Dax Tripp Jeffrey Howell Tiffanie Martin Ben Ruby Alice Cook Dr Jimenez Wes Olive Psyche Bryant May 5 2015 FreestockFloor Stock Vendor Managed Inventory Endries 1 Problem Statement FreestockFloor Stock Typically Comprise Commonly used Fasteners which are Hardware that Adjoin Objects us ID: 772192
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Dax Tripp, Jeffrey Howell, Tiffanie Martin, Ben Ruby, Alice Cook Dr. Jimenez, Wes Olive, Psyche Bryant May 5, 2015 Freestock/Floor Stock Vendor Managed Inventory -Endries- 1
Problem StatementFreestock/Floor Stock Typically Comprise Commonly used Fasteners which are Hardware that Adjoin Objects using Screws, Bolts Among Other ComponentsPhilips Freestock/Floor Stock Components List Currently Also Includes Wire, Glue, Tape, Bags Among OthersImpact of Not having the Correct Mixture of Freestock/Floor Stock Components?Missed Customer OrdersAssembly DowntimeFirefighting Confusion on Replenishment ProcessOwnership of ProcessWhat is Freestock/Floor Stock? Out of all the orders that affected Schedule Attainment in December 2014, 13% were related to Freestock/Floor stock Stock -Outs What is the Current Problem? Goal: Reduce stock outs by 25%
DefineDecision Tree for Scope of ProjectUtilized Six Sigma Tools:SIPOC Process to Identify Scope of the Process our Project will Address
MeasurementData GatheredProcess Chart3.8% Value AddedDPRCustomer AttainmentEndries Annual UsageUsage, Lead Time, VMI…Philips Item Master43% AlignmentBin Measurements23% within 20% EOH
Freestock IssuesStock Outs and Current Process Endries VMI Classification Months UsageLead Time Component TypePhilips VMI ClassificationAnnual Usage
AnalyzeDesign of Experiments to Verify Root Causes for Stock OutsSignificant factors have p-values < 0.05R2 = 0.79Adj R2 = 0.4Most significant factor is the interaction between Lead Time and Annual Usage.Analysis of variance table [Partial sum of squares - Type III]Source Sum of Squares df Mean Square F Value p- value Prob > F Rank of Significance Model 13197.52 41 321.89 2.03 0.039 model is significant A-Endries VMI 722.27 1 722.27 4.56 0.0442 7 B-Item Master SC 819.39 1 819.39 5.17 0.0331 6 C-Months Usage 415.14 1 415.14 2.62 0.1198 D-Annual Usage 34.52 1 34.52 0.22 0.6453 E-Lead Time 47.27 1 47.27 0.3 0.5905 F-Component Screw31.64131.640.20.6594 DE1732.6411732.6410.930.00321AC1198.8911198.897.560.01172CD1198.8911198.897.560.01172CE1164.5211164.527.350.01284AE848.271848.275.350.03045AD708.891708.894.470.0468Residual3486.5922158.48 Cor Total16684.1163 Std. Dev.12.59 R-Squared0.791Mean6.33 Adj R-Squared0.4016C.V. %198.94 Pred R-Squared-0.7685PRESS29506.38 Adeq Precision7.226
AnalyzeSolutionsDesirability at 0.949 if usage set at < 500.Desirability reduced to 0.7 if annual usage required to be > 500.
ImproveSolution: Develop Criterion for Each CategoryKanban System Philips Manufacturing Facility Vendor Distribution CenterInformation Replenish Bin(s)
ImproveRACI Chart to Clarify Roles and Responsibilities Process Map for Source Code ConversionUsing Six Sigma Tools:Material Flow for Based on Source Code &
ControlDashboardsStock-Outs by Week, Stock-Outs by Source Code/CriteriaRead-Out of Components with Highest Impact and by Criteria% of Components Seen by Both PartiesDashboard to Track Stock-Outs & Performance
ControlMeasuring SystemStatistical Proof that Methods Implemented have dropped Stock-OutsWe Expect this Trend to Continue as Components are Addressed
CollaboratingWith A Special Thank you to: Chris Venicx – Plant Manager Wes Olive – Supply-Chain ManagerPsyche Bryant – Assembly/Manufacturing Mgr.Felipe Caldeira – Industrial Engineer Francisco Gutierrez – Senior Industrial Engineer Dr. Jesus Jimenez – Industrial Engineering Capstone Faculty Advisor Additional Thanks Dr. Tongdan Jin – Industrial Engineering Professor Dr. Clara Novoa – Industrial Engineering Professor Dr. Eduardo Perez – Industrial Engineering Professor Philips Members Texas State University Members