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Graco Supply & Integrated ServicesGraco Supply & Integrated Services
3.1.4 Materials Management Process
September 20, 2010Robert Steffner, Director of Quality
Graco Supply & Integrated Services
What we do?
Distribution, Packaging and Vendor Managed Inventory Services of Industrial/Specialty Supplies such as Adhesives, Sealants, Paint and Composite Manufacturing Materials for the Aerospace and Composite Structure Industries.
Graco Supply & Integrated Services
Who we are?• Serviced Aerospace Industry Since 1959• Owner Change 2002• Revenue 2009 ~ $40 MUSD• AS9100/AS9120 Certified, NADCAP Accredited• Headcount 58 FTE• Locations
– Fort Worth, TX (HQ)– Wichita, KS– Tulsa, OK– Ball Ground, GA– High Point, NC
Graco Supply & Integrated Services
3.1.4 Materials Management ProcessThe purpose of the material management process is to enable, support, and improve material support for the lean enterprise.
3.1.4 Material Management Process – How does your organization focus on improving its material management processes in support of your lean and flow manufacturing objectives? How does your organization maintain a high level of inventory accuracy? How do you maintain a high level of 6S inmaterial storage areas? How are levels of obsolete, slow-moving and expedited material maintained at a minimum? How are material handlers, material planners and supervisors formally trained in material management methods?
Storage WIP Finished
MATERIALS MANAGEMENT PROCESS
MetricsInventory turnsDollars in stockroom
Improvement ObjectivesKittingConsumption-based orderingSuper markets
MetricsCycle timeDollars in receiving
Improvement objectivesReduce incoming inspectionIncrease materials direct to floor
MetricsInventory turnsCycle time
Improvement ObjectivesBatch size% on-timePPM
MetricsInventory turns
Improvement ObjectivesReduce scrapReduce reworkFirst pass yield
PPT report
Shipping
Metrics% on-time
Area
s Ad
dres
sed
Graco Supply & Integrated Services
Customer
Goods Receiving
1
Materials Management
Process
Supplier
Purchase Order
Purchase Order
Purchase Order
Lead Time = 0 seconds
VA / T = 0 seconds
In-plant Time = 0 seconds
Transport Time = 0 seconds
Sales Order
Control
Control
Receiving Inspection
Defect = 17500 ppm
Warehouse
1Shipping
Defect = 3800 ppm
7
Value Stream Map
Graco Supply & Integrated Services
Materials Process
Goods Receiving
Receiving Inspection
Pass?On order
by customer?
Shipping
Stock in assigned bin-
location
Customer Order?
Identify - Segregate -
Report Noncon
Resolved w. Vendor?
Receive Material
No
Yes
No
Return to Vendor
No
Yes
Yes
No
Yes
On-Time Receipt PPM Defects On-Time ShipPPM Defects
74GS01-01Goods
Receiving Process
74GS01-06Receiving
Work Instruction
74GS01-09Receiving Non
-conforming Material
74GS01-07Receiving
Work Instruction
ERP
75GS05-05Shipping Process
Inventory TurnsDaily Sales Dashboard
Graco Supply & Integrated Services
Management Process
Establish Schedule for Cycle Count and execute
Schedule
Strategic Goals
Materials Management
Goals6S Stock Rooms
Monitor and Maintain Stocking levels - Min/Max
Run Shelf-Life Ageing Report
(Monthly)
Adjust out Defect
Materials
75GS05-25Cycle Count
Work Instruction
85GS01-016S Visual
Work Place
75GS05-18Min/Max Set-up
75GS05-24WI Inventory
Ageing Report
GS015 Inventory
Adjustment Form
OOD Material $$Spoilage $$Inventory Accuracy
Graco Supply & Integrated Services
Training
Graco Supply & Integrated Services
Work Instructions
Graco Supply & Integrated Services
Graco Supply & Integrated Services
Thank You!Tim Holland: [email protected]
Robert Steffner: [email protected]
