TRO Throughput Capacity Increased with RFID Implementation Transfer booking from Production to Sales By Mike Keane, TOSHIBA TEC Europe IPD Manager Europe
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TRO Throughput Capacity Increased with RFID Implementation
Transfer booking from Production to Sales
By Mike Keane, TOSHIBA TEC EuropeIPD Manager Europe
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TOSHIBA Europe GmbH Regensburg Operation
• Founded: 1990
• Employees: 396
• European Operational Center for PC products – EMEA Planning & Customization
– Notebook Production
• 30.000 units / month
– FG-bulk Notebook Operation
• up to 400.000 units / month
– European Logistic Center
– European Service Center
– Product and Software Development
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Project Definition The Problem• European market outlook is highly positive
• TRO could not match market demands for 2006 and beyond
• Factory warehouse bottleneck was holding sales expansion back
• The average daily output was 9574 units/day at end of 2005
• Bottleneck was most severe during the last week of each month: – 40 percent of the total monthly throughput
• Worse still 13 percent of monthly throughput is during the final working day of each month !
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Project Definition
• Goal/Objective statement • Increase throughput/day by 57% by the end of 06A• Keep headcount at current level• Increase the average booking throughput/day at I point from
9574 (05B) to 15000 units/day (06B)
• Projected Business Benefit– Decreased booking cost/unit about 300 k€ HS / FY – Increased product availability
• Metric– Throughput/day (shift) at i-point in units booked.
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FG BulkPacking
Area
Project Overview
Pallet Transfer
I-point Area- Hand over from packing operation to FG WH (ready for sales) - manual booking for every single unit- prestorage of FG pallets
Hidden Factory & Bottleneck !!!FG - Warehouse
36x Scan
No space
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RFID-Tags inside the Pretty-Boxglued on Accessory Box
RFID-Gate with Antennae
Test pallet
Transportation from Production to Warehousethrough the RFID-Gate
Analysis RFID Proof of Concept
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Analysis & Improvement Result Summary
Factor Significant ? Best Setting
X1: Antenna Power Setting No 2W
X2: Position RFID label Yes Outside
X3: Units per pallet No 36
X4: Passage position Yes Middle
X5: distance between antennae Yes 2.90
X6: speed Yes Slow
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From a Critical Business Problem to its Solution
Additionalmanpower
Handling
Move palletto scan
Transport
Tran
spor
t
36x Scan
CFCCFC
FG-WH
ContinuousFlow
RFID Gate
1x Scanfor all
Waiting forbooking
Duringtransport
FG-WHReady forstoring
No space
No space
time consuming process time saving process
Problem Solution
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Process Flow
Toshiba TEC RFID Label Printer
RFID Label Positioning at Accessory Box
FG Packing RFID Booking Gate Booking Control Terminal
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FG BulkPacking
Area
Layout after RFID Implementation
Improvements I-point has been eliminated eliminated Hidden Factory eliminated Bottleneck expanded WH storage area streamlined processes automated booking for every single unit
FG - Warehouse
Pallet Transfer & RFID Booking
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Improvements & Benefits
Metric Before (05B) After (10/06) Improvement
Average Booking quantity/day 9574
Booking Headcount 8
Booking cost/unit
[€/unit]0.243
Hard Savings : 320 k€ /FY
Booking Reliablity with RFID technology 100% Poka Yoka 6 Sigma Capabilty for Booking reliability !
17324 7750 (81%)
2 -6 (75%)
0.147 -0.096 (40%)
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TOSHIBA’s iCube (Six Sigma) Performance Status• Improvement of two contradictory metrics at the same time
(Throughput & Headcount)
• Implementation of a totally new technology (RFID) at Toshiba
• Cross Company Cooperation with Toshiba TEC, ADT TYCO and UPM
• Toshiba is the first notebook manufacturer to tag products with RFID
• Competitive advantage by offering customers additional values with RFID
– Logistic, WH & Sales processes at Customers
– Customers Cost and Efficiency
– Ready to implement special customers requested information into RFID label
• Intensive MI Tool utilization
– Design of Experiments, Capability & Reliability Studies ……
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Outlook
Potential Business Opportunities
– Utilize RFID Technology for Accessory Logistics from TRO to • Middle East Hub • Western Europe Hub
– Utilize RFID further in the downstream Supply Chain
• Logistic, Warehousing processes at Distributors, Retailers
• Ready to implement special customers requested information into RFID label
First discussions started with major European retailers
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Video sequence of RFID process
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TOSHIBA know-howSupplying state of the art solutions for a thriving PC business in
EMEA !
Thank you for your Attention