dallas Emulsion Plant (DEP)

Customers

Supplier

Manufacturer

Distributor

Retailer

End Customer

Supplier: Raw Material

Garland Emulsion Plant (GEP)

Distribution Center at Waco,TX

Sherwin-Williams Stores

Building Constructors

Retail Stores (Wal-Mart, Sears etc.)

Dallas Emulsion Plant (DEP)

Customers

Supplier

Manufacturer

Distributor

Retailer

End Customer