- Big materials inventory, WIP, overtime, errors and admin reductions
- Lead times slashed via web system visibility
- Factory floor efficiencies and flexibility
- Greater customer responsiveness
- Improved lean operations
Reflecting on lean by challenging IT
1 min read
Schefenacker's UK factory at Portchester makes rear view and door mirrors for virtually all the vehicle OEMs, and is lean throughout, world class and with top honours to prove it. Instantly notable and challenging features of its operations include universal JIT practices with relatively complex sequencing of high variety items, variability of demand and a requirement for product manufacturing and despatch within hours of the OEMs' EDI call-off signals.
But it all works. Says Michael Riddle, Schefenacker UK's financial director: "With our lean operations we can deliver pre-agreed quantities on line, in sequence to, for example, Jaguar at six to 12 hours notice." That's despite hundreds of mirror variants for the OEMs and models. And it's been achieved by synchronising everything, from the production cells to the supply chain, harnessing the company's ERP system tuned specifically for lean thinking.
"EDI comes in with call-offs against agreed schedules, and we use that information in two ways," explains Riddle. "First, the daily call-offs drive what products we're making and the internal kanbans. Second, the OEMs' schedules drive our longer range planning and that of our suppliers after passing through MRP."
Externally, forecast demand gives Schefenacker's suppliers early warning of what's coming down the pipeline, enabling them to make procurement, production, capacity, overtime etc decisions. Internally, call-off is transferred onto cell heijunka boards that sequence the variants and quantities, with material pulled in via kanbans.
Then as completed mirrors come off the cells, each is identified by labels from the ERP system. "That validates the contents, updates Mfg/Pro by backflushing and triggers demand for kanban replenishment from our warehouse." In fact, the triggers are aggregated. "Our ERP system polls a file server every 20 minutes and signals the warehouse which holds supplier consigned inventory. Materials are picked and scanned to update ERP, and put on vehicles to replenish the kanbans. The plant receives an ASN triggered by the scan and when the parts are received, scanning again creates a purchase order receipt."
To provide further reconciliation for suppliers and to show status, events and exceptions, there's also a supplier portal, updated from ERP. "We have a record of all supplier consigned inventory, and suppliers can see that on our ERP system, as well as what's been picked but not yet scanned for purchase order receipt and so on."
As for the rest of the loop, materials kanbans are placed line side ready for the adjacent cells. Packaged goods come off the cells, and are transferred to the finished goods warehouse ready for customer transport. Then they're picked against the original customer call-off signal and scanned back into the ERP system for transfer of ownership and billing to the OEMs.
Key benefits
