Presentation on theme: "1 Distribution Capacity Analysis P09721 MSD II Final Presentation Distribution Capacity Analysis P09721 MSD II Final Presentation Aaron Heyman – Lead Jose."— Presentation transcript:
1 Distribution Capacity Analysis P09721 MSD II Final Presentation Distribution Capacity Analysis P09721 MSD II Final Presentation Aaron Heyman – Lead Jose Rodriguez Adam Cook Abraham Taleb
2 Project Description Problem Statement: What is the maximum # of orders/lines/units this facility can process in a given time period based on the current equipment/software? Problem Statement: What is the maximum # of orders/lines/units this facility can process in a given time period based on the current equipment/software? Processes In Scope: Receiving > Put Away > Replenishment > Picking > Packing > Shipping Processes In Scope: Receiving > Put Away > Replenishment > Picking > Packing > Shipping Pick and pack will likely be the first areas of focus. Others can and will be added given the teams ability to handle a broader scope Pick and pack will likely be the first areas of focus. Others can and will be added given the teams ability to handle a broader scope
3 Customer Need # ImportanceDescriptionComments/Status CN15The time required to train users is minimal.Met CN25The computer tool is user friendly.Met CN33 The computer tool is able to be upgraded and/or modified in the future. Met CN45The computer tool represents the real world.Met CN53The computer tool identifies invalid data inputs.Met CN61The computer tool executes commands quickly.Met CN73 The computer tool alerts the user when a given demand input is not realizable given actual capacity. Met CN83 The computer tool allows the user to visualize all the information on a single screen. Met CN93 The computer tool provides the option to print a report of the output. Met Customer Needs Importance Scale: 5= Must Have 3= Nice To Have 1= Preferential
4 Metrics & Specifications Engineering SpecificationsMetrics 1The training time is less than 30 minutes.Training Time 2The computer tool is user friendly.Ease of use 3The computer tool is able to be upgraded and/or modified in the future.Flexibility 4The system represents the real world.Validity Test 5The system identifies invalid data inputs.Ease of use 6The system executes a command in no more than 0.25 minutes.Execution Time 7The system alerts the user when a given demand input is not realizable given actual capacity.Validity Test 8The computer tool allows the user to visualize all the information on a single screen.Validity Test 9The computer tool provides the option to print a report of the output.Validity Test Table 1.1 Relationship of customer needs to metrics Target Specifications Metrics Need Nos.Importance Units Ideal ValueMarginal value 1Training Time15Minutes<30<60 2Ease of use2,55Subjective53 3Flexibility33BinaryYes 4Validity Test4,7,8,91BinaryPass 5Execution Time61Minutes0.050.25 Table 1.2 Target Specifications Importance Scale: 5= Must Have 3= Nice To Have 1= Preferential Binary: Pass or Fail.
5 Goals for MSD II Add Pack area to computer tool Add Pack area to computer tool Validate computer tool through historical data and on floor trials Validate computer tool through historical data and on floor trials Turn computer tool over to customer for implementation Turn computer tool over to customer for implementation Identify process improvement opportunities and present to customer Identify process improvement opportunities and present to customer Implement desired process improvement projects Implement desired process improvement projects
6 MSD II Project Description Capacity Capacity Analysis/Computer Tool (Aaron and Adam) Process Process Improvements (Abe and Jose)
7 Tool Description Focuses on labor needed for given demand Focuses on labor needed for given demand Modifiable to accommodate future changes Modifiable to accommodate future changes Has the ability to calculate various input structures Has the ability to calculate various input structures Has capacity analysis portion where user can experiment with different scenarios Has capacity analysis portion where user can experiment with different scenarios
8 Updates to Tool Pack added Pack added Picking validated Picking validated Pack validated Pack validated Capacity Analysis of Pick and Pack Capacity Analysis of Pick and Pack Added Printable Sheet Added Printable Sheet
10 Data Validation PickADMPTLVoiceCarouselTotalCalculated6.25110.49106.7518.54241.74 Actual5.6108.09104.9521.55240.19 Labor hours per area over 25 day time period -0.64%
11 Pack Second sheet in Excel Workbook Contains Pack Data
12 Packing Explanation The team chose to use Orders for pack calculations instead of lines. The team chose to use Orders for pack calculations instead of lines. This was chosen due to the high variability in the size of lines being packed. This was chosen due to the high variability in the size of lines being packed.
14 Overall Capacity View Third sheet in Excel Workbook Contains Overall Capacity View Based on Demand %, the Max Total Demand Supported is
15 Maximum Outputs for Pack Areas Fourth sheet in Excel Workbook Contains Detailed Pack Capacity
ADM Kaizen Initial meeting – April 17, 2009 9:00 am – People present Inventory control Replenishment personnel ADM operators Pick Supervisors RIT Students Meeting was very productive, everyone contributed with good suggestions and critiques.
Ideas Discussed Ideas discussed – Single label with color coding, and barcode included – Two labels: one with barcode and another with three digits and colors
Ideas Discussed – Re-slotting carton flow racks – Incorporate a flag system v.s.
Meeting Conclusions Single label with barcode Re-slotting carton flow racks, not agreed – The benefits obtained from this are not so large when compared to the effort to be invested Flags are to be incorporated only for the high movers as having 500 flags will drive operators crazy
Final Label Design Two sizes, one for ADM and one for carton flow racks If white background is allowed next to barcode, number of colors can increase
Cost/Benefit Analysis Assumptions – Define a defect as replenishing a slot in the ADM with wrong product. Considered only locations with <95% accuracy – Sample cycle counted is representative of the state of whole system – Labor costs $10/hr – Assume 920 slots currently being used
Cycle Count ADM - Results # of locations<95% accurate# of Locations <95% Nov.0892016%147.2 Dec.0892017%156.4 Jan.0992020%184 Feb.0992033%303.6 Total defects791.2 Costs - Results Number of defects (1)792 Number of hours per defect (2)0.4 Cost of labor hour (3) $ 10.00 Total cost of defects (1x2 x3) $ 3,168.00 Time spent on a single defect Time (mins) 2Packing defect recognition 3Packing notifies the search and rescue team 12Fill out form and travel to and from ADM to pick the right product 2Repack the order 5Check the slot that contained the wrong product potentially remove items that are not supposed to be there. TOTAL minutes per defect 24 Cost of labels $ 1,200.00 Cost of defects $ 3,168.00 Payback period (months)4.55 Cost/Benefit Analysis
Implementation Plan If approval is not obtained within timeframe, transition document will be developed. If approval is obtained in time and product is received before Thursday may 14th, the implementation will be executed. – To minimize potential errors, no two stickers will be removed at the same time.
ADM Replenishment Flags Solution that all parties want but difficult to implement Other Solutions involved showing the current levels of all channels Idea for spring activated flag was generated but mechanics are difficult Advantage would be flag would only show when current channel needed product. Refilling channels before they become empty would increase productivity
Shipping Conveyor Kaizen Event The Shipping Conveyor Kaizen was attended by representatives from packing, shipping and engineering. Quick decision was made to add Spring- loaded bottoms to re-sort bins, especially in light of the recent injuries. Discussion of mechanical solution lead to mostly dead ends. Most solutions have been tried before (Adding chutes instead of rollers, speeding up/down conveyors).
Shipping Conveyor Kaizen Event The final discussion focused on boxes being placed on the conveyor incorrectly Lisa defended that it is difficult to place the box correctly every time with the expectation to ship so many orders per hour Solution was generated to remind packers at weekly meetings to place boxes label side up and vertically oriented
Shipping Conveyor Today Spring bottoms have arrived and installed in the re-sort bins UPS blue bins will be switched out of those locations and replaced with either red or green bin Labeling has also been designed for bin stating DO NOT REMOVE Movement of MTO to a spot on the shipping conveyor will go a long way to reduce the number of packed boxes that need resorted.