Outcome of the cycle time reduction of incoming goods from reception to stock entry

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Further to a short site visit, it was assessed that easy and inexpensive ways enabling our client to shorten the time span between incoming goods and their availability for production lines.
In that time, the goods are paid for but unusable: which increases the working capital requirements. Luxury watch-making industry certainly does not come cheap, amounting to fragile and difficult handling parts, such as gold and diamonds!
How to reduce this timescale by a third?

Original target expressed:

“Determine the benefits of quality and optimisation of receipt, streamline, estimate the maximum potential offset. How to avoid confusion and stock take mistakes.”

Overview Basis

- Flow analysis (VSM : Value Stream Mapping)

  • Internal
  • External
    - Cross-flows
    - Needless flows (goods back and forth), 20 to 30% of stations are empty (trips, loss of time looking for batches),
    - Constant urgency but not reflected in production (structural): 50% of the processes are urgent,
    - Saturated areas of "non flow" : Inadequate staff facilities, constant discomfort,
    - Staff involved:
  • Internal flows: Inputting staff
  • External flows: Logisticians, Quality Control
    - Identification of stoppages and decline of the ERP (SAP),
    - no work pace in Quality Control department,
    - lack of perception to quantify the number of working days for the outstanding processes,

Diagnosis results of the original target

- Obtainable volume with the same amount of staff: minimum +30%,(consequently: -30% of staff in the same roles)
- Establish untracked precious goods movement,
- decrease of staff and goods movements.

Important findings outside the original target

- Possibility to reduce from 6 to 3 days the goods waiting time,
- Easy method to visually check the amount of outstanding work,
- More available space released by the processes.

Assistance in the modifications

- Working procedures put in place, basis of constant development,
- Creation of operational plans and relocation to ensure streamlining between the goods-in department and quality control,
- Increase teams’ flexibility,
- Use of the available space from the processes to improve working conditions, and align subsequent operations,
- standardise quality control work : Pre-preparation : classification of lists of operations for verification, required time.
- Controlled batches visual flow and of those pending a decision,
- Visual indicators setup for processes and production according to the activity : Displayed by the operators according to the number of days worked per individual, own costing and own display of their daily OEE (Overall Equipment Effectiveness) - and not ERP based.

Results at the end of the year

- Inter department line operation teams coordination,
- quality control cells including visual display of processes: “standard trays”,
- teams’ self allocation of cell in accordance to the processes,
- cycle time reduction of goods-in receipt from 6 to 3 days
- No requirement for extra space location.

and progress is still being made ...

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