Harris Products Group: Driving Productivity Improvements and Cost Reductions with SAP Tooling Management

Transcription

1 Harris Products Group: Driving Productivity Improvements and Cost Reductions with SAP Tooling Management Lukasz Gosniak, Lean Six Sigma Manager Jeff D. Crawford, Director of IT

2 LEARNING POINTS Using Tooling Management functionality embedded in SAP to drive productivity and cost improvements Linking Tooling Management to an automated storage and retrieval system Supporting Vendor Managed Tool inventory with critical suppliers

3 BEST PRACTICES Rigorous inventory control over tooling Scheduling tools as part of the production process Storing setup instructions in SAP as part of the routing Integrating SAP with an automated storage and retrieval system via ftp Using SAP plant maintenance to schedule calibration orders Integrating vendor management of tools with the overall solution

4 AGENDA Harris Products Group Overview Business Problem Business Case Tooling Management in SAP Data Model Vendor Managed Inventory Automated Storage and Retrieval Tooling Management Process Process Video Implementation Issues Benefits To-Date Future Plans Q&A

5 HARRIS PRODUCTS GROUP $350 Million division of Lincoln Electric Worldwide leader in brazing alloys and gas flow regulators, cutting torches and tips Headquarters Mason, Ohio Plants Mason, Ohio Gainesville, Georgia City of Industry, California Tijuana, Mexico Dzierzoniow, Poland Sao Paulo, Brazil Play one minute Harris video

6 HARRIS POLAND KEY PRODUCTS Torches Regulators Tips

7 HARRIS POLAND PLANT FACTS PLANT AGE 2006 Current Plant area 9500 m3 Number of employees 180 Dzierżoniów

8 HARRIS POLAND PLANT FACTS 19 CNC machines 16 spindle machines 5 HV robotic centers 3 CNC VMC s 1 HV Radial drilling 2 HV drillers 6 HV milling units 1 CNC milling center 1 Adige 30-2 ops machine 30- toolroom lathes

9 BUSINESS PROBLEM Extensive tool inventory Tool Type Category Different sizes / types / SKU s Estimated Value PLN 1 Drills 1, ,650 2 Chaser ,980 3 Screw taps ,460 4 Stamps ,000 5 Knives & Cutting Inserts ,760 6 Endmills ,440 7 Other (Threading dies, Reamers, Cams) ,000 8 Gages 802 1,566,900 9 Fixtures , Collets , Live tooling attachments , Holders ,000 Tooling Inventory Value ~$1,671,071 4,915 5,130,190 Number of different SKU s 4,915 TOTAL NUMBER OF TOOLS ~ 45,500

10 BUSINESS PROBLEM Issues that led us to consider the SAP Tooling Management functionality: Need for improved inventory control over tools and gauges Tool locations unknown or tools not present in the location Belief plant was purchasing too many tools Ability to schedule tools with production jobs Are all the tools present that I need to run the job? Need for data on tool usage/life Little to none currently

11 BUSINESS CASE Main OEE drivers 7% 120% 6% SMED 100% 5% 4% 3% 2% TPM TOOLING MANAGEMENT 80% 60% 40% 1% 20% 0% Set up time Breakdown PRT related Others Lack of people Quality problems Lack of materials 0% Tooling management is a cornerstone of plant efforts to: Increase productivity Reduce setup time Reduce expenses Improve flexibility Reduce tooling related machine breakdown Increase customer fill rate

12 RETURN ON INVESTMENT Planned ROI Payback Period Years IRR % Capital / Project Investment- $180,097 Savings- $77,709 year one A critical project with a great return!

13 TOOLING MANAGEMENT IN SAP

14 TOOLING MANAGEMENT DATA MODEL Vendor [Machines] (Chiron, Vigil, CNC) Vendor (Elltech, Optima) Work Center Part Maintenance (Quality) Work Order Material [Tools] Routings Maintenance Plan Equipment [Serial Number] Bill of Materials Task List Measurement Points [Counters & Length] Z_TMG_MM Z_TMG_PC Z_TMG_PROD_DAYS Z_TMG_SHARP_COUNT Update counters based on production order completion Production Order 14

15 PROCESS FLOW EXAMPLE

16 PRODUCTION RESOURCES/TOOLS 16

17 STOCKING LOCATIONS Plant 8000 HPG Poland Storage Location 8001 Tool Warehouse Unrestricted Stock Quality Insp. Stock Subcontractors stock (Machine) Unrestricted Stock Storage Location 8002 Carousel HPG Owned Tools Unrestricted Stock (Own) Blocked Stock Subcontractors stock (Sharpening Vendor) Unrestricted Stock Storage Location 8003 Carousel Consigned Tools Vendor Consignment Stock Storage Location 8000 Temporary SL for GR Unrestricted Stock Storage Location 8004 Scrapping Unrestricted Stock Blocked Stock Storage Location 8005 Sharpening (in-house) Unrestricted Stock Blocked Stock In Quality Insp. Stock Storage Location 8006 Quality Check Unrestricted Stock Blocked Stock In Quality Insp. Stock

18 SETUP CARD Job setup information stored in SAP For each individual tool

19 VENDOR MANAGED INVENTORY Desire for key tool suppliers to manage consignment stocks of their tools HPG provides forecast and current usage Vendor access to replenish as required Vendor performs goods received transactions on RF Gun through SAP on their deliveries to HPG HPG pays for consigned tools as they are moved from vendor stock to HPG stock

20 VENDOR MANAGED INVENTORY

21 AUTOMATED STORAGE AND RETREIVAL Implemented Hӓnel Lean Lift system Supported by RF Gun transactions Integrated with SAP via ftp server approach Elevator and drawer system Accommodates various item heights

22 LEAN LIFT AND SAP Shelf button LAN WAN Lean-Lift Plant Floor Dzierzoniow, Poland ftp Server Based on RFC 959 Computer Room Dzierzoniow, Poland SAP Client ABAP Program Data Center Cleveland, Ohio

23 TOOLING MANAGEMENT PROCESS Purchasing VMI Supplier Order Tooling Resupply Tooling Receive Tooling Calibrate Gauges Maintenance (Calibration) Order Where? Calibrate Inside Calibrate Outside Issue Tools Return Tools Schedule Production Production Order + PRT Requirement + Setup Card Run Production Tool Disposition Sharpen Tools Scrap Tools

24 Play video of business process VIDEO OF PROCESS

25 IMPLEMENTATION ISSUES Coordination of outside consulting firm, plant team, HPG team, offshore development team and parent (Lincoln) SAP and infrastructure team SAP upgrade to ECC 6 EHP 6 Necessary for features needed for project Slowed down ability to Go Live due to resource diversion Upgrade changed the way SAP interacts with FTP server necessary for connection to Lean Lift Effort to identify and inventory existing tools Some resources only available after standard working hours

26 RETURN ON INVESTMENT BEGINS! Actual Experience To-Date A A + 2% B B + 7% C C + 11% A 4% B 35% C 27% 2013 YTD thru 3 months (Jan-Mar)

27 FUTURE PLANS Transfer solution to Gainesville, Georgia plant Begin to analyze tool usage data collected to make improvements in tooling Expand use of Plant Maintenance past the initial use for Calibration Orders

28 LEARNING POINTS Using Tooling Management functionality already in SAP to drive productivity and cost improvements Linking Tooling Management to an automated storage and retrieval system Supporting Vendor Managed Tool inventory with critical suppliers Substantial ROI possible

29 Questions

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31 THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1109 For ongoing education on this area of focus, visit