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Shipping:Process to Pull MRL’s & Requisitions

November 2011

Kaizen Event

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• Preparation Work: • Establish the Need (Business case).• Performance Metrics.• Demand

• Value Statement, Key Reqm’ts,

• Collect Team Member Ideas

Outline of the Week

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• Day 1 : Grasp the Current State Map the current state

Spaghetti Diagrams Map the Information & Material Flow

Study each process step.Process cycle times, WIP, total flow time, etc

Statement of the Ideal – Create Future State

• Day 2: Big Changes (make the change)• Day 3: Run the new process• Day 4: Standardize & Train – Stabilize new process• Day 5: Report results.

Outline of the Week

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Business Case

Growth is expected: From $120 M to $200 M approx 15-20% / year

Market Pressures Drive: Complexity Speed Quality Pricing

Shipments 2010 2011 2012

Parts Shipped / month 210,000 220,000 235,000

Create a process capable of making: perfect shipments, more often, with less effort.

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Value Statement

What Value does the Shipping Team bring to HF and The customers?

Product KnowledgeJIT Delivery in Perfect Condition

With product knowledegable personnel we will deliver to our customer the products when wanted, where wanted, and in perfect condition.

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Stand Up Rack V S M

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Requisition V S M

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Key Requirements

Billing and shipping Must be in the same month

Transport Weight Rqmt’s (DOT)4,000#/ Basket3,500# Basket for CA (only)

HF Basket / handling system (Physical /Mech)

API Aware of 8’ support Rqm’t

Maintain FIFO

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Performance Metrics

Quality: Order AccuracyCurrent : 35-65 errors / WkTarget: Less than 5 errors / Wk

Delivery: Time to Pull (Single route)Current: Brownsfield Range from 3:20’ - 5:30’

Hobbs Range 4:45’ - 7:20’

Productivity: Parts / man hourLine Items / man hour

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Statement of the Ideal

On Demand: JITFlow: Simple & DirectDefect Free1 by 1Easy & Low Cost methods

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Was

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Shipping Dock

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Bundling Area

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Ideas from the workers

On Demand: JITFlow: Simple & DirectDefect Free1 by 1Easy & Low Cost methods

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Communications with team

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Moving the racks

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Current State

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After Kaizen Bundling

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After Kaizen MRL Stations

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After Kaizen Stand Up

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After Kaizen Dock Area