Customer On Time Delivery Performance – Improvement project for TRP Sealings, Hereford, UK

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Customer On Time Delivery Performance
Improvement project for TRP Sealings, Hereford, UK
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Case Study COTD MPS WorkshopsSealing Systems
Manufacturer, Hereford, UK.

• Introduction
• The client are manufacturers of customised and
  standard rubber compound gaskets for the plate
  heat exchanger
• industry. VA were asked by the clients key
  customer, APV Invensys to support guide the
  client to drive up their
• current COTD performance to APV sites in
  Goldsboro (U.S.) Kolding (Denmark). Both APV
  sites had seen delivery
• Commitments and acknowledgement dates being
  unreliable and in many cases had witnessed
  further repetitive
• slippage to re-acknowledged dates. This was then
  having a significant knock-on effect to the
  operations side within both
• facilities.
• Project Plan
• After an initial SWOT analysis, VA recommended a
  3 month program with the following objectives
• Detailed COTD analysis and implementation of
  Improvement Action Plan
• Review and re-alignment of current stocking
  policies and parameters
• Formal review, measurement and alignment plan of
  order book adherence
• Introduction to the Control Room process
• After drilling down into the perceived
  issues, the VA Consultant quickly identified that
  there were 4 main causes impacting on the clients
  ability to deliver on time. These were

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Case Study COTD MPS Workshops Sealing
Systems Manufacturer, Hereford, UK.

• Implementation
• Below is a summary of the main processes
  introduced to drive improvement within the
  clients business
• Control Room Set up to develop, monitor and
  drive improvement of KPIs install broader
  visual management techniques throughout the site.
• COTD Recording Data table set up to expand on
  basic COTD measurement. In order to try and
  understand the reasons why lines were being
  delivered late, we started to look at the detail
  behind the order lines. This included days
  shipped early / late, root cause late and Order
  book adherence.
• Critical Order board Set up to track key order
  lines as identified by APV Purchasing Managers in
  their weekly order book review. Daily updates
  regarding WIP from Ops Logistics Managers.
  Continual process of daily tracking until order
  line is shipped.
• Quality Visual display boards set up to
  coordinate acceptable quality standards on
  trimming between Goldsboro TRP and also provide
  general quality guidelines on manufactured
  product.
• OEE - Set up to understand where capacity losses
  were occurring in the Press area.
• ABC Product Classification Stocking Policy
  Introduced to try and secure availability of
  volume gaskets by using stock replenishment
  systems based on agreed rules.
• During the introduction period of OEE, the
  recorded data showed that we were not only seeing
  losses through non
• value add activities during changeover times but
  also with other related processes. These included
  tool preparation,

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Sample slides from VAs Basic OEE Presentation
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Case Study COTD MPS Workshops Sealing
Systems Manufacturer, Hereford, UK.
Results - COTD
COTD figures for APV Goldsboro site have
significantly improved over the project period,
which is clearly displayed by the trend line.
This has been achieved even though many partial
shipments have been made to satisfy minimum
demand requirements of the customer and therefore
has magnified the impact of the overdues.
COTD figures for APV Kolding have gradually
improved over the project period, which again is
displayed by the trend line. The figures show
less fluctuation over the last few weeks of the
project. This is a result of the new processes
implemented by VA now being embedded into the
clients daily business. This will allow COTD for
APV Kolding to be maintained at 95 .
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Case Study COTD MPS Workshops Sealing
Systems Manufacturer, Hereford, UK.
Results - OEE
The introduction of OEE into the clients
facility at Hereford has provided them with
quantifiable data that can be used to maximise
the efficiency of their press area. Although many
of the issues were previously known, the
presentation format of OEE and its involvement of
cross functional personnel have provided a
platform to agree simple but logical actions to
resolve daily problems. Results up to the end of
the project were as follows
Average Gasket Production Wks 5-11 (Pre-project)
73,793 Average Gasket Production Wks 19-25
(Last 6 wks) 77,645 Increase in Average Gasket
Production per Wk 3,852 Average Cost per
Gasket - 3.69 Average Increase in Sales per Wk
14,214 Annually - 739,000

Using the training and tools supplied by VA,
normal expectations during this first phase (i.e.
without Cap-Ex spend) would be to see OEE rise by
around 6-8 from their initial baseline. The
client are not only utilising the released hours
to increase production volume but also to
increase the number of changeovers per day. This
will allow them to move away from planning orders
by tool runs and start manufacturing orders by
customer wish date. The efficiency figures above
show the significant rewards the client have
reaped within the timescales of the project.
All initiatives implemented by VA are now fully
owned and driven by the clients personnel on a
daily basis.
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Case Study COTD MPS Workshops Sealing
Systems Manufacturer, Hereford, UK.
Follow up
Due to the success of the original 3-month
program, the client independently requested VAs
assistance to simplify COTD management and offer
a solution to their manual planning process for
their 3 production/trimming locations.

• After initial Project Plan meetings with
  the Planning Logistics teams at the clients,
  the following objectives were agreed
• Work with the clients team to ensure successful
  implementation of Microsoft based Preactor
  scheduling system across all presses in the
  operation to timescale.
• Implement MPS and ATP processes within the
  clients operation.
• Implement process for intermediate scheduling of
  works orders through key process steps.
• Implement conformance to schedule measures at
  key points in the process.

• These objectives provided the following benefits
  to the business
• Ability to give much more accurate commitment
  dates for delivery to customers.
• Ability to track performance to delivery dates
  at intermediate stages in the operation, thus
  allowing early warning to customers of any
  potential missed dates.
• Ability to identify which processes and root
  causes were preventing delivery on time, with
  focus on resolution to fix these problems.

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Case Study COTD MPS Workshops Sealing
Systems Manufacturer, Hereford, UK.
Follow up
MPS (Master Production Schedule)
Implementation Previously the process for
planning at the clients had been driven by the
customer order being accepted and added to the
press shop plan, pushing the order through the
manual press shop process before being routed to
one of three trimming locations. Recognising the
need to plan production from the bottleneck
trimming process, a Master Production Schedule
process and weekly meeting were employed to track
buffer stock implementation and subsequent
lead-time reductions. The MPS process works by
tracking stock implementation at the trimming
process stage by allocating a specific trimming
location for each part and using the press shop
as a supplier to the trimming process. All parts
depending on usage and difficulty - have been
allocated a specific trimming location allowing
accurate capacity planning, training and
transport planning for each location.

• Benefits realised by the client
• Each trimming location now has a 12 16 week
  schedule of specific parts based on accurate
  trimming capacity.
• Due to specific parts being trimmed in each
  location, dedicated stock locations can be used
  for each part which makes shipments easier to
  plan and execute.
• Quality is improved due to dedicated parts in
  each location and reduction in training
  requirements.
• Customer lead-times are more accurate for
  planning purposes due to use of accurate capacity
  planning information and delivery times to each
  location.
• Buffer stocks can be agreed and tracked over a
  defined period reducing lead times to the end
  customer