Caso Packo Plurinox

1
Caso Packo Plurinox

• University of São Paulo (Brazil)
• Departament of Industrial Engineering

2
Characteristics of the company

• Middle size company
• 85 employees
• US 7,000,000 / year
• 200 miles from São Paulo City Brazil
• Produces several types of stainless steel
  refrigerated tanks for industrial milk storage
• Production mix of high volume production for
  standard containers (from 300 liters to 3,000
  liters) and low volume production of non-standard
  containers (from 3,000 liters to 200,000 liters)
• High seasonality

3
Project Requirements
Situation Before Project
Desired Situation

• Final assembly against customer order
• Elimination of Finished Goods inventory
• Pull production of parts
• Minimization of WIP
• Production flexibility lead time of
• 5 days for all products
• Visual management of operations

• Production based on sales forecast
• Weekly schedule based on MRP
• Production oriented to Finished Goods
  replenishment
• Problems
• High volume of Finished Goods
• Inventory
• Excess of unecessary (unsold) goods
• Lack of necessary ones
• 45 day lead time for non-forcasted
• products
• 5 days for final preparation of forecasted
• Finished Goods and shipment

Strategy for Improvement Lean
Production Approach
4
Application Project Plan

• A1. Identification of product families.
• Lean Production basic training for stackholders
• Family identification
• A2. Production data collection and current state
  mapping.
• Production data collection
• Production mapping
• Identification of production problems and root
  causes
• Physical layout analysis

5
Application Project Plan

• A3. Design and detailment of future state.
• Proposition of inventory control policies
• Proposition of production planning and control
  hybrid system
• Proposition of a system for raw material
  purchasing planning
• Physical layout redesign
• A4. Implementation planning
• Planning of improvement iniciatives to full the
  gap between current and future state
• Implementation team building and training
• Definition of physical resuources for
  implementation (panels, kanban cards, boxes,
  racks, etc.)

6
Product Families

• Criteria for family definition process
  similarity, volume of production (demand) and
  lead time characteristics (response to customer).
• Five families were defined
• Family I Tanks PRV/PRVS/VMDX standard
  products, high demand
• Family II - Tanks OMDX - standard products, low
  demand
• Family III Tanks PRH customized products, low
  demand
• Family IV Road Tanks 8000 lts and 9000 lts
  standard products, medium demand, long lead time
• Family V Customized Road Tanks low demand,
  long lead time.

7
Value Stream Mapping

• One current state map for each family
• 2 weeks for data collection
• 3 weeks for current state mapping of the five
  families
• 4 people involved in the mapping 2 company
  managers and 3 support people from university

8
Current State Map Family I
Orders based on forecasts
Customer Order
Weekly Orders
Sales Forecast
A
Steel Sheet Orders
I
I
I
Order
I
I
FG Stock
Refrigerat Unit Assb
I
I
I
Each 15 ds.
I
I
I
I
I
I
I
I
I
Mnft Lead Time 512 hs
Small Parts Manufacturing
I
Value Added 16 hours
20 days
6 hours
35 days
5 days
2 hrs 2 days
8 hours
9
Future State Design

• One future state draw for each family
• 4 weeks to design the future state of the five
  families
• High management involved in the design
• 6 people involved 1 company director, 2 managers
  and 3 support people from university
• Major concept
• Standard products with high and medium production
  volume (Families I and IV responsable for more
  than 85 of sales) Assembly Make to Order and
  Pull Production (using Kanban) for the parts and
  components
• Customized products and standard with low
  production volume Make to Order
• One-single piece flow
• Finishing operations integrated in the flow

10
Future State Design Family I
Steel Sheet Replenishement Orders
Customer Order
Dayly Orders
Short term forecast
Order
I
Each 15 ds.
3 days
20 days
2 days
7 hours
7 hours
11
Pull Production for Parts and Components
12
Kanban Board and Load Leveling Board for
Production Schedule
13
Organization with the use of Kanban
Before
After
kanban
14
Organization with the use of Kanban
Before
After
kanban
15
Physical Layout Redesign

• Lay out redesign for the production lines of
  components
• Former lay out oriented to larger lot
  movimentation
• Redesign necessary in order to assure a good
  one-single-piece-flow
• Use of the tool Spaghetti Diagram for analysis
  of the lay out current state and design of the
  new lay out

16
Previous Layout and flow of components
Inner Mantle
Backing Ext/Lid
17
Implemented lay-out
Travel Distance Reduction 36
Inner Mantle
Backing Ext/Lid
18
Implemented lay-out
Space Utilization Reduction 25
Use to be the Finishing Sector
Inner Mantle
Backing Ext/Lid
19
Finished goods inventory before
20
Finished goods inventory after
21
WIP Reduction
WIP evolution
Begining of the Lean Production project
Implementation of Lean Production
500.000,00
400.000,00
300.000,00
Inventory in US
200.000,00
100.000,00
-
jul/02
mar/02
jun/02
sep/02
jan/02
feb/02
may/02
apr/02
dec/01
aug/02
Months
22
Results

• Final assembly just responding to customer orders
• Pull production of parts and components
• Inventory of unsold finished goods was
  eliminated Space has been used as an holding
  cell for sold goods waiting for shipment
• Finished goods and WIP inventory reduced from
  around US 500,000.00 to around US 150,000.00
• More production flexibility 5 day lead time to
  customer for standard products
• Visual management of the operations at the shop
  floor

23
Bibliography

• Womack, J. Jones, D. and Roos, D. (1990) The
  Machine that Changed the World. Harper Perennial,
  NY.
• Womack, J. and Jones, D. (1996) Lean Thinking -
  Banish Waste and Create Wealth in Your
  Corporation. Simon and Shuster, New York, NY.
•  
• Rother, M. Shook, J. (1998) Learning to See -
  Value Stream Mapping to Add Value and Eliminate
  Muda. The Lean Enterprise Institute, Brookline,
  MA.
• Feld, W.M. (2001) Lean Manufacturing - Tools,
  Techniques, and How to Use Them. The St. Lucie
  Press / APICS Series on Resource Management,
  Alexandria, VA.