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GM Shipping

GM Shipping. Pick / Pack Process Improvement Developed, Implemented, & Presented by Reginald Fuller. Defining the Six-Sigma Project. Listen to the Voices. Voice of the Customer (VOC) On-Time Delivery Product Availability Product Selection ( IP & IQ) Quality of Shipment (Damages)

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GM Shipping

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  1. GM Shipping Pick / Pack Process Improvement Developed, Implemented, & Presented by Reginald Fuller

  2. Defining the Six-Sigma Project

  3. Listen to the Voices • Voice of the Customer (VOC) • On-Time Delivery • Product Availability • Product Selection ( IP & IQ) • Quality of Shipment (Damages) • Pricing • Voice of the Business (VOB) • Productivity • Responsiveness to Customers • Quality • Cost

  4. SIPOC • Suppliers • GM Processing Centers • Parts Manufacturers • Inputs • Inventory • Customer Ordering • People • Equipment • Process • Dispatch Assignments • Picking • Sorting • Staging • Loading • Shipping • Output • Material Staging • Inventory Verification • Customer • Auto Dealers

  5. The CT Tree

  6. FishboneSatisfaction Wastes: Corrective, Overproduction, and Process Training Experience Utilization Wastes: Motion & Waiting Productivity Methods People Satisfaction Delivery Information Systems Inventory Batching Work Assignments Availability Selection On-Time Route Departure & Delivery

  7. Process Map Information Services Batch Customer Orders in Queue Picking Area Sort Dispatch Work Assignments Pick Parts Employee Picking Yes No Inventory Control Replenishment Dock Operations Customer Staging & Validation Shipping Flow disruptions in the process

  8. Measuring the Gaps

  9. Performance Metrics

  10. Employee Utilization A typical employee walks x miles per night in dense warehouse area.

  11. Pick Density / Cycle Times A typical work assignment takes 22.04 minutes to complete averaging 16.06 lines.

  12. Location Redundancy Employees consistently select from redundant locations. Redundancies account for 17.9% of total bin selections.

  13. Additional Measurements • Sorting Employees waiting an average of 22 minutes per 8 hour shift waiting to sort materials. • Leveling Additional delays incurred from failure to complete entire batch cycle of work assignments prior to beginning next cycle. • Load Departure On time departure is 77.2 with a goal of 98% for on time delivery.

  14. Analyzing Data

  15. Wastes(COMMWIP) • Corrective • Availability compromised by shifting manpower from receiving department to close productivity gaps. • Selection process without built in validation and error proofing. • Damages incurred from expedition material handling to redeem wasted time. • Overproduction • Incomplete batch cycles warrant beginning of new cycle. • Employees wait excessively in sort aisle to complete picking process • Motion • Employees engaged in excessive walk due to redundant bin trips and inefficient batches of work assignments. • Waiting • Employees waiting in aisles to sort materials. • Pickers waiting in bin locations to pick out of redundant bins. • Dock personnel waiting on materials from packing area. • Process • Current process restricts optimal productivity.

  16. Improving the Process

  17. Implementation • Work Assignment Batching (Motion Waste) • Batch two routes together by area rather than single routes according to dealers. • New batches yield 2 hours over time labor savings per employee. • New batches improve pick density to 25 lines per 20 minute assignment. • Productivity (Process Waste) • Employee walking reduced to an average of 3.7 miles per night • Increased productivity allows realignment of personnel. • Personnel relocated to receiving operations to preserve availability. • Plant lines per hour increased to 27 with plant goal of 21.9.

  18. Implementation Cont. • Quality (Corrective Waste) • Availability improved from 89.7% to 97 percent • Sort quality improved after installing Poke Yoke in sort aisles • Selection improved from 91.2% to 98.7% after installing pull system for sorting materials. • Quality savings = $275.410 • Pull System (KanBan) • Pick carts staged for quality checks and sort by dedicated sorters. • Leveling (Heijunka) • Consistent load planning • On time route departure and delivery improved to 96.2% • Cost • Overtime labor costs reduced from 27% to 3%. • Total labor savings = $435.711 per annum. • Total project savings = $711.121 per annum.

  19. Sustaining the Process

  20. Controls • Revise SOP’s • Modify and document revised processes. • Training • Train employees on new processes. • Campaign • Share and post project successes on communications boards per A3 and corporate intranet. Post SOP’s in workplace. • Audit • Develop and conduct process audits to sustain modifications.

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