Lean Supply Chain lecture at SITL Europe - Yves Merel on 27 March 2012
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Transcript of Lean Supply Chain lecture at SITL Europe - Yves Merel on 27 March 2012
Lean Supply Chain at FCIYves Merel, VP Industrial Development
• Creation in 1988 by Framatome for diversification outside nuclear field
• 20+ acquisitions and 20+ years later, FCI is one of the largest global connector manufacturers
• November 3, 2005: FCI is acquired by Bain Capital, a private investment fund
• With operations in 30 countries and a turnover of 1.3 billion € in 2011, FCI is a leading connector manufacturer
• Its 14,000 employees are committed to providing their customers with high-quality and innovative products for a wide range of consumer and industrial applications
FCI Background and Profile
EuropeBesancon, FranceEpernon , FranceNuremberg, GermanyMattighofen, AustriaTatabanya, HungaryTurin, Italy
AmericasHuntingdon PA, USA Huntingdon PA, USA Juarez, MexicoSan Pedro Sula, HondurasSao Paulo, Brazil
AsiaBangalore, IndiaCochin, India Cochin, IndiaCochin, India Jurong SingaporeSenai, MalaysiaNantong, ChinaNantong, ChinaDongguan, ChinaNamyang, KoreaIshioka, Japan
22 Factories Worldwide
Continuous ImprovementDelivery (from 35% to 15% late)
Inventory (from 60 to 35 days)
Safety (from 8 to 2 accidents /month)
Quality (from 150 to 30 complaints /month)
Just In Time Principle
Typical FCI factory
StampSupplier Plate Assemble Customer
Stock Stock
Shippingwarehouse
Receivingwarehouse
1 changeper day
2 trucks per month
1 changeper shift
2 changesper shift
1 truck per week
23 days 3 days 2 days 7 days
Flow Time 35 days Difficult to forecast Useless inventories & shortages 15% Late Delivery
Easy to forecast No emergency to manage < 5% Late Delivery
FCI factory at target
StampSupplier Plate Assemble Customer
Shop Stock Shop Stock Truck PrepSupermarket
4 changesper shift
1 truck per day
4 changesper shift
10 changesper shift
1 truck per day
Shop Stock
Flow Time 10 days
3 days 1 day 1 day 2 days3 days
1- Production Batches
C/OPRODUCTION
time
SM
ED
WO
RK
SH
OP
BE
NE
FIT
S
SMED workshops are used to reduce the changeover time to the minute level and produce every part every day without consuming more than 10% of the
machine timeEPEI (from 8 to 4 days)
2- Procurement Batches
Receiving Frequency (from 10 to 5 days)
Milk Runs and Single Box Orders are used to buy the exact need and transport every part every day without spending more on freights
0
5
10
15
20
25
30
35
40
Agin
g In
vent
ory o
ver 5
wee
ks (M
€)
3- Visual Controlled Storage
Aging Inventory (from 37 to 20 M€)
Flow Racks, Kanban and Truck Preparation Areas are used to highlight excesses and shortages and allow management to conduct daily problem solving routines
Flexibility2011 average
Target
2008 average
Inventory is the Enemy of Delivery