ON TIME DELIVERY SERVICE & PERFORMANCE IMPROVEMENT QUAD CHART

1. PROBLEM STATEMENT

3. CAUSES & POSSIBLE SOLUTIONS

Farnham's On Time Delivery To Request performance is currently at 80%. This is unacceptable

for Southco's customers

5a

Inventory Availability

Ontime To Request Date

OTD
TO REQUEST PERFORMANCE
1

Stock inaccuracy

Goal = Green line (95 %)

0.9
0.8
Percent

0.7
0.5

Supplier leadtimes

0.3
0.2

Poor supplier
quality

0.1
0

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Lack of cross training

Develop EQDC
in supply chain review on
scorecard

Poor quality requires re-work

Poor delivery
performance to
PO
Contractors are
unreliable

Not shipping parts

to sub-con quick
enough
Feast & Famine to
subcontractors

Lack of consignment stock

arrangments (VMI/SOMI)

Dec

Transaction
Training

Incorrect
leadtime on subcon - H/T and
plate

Poor supplier
contracts

Jan

Queues behind
bottleneck processes

Lack of focus on
supplier delivery
performance

0.4

Capacity planning
incorrect

Poor transaction
discipline in booking
materials in / kitting
jobs

0.6

Introduce 2nd shift

for turning cell

Poor OEE on critical

machines

Accurate
Replenishment
model not yet
established

cross training to be
implemented in critical areas

14

Introduce daily milk run + order

new lorry

Insufficient capacity
on van
Poor employee
engagement/motiva
tion

Incorrect routings

15

Incorrect BOM / S
Specs

No penalty for
ordering within
leadtime

Hire temp to update routings &

BOMS & upload to ORBIT inc
links in Symix

Difficult to obtain
drws in Goods
Inwards

16

10
6 sigma project on
plating quality

Work not moved on

to next operation

Poor Quality
Systems

Orders placed
within lead-time

Lack of standard
work
Quality issues
resulting in rework
loops

Inventory puddles
between OPs

11
Incorrect
leadtime on subcon - H/T and
plate

12

Setup overdue meeting - expedite and

pareto route causes in date order

No FIFO in stores

Lack of front end

negotiation with
customer

Measure OEE on
bottleneck processes

Plan to
communicate LTs
to CSRs

Poor
communication with
CSRs

Update visual
loading charts in
Symix

Other 13

Global CI Teams?

Leadtime wrong on
Symix

Lack of flexibility on
working hours

Kanban Stocks not

in place

Orders placed
within lead-time

stock (40% complete)

for toggles

Machine availabiltiy

Introduce cycle
counting
procedure inc RC
Analysis.

Customer Demand

Lack of focus

5b
a Implementline-side

Feast or Famine
loading

Insufficient
component items
being held as
inventory

Customer requests inside

lead time for Panex kaizen req'd.

Capacity

17

Align QA to value
streams. Achieve
and sustain TS2
requirements

Use FMEA to risk assess

std work/control plan
where req'd

100% inspection

18
Shipping errors

Introduce daily milk run +

order new lorry

Root cause analysis and

preventative action for soft
errors

2. TARGET STATEMENT
Supply Chain

4. EASE Vs. BENEFIT CHART

High

5. ACTIONS FOR OTD TO REQUEST PERFORMANCE IMPROVEMENT

12

Expected Improvement
(%)

Cause Area

Concern

Root Cause

Action Description

Start Date

Start of Savings
Date

Status

Actual
Improvement
(%)

1.5

Supply Chain

Parts being received late

from Sub-Con

No time allowance for

transport of parts to Subcon

Add 2 days to queue times to all

plated items

3/1/2006

31/04/06

25% 50% 75% 100%

1.5

12

1.5

SubContractors

Parts being received late

from Sub-Con + Feast &
Famine

Parts that miss weekly

delivery must wait until
following week

Intoduce daily Milk-round

4/1/2006

6/30/2006

25% 50% 75% 100%

Other

Continuous firefighting
with respect to OTD
performance

Lack of focus on route

causes of poor OTD

Review Overdues Meeting to

include route cause analysis &
follow up actions

5/12/2006

9/1/2006

25% 50% 75% 100%

All relevant personnel to undergo

Transaction Training

5/31/2006

7/30/2006

25% 50% 75% 100%

Start Cycle Counting program

throughout factory

5/31/2006

12/30/2006

25% 50% 75% 100%

2/1/2006

9/1/2006

25% 50% 75% 100%

5/1/2006

31/09/06

25% 50% 75% 100%

13

5b
2

13

1.0

10

1.0

Inventory
Availability

Incorrect part quantities

shown on Symix

Poor adherence and lack

of understanding of Symix
transactions procedures

2.0

Inventory
Availability

Incorrect part quantities

shown on Symix

Stock inaccuracies have

not been identified and
corrected on Symix

3
16

5b

15

17

In Process
Complete
Late

No.
5a
18

Impact on OTD Performance

Quality

Lead Time
Capability

Sub-Contractors

There has only been a gradual improvement in OTD to Request Year to date. Our
objective is to achieve a step change towards the stretch goal of 95 % OTD to Request

0.5

Capacity

18

1.0

Quality

5a

3.0

Capacity

High leadtime to customer

Plated parts held line-side ready for
Customer order triggers
for Diverse Toggle Latches
customer order + smaller batch
parts to go out for sub con.
(3 weeks)
sizes = leadtime of 3 days
Repetitive problems with
Soft Error issues, e.g.
incorrect shipping qty.

No root cause analysis of Root cause analysis and corrective

errors has been
actions for soft errors to be
undertaken
implemented for shipping process

Customer request dates High cycle times on auto

inside current leadtime for mills - CSRs not managing
Panex
customer expectations

Kaizen/step change to attack QT

lead time.

TBA

25% 50% 75% 100%

7
8

10

1.0
1.0

Capacity
SubContractors

Very high leadtime on

Tornos machines
Repeating problems with
quality of plating parts

Machines run out of work Introduce 2nd shift in turning to load

during lights off running
new jobs until morning
Variation in plating
process - process not
adhered to

Use 6 sigma tools to remove

variation in process. Work with D.
Foxall to sustain changes

Low

5/1/2006

9/1/2006

25% 50% 75% 100%

5/18/2006

10/1/2006

25% 50% 75% 100%

25% 50% 75% 100%

Hard

Ease of Completion

Easy

Total Expected
Improvement (%)

13.5

Expected OTD to
Request (%)

93.5

Total Actual
Improvement (%)

1.5

OTD to Request Graph

Date
Facility (%) Diverse (%) QT (%)
3-Apr
78
4-Apr
88
94
87
5-Apr
83.5
93.8
86.9
6-Apr
83
89
82
7-Apr
84
90
83
10-Apr
83
92
80
11-Apr
83
91
81
12-Apr
81
89
79
18-Apr
81
87
79
19-Apr
82
82
20-Apr
80
85
79
21-Apr
80
84
79
24-Apr
80.4
85
79
25-Apr
80
85
79
27-Apr
79
28-Apr
80
84
78
2-May
88.7
89
88.5
4-May
78.5
81
78
5-May
78.5
82.9
77.2
7-May
80.3
83
77