�ݺ�ߣ

Theme:
Achieve continuous-flow ELP processing from customer order to final delivery.
•Consistently fulfill our commitments to Weyerhaeuser customers
•Improve workload balance for both sales and operations departments
•Add capacity by reducing waste in the processing system
AURORA ELP IMPROVEMENT PROJECT
Current Condition: Operations
•This project supports Weyerhaeuser’s Project Alpha initiative
•Orders “leap-frogged” during the order-to-delivery cycle, causing systematic
errors.
•12 to 15 + two temporaries used in yard activities.
•25% overtime
•28,000# truckloads
•Transaction timing and sequencing creates delays in the OTD process.
•Printing early
•Un-timely inputting of sales orders and inputting of completed work orders
Function Typical Time
Phone call/fax to order input 408 min. (call/fax avg.)
Order entry to Printed work order 1211 Minutes
Printed work order to loaded truck 1628 minutes
Loaded truck to shipped 585 minutes
Transit Time to Customer 300 minutes
Total Order-To-Delivery Time 4132 min. (2.9 days)
Current Condition: Sales
•Sales team structure is horizontal and
not conducive to good sales/processing
communication.
•Processing
Volumes not well
dispersed hour by
hour and day by day,
resulting in uneven
use of capacity:
•Significant
dwell times
exist
resulting in
slow
response to
customer
requests
Previous Image Implemented Image
1. Ops. manager
prints all work
orders for following
day at 5:00pm.
2. Work orders sorted
by product type and
given to yard
“specialists”.
3. Specialists pick and
cut inventory based
on individual work
orders.
4. Specialists transfer
inventory to staging
area and sort by
product type.
5. Loaders pull work orders by truck and sort and
load inventory by order/truckload. A truck load
may have more than one product type.
1. Ops. Manager prints 1 truck’s
worth of work orders at a time
starting at 12:00 noon and
distributes to team (2-4 people
per truckload).
2. Workers pick, cut and load 1
truck at a time.
3. Loader helps load trucks.
3 Days 2 Days
OSROSR OSR OSR OSR OSR OSR
ISR ISR ISRISR ISR ISRISR
CSR
•Sales process not driven by
quantitative goals.
•Operations capacity not visible to
sales operation.
Previous Sales Structure
OSROSR OSR OSR OSR OSR OSR
ISR ISR ISRISR ISRISR
CSRCSR CSR
Team 1 Team 2 Team 3
Implemented Sales Structure:
•Vertically oriented by product group
•Proactive selling
•Visual control
Order
Taking
Order
GENERATING
Countermeasures:
•Organize ELP processing methods with outbound truck loading
•Establish continuous “small batch” processing methods among yard operators
•Reconfigure shift start times to eliminate dwell time of customer orders
•Create visual “load control” board for sales operation to plan available capacity
•Re-organize sales team to utilize skills and product characteristics
Benefits:
Total savings of $615,000 in ’14. Expected margin increase of two (2) points.
•Removed one full day of lead time (2.9 days to 1.9 days)
•Load control board resulted in improved load density by 25% (28,000 lbs to
35,000 lbs, approx. $240,000 annual savings)
•$210,000 annual labor savings (reduced from 12-15 +2 temps to 9 + 1 temp.)
•$165,000 annual overtime reduction from >25% to <10%. ($15k/person
annually vs $6k/person annually, 15 people vs. 10 people)
•Inventory accuracy has improved (less time spent searching for product)
•Processing accuracy improved (less time spent fixing bad orders)
•Vertically integrated product teams will create extra capacity of approx. 30%+ for
increased future sales (measurement due Summer ’05, expected benefit to
exceed two (2) margin points)
Next Steps:
•Continue development of sales team
•Implement “small batch” processing in the Naperville warehouse
•Establish “Office of Continuous Improvement” to leverage knowledge and skills
of Aurora personnel
•Consider consolidated inventory management strategy amongst Great Lakes
Region
Timeline:
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Sales Team Facilitation
Develop metrics
Improve Capacity
Coordinate with warehouse
Small Batch Processing (Naperville Whse.)
Evaluate
Plan
Implement
Office of Continuous Improvement
Select Team
Train the trainer
Begin projects
Centralized Inventory Management Strategy
Study
Plan
Implement
1/16 1/23 1/30 2/6 2/13 2/20 2/27 3/6 3/13 3/20 3/27 4/3 4/10 4/17 4/24 5/1 5/8 5/15 5/22 5/29
January February March April May
0
20
40
60
80
100
120
140
160
180
Mon Tue Wed Thur Fri
# of work orders
0
1
2
3
4
5
6
7
8
Hour
1
Hour
3
Hour
5
Hour
7
Hour
9
Hour
11
# of work orders
David Sheehan

Sales
Customers
Faxes
distributed
E-mail
Queue
Orders
Inquiries
Quotes
Entered
Order
Odyssey
Queue
EDI
Sales
Support
Release
Order
Manually or auto send confirmation
Phone/fax/e-mail
Sales Process
Order
Printed
Staged in
bins
Handed
to cutters
Order
processed
Staging
Order
recorded
Loads
created
ShippedLoaded
ELP Process
Phones
Arrival
408 Minutes 1211 Min. 1628 Minutes 585 Min.
4132 Minutes, or 2.9 days
300 Min.
Current
Image

�ݺ�ߣ

Aurora ELP Processing System Improvement Project

Recommended

More Related Content

What's hot (20)

Similar to Aurora ELP Processing System Improvement Project (20)

Aurora ELP Processing System Improvement Project