lean dmaic for obsolete material stock reduction

Form #: 00-LS80-F103-A Revision Date 02.03.2011

DMAICReduction of obsolete

materialManaus

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Team IntroductionProject champion/leader: Rejane Souza

Project sponsor: Francisneto Silva

Lean Assistant: Caio Sousa

Site Lean Manager: Marcio Sousa

Core team members: Adriana Campos

Sandra Silva

Rodrigo Marques

Extended team / stakeholders (if applicable): Gil Campos

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DefineProblem/Opportunity Statement

Due to demand CUT week 48. Stock on hand of remote control of 2.649 pcs.

Project Scope

Minimize liability

Goal Statement

Reduce minimum 80% on E&O from: $ 8.309,00 to $1,661.80; Metrics impacted: E&O and cancellation.

Business Case / Financial Impact

Negotiate with supplier to absorb the total excess of 2.649 pieces. It represents $ 8.309,00 of total E&O.

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Define

Quality Parameters

Project Timeline

Demand drop due customer request, we can see the effects on E&O report.

Voice of the Customer

External customers: As this is local part controlled via JIT , customer refuses pay to Jabil this material obsolete.

Internal customers: We are unable to consume the material due to line down.

Phase Date Planned Start Date Date Completed

Define WK 1246 WK 1246 WK 1247

Measure WK 1248 WK 1248 WK 1248

Analyze WK 1248 WK 1248 WK 1248

Improve WK 1249 WK 1249 WK 1250

Control WK 1250 WK 1250 WK 1251

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Measure SummaryData Collection

After demand drop we analyse the local parts and focus on major values items. We identify a good opportunity to reduce the E&O of $8.509,07.

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0

Measurement System Analysis


Analyze SummaryBrainstorming

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How to reduce E&O due demand drop?

1 - Negotiate with customer to increase with additional demand to consume obsolete parts

2- Checking if another plants has demand to consume the excess quantity;

3- Return to vendor;

4- Offer to broker, distributors;

5- Offer to customer service;


Analyze

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C&E MATRIX

Comments : Based on C&E matrix, our team selected the major causes and them scored its. The results was Return to vendor.

Issues potencial Adriana Campos

Rejane Souza

Rodrigo Marques

Sandra Silva TOTAL

Additional demand from customer 3 9 3 9 729

Checking another plants demand 3 3 3 3 81

Return to vendor 9 9 9 9 6561

Sell to broker; distributor 1 1 3 1 3

Offer to customer service 3 9 3 3 243

0 No impact1 Low impact3 Moderate9 Strong impact

Score


Improve Summary

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You can look on the graphic after material return to local vendor Was reduced of $8.509,07 total E&O value.

Buyers is still working to reduce all obsolete parts.

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0


Improve Summary

Root Cause Solution Pilot / simulation results

RETURN TO VENDOR 1- Negotiate with supplier; 2- Negotiate price value with supplier;3- Supplier acceptance;4- Start sales process;5- Separate the physical material;6- Do invoice;7- Shipped;

Evidence below after sale:Material invoiced to supplier on 12/12/12.

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Supplier acceptance sent by email on October 12th, 2012


Control SummaryImplementation Plan Process Ownership

Future Opportunities

The status of the implementation plan will be discussed on Materials Meeting of refered customer.

Replication:

Deploy the project for other WC cell structure

Follow-on projects:

The project is recommend to all purchasing team.

Documentation

The documentation was validated by BU team and PU.

Buyer is owner to check and audit the metrics and issue tracking and resolution with support the PU team.

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Project Summary Project Approach

Which tools were the most insightful? Brainstorm, C&E matrix.

What were the critical root causes of the problem? Customer demand drop.

All actions was concluded and implemented with success.

Impact on Shareholder Value

U$ 8.309,00 per month saving

Problem statement: Buyer initiate negotiation to sell obsolete material due demand drop.

Project goal: Reduce 80% of the value $ 8.309,00

Project start and end date: WK1248 / WK1251

Executive Summary

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