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Supply Chain Project summary



         Project Manager: Ferenc Rakoczy
                 Updated on 6 March, 2013
Sanmina-SCI Projects
                                                           1/1




Logistics Agreement with automotive customer
Valeo
Period: 06/2004 – 09/2004
Place: Sanmina-SCI, Tatabánya Plant
Target: Prepare drafted version of Logistics Agreement (materials mgmt parts)

    Tasks completed:

    -   forecasting methods, calls, call frequencies, call methods
    -   order confirmation process details
    -   flexibility corridor, firm periods, safety stocks
    -   transport and delivery frequency, HUB
    -   packaging and labelling requirements


Result: an approved Logistics Agreement
Financially approved saving: n/a
Elcoteq Projects 1/7




WIP inventory optimisation project
 Period: 01/2005 – 06/2005
 Place: ELQ Pécs, Finn Plant Operations
 Target: Reduce WIP inventory value from 4MEUR to 2MEUR

     Tasks completed:

     Finn Inventory Valuation report review, Consumption-Declaration and Stock-Flow Difference
     Analyses

     Ownership Change in SRO process and continuous kanban level update according to customer
     requirements

     Demand-specific production planning methods (high variance in demand: make to order, low
     variance in demand: kanban) in order to optimize semi-finished and finished goods buffer in
     production area

 Result: 1,5MEUR (=37%) inventory reduction in production area

 Financially approved saving: 140 kEUR
Elcoteq Projects 2/7




Inventory Accuracy improvement project
 Period: 08/2005 – 05/2006
 Place: ELQ Pécs, Finn and Cserkut Plant Operations, Product Line 9
 Target: Eliminate WIP stock inaccuracy of approx -1MEUR (Q2 2005 stocktake result)

     Tasks completed: All events related to material flow were reviewed and poke-yoke processes and
     systems were established in order to control the real-time transactions in Baan ERP.

     - introduced real time SFG / FG reporting for accurate backflushing
     - eliminate pBOM errors in order to make sure that backflushed qties are equivalent to the
     physically consumed amounts,
     - release automatic SMT machinery loss report in order to make attritions visible and transactable,
     - separate rework and normal flow physically as well as in Baan ERP
     - daily material review board (MRB) and scrap transactions implemented
     - checking point between warehouse and production established in order to control material
     movements


 Result: Q2 2006 stocktake result was less than -20kEUR

 Financially approved saving: 555 kEUR
Elcoteq Projects 3/7




Inventory Accuracy subprojects
 Period: 2004 – continuously
 Place: ELQ Pécs BU, various product lines
 Target: Achieve sustainable inventory accuracy in shop-floor related warehouses

                                                                           PTH – HANDASSY
       Supplier               WH             SMT                                                                WH
                                                                              (reworks)
                                                                                                                               Supply Chain
                   1            2           3                5         6        7        8        9            11
                                                        4
                                                                                                           10   FGs back to production
   Supplier label qty is                                                                                        -Separation in Baan
   wrong, physical qty to                                                                    Avoid double FG    from normal production
   production not match        SMT machinery loss                                            backflush          -Avoid double backflush
   with Baan ERP qty           booking
                                                    Handassy component       Separate repair loop
                                                    scrap booking, daily     SFGs from normal
                                                    MRB meeting              production in Baan ERP
                                                                                                      FG backflush
                                                                                                      -Good part number
                                                                                                      -Good quantity
                                              SMT backflush
                 Picking from WH              -Good part number                  Book material
                 control: Checkpoint          -Good quantity                     consumption during
                 established, using                          SFG – FG scrap      repair-rework processes
                 Security people                             booking



             12         BOM controlling: BOM usage quantity must match with physical usage quantity
Elcoteq Projects 4/7




                   Kitting project 1 - CNE production
Period: 08/2006 – 03/2007
Place: ELQ Pécs, Finn Plant Operations, Product Line 11
Targets:
1. Create WIP inventory replenishment system, where complexity of product mix and variety of
   components is high
2. Increase productivity in order to switch back from 4-shift model to three,
3. 100% control on all material-related events.

   Inventory Control Effect –
   By dedicating a kitting area as a supermarket-warehouse on the shop floor, where all raw materials
   were going to be stored, production logistics team were easily able to control material flow by
   preparing kits based on Baan ERP BOMs (BOM accuracy control), using piece picking concept (scrap
   & special consumption control), and were able to distinguish the materials stored at kitting and the
   ones allocated on the shop floor (cycle count control)

   Through-put-time Effect –
   Production is now able to focus exclusively on manufacturing activities ie manufacturing team has
   nothing to do but to assemble the products by consuming the materials released by kitting team. No
   more need for material hunting, integration of pre-packaging & label printing activity, and FPO
   process implementation guarantees that production can complete the plan more productively, ie
   processing lead time is estimated to decrease significantly.
Results:
   - 43 people saving in blue-collar HC
   - 160 squaremeter saving in material shelf space
   - 48kEUR saving in Materials Scrap and Loss

Financially approved saving: 430 kEUR
Elcoteq Projects 4/7




Kitting project 1 - CNE production
Elcoteq Projects 5/7




General Production Logistics Project – Shenzhen, China
  Period: 09/2007 – 11/2007
  Place: ELQ Shenzhen Plant, Guangdong, People’s Republic of China
  Target: Set up and train production logistics department, introduction of fundamental
  systems and processes


  Tasks completed:

  - dedicate material controllers, schedulers reporting to production logistics manager
  - simplify BOM structures in corporate system (from 5-6 subassy level to 2)
  - dedicate team to manage backflush and other Baan ERP transactions real-time
  - introduce kanban system for raw material replenishment between WH and SMT machines
  - train internal stakeholders about replenishment systems, inventory accuracy subprojects and
  reporting from system


  Result: common understanding about responsibility areas, more effective support for manufacturing
  and purchasing team

  Saving realized: n/a
Elcoteq Projects 6/7




Kitting project 2 - mobile phone manufacturing
Period: 05/2008 – 07/2008
Place: ELQ Pécs, Szilva Plant Operations, Product Line 7
Target: same as Kitting Project 1
Elcoteq Projects 7/7


                   Warehouse Management System
                   Implementation – Manaus, Brazil
Period: 01/2009 – 04/2009
Place: Elcoteq da Amazonia, Manaus, Brazil
Target: implement WMS solution to cover missing
functions in BaaN ERP 4.0

(1)    Slot/Gate management
(2)    SMC (VMI) concept
(3)    Unclear Materials Management
(4)    Incoming Inspection Module
(5)    Manage Intersite shipments
(6)    Unique Package Identification, FIFO
(7)    Packing/Unpacking
(8)    Check for booking
(9)    Kitting / Soft production planning
(10)   Out of BOM inventory management
CCS Lanka projects 1/1




Logistics process and system improvement in Sri Lanka - 1
Period: 01/2010 – 06/2010
Place: CCS Lanka Ltd, Kochchikade – Sri Lanka
Target: improve service level of Warehouse to at least 95% by implementing paperless operation
       through a customized WMS solution – 100% my development
CCS Lanka projects 1/1




Logistics process and system improvement in Sri Lanka - 2
Period: 01/2010 – 06/2010
Place: CCS Lanka Ltd, Kochchikade – Sri Lanka
Target: improve service level of Warehouse to at least 95% by implementing paperless operation
       through a customized WMS solution – 100% my development
NCR Projects 1/1




  Supply Chain Development Projects – NCR Budapest
Period: 07/2010 –
Place: NCR Corporation, Budapest, Hungary
Target: strive for operational excellence in supply chain
NCR Projects 1/1




  Supply Chain Development Projects – NCR Budapest
Period: 07/2010 –
Place: NCR Corporation, Budapest, Hungary
Target: strive for operational excellence in supply chain
Personal Data

Ferenc Rakoczy MBA

Marital Status: Married
Age: 35 years
Telephone: +36 30 503 9664
E-mail: ferenc.rakoczy@gmail.com
Blog: http://supplychain.blog.hu


Studies:
2007-2009 – MBA, University of Szeged
2006 – Six Sigma Green Belt Certification
1996-2002 – MSc in Economics, Budapest University of Economic Sciences


Relevant workplaces:
2010 -       NCR Corporation as Manager, Continuous Improvement, Supply Chain
2004 - 2009 ELCOTEQ SE (Hungary & Brazil), various management positions
2003 - 2004 SANMINA-SCI Hungary LTD (Tatabánya, Hungary) as Master Scheduler


Languages: English (fluency), Portuguese, Italian (basic)

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Supply Chain Management - Project Package

  • 1. Presentation Package Supply Chain Project summary Project Manager: Ferenc Rakoczy Updated on 6 March, 2013
  • 2. Sanmina-SCI Projects 1/1 Logistics Agreement with automotive customer Valeo Period: 06/2004 – 09/2004 Place: Sanmina-SCI, Tatabánya Plant Target: Prepare drafted version of Logistics Agreement (materials mgmt parts) Tasks completed: - forecasting methods, calls, call frequencies, call methods - order confirmation process details - flexibility corridor, firm periods, safety stocks - transport and delivery frequency, HUB - packaging and labelling requirements Result: an approved Logistics Agreement Financially approved saving: n/a
  • 3. Elcoteq Projects 1/7 WIP inventory optimisation project Period: 01/2005 – 06/2005 Place: ELQ Pécs, Finn Plant Operations Target: Reduce WIP inventory value from 4MEUR to 2MEUR Tasks completed: Finn Inventory Valuation report review, Consumption-Declaration and Stock-Flow Difference Analyses Ownership Change in SRO process and continuous kanban level update according to customer requirements Demand-specific production planning methods (high variance in demand: make to order, low variance in demand: kanban) in order to optimize semi-finished and finished goods buffer in production area Result: 1,5MEUR (=37%) inventory reduction in production area Financially approved saving: 140 kEUR
  • 4. Elcoteq Projects 2/7 Inventory Accuracy improvement project Period: 08/2005 – 05/2006 Place: ELQ Pécs, Finn and Cserkut Plant Operations, Product Line 9 Target: Eliminate WIP stock inaccuracy of approx -1MEUR (Q2 2005 stocktake result) Tasks completed: All events related to material flow were reviewed and poke-yoke processes and systems were established in order to control the real-time transactions in Baan ERP. - introduced real time SFG / FG reporting for accurate backflushing - eliminate pBOM errors in order to make sure that backflushed qties are equivalent to the physically consumed amounts, - release automatic SMT machinery loss report in order to make attritions visible and transactable, - separate rework and normal flow physically as well as in Baan ERP - daily material review board (MRB) and scrap transactions implemented - checking point between warehouse and production established in order to control material movements Result: Q2 2006 stocktake result was less than -20kEUR Financially approved saving: 555 kEUR
  • 5. Elcoteq Projects 3/7 Inventory Accuracy subprojects Period: 2004 – continuously Place: ELQ Pécs BU, various product lines Target: Achieve sustainable inventory accuracy in shop-floor related warehouses PTH – HANDASSY Supplier WH SMT WH (reworks) Supply Chain 1 2 3 5 6 7 8 9 11 4 10 FGs back to production Supplier label qty is -Separation in Baan wrong, physical qty to Avoid double FG from normal production production not match SMT machinery loss backflush -Avoid double backflush with Baan ERP qty booking Handassy component Separate repair loop scrap booking, daily SFGs from normal MRB meeting production in Baan ERP FG backflush -Good part number -Good quantity SMT backflush Picking from WH -Good part number Book material control: Checkpoint -Good quantity consumption during established, using SFG – FG scrap repair-rework processes Security people booking 12 BOM controlling: BOM usage quantity must match with physical usage quantity
  • 6. Elcoteq Projects 4/7 Kitting project 1 - CNE production Period: 08/2006 – 03/2007 Place: ELQ Pécs, Finn Plant Operations, Product Line 11 Targets: 1. Create WIP inventory replenishment system, where complexity of product mix and variety of components is high 2. Increase productivity in order to switch back from 4-shift model to three, 3. 100% control on all material-related events. Inventory Control Effect – By dedicating a kitting area as a supermarket-warehouse on the shop floor, where all raw materials were going to be stored, production logistics team were easily able to control material flow by preparing kits based on Baan ERP BOMs (BOM accuracy control), using piece picking concept (scrap & special consumption control), and were able to distinguish the materials stored at kitting and the ones allocated on the shop floor (cycle count control) Through-put-time Effect – Production is now able to focus exclusively on manufacturing activities ie manufacturing team has nothing to do but to assemble the products by consuming the materials released by kitting team. No more need for material hunting, integration of pre-packaging & label printing activity, and FPO process implementation guarantees that production can complete the plan more productively, ie processing lead time is estimated to decrease significantly. Results: - 43 people saving in blue-collar HC - 160 squaremeter saving in material shelf space - 48kEUR saving in Materials Scrap and Loss Financially approved saving: 430 kEUR
  • 7. Elcoteq Projects 4/7 Kitting project 1 - CNE production
  • 8. Elcoteq Projects 5/7 General Production Logistics Project – Shenzhen, China Period: 09/2007 – 11/2007 Place: ELQ Shenzhen Plant, Guangdong, People’s Republic of China Target: Set up and train production logistics department, introduction of fundamental systems and processes Tasks completed: - dedicate material controllers, schedulers reporting to production logistics manager - simplify BOM structures in corporate system (from 5-6 subassy level to 2) - dedicate team to manage backflush and other Baan ERP transactions real-time - introduce kanban system for raw material replenishment between WH and SMT machines - train internal stakeholders about replenishment systems, inventory accuracy subprojects and reporting from system Result: common understanding about responsibility areas, more effective support for manufacturing and purchasing team Saving realized: n/a
  • 9. Elcoteq Projects 6/7 Kitting project 2 - mobile phone manufacturing Period: 05/2008 – 07/2008 Place: ELQ Pécs, Szilva Plant Operations, Product Line 7 Target: same as Kitting Project 1
  • 10. Elcoteq Projects 7/7 Warehouse Management System Implementation – Manaus, Brazil Period: 01/2009 – 04/2009 Place: Elcoteq da Amazonia, Manaus, Brazil Target: implement WMS solution to cover missing functions in BaaN ERP 4.0 (1) Slot/Gate management (2) SMC (VMI) concept (3) Unclear Materials Management (4) Incoming Inspection Module (5) Manage Intersite shipments (6) Unique Package Identification, FIFO (7) Packing/Unpacking (8) Check for booking (9) Kitting / Soft production planning (10) Out of BOM inventory management
  • 11. CCS Lanka projects 1/1 Logistics process and system improvement in Sri Lanka - 1 Period: 01/2010 – 06/2010 Place: CCS Lanka Ltd, Kochchikade – Sri Lanka Target: improve service level of Warehouse to at least 95% by implementing paperless operation through a customized WMS solution – 100% my development
  • 12. CCS Lanka projects 1/1 Logistics process and system improvement in Sri Lanka - 2 Period: 01/2010 – 06/2010 Place: CCS Lanka Ltd, Kochchikade – Sri Lanka Target: improve service level of Warehouse to at least 95% by implementing paperless operation through a customized WMS solution – 100% my development
  • 13. NCR Projects 1/1 Supply Chain Development Projects – NCR Budapest Period: 07/2010 – Place: NCR Corporation, Budapest, Hungary Target: strive for operational excellence in supply chain
  • 14. NCR Projects 1/1 Supply Chain Development Projects – NCR Budapest Period: 07/2010 – Place: NCR Corporation, Budapest, Hungary Target: strive for operational excellence in supply chain
  • 15. Personal Data Ferenc Rakoczy MBA Marital Status: Married Age: 35 years Telephone: +36 30 503 9664 E-mail: ferenc.rakoczy@gmail.com Blog: http://supplychain.blog.hu Studies: 2007-2009 – MBA, University of Szeged 2006 – Six Sigma Green Belt Certification 1996-2002 – MSc in Economics, Budapest University of Economic Sciences Relevant workplaces: 2010 - NCR Corporation as Manager, Continuous Improvement, Supply Chain 2004 - 2009 ELCOTEQ SE (Hungary & Brazil), various management positions 2003 - 2004 SANMINA-SCI Hungary LTD (Tatabánya, Hungary) as Master Scheduler Languages: English (fluency), Portuguese, Italian (basic)