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Prototype Engineering Supply Chain - Charter. Update: 2/1/2013. Project Title: Prototype Engineering Supply Chain Project Sponsers : Mark D’Amico/Tom Wolcott Project Leaders: S.Call/ J.Pasek Project Team: L. Bjornstad, S. Call, T. Hahn, B. Nusbaum, J. Pasek, and P. Taylor

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prototype engineering supply chain charter
Prototype Engineering Supply Chain - Charter

Update: 2/1/2013

  • Project Title: Prototype Engineering Supply Chain
  • Project Sponsers: Mark D’Amico/Tom Wolcott
  • Project Leaders: S.Call/J.Pasek
  • Project Team: L. Bjornstad, S. Call, T. Hahn, B. Nusbaum, J. Pasek, and P. Taylor
  • Mission Statement: Streamline the Prototype Part Manufacturing Process for procuring “engineered parts”, commercial parts and completing the typical rework/modifications required during the R&D cycle
  • Background:
    • From 1/2011-6/2012 approximately $2.1M in prototype engineered components was procured, accounting for 2,698 different parts, spread across 3,038 purchase orders
    • Peoplesoft IT platform has limited flexibility to accelerate this process; however has accurate project cost tracking capability
    • Priorities for prototype components are co-mingled with service, aftermarket, and production demand
    • Detailed design schedule is in flux during prototype NPD phase
  • Project Goal:
    • Implement a methodology for purchasing simple “engineered” parts including dedicated suppliers, etc.
    • Implement a methodology for ordering commercial parts
    • For parts that are supplier specific, implement a methodology for determine ways to manage capacity and reserve time in production schedules and competing projects
    • Locate and develop a local supplier/machine shop that can complete quick rework/part modifications
    • Increase available supplier capacity to better manage ““prototype/surge’s” in machining and fabricating
    • Maintain ability to track costs for NPD projects
mokena npd part mix data ordered by npd r d
Mokena / NPD Part Mix Data ordered by NPD/R&D

Focus on small Machine parts / Fab (70% of volume)

key problem areas
Key Problem Areas
  • Key problem areas to address that lead to a longer than desired lead time for parts include:
    • Mfg Lead Time / Capacity at Suppliers
      • Suppliers being managed by first in / first out for all Production, Service, Engineering and R&D parts
      • R&D parts are delayed during peak production demand
      • Reprioritizing any one part will have ripple effects across the entire supply chain and external customer orders
    • Rework / simple changes need rapid turnaround
      • Current Peoplesoft system requires multiple transactions to process parts in and out of Provisur for minor rework
    • Ease of System Use
      • Multiple steps are needed for part acquisition
key goals to define s uccess
Key Goals to Define Success
  • Implement a supply chain for NPD Engineered Parts that is streamlined and outside of production and engineering part requirements
  • Streamline the process to complete “rework / modifications”
  • Review and implement streamlined Peoplesoft processes where appropriate
npd parts supply options
NPD Parts Supply Options

Option #1: Attached shop w/ full mfg capabilities for large & small parts

Mokena R&D

Build - Fully manned Prototype Shop

Estimated (Rough) Costs (Reviewed with Robin)

Building Build out/ Electrical Est. 10K sq ft $1,200K

Full Equipment List Sheet Metal Laser $600K

3 Axis Lathe $200K

5 Axis Mill $500K

Misc Machines & Tools $300

Two Machnists $180K/Yr

  • Con’s
    • $2.3m estimate start up
    • $350/yr estimate yearly cost
    • Would only produce “basic” parts
    • Operators Idle at low points in demand
    • Experienced operators difficult to hire
  • Pro’s
    • Fastest Turnaround
    • No need to use Peoplesoft

Idea on hold due to projected cost and timing –

No further action at this time while exploring other lower cost options

npd parts supply options1
NPD Parts Supply Options

Option #2: Mokena R&D / WW Engineering Prototype Mfg Center

Mokena R&D

Whitewater Fully manned Prototype Shop

Estimated (Rough) Costs

Three Machinists / Welders $270K/Yr

Machine Upgrades $TBD

  • Pro’s
    • Fastest Turnaround / easy to prioritize
    • No need to use Peoplesoft
    • Able to leverage WW Knowledge
    • Able to utilize existing tooling inventory
    • Provisur would own mfg knowledge
    • Raw material availability
  • Con’s
    • $350/yr estimate yearly cost
    • Shipping would be somewhat delayed to Mokena
    • Would need to identify correct part mix
    • Pressure to use machinists for production parts
    • May run in to tooling bottlenecks with shared production equipment
    • Lack of space at Whitewater
    • Would take time / an issue to hire multiskilled machinists

Action: Reviewed with Robin on 1/30. This is a long term idea that will be reviewed after the other options are thoroughly reviewed

slide7

NPD Parts Supply Options

Option #3: Set up dedicated “NPD ONLY Suppliers”

Mokena R&D

NPD “New Supplier”

Idea:

Pay for set time in designated “new” NPD shops for small / easily mfg parts with little development work

  • Con’s
    • Would have to “buy” production time – machine shops are normally scheduled out for 3 weeks and are not sitting idle waiting for work
    • No leverage of existing business
    • No ability to pull resources from production business in the event of a crisis
    • Would cost $ even if time is not utilized
    • Would have learning curve to understand Provisur needs
  • Pro’s
    • Completely outside of production / engineering capacity constraints

No further action at this time while exploring other options

npd parts supply options2
NPD Parts Supply Options

Option #4a: Dedicated space at existing suppliers / Sheet Metal

Ace / Prototype Cell

Mokena R&D

Idea: Have a set cell – with scheduled hours – for rapid R&D parts – to prevent uninterrupted shipment of production & engineering parts

Parts segregated from production parts

Quick turnaround for rework parts / simply tag and return / hourly rate for modifications

Have people / team available to come on site at Provisur for minor changes (welding etc)

  • Pro’s
    • Ace close / daily shipments
    • Would pick up parts w/o any scheduling of shipments
    • Can complete rework outside of system with billing afterwards
    • Would not have to pay for un-used capacity
  • Con’s
    • Would still have to plan for large upticks in volume
  • Action: Met and received proposal from Ace. To review the Peoplesoft system and evaluate ways to identify and track “HOT” parts Due 1/31 (J.Pasek/S.Call)
current sheet metal suppliers and npd fit
Current Sheet Metal Suppliers and NPD Fit

Ace - Identified as best choice

proposed ace peoplesoft flow
Proposed Ace / Peoplesoft Flow
  • Weekly Ace would check weekly with Engineering (J.Pasek etc.) on expectations for the next 8 weeks – and schedule accordingly
  • Currently – for fabrication parts – under requisition – the engineer identifies P/N “ BLANK”

Description “1-001234 Fab Guard”

  • Proposed - The engineer would put

P/N “ BLANK”

Description “RUSH / DNE $500 / 1-001234 Fab Guard”

  • Purchasing would enter this P.O. into the system immediately and send to Ace with the prints. If “extremely hot” – Engineer will be allowed to send the print directly to Ace to begin programming and Purchasing will follow up with the P.O. within hours.
  • Ace would build the part / invoice
    • If invoice LT $500 (say $350), AP would pay the $350 and make sure the engineering account is charged accordingly
    • If the invoice came in more than $500 (say $600), the AP clerk would reject and send to the engineer for approval
npd parts supply options3
NPD Parts Supply Options

Option #4b: Dedicated space at existing suppliers / Machine Shops

Mokena R&D

Designated Shop Time/ Machinists available

We have met with suppliers to solicit feedback

Idea: Does it make sense to:

a) Designated time scheduled at machine shops suitable for “one off” work

b) Have a resource to have machinists “on call” to come in and work on our machines (may make sense for additional machine investment at Provisur)

  • Action: Met with Irmko and have come up with the same proposal as Ace. J.Pasek/S.Call to follow up on the plan once the Peoplesoft flow has been finalized and the Ace flow is up and running
npd commercial parts flow
NPD Commercial Parts Flow

Purchasing Flow

Idea:

Often times, engineers talk direct with suppliers to determine cost and availability.

Can we set up standard suppliers to accept limited purchases (ie. under a certain amount) to be able to order direct and/or using a P-Card or some sort of blanket engineering P.O.?

Engineer Researches and Identify P/N & Manufacturer needed

Engineer Creates Requisition

Sourcing Reviews request and identifies appropriate distributer

Sourcing sends out RFQ

Supply Base reviews and sends in quote and LT

Sourcing reviews and issues P.O.

Distributer Ships to Provisur

Dock Receives in and delivers to Engineering

  • Action: Continue to explore ideas with the team – to explore options for next meeting – B.Nusbaum Feb 28th
current process flow npd vs rework
Current Process Flow / NPD vs Rework

Purchasing Flow

Re-Work Flow

Engineer Creates Requisition

Engineer Creates Rework Requisition

Sourcing Reviews prints and identifies appropriate supply base

Sourcing Creates P.O. for rework

Eng/Sourcing moves part to the dock

Sourcing sends out RFQ

Dock ships part out to supplier

Supply Base reviews and enters quote on line

Supplier completes rework.

Sourcing reviews and issues P.O.

Supplier Ships to Provisur

Supplier makes part / Ships to Provisur

Dock Receives in and delivers to Mokena

Dock Receives in and delivers to Mokena

Current rework flow takes 2-3 days minimum

  • Action: Proposal – to process P.O.’s the same as the proposed planned process with requisitions identified as “ RUSH / DNE $xxx / P/N…. M – P.O.” J.Pasek/S.Call 1/31