World Class Mail Logistics 1 Logistics Logistics Pillar – Swindon WBC Purpose – To create a smooth, accurate and controlled flow, synchronising production with customer handover, transportation and despatch W ORLD CLASS M AIL Safety Quality Control/Custom erSatisfaction CostDeploym ent Ip Autonom ous M aintenance ProfessionalM aintenance People Developm ent Environm ent Commitment Deploym ent Involvement Implementation Communication Evaluation Understanding Standardisation w ith Visibility M easurem ent Documentation Focused m rovem ent Logistics W orkplace Organisation
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World Class Mail Logistics 1
LogisticsLogistics Pillar – Swindon WBC
Purpose – To create a smooth, accurate and controlled flow, synchronising production with
customer handover, transportation and despatchWORLD CLASS MAIL
Safet
y
Quali
ty Co
ntro
l/Cus
tom
er S
atisf
actio
n
Cost
Deplo
ymen
t
Ip
Auto
nom
ous M
ainte
nanc
e
Profe
ssion
al Ma
inten
ance
Peop
le De
velop
men
t
Envir
onm
ent
CommitmentDeployment
InvolvementImplementation
CommunicationEvaluation
UnderstandingStandardisation with Visibility
MeasurementDocumentation
Focu
sed
mro
vem
ent
Logis
tics
Wor
kplac
e Org
anisa
tion
World Class Mail Logistics
Agenda
• Pillar Overview• Cost Deployment & Area classification• Model process selection and data
Vision•To create a Logistics flow through the door to door centre that
satisfy’s customers requirements.• To ensure all processes through-out the centre are productive.
Needs•To reduce material handling whilst creating a smooth, accurate and controlled flow of Door to door items in all work areas•To reduce the centre’s NVAA activity through portering, transportation, material handling through-out the centre.
Objectives • To improve the WBC’s centre KPI’s
Targets• To increase productivity by 350k items per week, by May 2012• To reduce Cycle times in model area by 10% by April 2012
World Class Mail Logistics
Overview – Logistics Pillar Team
Logistics Pillar Lead Reactive Radar
0
1
2
3
4Par ts classifi cation
Logi stics cost deployment
P hase 1
Logi stics Step 1
Logi stics Step 2
Separation
Lineside stock management
Logistics Step 3
QC stage 1 & 2
QC stage 3 & 4
CompetencyPostPre
Logistics Team Reactive Radar
0
1
2
3
4Parts classif ication
Logistics cost deployment
Phase 1
Logistics Step 1
Logistics Step 2
Separation
Lineside stock management
Logistics Step 3
QC stage 1 & 2
QC stage 3 & 4
CompetencyTeam Rating
Ashley Smith Pillar Lead
Colin BoivinPillar Support/Processor
Gina BriggsPillar Support/Processor & CWU rep
World Class Mail Logistics
Logistics 7 steps
• Key Performance Indicators (KPIs)• Customer satisfaction• Processing lead time• Ratio mail processed flow/patrol• Material handling productivity• Number of customers optimised
delivery specification
• Key Activities Indicators (KAIs)• No. of processed steps with 5T routes• No. of storage containers in process
area• No. of square metres dedicated to
storage• No. of material handling team involved• % compliance with master schedule • % no. of Kaizens to increase material
handling productivity
Step 1Step 2
Step 3Step 4
Step 5Step 6
Step 7Re-arrange internal logistics
Re-arrange external logistics
Level operations
Refine internal logistics and external logistics
Integrate mail collection, transportation, sorting and delivery
Adopt a standard time control system
Re-engineer processes to serve customers
World Class Mail Logistics
Agenda
• Pillar Overview• Cost Deployment & Area classification• Model process selection and data collection Plan, Do, Check, Act (PDCA)• Step 1 – Re-engineer process• Step 2 – Re-Arrange internal Logistics• Next steps 3G - Plan, Do, Check, Act• Conclusion• Summary
World Class Mail Logistics
Compliance
Storage &
Racking Other
Processes1. Breakdown Loss 3.52. Set Up / Changeover3. Other Downtime4. Minor Stops & Idling5. Refeeds & Rework6. Planned Maintenance7. Shortage Of Staff8. Lack Of Mail9. Management10. Operator Motion 51 3.1 5.4 18.711. Line/Work Area Organisation12.Transportation & Portering 200 183.8 20.9 29.213. Measurement14. Material15. Energy16. Maintance & Spare Parts
Total 3.5 51.0 3.1 200.0 5.4 183.8 20.9 18.7 29.2
Processing Despatch
Down
time /
Wait
ing
for W
ork
Move
men
t to
Desp
atch
Logis
tics
Meas
urem
ents
Load
ing
Desp
atch
Retu
rns D
2D
Unloa
ding
repa
triat
ed
empt
y con
taine
rs
Reac
h Tr
uck D
uty
Cycle
Tim
es
Mate
rial &
En
ergy
Mach
ine (E
quipm
ent)
Man
(Peo
ple)
Cont
ract
Print
ing
Cost Deployment - C Matrix
Logistical losses identified from Cost Deployments C matrix
World Class Mail Logistics
Number of Logistical projects
Yearly Loss£286,000
Project description Yr 0 Loss £kLG Lost Time through York movement mins (E) 79LG Lost Time through York movement mins (L) 63LG Lost Time through York movement mins (N) 64LG Lost Time through York movement mins (E) 19LG Lost Time through York movement mins (L) 11LG Reach Truck Cycle Times (ALL shifts) 51
World Class Mail Logistics
Stratification and Pareto of biggest Logistic losses
D Matrix Logistics Losses
0
10
20
30
40
50
60
70
80
90
Lost Time throughYork movement mins
(E) Processing
Lost Time throughYork movement mins
(N) Processing
Lost Time throughYork movement mins
(L) Processing
Reach Truck CycleTimes (ALL shifts)
Lost Time throughYork movement mins
(E) Unloading
Lost Time throughYork movement mins
(L) Unloading
Area
'000
k
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Yr 0 Loss £kCost/Loss
World Class Mail Logistics
Area Classification – Prioritised All Area Types by Level of Waste & Loss due to Poor Logistics
AA A
A
World Class Mail Logistics
Agenda
• Pillar Overview• Cost Deployment & Area classification• Model process selection and data collection Plan, Do, Check, Act (PDCA)• Step 1 – Re-engineer process• Step 2 – Re-Arrange internal Logistics• Next steps 3G - Plan, Do, Check, Act• Conclusion• Summary
World Class Mail Logistics
Mail Flow Map Cleaning
Store Stock Office/Quiet Room Managers Comp. Games Room T.V. Room Equip.Office Store Store
X
BS EX PO SOTQ SP OX RG SN
NPTABA HR CF BH HA SL SA
WR DT UB
Union Head of PrintRoom WBC Office Room
ForkliftFootpath Enterance
Customers parking BAY 1
BAY 2
World Class Mail Logistics
Item Classification
Leaflets
Envelopes
Magazines
Newspapers
Samples
D2D IS ONE PRODUCT
FIVE STREAMS
STREAMS ARE HANDLE DIFFERENTLY IN TERMS OF ITEM
WEIGHT
World Class Mail Logistics
Item classification Per 10,000 items
Workstation 1Leaflets
Workstation 2Envelopes
Production
DespatchWorkstation 3
Magazines
Workstation4Newspapers
Workstation5Samples
Average Number of Yorks taken to process 10,000 items
World Class Mail Logistics
Model process selection
Project No. Project description Process Step Loss Type Yr 0 Loss Planned Completion
1 Lost Time through York movement mins (E) Processing Transportion and Portering 82 262 Lost Time through York movement mins (L) Processing Transportion and Portering 59 263 Lost Time through York movement mins (N) Processing Transportion and Portering 55 264 Lost Time through York movement mins (E) Despatch Un-Loading 20 265 Lost Time through York movement mins (L) Despatch Un-Loading 10 266 Reach Truck Cycle Times (ALL shifts) Storage & Racking Operator motion 36 9
Advice from last audit, take A small project and build your Confidence around implementing the WCM tools and techniques
Number of issues highlighted• Excess Material Handling - Double handling of work - Pallets put down the aisle’s - Too much work dropped for production - Slave Pallets• Operator Motion - MHE not correctly charged - MHE area blocked with waste/products - No route dedicated to MHE• Management - Downtime (NVAA)
World Class Mail Logistics
What is the problem? – 5W & 1H
Initial Phenomenon Statement
WHAT
WHEN
WHERE
WHO
WHICH
HOW
REVISED PHENOMENON STATEMENT.
Down time identified
All three shifts
Reach truck drivers and Booking in team
No set patternReach truck duties
not fully utilised
Reach truck drivers are not fully utilisedAnd observations have shown that
Work is being double handled,too much dropped and not enough rigorIs applied when putting work away. This
All has a effect on the cycle times
World Class Mail Logistics
3G – Facts and FiguresProject : Reach truck duties Cycle timesVolume of traffic: 14.8 Million items
Stratification of Losses – per shift Losses p.a. per shift
£0.00
£5,000.00
£10,000.00
£15,000.00
£20,000.00
£25,000.00
1
EarlyLateNight
EARLIES
Lates
Nights
World Class Mail Logistics
3G Facts and FiguresNumber of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time
Total Mins used to complete activity 36.00 68.50 169.00 155.50 124.00 319.50 212.00 119.50 145.00 90.00 100.00 183.50 164.50 15.00 48.50 20.00 0.00 0.00 0.00 0.00 0.00 0.00 160.00 174.00
0600 - 0700
0700 - 0800
0800 - 0900
0900 - 1000
1000 - 1100
1100 - 1200
1200 - 1300
1300 - 1400
1400 - 1500
1500 - 1600
1600 - 1700
1700 - 1800
1800 - 1900
1900 - 2000
2000 - 2100
2100 - 2200
2200 - 2300
2300 - MDT
MDT - 0100
0100 - 0200
0200 - 0300
0300 - 0400
0400 - 0500
0500 - 0600
World Class Mail Logistics
5G Analysis 3G
GEMBA
GEMBUTSU
GENJITQSU
Go to the spot
Examine the object
Check facts and figures
GENRI
GENSOKU
Refer to the theory
To Follow the operating standard
No standard operating procedure (SOP) or Job Element sheet (JES)
standard operating procedure (SOP) put in place and a Job Element sheet (JES) created
World Class Mail Logistics
Standard operating procedure and Job element sheet created to tackle
• Excess Material Handling - Double handling of work - Pallets put down the aisle’s - Too much work dropped for
production - Slave Pallets
By reducing the excess material handling, we expect this to reduce the cycle times
SOP/JES
World Class Mail Logistics
Agenda
• Pillar Overview• Cost Deployment & Area classification• Model process selection and data collection Plan, Do, Check, Act (PDCA)• Step 1 – Re-engineer process• Step 2 – Re-Arrange internal Logistics• Next steps 3G - Plan, Do, Check, Act• Conclusion• Summary
World Class Mail Logistics
Step 1 – Re-engineer assembly to satisfy customers
3G Observations highlighted
• MHE vehicles not charged correctly• MHE area blocked with pallets
Impact was that Cycle times were increased
World Class Mail Logistics
Reach Truck – Cycle timesNumber of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time
Store Stock Office/Quiet Room Managers Comp. Games Room T.V. Room Equip.Office Store Store
X
BS EX PO SOTQ SP OX RG SN
NPTABA HR CF BH HA SL SA
WR DT UB
Union Head of PrintRoom WBC Office Room
ForkliftFootpath Enterance
Customers parking BAY 1
BAY 2
TEI-JI – FIXED ROUTE5T’S
Tei-Ji identified to support cycle times
World Class Mail Logistics
Step 2 - Re-arrange internal LogisticsCleaning
Store Stock Office/Quiet Room Managers Comp. Games Room T.V. Room Equip.Office Store Store
X
BS EX PO SOTQ SP OX RG SN
NPTABA HR CF BH HA SL SA
WR DT UB
Union Head of PrintRoom WBC Office Room
ForkliftFootpath Enterance
Customers parking BAY 1
BAY 2
TEI-ICHI – FIXED PLACE
Fixed Place allows MHE drivers to take the machinery quickly andEasily which would shorten set up
times
World Class Mail Logistics
Step 2 - Re-arrange internal Logistics
Standardize displayIDLE
CHARGED
CHARGING
FLAT BATTERY
World Class Mail Logistics
Step 2 - Re-arrange internal Logistics
Fixed quantity
World Class Mail Logistics
Step 2 - Re-arrange internal Logistics
Tei – Shoku
Door to door excepts up to four distribution weeks at a time• Kanbans (Colour coding) introduced to distinguish up to
four different weeks when storing the items
World Class Mail Logistics
Implementing 3S & 5T’sNumber of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time Number of measurements Cycle Time