KEY FIGURES

• Required Space Requirement: 5400 ft²
• Delivered Reliability to End Customer >99%
  

STARTING SITUATION

A supplier of painted components faced significant challenges due to high search and control efforts during surface inspection, final inspection, and packaging. Upstream processes also suffered from insufficient space to manage current material flows. The increased space requirement led to inefficient repurposing of space, resulting in time-consuming searches and inefficiencies.

With only two fixed dates in the process—the production start date and the customer's shipping date—deficiencies were mitigated through increased manual control to ensure timely delivery to customers.

APPROACH

• Recording Throughput Times:
• Document the planned throughput times as defined by the system.
• Compare these times with the current situation to identify discrepancies.

• Initial Findings:
• Production is aligned with the shipment date.
• Buffer days are built into the schedule to account for process uncertainties and component reproduction.
• Early orders do not affect the shipping date, leading to unnecessary buffer times.

• Derived Measures and Implementation:
• Introduce Two Additional Gates:
  Monitor dates, quantities, and quality at critical stages: start, picking, completion, and shipping. These checkpoints ensure that each stage meets the required standards before progressing.
  
• Visualize Storage Spaces and Deadlines:
  Enhance transparency in material flow by visualizing storage spaces and deadlines. This helps better track and manage inventory levels.
• Develop Critical Process Monitoring Metrics:
  Implement key performance indicators (KPIs) for continuous process monitoring. These metrics help in assessing the efficiency and effectiveness of the implemented changes.
• Track and Monitor Inventory Levels: 
  Implement real-time tracking systems for finished goods inventory. This ensures that any excess inventory is quickly identified and addressed.
• Continuous Process Improvement:
  Regularly review and refine processes based on KPI data. This iterative approach ensures that processes remain efficient and responsive to changing demands.
• Employee Training and Engagement:
  Train employees on the new processes and the importance of maintaining efficiency. Engaged employees are more likely to contribute to continuous improvement efforts.

CUSTOMER BENEFITS/RESULTS

• Aligned Production with Gates:
• Production processes are synchronized with the newly introduced gates, ensuring alignment with critical deadlines.

• Enhanced Deadline Monitoring:
• Focusing on deadline-relevant orders improves material flow synchronization and gradually eliminates excess buffer inventory.

• Early Deviation Detection:
• Deviations from the planned process are identified early, making the root causes transparent and allowing for timely remediation.



The supplier achieved higher efficiency and reliability by streamlining processes and reducing inventory buffers, ensuring over 99% delivery reliability to the end customer.