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ISE 250 Optimization of Lead Time for XYZ Corp. -Dr. Baruch Saeed. Final Project Report. Anandi Rangarajan Angela Lo Rohit Salte Sharath Puttabuddi. Agenda. Company Background Define Measure Analyze Improve Control Conclusion. Description of XYZ. Company Description

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ISE 250 Optimization of Lead Time for XYZ Corp. -Dr. Baruch Saeed

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ISE 250Optimization of Lead Time for XYZ Corp.-Dr. Baruch Saeed

Final Project Report

Anandi Rangarajan

Angela Lo

Rohit Salte

Sharath Puttabuddi


Agenda

  • Company Background

  • Define

  • Measure

  • Analyze

  • Improve

  • Control

  • Conclusion


Description of XYZ

  • Company Description

    • A company that manufactures microprocessors and delivers to all over the world

  • Problem Areas

    • Long customer responding time – it takes between 2 days and 25 days until customers get response on order availability

    • Large amount of change order request

    • High volume of follow up calls / emails on order clarification


Charter

SIPOC

CTQ Tree

Define

Brainstorming

Process Flow

Diagram

Flow Chart

Project

Gantt Chart


Brainstorming

What areas can be improved?

Takes long time for manufacturing site to work on build plan

Takes long time for request to get to PSP

Takes long time for customers to receive response

Takes long time for BP to discuss with the fab

Hard to accommodate when customers have to change orders

Better meet customer’s demand


SIPOC

Suppliers

Inputs

Process

Outputs

Customers

  • Order

  • Order form

  • Granting Tool

  • Packing

  • Client

  • CBA

  • GBA

  • PSP

  • Warehouse

  • See Below

  • Order Fulfillment

  • Client

Step 1:

Receiving Customer Order

Step 2:

Accumulation of Orders

Step 3:

Checking Inventory / Mfg if required

Step 4:

Committing

Order fulfillment

Step 5:

Customer receives the products

PSP – Product Supply Planner

GBA – Geographical Business Analyst

CBA – Customer Business Analyst

BP – Business Planner


Charter


Charter – con’t


Project Implementation Gantt Chart


CTQ Tree

In manufacturing, specification limits often come from technical or mechanical requirements, otherwise, the base specification limits on data about customer needs set the specifications where customer satisfaction starts to fall off noticeably

CTQ Tree is used for

· Unspecified customer requirements· Complex, broad needs

NEED

DRIVERS

CTQ TREE

New Decision Support GUI tools that improve

the ability to fine-tune schedules to give

better conformance to overall plans

Enhanced scheduling

Implementation of Business

Intelligence Applications

Making right decision in shortest time

To reduce the

lead time

Build local sales office to replace

existing single-site

Faster and better communication lines

Implementation of faster and multi-faceted

Collaborative communication systems such as

Telephone, mobile phone, internet chat

Faster production of schedule

More time for alternative scenarios

of production, leading to better

schedules and improved productivity


CTQ Tree…con’t

NEED

DRIVERS

CTQ TREE

Implementation of ERP/SCM

systems

Short wait time

To reduce the

analyzing time between

BPs and Fab

Real-time manufacturing/sales data

Implementation of workflow-

based Decision Support

Systems and Data Mining tools

Improved process-related

guidance systems

Provide updated information

to Customer Reps

PROVIDE

Knowledgebale Customer Reps

To provide Good

Customer Service

Implement a training routine

Provide GUI tools to help make faster

and correct decisions

Implementation of data mining

and analytical tools to provide

accurate and current data


Current Process Flow Diagram

1 day

½ day

½ day

Customer’s

order

CBA receives

orders

CBA sends

order

to GBA

GBA

accumulates

and enters all

orders into one

spreadsheet

GBA sends

order form

to PSP

PSP receives

order form

Order

form

1 day

1 day

7 days

PSP checks

inventory

PSP sends

Out support

message

to GBA

PSP loads

commits

into granting

tool

GBA sends

Support

Message

to CBA

CBA receives

support

message &

books commits

for customers

Warehouse

sends

goods out

Goods

are

boxed

Customer

Receives

orders

Work with BP

If supply is

not available

BP works

with the Fab

on build plan

changes

Change

approval

sends to

PSP

Approval

of

changes

21 days

Current Processing Time

Inventory Available: 11 days

Inventory Not Available: 32 days

PSP – Product Supply Planner

BP – Business Planner

CBA – Customer Business Analyst

GBA – Geographical Business Analyst


Process Flow Diagram


Data Collection

Histogram

Measure

Pareto Chart

Process Sigma


Data Collection

  • Focused Areas

    • Average Responding time to customers

    • Average Amount of follow up calls / emails


Data-Collection Plan Form


Responding Time

Responding time = CBA Responding time – CBA Receiving time


Histogram


Follow up calls / emails


Pareto Chart

Focused Area: Communication and Process Flow between CBA and GBA


Matrix Diagram

CBA – Customer Business Analyst

GBA – Geographical Business Analyst

PSP – Product Supply Planner

BP – Business Planner

Primary responsibility

Resources


Cause & Effect

Diagram

Analyze

House of

Quality

FMEA


Timing

People

Tools

Lack of system maintenance

Lack of labor resources

Limited budget

Inadequate training

System errors

Training program

Is not well developed

Delayed communication

down the line

Inadequate staffing

Time zone difference

Inefficient Analyzing Tool

Limited training budget

Inadequate staffing

Difficult to interpret

Cost cutting

Nature’s creation

Limited budget

Lack of system maintenance

Lack of technology initiatives

Limited budget

Outdated (manual) tools

Outdated (manual) tools

Long response time

Long communication time between fab and BP

Bottleneck in process flow

Time zone difference

Heavy workload of staff

Long process flow

Time zone difference

Vertical decision making

Heavy loads of orders and changes from customers

Hierarchical decisions

Hierarchy decisions

Inefficient feedback

tool

High mfg lead time

Lack of inventory holding

Inadequate communication

Media (between & within org.)

Inadequate staffing

Improper forecasting

Outdated forecasting tools

Unscheduled Mfg

Less transparency

In data sharing

Improper capacity prediction

Numerous processing steps

Redundancy in order

processing

Lack of technology initiatives

Communications

Vertical decision making

Limited budget

Outdated (manual) tools

Ordering Procedures


Root Causes in Fishbone Diagram

  • Long Process Flow

  • Lack of training

  • Inefficient analyzing tool

  • Lack of feedback / rating system

  • Inefficient real time inventory system


FMEA


House of Quality


PDCA

Flow process

diagram

Improve

Communication

Plan


PDCA - Plan


PDCA

  • DO

    • Pilot team will be setup and test the program

    • Record the total time needed to respond to customer requests

    • Record the number of error / complaints that occur

    • Record the amount of change requests from customers

  • Check

    • Compare actual results with our expected results

    • Find out the reasons behind

  • Act

    • If actual = / better than expected, then standardize the process

    • Otherwise, determine root causes, improve the proposed process, try again!


Proposed Process Flow Diagram

½ days

7 days

Customer’s

order

CBA receives

orders

CBA look at

the automated

Commit

Loading Tool

CBA books

commits

through

the automated

tool

Warehouse

Send goods

out

Customer

receives

orders

2 hours

2 hours

2 hours

CBA put

not supported

requests in the

spreadsheet

GBA access

order forms

from the

shared

drive

GBA collects

data and create

demand

report

PSP reviews

order requests

from GBA

Order

form

2 hours

2 hours

PSP works with

BP to determine

If immediate

Support is

allowed

PSP sends

support

message

to GBA

PSP loads

commits

Into

granting

too

GBA sends

support

message

to CBA

Proposed Processing Time

Inventory Available: 7.5 days – 9 days

Inventory Not Available: 20 days

BP works

with Fab

on build

plan

changes

Approval of

support

sent to

PSP

Approval

of

changes

11 days


Data considered to determine process sigma

Process Sigma

Average number of calls processed per week, N=100


Communication Plan


Control

Process Sigma


Process Sigma – con’t


Process Sigma (Post- PDCA)

Data considered to determine process sigma

Average number of calls processed per week, N=100


Process Sigma (Post- PDCA)– con’t


Summary of Used Tools


Summary of Used Tools


Conclusions


Appendix


Project Gantt Chart


Data Collection


Data Collection (contd.)


Pareto Chart

Focused Area: Communication and Process Flow between CBA and GBA


Thank You


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