The team in Phoenix has struggled with T-Outs (unexpected inventory shortage) for the past couple of years. There has been improvement, but it has never been sustained. Recently, a team of inventory control, receiving and stocking associates worked together to improve our inventory accuracy. In addition, our much improved (and sustained!) facility housekeeping has helped to identify items out of place on the stock shelves.
The net result has been astonishing! Over the past three weeks, T-Outs in Phoenix have declined by 40%! The facility has met the inventory accuracy target for the past three weeks, and even had a day with no T-Outs at all! This is terrific improvement! It represents much hard work and effort over many months, and demonstrates the effectiveness of LEAN in our workplace. These results don't come from one or two improvements. Rather, these results are the product of many small improvements over those months, which are finally beginning to pay big dividends!
Tuesday, May 6, 2008
Tuesday, April 15, 2008
Expected vs. Actual
Phoenix has been working hard to integrate the concept of expected versus actual thinking in production. Following a basic LEAN concept, we are establishing an objective standard based on prior performance in a given area. We measure our actual performance against that standard. 
Both expected and actual performance are recorded on an MDI board or document. Some measurements are taken during the shift, while others measure the entire shift.
Both expected and actual performance are recorded on an MDI board or document. Some measurements are taken during the shift, while others measure the entire shift.As the actual data is posted with the expected data, abnormalities are discovered. These abnormalities are discussed in the Tier 2 meeting by the Leads and Supervisor of the team, and with frontline associates in the next Tier 1 meeting. These abnormalities can be either favorable or unfavorable. Efforts are made to understand and replicate the favorable abnormalities, while unfavorable results receive countermeasures as soon as possible to get back on track.
Areas where Phoenix is applying this principle include Bin Production, Bulk Production, Truck Loading, Item Profiling, and Delivery Performance. Improvements have been noted in each of these areas.
Expected versus Actual performance measurement doesn't accomplish the desired result by itself. It must be combined with Tier Meetings, Leader Standard Work, and use of an Action Item Board to apply countermeasures quickly. When those elements are used together, the results can be very powerful!
Wednesday, March 12, 2008
Kaizen - Housekeeping Sustained!
Phoenix has been through several cycles of housekeeping improvement ... that is, we clean up, we slide downhill, we clean up, we 
slide downhill, etc. For this event, the Kaizen team was charged with improving our ability and sustaining that improvement. The scope of this project was to focus on warehouse bulk aisles, static bin aisles, and flow rack aisles. Representatives from both warehouse shifts participated on the team.
After four days of hard work, cleaning, and debate, the Kaizen team developed a plan to bring the warehouse up to standard by the end of March, and more importantly, to sustain the spring cleaning long into the future!
For the initial clean up, all warehouse and office associates will be involved, including supervisors, managers, even the director. Training was provided for all associates to establish a standard to which all may work. A Standard Operating Procedure or Standard Work Document was written to measure and maintain the standard over time. Daily maintenance assignments have been
issued so each aisle in the building is refreshed daily and returned to standard, as well as inspected by a Lead or Supervisor. The Leader Standard Work documents for all leaders have been updated to include a daily review of the housekeeping in each aisle. Following this road map, housekeeping standards in Phoenix will move sharply forward and remain there!
The Kaizen team expects to improve Safety, Accuracy, Productivity and reduce Damage as a result of this event. Some of these will be difficult to measure specifically to this event, but it is consistent with other recent events in Phoenix as the same areas will be impacted. Most importantly, the Kaizen event will help associates show respect for themselves, each other, and our customers by maintaining a clean, well organized work environment. Everyone prefers to work in a neat and tidy operation!
slide downhill, etc. For this event, the Kaizen team was charged with improving our ability and sustaining that improvement. The scope of this project was to focus on warehouse bulk aisles, static bin aisles, and flow rack aisles. Representatives from both warehouse shifts participated on the team.After four days of hard work, cleaning, and debate, the Kaizen team developed a plan to bring the warehouse up to standard by the end of March, and more importantly, to sustain the spring cleaning long into the future!
For the initial clean up, all warehouse and office associates will be involved, including supervisors, managers, even the director. Training was provided for all associates to establish a standard to which all may work. A Standard Operating Procedure or Standard Work Document was written to measure and maintain the standard over time. Daily maintenance assignments have been
issued so each aisle in the building is refreshed daily and returned to standard, as well as inspected by a Lead or Supervisor. The Leader Standard Work documents for all leaders have been updated to include a daily review of the housekeeping in each aisle. Following this road map, housekeeping standards in Phoenix will move sharply forward and remain there!The Kaizen team expects to improve Safety, Accuracy, Productivity and reduce Damage as a result of this event. Some of these will be difficult to measure specifically to this event, but it is consistent with other recent events in Phoenix as the same areas will be impacted. Most importantly, the Kaizen event will help associates show respect for themselves, each other, and our customers by maintaining a clean, well organized work environment. Everyone prefers to work in a neat and tidy operation!
Thursday, February 14, 2008
Kaizen - Bin Carton Flow
Phoenix has been working to make improvements in the flow of order cartons along the primary conveyor line. In early February, a Kaizen event was held to look for opportunities and make improvements. The team had 8 members, including managers, a supervisor, a lead, and front line associates. Everyone made good contributions and the results are proving substantial.
The scope of the event was all zones from the production printer to
the rough sort process. This included order printing, induction, flow rack, static bin, check pack, and rough sort. Out of scope was bulk and truck loading. In the past, cartons have been bunching up and stopping the conveyor line in spots. The event objective was to smooth the flow of cartons on the conveyor while maintaining the integrity of our production waves (pitches).
The event ran from Feb 5-8 and the early results are very encouraging. In fact, the first three days after the event demonstrated a productivity gain of nearly 4% versus the previous 10 business days! Such a gain translates to one full time person, and since we are running overtime right now, that full time person earns time and a half! If sustained through the year, such a gain will translate to more than $40,000 in annual savings!
The scope of the event was all zones from the production printer to
the rough sort process. This included order printing, induction, flow rack, static bin, check pack, and rough sort. Out of scope was bulk and truck loading. In the past, cartons have been bunching up and stopping the conveyor line in spots. The event objective was to smooth the flow of cartons on the conveyor while maintaining the integrity of our production waves (pitches).The event ran from Feb 5-8 and the early results are very encouraging. In fact, the first three days after the event demonstrated a productivity gain of nearly 4% versus the previous 10 business days! Such a gain translates to one full time person, and since we are running overtime right now, that full time person earns time and a half! If sustained through the year, such a gain will translate to more than $40,000 in annual savings!
Wednesday, January 30, 2008
Class II Item Creation
After focusing on the holidays in December and working through the early January rush period, we are back in the saddle and focused on process improvement in Phoenix!
A Continuous Improvement team addressed the issue of creating new Class II items when an item has too much product to fit only in a bin-pick position. Too often, such items were being held for 1-4 days waiting until someone had time to change the status and find a bulk rack position for the product. This was causing inventory discrepancies as orders would be released but no one could find the product.
Several solutions were attempted over the past year, but nothing seemed to make an impact. A team of associates in Phoenix met and divided responsibilities for the process, making some adjustments to the process along the way. Now all Class II items are processed and put away in bin and bulk racks before the next production shift begins. Manual stock-outs have dropped by 40% in the two weeks since. What a wonderful improvement!
A Continuous Improvement team addressed the issue of creating new Class II items when an item has too much product to fit only in a bin-pick position. Too often, such items were being held for 1-4 days waiting until someone had time to change the status and find a bulk rack position for the product. This was causing inventory discrepancies as orders would be released but no one could find the product.
Several solutions were attempted over the past year, but nothing seemed to make an impact. A team of associates in Phoenix met and divided responsibilities for the process, making some adjustments to the process along the way. Now all Class II items are processed and put away in bin and bulk racks before the next production shift begins. Manual stock-outs have dropped by 40% in the two weeks since. What a wonderful improvement!
Friday, November 30, 2007
Kaizen - Bulk Floor Stack Aisle
Continuous Improvement is alive and well in Phoenix! November 26-29 found a team in Phoenix working on a new Kaizen, an effort to improve processes in the Bulk Floor Stack Aisle of the warehouse. The primary objectives were to improve productivity, reduce mispicked product, and reduce damage to products. Each or these objectives will be measured with a specific before and after metric, to insure the desired improvements are realized.
Savings from this effort are estimated (conservatively) to be $2,400 per year, all coming from productivity improvement. But, savings could actually be much greater if increased associate satisfaction and customer satisfaction is considered. How much gain some from keeping one strong associate that might otherwise have left the organization? What if one customer renews a contract because of good accuracy? The soft savings could roll up to be much, much higher.
A number of LEAN tools were used by the team, including RASIC, 5S, Standard Operating Procedures, and Leader Standard Work. The team created and SOP for both stock putaway and stock selection on the aisle. In addition, Leader Standard Work was created and implimented for both the eceiving and production leads.
The team's biggest fear? Will our hard work be sustained in the weeks and months to come? Since both the receiving and production leads participated on the team, it is really in their hands! Will they train properly? Will they follow their standard work? If so, their hard work will be sustained far into the future!
Savings from this effort are estimated (conservatively) to be $2,400 per year, all coming from productivity improvement. But, savings could actually be much greater if increased associate satisfaction and customer satisfaction is considered. How much gain some from keeping one strong associate that might otherwise have left the organization? What if one customer renews a contract because of good accuracy? The soft savings could roll up to be much, much higher.
A number of LEAN tools were used by the team, including RASIC, 5S, Standard Operating Procedures, and Leader Standard Work. The team created and SOP for both stock putaway and stock selection on the aisle. In addition, Leader Standard Work was created and implimented for both the eceiving and production leads.The team's biggest fear? Will our hard work be sustained in the weeks and months to come? Since both the receiving and production leads participated on the team, it is really in their hands! Will they train properly? Will they follow their standard work? If so, their hard work will be sustained far into the future!
Improving Special Order Process Flow
During the week of November 5-9, a CI Project team in Phoenix worked on the development and installation of some improvements to the processing of special orders. A cross-functional team was assembled to address the issues, including misplaced product, missing paperwork, and searching for the items needed.
The team developed a simple Standard Operating Procedure and implimented it, all in the same week! As a result, special orders are processed in a standard way, everyone knows what to expect, small orders are filled and processed immediately, scheduled orders are filled and staged on a cart waiting for their scheduled delivery day, and large furniture items are filled and staged in a special warehouse area set apart and assigned for those orders.
In three weeks following the event, there has been a significant reduction in the time required to process the orders, no more searching to find the product or the paperwork! Most importantly, there hasn't been a single customer complaint about a late or missing special order! Congratulations on a CI well done!
The team developed a simple Standard Operating Procedure and implimented it, all in the same week! As a result, special orders are processed in a standard way, everyone knows what to expect, small orders are filled and processed immediately, scheduled orders are filled and staged on a cart waiting for their scheduled delivery day, and large furniture items are filled and staged in a special warehouse area set apart and assigned for those orders.
In three weeks following the event, there has been a significant reduction in the time required to process the orders, no more searching to find the product or the paperwork! Most importantly, there hasn't been a single customer complaint about a late or missing special order! Congratulations on a CI well done!
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