Using ERP in a Lean Manufacturing environment Andy Barnes Operations Manager Snell & Wilcox Ltd

Using ERP in aLean Manufacturing environment

Andy Barnes

Operations Manager

Snell & Wilcox Ltd

Outline Agenda

• About S&W

• Supply Process Improvement

• MFG Pro in a Lean Environment

About Snell & Wilcox

History• 1973: founded by Roderick Snell and Joe Wilcox

– To focus on the preservation and improvement of the television image

• 1988: Joe Wilcox retires, 24 employees

• 1993: Introduction of Alchemist with ‘Ph.C’

• 1994: Acquired CEL Ltd

• 1996: MPEG (Moving Picture Experts Group) activities began

• 1999: MXF (Material Exchange Format) work starts

• 2001: Acquired Post Impressions and PSP

• 2005: Turnover ~£36m, 350 employees worldwide

Products- IQ Modular

Products- Switchers

Award winning record

• Four technical Emmys- Phase correlation motion compensation (Ph.C) - the

key to superior standards conversion

- Prefix MPEG pre-processing - saves storage and transmission costs

- DEFT 3:2 cadence detection and repair - improves Hollywood workflow efficiency

- HD up and down conversion - for flexibility in production and broadcast

• Many other awards:- Eight Queens Awards

- First to win two IABM Peter Wayne Technology and

Innovation Awards

Customers including...

Locations

Southleigh Park

HQ, R&D, ManufacturingSouthleigh Park, Havant

R&D, ManufacturingSaffron Walden

R&DNewbury, Liss, Montreal

Sales and ServiceUK, France, Germany, Russia,USA, Hong Kong, China, Japan, India, Lebanon

Supply Process Improvement

Historical Process

• Forecast driven batch build process (push)• Long lead times ~4-6wks• Poor levels of customer service - OTD

~55%• High levels of inventory - stock turns

~4/annum• Quality issues highlighted late in build

process - Rework

Objective

Improve historical levels of on time

delivery, lead time and quality to world

class levels:S&W Target

On time 55% >98%

Response 4-6 wks <5 days

Quality ??? ppm

Time for Change- Spring 2004

• Established a full time multi-functional team

• Capability through intensive training

• External support - Cranfield Consultants

• Pilot project using simple product family - Kudos+

TheSevenWastes

Energy Untapped human resources By-products Inappropriate IT support

OtherCommonWastes

Types of Waste

Motion Transportation Waiting time Overproduction Inventory Processing time Defects

Value Stream Mapping- 1U Gateway Card

Monthly

W eekly

Solder Paste

C/T - 30C/O -FTT - 100%U/T - 100%OPS - 1

SurfaceMount

C/T - 183C/O -FTT -U/T -OPS - 3

Flow Solder

C/T - 330C/O - 0FTT -U/T -OPS - 1

Roving Probe

C/T - 60C/O -FTT -U/T -OPS - 1

Hand Build

C/T - 1447C/O -FTT -U/T -OPS -

Program m ingDownload

C/T - 1200C/O - 396FTT - 89%U/T -OPS - 1

Prim ary Test

C/T - 540C/O -FTT -U/T -OPS - 1

Mech Assy

C/T - 3120C/O -FTT -U/T -OPS - 3

SecondaryTest

C/T - 4620C/O -FTT -U/T -OPS - 1

24 HourSoak

C/T - 86400C/O -FTT -U/T - 100%OPS - 1

Conform anceTest

C/T - 4500C/O -FTT -U/T -OPS - 1

Packing &Shipping

C/T - 300C/O -FTT -U/T -OPS -

63

CUSTOMER

Sales O ffice

Packaging

Shipping

SOP & PLANNING

DAILYMRP

30 Day Forecast

Daily Orders

SUPPLIERS

Monthly Orders

W eekly Orders

Receiving

Distribution

17.530 183 330 60

10.81447

4.11200

3.8900 3120

6.39300 86400 5400 300

39 15 14

10

13

Test

S hopF loor

ocessTimesPr

dtomerdemanbasedoncusLeadTime(

102730 S econds28.53 H ours

(E xclud ing 24h Soak 4 .5 H ours)

42.5 D ays o f S tock = 2.8% VA(is 1020 H ours)

TA KT T im e=72U nits/20

=3.6U nits P er D ay1 E V E R Y 2 H ours

B ased on 36.25/5 N E Thours

VALUE STREAM MAP FOR THE GATEW AYCARD USED IN KUDOS+ PRODUCTS

Batches

Space Transport / handling problems (damage)

Time to make batch - some of which aren’t needed

The Problem with Batches

SMTRobotasFlow Solder

ElectricalAssembly

Mechanical Assembly

TestSoak

Distance travelled between remote “silos” = 470mEach ‘silo’ making batches independentlyDelays and difficult to align production to actual orders – customer lead time 4-6 weeks

Pushing Batches Through• Cycle time to make whole batch – not just what customer ordered• Waiting for other batches• “Pinching” from one batch to fulfil “more urgent” order• High inventory everywhere• Response time = time for complete batch to move through complete process, queuing behind other batches

Inventory

Customer Lead Time

Pull / Flow

SMTRobotasFlow Solder

Cell: Elec/Mech/Test/Soak

Distance travelled between shared resources and cell = 70m (85% reduction)Customer lead time down to final process time <5 days (subject to volume)

Pull only what the customer orders• Cycle time to make quantity actually needed (x) • Flex capacity by moving operators / adding work-stations• No waiting for other batches• No “Pinching” to fulfil “more urgent” order• Only tactical inventory that is not committed to any specific order• Response time = time for each unit required to move through the final process only

Tactical Inventory – Part-built in kanbans &Uncommitted to orders

Customer Demand = x

Customer Lead Time

Work Content

GatewayRear

InterconnectAssy

Mega CardAssy

Front PanelAssy

TestMechanical

AssyFinalTest

Customer

SurfaceM ount

SurfaceM ount

Robotas

3270 m ins

1419 m ins

2660 m ins4465 m ins

7600 m ins 6000 m ins

8700 = m ins ava ilab le pe rpe rson pe r m on th

KANBAN BINS

W ORK STATIONS

T im es show n a re in m inu tes and rep resen tcapac ity o f the w orks ta tion , based on pas tcus tom er dem and o f 80 un its pe r m on th

24hoursoak

Draft Capacity/W orkstation Layout

Actual Cell layout

Gat

eway

LED

Ass

yIQ

Fro

nt P

ane

l

Rea

r P

anel

PS

U A

ssy

Fro

nt P

anel

A

Fro

nt P

anel

B

450

550

600

180

M echan ica l B ox B u ild

P rim ay/F ina l Test

C onform ance Test

P C B A ssy B ench A

P C B A ssy B ench B

5062 m ins

5379 m ins

9486 m ins

3708 m ins

5396 m ins

5674 m ins (w ithgateway & f/p )

24hr

P C B 's From S M T& R obotas

= K anban P art B ins

P ack & S hip

Before After

ClutteredPoor LightingPoor VentilationSearch for tools & parts

OrganisedBrightCleanEverything to hand

PCB Before

PCB After

Test Before

Test After

Kudos+ Workstation

Parts for the build

Build Instruction

Clean & clear place to build the product

Build Instructions

MANUAL No DESCRIPTION 1U Rear Panel Interconnect PCB

ASSY No. SAAN RCIC1U2Z LOCATION ZCELLK A DATE 23/ 08/ 04

10 RMK7 P2RA39 RMK0 0731 RMK6 P1040 RMK0 19

31

40

39

10

STEP – 2Solder components to PCB in thefollowing order:-Item Cct Ref10 CN1039 CN931 CN840 CN7

Numbers in build instruction match those

on the part bins

2 Bin Kanban System

Numbers in build instruction match those

on the part bins

Signal to Build

Empty space is the signal to build

Bin Replenishment

Refilled bins are placed here by stores

Empty bins are placed here for stores to collect

ATE Test Jig

Product can be tested by the person who made it in the cell

Benefits - Kudos+ KPI’s

KUDOS+ PRODUCT CELLWEEKLY KPI'S - OUTPUT

0

5

10

15

20

25

30

35

40

WEEK COMMENCING

LE

AD

TIM

E (

DA

YS

) /

NU

MB

ER

OF

O

RD

ER

S

0%

20%

40%

60%

80%

100%

120%

OT

D %

LEADTIME

NO. OFITEMS

ON TIMEDELIVERY

Extra Benefits

• Improving the process has uncovered more ‘opportunities’ that were hidden

• Helped identify key training requirements within the cell

• Improved floor space utilisation• New Kanban philosophy• Transactions reduced• Continuous improvement ‘culture’ developing

Benefits - Reduced WIP

132 Units

~£400 Each

£52,800

Benefits - Space

274.125m2

20% Overall Reduction

Lean Projects Roadmap

• Kudos+ cell - Completed July 04• IQ Modular - 80% complete

– Box build cell– PCB build & test cell– Box configuration & conformance test cell

• Kahuna cell - 90% complete• Other product cells - December 05• Surface Mount line - 2006

MFG Pro in a Lean Environment

History

• 1994: Introduced Release 7.1 on a UNIX operating system

• 1996: Upgraded to 7.4

• 2002: Upgraded to eb

• 2005: Still bloody character screens!

Supply Process- Pre Lean

SOP

MPS

MRP

WORK

ORDERS

PURCHASE

ORDERS

MRP Planned Orders

determine what we

ACTUALLY

Purchase (PO’s)

and

Manufacture (WO’s)

Supply Process- Post Lean

SOP

MPS

MRP

CRP

VENDOR

SCHEDULES

MRP Planned Ordersdetermine what weMIGHTPurchase (VS)andManufacture (CRP)

Demand Pull (SO,Kanban, Faxban)determines what weACTUALLY Purchase& Manufacture

Supply Process- Vendor Schedules

Delivery Schedule

TOBY ELECTRONICS LTD

Deliver To:

TOBY ELECTRONICS LTD Snell & Wilcox Ltd

BEAUMONT ROAD IND EST Southleigh Park House

BANBURY Eastleigh Road

OXON Havant

OX16 1TU PO9 2PE

GREAT BRITAIN GREAT BRITAIN

Purchase Order:VS00005

Week Commencing...

ItemFab Auth

Raw Auth

RMG9 ELM5/04 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMG9 ELM5/10 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 10WMTSW105 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 10WMTSW110 0 0 0 F 0 F 22 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 20017AR-16G2 0 0 0 F 0 F 500 F 1000 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 24WBOXED 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 399R/A 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 BBS10 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 HW0511GS 0 0 0 F 0 F 450 F 0 P 900 P 1584 P 744 P 0 P 0 P 336 P 336 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 QTE02003 0 0 0 F 0 F 278 F 0 P 0 P 0 P 144 P 72 P 0 P 0 P 180 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 QTE02005 0 0 0 F 0 F 100 F 96 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 198 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK0 TSW1914TD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 17 0 0 0 F 0 F 0 F 0 P 77 P 28 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 1712001SD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 1712002SDLC 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 36 P 0 P 0 P 70 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 1713001SD 0 0 0 F 0 F 13 F 0 P 0 P 8 P 0 P 6 P 0 P 0 P 12 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 1713002SDLC 0 0 0 F 0 F 0 F 0 P 0 P 17 P 0 P 0 P 0 P 0 P 24 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0



RMK1 BSW-10204-G-S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 M22-6120822 0 0 0 F 0 F 16 F 0 P 0 P 0 P 1 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 QSE02001 0 0 0 F 0 F 0 F 35 P 0 P 240 P 0 P 240 P 0 P 240 P 176 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 SFML130T2S 0 0 0 F 0 F 39 F 0 P 0 P 0 P 48 P 0 P 16 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 SQT11203FD 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 SSQ12001 0 0 0 F 0 F 0 F 0 P 0 P 4 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 SSQ13201 0 0 0 F 0 F 0 F 0 P 0 P 1 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK1 TFML13002 0 0 0 F 0 F 206 F 0 P 68 P 124 P 0 P 68 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK6 SFM105-01 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0




RMK8 24/.3 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0


RMK8 32.6 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK8 6PDIL 0 0 0 F 0 F 0 F 345 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK8 8PDIL 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMKA 24/.3SMT 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMKA FTSH10501 0 0 0 F 0 F 500 F 250 P 375 P 0 P 250 P 250 P 0 P 250 P 375 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMKA TFM10522S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMKA TFM12022S 0 0 0 F 443 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMKA SFM12002S 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMW4 7642430A 0 0 0 F 0 F 0 F 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0

RMK3 RCAJACK 0 0 0 F 0 F 0 F 0 P 0 P 0 P 21 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0 P 0



01/05/06 05/06/06 03/07/0602/01/06 06/02/06 06/03/06 03/04/0605/12/05 12/12/05 19/12/05 26/12/0507/11/05 14/11/05 21/11/05 28/11/05Prior 17/10/05 24/10/05 31/10/05

Supply Process- CRP

Supply Process- Sales Order Processing

PRE LEAN

MPS ATP

POST LEAN

Finite Capacity SchedulingFGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41539 - Line 2FGADG 3768050AARC20:20S ASPECT RATIOSO41345 - Line 1FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11

FGAN IQHSBOXRCAPBMOD-1U REMOTE SHOEBOXSO41274 - Line 11

FGAN IQH1S-RC-BMOD-1U FRAME+BLANK F/P +SO41284 - Line 1


FGACZ 3598000BMACH:1 PHASE4 Msc MOTIONSO41270 - Line 1



FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8




FGACU 3548310BTBS180AV ADVANC TIMEBASESO41202 - Line 8


FGAN IQH1S-RC-AP-BMOD-1U FRAME+ACTIVE F/P+SO41326 - Line 1


FGACU 3548300BTBS180 ADVANCED TIMEBASESO41162 - Line 7



FGACZ 3598300BCVR250 ACTIVE F/P 10-BITSO41273 - Line 1


FGACU 3548500BNRS70 ACTIVE F/P 1RUSO41162 - Line 6

FGACU 3548410BTBS185AV ADVANC TBC WITHSO41545 - Line 1



24/10/05 25/10/05 26/10/05 27/10/05 28/10/05 31/10/05 01/11/05 02/11/05 03/11/05M T W T F M T W T

Supply Process- Material Transactions

PRE LEAN• MRP Planned Orders Report (23.12)

• Check for shortages (13.8.18)

• Firm Plan Work Order (16.1)

• Release Work Order (16.6)

• Kit Work Order (16.10)

• Make Product / Assembly

• Receipt Work Order into stock (16.11)

POST LEAN• Make Product / Assembly

• Advanced Repetitive Backflush Product / Assembly (18.22.13):

– Cumulative Work Order– Consume materials– Consume labour @ standard– Receipt into stock

ANY QUESTIONS?

Thank you

Documents

Using ERP in a Lean Manufacturing environment Andy Barnes Operations Manager Snell & Wilcox Ltd