This article shows how to take your company to 100 % inventory accuracy levels and to have zero production downtimes due to logistic processes.
100 % inventory accuracy?
Having inventory accuracy below 90 % leads to unfulfilled production orders and can potentially drive you out of the market. When Staufen arrived at Vertiv, they had 48 % inventory accuracy. In the first 3 months, with the help of the implementation of lean logistics tools such as PFEP, tugger routes, ABC/XYZ analysis, fixed points of use, fixed locations of common parts, kit delivery and development of standards, inventory accuracy was increased to 70 %. Within a further three months, with the implementation of Shop Floor Management (SFM) for tracking logistics processes, 99.8 % were reached. Since then, inventory accuracy has been maintained at 99.8 % and with zero production downtimes due to logistic processes.
THE APPLICATION OF THE 5 BASIC PRINCIPLES OF LEAN MANAGEMENT
Implementation plan
Within the implementation of this project, five steps were highlighted to take Vertiv Monterrey to these levels of inventory accuracy and zero production downtimes due to logistic processes:
- Initial evaluation of the logistics process
- Sensibilization of leaders in the supply chain
- Implementation of logistics tools
- Transaction automation
- Implementation of SFM including coaching
The willingness of the Vertiv Monterrey team from operators to senior management was key for the success of the implementation.
If you are sick, self-medicating is not the best decision, we must go to the doctor; similarly,
LUIS ALFONSO LARA ESCAMILLA
if you have a material flow or supply chain problem, the best decision is to ask for the advice of an expert.
Betriebsleiter, VERTIV CO.
Luis Alfonso Lara Escamilla has more than 25 years of experience in manufacturing organizations with global presence such as Vertiv, SAFRAN Aerospace, SKF Sealing Solutions or Condumex Autopartes. In different management positions he developed high performance teams at all levels, leading the organizational culture to levels of excellence based on continuous improvement, respect, discipline, empowerment, and accountability.
The Interview with Luis Alfonso Lara Escamilla
Mr Lara, what were the main challenges during the implementation of this project?
The main challenges for the implementation of the project were communication and teamwork. As in many organizations, in Vertiv we have different areas that have a lot to do with the flow of materials such as warehouse, production, continuous improvement, supply chain, engineering, etc., each area has its own objectives and priorities. So it is complicated to align efforts to have a single plan and a common goal. Fortunately, thanks to the initial analysis process and the involvement of management, this goal was achieved.
What were the benefits during the implementation?
The ultimate goal of the project was to have the material on time and in the right place at all times. This was achieved, but we also became aware of the importance of collaborative work, the proper implementation of systems and processes and the appropriate use of technology. By creating a visual system and sharing it with all people involved, the necessary synergy was achieved and as a result, the the objectives were exceeded.
What is the impact of replication in other areas within the plant?
This project will definitely be replicated in all production lines and is being proposed for other plants of the group to implement it as well. This will achieve higher levels of productivity and inventory control to ensure greater profitability and cash flow.
About VERTIV
Vertiv is a global provider of critical digital infrastructure and continuity solutions serving industries such as data centers, communications networks and commercial and industrial facilities. The company offers a comprehensive range of hardware, software, analytics and services to ensure the availability and efficiency of IT infrastructures.
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