Service Parts Operations

Brandon Schiltz

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Introduction

Name: Brandon SchiltzHometown: Algona, IASchool: University of Northern IowaMajor: Management: Supply Chain & OperationsGraduation Date: Spring 2016Start Date: November 5, 2014

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Key TermsMaterial Specialist (MS): Also know as a scheduler or schedule planner, is

someone who schedules production and orders

material for a specific area or departmentPDC: Parts Distribution CenterOIA: Weekly AuditsMKAL Routing: When a part is reported in Work In Progress, it is system

moved to a specific locationOTD: On Time DeliveryKanban: “signal”Control Cycle: Continuously repeating cycle of planning, monitoring,

assessing, comparing, correcting, and improving plans, processes, and practicesMRP: Material Requirements Planning5S: Sort, Set, Shine, Standardize, Sustain

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Our Business at SPO

Support Parts for 2-Cylinder era tractors that went out of production in early 1960’s, up to tractors currently in production.

SPO Building is a mix of Non-Current (no longer in production) manufacturing, Current Production manufacturing, Non-Current assembly, and Low Volume Production Assembly

Non Current Manufacturing

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Our GoalTo safely provide our customers with a quality parts,

delivered on time, at the lowest cost, that exceeds their expectations.

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Production Control – Primary ResponsibilitiesAssist Material Specialists– Scheduling– Material Flow– Service Orders

Service Picks– Parts requests from PDC,

Reman, Germany, and Brazil– Picks for other departments

Inventory Analyst– Perform OIA weekly count

audits– Audit requests from schedulers,

supervisors, and other departments

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Service Parts Operations Floor Layout

Departments Areas225 303 304 314 336 338 340 376 432 534

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SPO D338 Project

Objective:– Reduce 6 departments into 1• Departments 336, 340, 376, 432, 534

338

Goals:– Create a unified department through

BOM structure, MKAL routings, and inventory locations

– Have better inventory management for the sake of the operator

– Ultimately reach our business goal of 90% OTD

What I need:– Create a plan of action– Contact information– Gather data from departments• Control Cycles, routings, BOMs, etc.

– Delegate tasks to team members

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Examples of issues in D338Reporting Errors

No location available for operators

Unassigned Bench Locations

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SPO D338 Project

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Phase I: Changing BOMs, Storage Locations, & Control Cycles

1. Change the BOM2. Change storage

location3. Create/delete control

cycle4. Move material from

old dept. to 338

- 2,040 total control cycles changed

Steps: Number of Control Cycles in Each Department

288; 14%

310; 15%

199; 10%

549; 27%

136; 7%

559; 27%

336 338

340 376

432 534

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Phase II: Change routing from other departments

Change all routings from other departments

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Phase III: Mass update all other parts’ BOMs & routings

Mass change all parts without control cycles to associate with 338 – to be performed during shutdown

– 3,050 additional parts to change

– Change MRP controller

– This will complete the changeover

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Phase IV: BONUS

/deereag/cmr21– Greater visibility– Pinpoint a location to specific

benches, possibly even further– Easier and faster for salaried and

wage workers to find material

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Phase IV: BONUS (continued…)

Build upon 5S– Add bench signs to

every bench– Label conticos and

shelving units– Color coding system

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Phase IV: BONUS (continued…)

– Sign is low– Not positioned correctly– Not fastened securely

– Sign is high enough to see over other benches

– Facing correct direction– Securely fastened

What have we noticed so far?– Fewer reporting errors– Greater visibility for operators finding material– Updated BOMs and storage locations– Material tied to specific workbenches– Less confusion for people outside of the department

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Next Project: New workbench

– No Bench– Parts on an over-crowded

cart – Tools not sorted– Parts not labeled– No floor mats– Does not meet 5S standard

About Me

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SCMA – Supply Chain Management Association

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