Kaizen: Japanese for "improvement" or "change for the best", refers to philosophy or practices that focus upon continuous improvement of processes. This Injection molding and die cutting manufacturer wanted to know if MRP was a full fit, partial fit or not a fit for their business. The scope of this project involved and analysis of their Sales Order Entry to Order Release process.
2. Presentation Outline
Argus Industries –
o Welcome to the Tribe
Argus & SYSPRO –
o a look back in time
Argus & SYSPRO –
o where the future will take us
3.
4. WELCOME TO OUR TRIBE!
ARGUS 101:
Incorporated in 1962
Privately owned (SME)
Located in MB & ON
50k sq/ft, 3x Facilities
80+ Employees
5. The
Argus
Journey
1962 – 85:Portable Toilet Kings
1981 – 96:Building Molding & Gasket Division
1992: Received first certification for ISO9003
1997 – 99: Building Quality Systems, ISO9002
Y2K: One of 1st in Canada to get ISO9001:2000
2002: Purchased Snappi-Hookers Division
2003 – 05:Building brands, Processes, Culture
2005: Acquired Canadian Controlled Goods Certification
2007: Won MAAAward for Quality & Teamwork
2008: Purchased EPT Mfg – Now METALS Division
2008: AS9100 – First Certified in MB, ~20th in Canada
2009: 2nd Generation takes President & CEO role
2009 – 10:Established Executive Team & Started LEAN Journey
2010: Competitive Edge Program Started January – NWAA
2011: VIP Certification for Bombardier Aerospace Supplier Program
2012: AS9100 Certification (Rev C) – one of the 1st in Canada
2012: CEO asked to speak in largest LEAN conference in North
America. Ranked Top Talk.
2013: Article in the Winnipeg Free Press, A Journey to Excellence
2013: 1st to achieve “Contender Level” in the CE program in MB.
(Leadership Foundation)
2013: We were interviewed for the Wall Street Journal because of
our Tribal Rituals.
16. 20 + years with SYSPRO software
Impact Award
Encore
SYSPRO
2004 – moved from traditional time cards to Shop Clock and began importing labour hours
directly into SYSPRO.
2006 – left our stand alone ACT Customer Relationship Management and implemented SYSPRO
CRM (formerly known as ADAPT)
2008-09 – Began to question SYSPRO as our ERP system .
Late 2010 - attended the SYSPRO User Conference in Dallas and solidified our decision to stay
with SYSPRO
Spring 2011 - attended training courses in SRS, System Administration, Power Tailoring
Fall 2011 - Lean Journey moved to the Office environment
Developed a team to move Argus’ processes, with the help of SYSPRO, to the next level
17. SYSPRO Lean Journey Begins:
Brainstorming event with All users.
Identified a list of 76 “wishes” or opportunities for improvement
Met with Dale Kehler and Lynn Green from SYSPRO to outline what we hoped to
accomplish.
The project was lit up and the work began.
Developed a plan to move to 6.1 in June 2012 with some of the wishes covered off prior
to the upgrade.
Team attended training in Halifax in Spring 2012
Team began working on quick hits/gems to be ready for Upgrade Day
Upgrade Day: on site training and introduction to Quick Hits & Gems
Lynn Green in Winnipeg and Nallanie Manick in Pickering
Ajay Saxena worked with the team on site identifying opportunities and other potential
Lean initiatives
18. Japanese for "improvement" or "change for the best", refers to
philosophy or practices that focus upon continuous improvement of
processes
19. SYSPRO Kaizen Event Team
• Christa
• Mario
• Ajay
• Lance
• George
• Leslie
• Carlos
20. Purpose & Scope
Purpose: Is MRP full fit, partial fit or not a fit for
Argus.
Scope: Sales order entry to order release
21. Deliverables
MRP for Purchasing requirements
MRP for MIN & Max requirements
MRP for scheduling PWO’s
MRP for scheduling SO’s
MRP for blanket SO’s
MRP for “Rush” SO’s
MRP for releasing orders
MRP Vs. Lean. Integration with lean mfg. practices
Conclusions
22. What is MRP
INPUTS
•Demand
•Forecast
•Safety Stock
•Quotations
•Sales Order
MRP
Tools:
•Load
Leveling
OUTPUTS
•What to Buy
•What to Make
•When to Buy
•When to Make
•How much to Buy
•How Much to Make
• Resource
Planning
• Capacity
Planning
23. What is Load Leveling
• Load Leveling
Machine Capacity
per day
Jobs scheduled
for specific day
Available Time,
Scheduled Time and
Free Time
24. Value Stream Map for current state of business processes
from SO entry to SO fulfilment
Team gained visibility of the entire cycle and the gaps that are in our
current process.
Outcome
25. Identified Assumptions required to work in an
MRP environment.
Demand is created by Forecast, SO, Safety Stock
and Min/Max
BOM and Drawings have been confirmed and are
accurate
Inventory is issued to WIP at time material is
moved to production
Outcome
26. Outcome
Sales Order Entry - Current State
2-1/2 minutes to enter order, create PWO and print PWO and
drawing
Customer Required Date was not confirmed with Production and there was
no visibility to raw materials available
Jobs were created with no confirmation from Production for capacity and no
visibility to raw material availability.
Wait time - ~ 48 hrs to get confirmation for material delivery
and then confirm capacity available.
27. Outcome
Sales Order Entry - Future State
Visibility of Production Time
MTF – Manufacturing
Time Fence – How long
to manufacture
PTF – Planning Time
Fence – How long to
procure material and
manufacture based on
load and leadtimes
28. Outcome
Sales Order Entry - Future State
Visibility of Material Availability
Quantity Available Supplier Lead Time EBQ – Min Order Qty
29. Outcome
Sales Order Entry - Future State
Visibility of Capacity Available
Print Dummy Job for Qty
to make to determine
machine and time
30. Outcome
Sales Order Entry - Future State
Visibility of Capacity Available
Check capacity by
resource and machine for
requested production date
31. 31
Outcome
Sales Order Entry - Future State
3 minutes
to enter order
confirm material availability or supplier leadtime
confirm machine capacity through load leveling
create PWO and print PWO and drawing.
Schedule a realistic delivery date and provide estimated ETA for
customer
Eliminates 48 hours wait time to confirm non-rush orders
Provides more visibility to resource and machine availability
32. 32
Outcome
PO Entry Current State
Minimum of 3 separate Inputs
PWO (work Order)
Sales Order
PO Worksheet (which took at least 5 minutes just to run the report)
33. 33
PO Entry Current State
Need to check individual stock codes to find Job Allocations and Sales Orders
Need to consolidate demand.
Need to confirm required in-house dates
Need to confirm accuracy of demand
Then – begin order entry process
Enter PO by Supplier – one order at a time
Outcome
34. Outcome
PO entry Future State
MRP Purchase Order Review Report
Identifies suggested POs based on full demand – PWO, SO,
Safety Stock, Min/Max – existing and suggested
36. Outcome
PO Entry - Future State
From PO Review – select, change, ignore, create
Multiple POs & Multiple Suppliers at one time
37. EffortsRequired
Value/Benefits Big ValueSmall Value
StrategicDon’t Do
Quick Hits Gems
Drawing attached
to PWO’s
Syspro Kaizen Event
Value Graph
5S Project in Whse.
• More Kanban
• Fix Raw & Finish
Goods
Implement GRN
(Goods Receiving
Notice) Module
Clean Master Data
• BOM
• Structures
• Supplier lead tImes
• Mfg lead times
• Incorporate EBQ’s
• Safety stock qty’s
• Utilize tool set option
Create Argus
EBQ Process
Deploy Training on
how to use
Work leveling
Advance Kitting
Modify templates
Use printing multi-level
PWO’s at one time
38. Quick Hits without MRP
Start printing Multi level PWOs at one time
Change Information on Job Card and Reprint
Add Buttons to Sales Order Entry screen to query material
availability
Add Field to PO Entry to include Ship Date for Expediter Report
Modify PO template for Supplier to confirm ETA, Price, Qty, ShipVia
Implement GRN
Embrace F8 – it is an important tool within SYSPRO
39. Lessons Learned
MRP only Partial Fit for Argus
Quotation & Estimates Module is worth further testing
Broadened our understanding of what tools SYSPRO has to
offer right out of the box
Ongoing Training to develop standardization for processes
within SYSPRO
Develop housekeeping practices to maintain data integrity
40. Roadblocks & follow up
Discipline/standardization
Resources
Data integrity
Embracing change
Availability of SYSPRO Expert
41. Conclusions
MRP is a partial fit for Argus
MRP is a capacity/requirement planning tool and not a scheduling tool
Develop a plan and execute with diligence
1. Clean Inventory
leadtimes, batching rules, safety stock
2. Maintain BOM structures
Work centres and routings
Operations and Materials
3. Develop Training Plan
4. Maintain Data integrity – daily housekeeping
42. Leader Summary
The Kaizen event was not only MRP but a full
evaluation/review of the Supply Chain process
– order entry to fulfilment
Respect for team and time
Support and participation from all corners of
the organization
Constructive Challenges
43. Leader Summary
For MRP to work we need to keep the
momentum and commitment going that we
have started this week.
Team Building Experience
The team going into this event was not the same
one coming out of the event.
44. SYSPRO Looking Forward:
Quotes and estimates with Product Configuration
Continue to implement events, triggers, Pop ups
and reminders using VB Scripting
Gain Further Training with SBS
Upgrade to SYSPRO 7