department)of)industrial)and)systemsengineering) process ... · problem analysis type)of)ac-vi-es...
TRANSCRIPT
Implementa)on
Problems 1. Inefficient processes within the Order Management Cycle. 2. Manual job scheduling for warehouse packing.
Objec-ves 1. Redesign order management process to reduce inefficiency.
2. Develop a warehouse scheduling tool using Excel VBA plaIorm.
Order Arrival
Process Order
Credit Check
Schedule Packing Job
Forwarder Pickup
Pack
Close Order
Problem Analysis
Type of Ac-vi-es Current Proposed
Redundant processes 3 0
Automated processes 6 11
Handoffs 11 6
Scope Process reengineering in order management cycle and warehouse opera)ons.
Fishbone Diagram
5 major reasons for inefficiency: • Excessive managerial
interac)on • Lack of standardiza)on • Slow communica)on • Manual handling • Lack of storage area
Problem & Objectives
Methodology Aims of Process Reengineering • Eliminate unnecessary steps (price confirma)on, release of green light, etc.) • Reduce inter-‐department handoffs • U)lize IT support to automate (system stock/credibility check, automa)c scheduling) • Improve informa)on flow (shared online database) • Simplify paper work by electronic billing and documenta)on
1. Mul-ple job handovers 2. Linear processes 3. Manual Scheduling 4. Hardcopy documenta-on
1. Greater job ownership 2. Parallel processes 3. Automated Scheduling 4. Electronic documenta-on
Value Stream Mapping 4 sectors are iden)fied to )me wastage and inefficiency: • DRP & Commercial check • Credit Check • Warehouse Packing • Shipment
Process Reengineering of Order Management Cycle
Scheduling Tool—EzSchedule
1) Op)miza)on model on AIMMS
2) User func)on development and UI building
3) Test and valida)on
Phases Descrip-ons
Func)onal tes)ng
User func)ons were verified during the developing phase with extensive test data.
Usability tes)ng
Usability of the interface was checked with target users to ensure user-‐friendly design.
Beta tes)ng The applica)on was installed on site and run by target users with actual data.
Department of Industrial and Systems Engineering
IE3100R System Design Project
User func-ons: ü Automa)c scheduling ü Enables manual adjustment ü Instant global view of packing status ü Facilitates documenta)on of packed orders
4) Features of improvement
ü Improved scheduling efficiency and capacity ü Reduced cycle )me through schedule op)miza)on ü Increased global visibility and informa)on flow ü Enhanced order tracking ü Retained flexibility of manual schedule adjustment ü Standardized packing documenta)on
Management Method Machine
Milleu Making Known
Inefficient informa)on flow
Lack of standardiza)on
Frequent intra-‐departments handoffs
Liaison laps between departments
Manual warehouse scheduling
Stock pull from external warehouse
Linear order processing
Frequent delay of intercommunica)on
Effects Problem Reasoning
Process Inefficiency
Presented by: Jerry SIM, JIANG Tao, SHI Yuran, YANG Le Supervisors: A/P CHEONG Taesu, A/P POH Kim Leng Industrial supervisor: Mr. Julius THIO
System check for Credibility 1) Credibility Ranking Criteria: 4 criterion iden)fied for credibility ra)ng
2) Computa)on of Credibility Score for all exis)ng customers by pairwise comparison
3)Assess each customer’s credibility score based on the ra)ng system and decide whether to prepack.
Current Order Management Cycle Proposed Order Management Cycle Receipt of customer’s PO
Price confirmation
Create SAP line
Credit release & Green light for packing
Packing doc preparation
Liaison with warehouse for packing schedule
Forwarder pickup
Warehouse packing Manual doc
Vessel booking
De-conflict for low inventory*
Post goods issue and billing
Stock check System check (stock availability & Credibility)
Create SAP line
Packing doc preparation
Automatic scheduling with EzSchedule
Forwarder pickup
Warehouse packing E-doc Vessel booking
Post goods issue and Electronic billing
Receipt of customer’s PO
De-conflict for low inventory*
Automate
Automate
*Op)onal: De-‐conflict is required only at low stock level.
Time Reduced by Lower/Upper Bound (Hr)
Average (Hr)
Removal of redundancy 0.5 ~ 4 2
Automa)on 2 ~ 8 6
Wai)ng )me reduc)on 4 ~ 16 10
Ini-al Problems Presence of process inefficiencies resul)ng in longer cycle )me. Manual scheduling of packing jobs.
Current Accomplishments Iden)fied redundant & inefficient processes. Reduce cycle )me through introduc)on of automa)on, simplifica)on and removal of inefficient processes. Automate packing scheduling process.
Future Improvements Refinement of SAP system to accommodate greater process flexibility. Centraliza)on of warehouse opera)ons.
Conclusions
Data Analysis of Achievement
Present System
Ideal System
The team’s study has uncovered several areas where process inefficiencies are prevalent and have analyzed them from a reengineering perspec)ve. The proposed systems and implementa)ons can expect to reduce overall cycle -me and increase job efficiency. Improvements are con)nuous and the team recommends further process enhancements which can further improve produc)vity of the Order Management Cycle.
Financial Strength
Loyalty Liquidity Payment History
Global Weights
Financial Strength 1 2 2 2 0.243 Loyalty 1/2 1 2 2 0.511 Liquidity 1/2 1/2 1 1 0.102 Payment History 1/2 1 1 1 0.144
Financial Strength Loyalty Liquidity Payment History Customer 1 >100M 6-‐10 years >1.75 No delayed payment Customer 2 80-‐100M <2 years 1.5-‐1.75 10% delayed payment Customer 3 40-‐60M >10 years <1 No delayed payment Customer 4 >100M 2-‐5 years 1.5-‐1.75 No delayed payment Customer 5 <40M 2-‐5 years 1.25-‐1.5 No delayed payment ……
Financial Strength 0.243
Loyalty 0.511
Liquidity 0.102
Payment History 0.144
Total Weight Score Pre-‐packing without payment in
Customer 1 1.000 0.563 1.000 1.000 0.777 Yes Customer 2 0.833 0.183 0.906 0.212 0.419 No Customer 3 0.500 1.000 0.500 1.000 0.827 Yes Customer 4 1.000 0.325 0.906 1.000 0.645 Yes Customer 5 0.264 0.325 0.828 1.000 0.459 No ……