January 14, 2019 Articles, Industry Forum Blog, Insights, Supply Chain Development Supply Chain Training We offer a range of courses from basic introductions to advanced certifications covering all aspects of Supply Chain Management. Whether it’s physical logistics, a broad understanding of Supply Chain theory of inventory management or professional globally recognised certification, we have a course to suit you. For more detail take a look at our Supply Chain training courses or contact us today to discuss your individual needs. Supply Chain Consulting Areas The Supply Chain is so vast, it can often feel overwhelming. Industry Forum’s expert consultants have experience in successful and profitable change projects. Remove the worry and deliver results to be proud of with the support and guidance of our team. We also understand that there are times when you simply need an extra pair of hands. Our consultants can support you in a flexible manner to meet the needs of your business without tying you into lengthy recruitment processes. Benchmarking How well does your business perform compared to your competitors or leaders in other sectors? Benchmarking areas in supply chain can include: Goods In/ Goods Out Processing Warehousing and Distribution Supply Chain Management Procurement/ Purchasing Cost to Serve Analysis We calculate the true cost of buying, handling, storing and moving the products as separate elements of your supply chain, rather than the traditional accounting method of the blanket distribution of costs. This allows you to understand the true costs of supplying your customers and identifies areas for improvement and profit enhancement. Physical Supply Chain Reviews – Warehousing and Distribution Process Improvement: We analyse your processes and workflows to identify strengths, weaknesses and gaps. Warehouse Layout: We review your current layout and process flows and develop and design more efficient warehouse layouts to increase productivity and improve your supply. Systems and IT: Are legacy systems holding you back? Are your team reliant on excel spreadsheets and paper based solutions? If you don’t think you’re getting the most from your current system, or feel the time has come to invest to support growth, one of our advisors can review its performance and help to negotiate and implement an improved offering from your provider. Network Design and Warehouse Moves: Our team can model your future requirements, support you through: Evaluation and remodelling of your current operation Design and build or sourcing new warehousing Negotiating leasing of existing warehousing Managing the exit from your current premises Logistics and Transport The cost of logistics and transport is too often overlooked as a ‘necessity’ without real understanding of the performance, effectiveness and structure behind the operation. Our experts can help you to identify and manage the elements of your logistics and transport operation in order to optimise your solution and improve both service and profit. One of our team will manage any tender and contracting process from beginning to end, ensuring a smooth transition and clarity throughout. Forecasting, Demand and Inventory Management Poor forecasts, poor inventory management, and unsuitable demand planning processes could be costing you significantly; tying up capital and eroding your bottom line profit. We can help you to understand the root causes of the issues within your planning function and identify ways to resolve them. Sales and Operations Planning (S&OP) Sales and Operations Planning brings together Sales, Operations, Finance and Senior Management to ensure the heart of the business is aligned to the strategic direction of the Board. A fully integrated S&OP that allows for collaboration within the business in a structured and controlled way can be difficult to achieve, but not impossible. Our wealth of experience will ensure your S&OP process is right for you. With a focus on a simple, achievable process which delivers instead of a regimented process drowning in theory that does nothing to enhance your performance. Good S&OP doesn’t need to be complicated. We can design, implement and restructure your S&OP process and deliver internal training to ensure your team continue to make it work. Product Lifecycle Management Our unique approach includes a combined process review and improvement project along with tailored training to your team to ensure all future new product launches run smoothly. Managing end of life product to maximise sales whilst minimise remaining obsolete stock within your business is all part of our lifecycle management review. Supply Chain Systems Implementation From design, selection, right through to installation and transfer from legacy systems the potential for failure is enormous. It’s unlikely that the business will regularly do a system change – so why not let us support you? We regularly support businesses through systems implementation in: WMS, Automation in the warehouse, Forecasting and Demand planning systems, ERP systems, EDI systems, Operational Planning System as well as end to end financial management systems. Let us manage the implementation project so that your people can focus on what you hired them to do. At the end of the project, we can train and support your staff to ease the transition.
May 16, 2014 Case Studies, Supply Chain Development A National Supply Chain Group case study in the Aerospace Sector. This supply chain development activity focussed on delivery improvement and lead time reduction. This was achieved using techniques including data analysis, workplace organisation, visual management, standard operations and set up improvement (SMED). The Customer The Host GKN Aerospace specialises in the design, testing, manufacture and assembly of a diverse range of aerospace composite and metallic structures, transparencies and components at their factories in Cowes, Luton, Portsmouth and Kings Norton. The Supplier Gardner Aerospace-Basildon, Ltd produces a high variety of aerospace components in its 800 m 2 production facility, 500 m2 Treatments and NDT and 400 m2 repair station. 125 employees generated £10.8m turnover for year ended August 200. The Customer’s need The Host As a key supplier Gardner was invited to join GKN’s National Supply Chain Group. GKN’s need was for Gardner to improve its on time delivery to achieve >95% Delivery Schedule Achievement to lift their Bronze performance to Gold. The Supplier Gardner identified its treatments area as the best place to start the activity with a target to improve process lead time. This was to be followed by set up improvement in the machine shop. No measures were in place. The IF Solution framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum, the 3 pronged approach enables individual businesses to see real gains in Quality, Cost, Delivery (QCD), and to improve the level of partnership between companies, alongside the development of improvement skills capability within each company. Overview of PAC Structure Description of Skills to Profitability Link Treatment Area Measure selected : Process lead time. Data was captured and Visual Management used to progress work through the area Workplace organisation used to eliminate wasted time looking for material, tools and consumables. Standardised work identified waste due to walking and anodiser idle time. New layouts reduce both. The combined effect reduced the process lead time by 35% A further benefit was that the work in progress in the treatment area was reduced by 11513 parts over a 3 month period. Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Reduction in build time of a high volume product Results Before After Not Right First Time 25,300 ppm Less than 1,000ppm (0 ppm for Aug 2007) Overall Equipment Effectiveness 73% 83% Financial Benefits Value of additional units and improved NRFT performance £50.4k Value of reduced downtime due to tool breakages £80.2k Total £130.6k Upskilling for Sustained Continuous Improvement Achievement of NVQ Level 2 in Business Improvement Techniques for some members of the team Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A case study of Process Improvement in the Automotive Sector. This supply chain development activity focussed on defect reduction and productivity improvement. This was achieved using techniques including effective teamwork, 5C / 5S, flexible production systems, standard operations, single piece flow and visual management. “It is not just the achievement of the solution, which wouldn’t have been possible otherwise, but the learning of methodologies through team work that will have long lasting benefit to ourselves and our customers.” Alan Charles – Quality Manager, Renold Gears The Customer The Host Perkins Shibaura is a joint venture company supplying water-cooled compact engines for the construction, agriculture, marine, materials handling and power generation sectors in Europe and North America. The Peterborough site employs around 140 people and has a sales turnover of around $250M. The Supplier The principal activities of the Renold Group are the manufacture and sale of industrial chains and related power transmission products. The Group revenue for 06/07 was £159M and the group employs 2,500 people in 19 countries worldwide. The Customer’s need In April 07 out of a total of 2,700 Gear 10’s supplied to Perkins Shibaura they received 30 products with their vane inserts missing. This was a repeat concern. The defect rate due to this was 0.4% (4166 ppm) The Perkins Shibaura target was 0.005% (50 ppm). The IF Solution Supply Chain Groups provided a structured framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum the 3 pronged approach enables individual businesses not only to see real gains in Quality, Cost, Delivery (QCD), but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Activity Structure Description of Skills to Profitability Link Build & Spring performed as separate batch processes. Batches could be dispatched by mistake missing the 2nd operation. Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Financial Benefits For Gear 10, the People Productivity improvement will save £4,600 per annum (over 2700 parts per week, with a saving of 13.5 seconds per part). For Gear 8, currently built by hand, converting to the new method would save £20,800 per annum (over 800 parts per week, saving 204 seconds per part). Renold estimate the cost of dealing with previous Gear 10 bad quality (stock checking, warranty claims, reworking etc.) to be £3-4,000. Upskilling for Sustained Continuous Improvement The activity also supports the introduction of a Pull production system at Renold for the supply of Perkins Shibaura Gears. The change in the Build & Spring process forms part of the Future State Value Stream that has been used to design a Pull replenishment system using kanban. Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A case study in Supply Chain Improvements in the Aerospace Sector. This supply chain development activity focussed on delivery improvement and was underpinned by the NVQ level 3 in Business Improvement Techniques. It was achieved using techniques including effective teamwork, flexible production systems, 5C /5S, standard operations and visual management. “In September 2005 the Goodrich Electric Power Systems business launched a TI sponsored “Whole Supply Chain Group” programme, this was branded as “10 Suppliers, 4 Tiers, 1 Aim: Customer satisfaction throughout a world class supply chain”. Not only did this programme engage 9 suppliers & the manufacturing module at Pitstone, thus embracing 4 tiers of Supply Chain, it also engaged our customer Airbus. Our whole supply chain improvement in OTIF from 75% to 100% and delivered quality from 1500 dppm to 750 dpm, has resulted in a further DTI sponsored extension to the programme and an award recognising the professional project management applied by Goodrich Electrical Power Systems. The Goodrich Electric Power Systems business is now in year 5 of a 5 year business turnround, we are on plan to do this and Industry Forum has been a significant contributor to our success, we look forward to continuing to work with them in the future.” Emmett C.I. Team The Customer The Host Goodrich Power Systems, Pitstone. Manufacturer of generator sets for most Airbus models.Eemployees 508, turnover £140m, Material spend £50m. Participating Supplier Precision Magnetics Ltd, a UK leader in the design, manufacture and supply of rare earth permanent magnetic assemblies, with only 30 employees and around £2.5m turnover is a key supplier to all the Goodrich Airbus programmes. The Customer’s need Delivery Schedule Achievement (DSA) for all suppliers in September 2005 was 66%. The supply chain group represented 75% of Goodrich spend on Airbus programme and had a group DSA of only 60%. This endemic poor supplier delivery performance was continually affecting Goodrich’s ability to meet Airbus programme dates. Precision Magnetic’s then DSA of 7% being a significant factor. The IF Solution Supply Chain Groups provided a structured framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum the 3 pronged approach enables individual businesses not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Supply Chain Group Structure The “Learning By Doing” Process, linked to a National Vocational Qualification (NVQ) Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Overall Supply Chain Delivery Schedule Achievement to Goodrich (OTIF) Before: 60% After: 90% Precision Magnetics Delivery Schedule Achievement to Goodrich Before: 7% After: 100% July 07 Overall Supply Chain Not Right First Time Before: 1500 dppm After: 750 dppm Upskilling for Sustained Continuous Improvement 34 NVQ’s in Business Improvement Techniques across every supplier, (9 Change Agents & 23 Team Leaders) Sustainability of the Improvements: The company has made continuous improvement a strategic objective and appointed senior managers who have the skill and responsibility to coordinate core activities. The company will gain sustainability by continuing to organise workshops at each site in their organisation. Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A case study in Supply Chain Improvements in the Power Generation sector. This supply chain development activity focussed on delivery and productivity improvement and was achieved using techniques including effective teamwork, 5C / 5S, flexible production systems, visual management, standard operations and set up improvement (SMED). “Because of commitments to other programmes at the time, we had to carefully consider whether to support this initiative, but chose to go ahead because of the reputation of Industry Forum. Now that we can see the great results, we are committed to rolling out the tools and techniques across the rest of the business.” Richard Higginson – Company Spokesman The Customer The Host Perkins is a leading supplier of diesel and gas engines in the 4-2000 kW (5-2600 hp) market. Perkins diesel engine solutions are supplied to more than 1,000 leading manufacturers in industrial, construction, agricultural, materials handling, marine and electrical power generation markets. Participating Supplier Maxpower manufactures a diverse range of tube manipulations and pipe assemblies, primarily for major automotive customers. The company employs 138 people and has an annual turnover of £5.5M. The Customer’s need The Host Maxpower to improve Delivery Schedule Achievement to better than 95%, through Set Up reduction, and improvement in Overall Equipment Effectiveness and People Productivity. The Supplier Improve current throughput in the cell from 32 pipes/hour to 45 pipes/hour. To reduce the pipe bending cycle time from 80 seconds to less than 60 seconds The IF Solution Supply Chain Groups provided a structured framework approach bringing together customers and suppliers from different tiers in the Supply Chain. Developed by Industry Forum the 3 pronged approach enables individual businesses not only to see real gains in QCD, but also to improve the level of partnership between companies and to develop the improvement skills capability within each company. Overview of Activity Structure Description of skills to profitability link Return on Stakeholders’ Investment Industry Forum’s Seven Measures of QCD Competitiveness Results Delivery Schedule Achievement Before: 84.0% After: 97.1% People Productivity Before: 32 pipes per hour After: 41 pipes per hour Overall Equipment Effectiveness (DB75 Pipe Bender) Before: 52.0% After: 67.0% Financial Benefits The Productivity Improvement reduced the cost of overtime and other disruptions by over £11,000 per annum. The additional flexibility and capacity created has allowed the company to bid, successfully, for additional business. Upskilling for Sustained Continuous Improvement Following the conclusion of the Supply Chain activity, Maxpower nominated 9 internal candidates who are currently completing their NVQ Level 3 Business Improvement Techniques to sustain and spread the Lean Tools through the organisation. Reference file: Download Case Study
May 16, 2014 Case Studies, Supply Chain Development A case study of increasing profitability through the development of a world-class supply chain. Background Perkins Engines at Stafford intended to support rapid growth in volumes and to drive an increase in profitability by developing a supply chain capable of world-class performance. The Challenge Perkins Engines at Stafford produces medium-to-large size engines for the Electrical Power Generator industry, employs 500 people and has sales of £133m. Having seen a substantial increase in volumes in Year 1 to more than 2000 engines (from 600-800 in previous years), and plans to deliver a further 30% increase in Year 2, Perkins’ supply chain was under pressure. The Objectives Key objectives for suppliers in Year 2 was to support Perkins’ intention to achieve Class A re-accreditation: 40% reduction in both customer and supplier delivered quality defects Significant improvement in supplier delivery performance – currently 66% 30% increase in capacity in Year 2 100% increase in stock turns Further development of lean manufacturing capability The Industry Forum Solution A 2 year project was delivered by SMMT Industry Forum under direction from Project Champion Paul Lloyd, one of Perkins 6 Sigma Black Belts. It built on the success of a pilot project that took place in Year 1, where Perkins worked with two key suppliers to increase their manufacturing capacity, overhaul their management control systems, deploy lean thinking and encourage a culture of continuous improvement. The programme was developed through a 6 Sigma DMAIC process (Define, Measure, Analyse, Improve & Control) A Business Improvement Review was used to analyse supplier performance in terms of quality and delivery performance, spend, growth in spend since Year 0, and strategic importance. Subsequently, a ‘supplier day’ was held to fully explain the challenges that faced Perkins and its supply chain. Key training and improvement activities: Change Agents underwent training and assessment during the lifecycle of the project Value Steam Mapping’ was used to establish the current position, assess the future position and identify opportunities for improving QCO performance A Partnership Assessment survey was used to evaluate ‘interface waste’ and identify gaps in cross-functional relationships with suppliers The ‘7 measures of QCD’ were implemented to analyse performance, identify gaps in Class A requirements and create action plans Quarterly Steering Committee Meetings reviewed progress against the activity plan and agreed KPIs The Customer’s View “Significant growth in Perkins’ business has put severe pressure on the Stafford facility and its workforce. Over the last 2-3 years we have invested several million pounds in new plant and equipment both at Stafford and within the supply chain. The issues now facing the Stafford business are the development of key processes and people to maximise the return on assets and assure future prosperity. We see the Supply Chain Group project as a cornerstone of future process development. Improved effectiveness of our suppliers will enable Perkins to operate a more lean and agile business.” Robin Mackness, General Manager, Perkins Engines Reference file: Download Case Study (pdf)
