Work Statement

Date: Oct 9, 2017 Site: Querétaro

Project: Querétaro Pull

Background
The Querétaro facility is facing challenges to achieve 95% OTD. Currently the plant closed
the 2017 with an OTD of 70% this is a gap of 25 bps. More than the 50% of the plant’s
demand is for the Industrial Automation BU and the RB72 demand is 9% of the total
demand for the Industrial Automation BU.
Delinquency at the end of year of the RB72 was $ 62,337.92 USD. At this point, all the
major delinquency issues have been resolved and the cells are in a position to improve
material flow to have better OTD than historically achieved by the cells.
The main opportunities derived from a value stream performed for the RB74 cells (due
RB72 are of the same family) are as follows:
1. Lack of Customer demand forecast to better manage the value stream. Currently
there is a 4-weeks forecast which is insufficient to plan the complete supply chain
as a large percentage of suppliers’ lead time is larger than the 4 weeks horizon.
The RB72 cell did not meet the OTD target of 95% for 2017 with an actual OTD of 82%
and a gap of 13%.
2. The main issues that are inhibiting material flow are: Corrective Maintenance 40%,
Rework 30% and Lack of Material 15%
The kaizen is focused on material flow by making sure that the material is available at the
cell at the right time, at the right moment and at the right quantity. The expectation is that
after the kaizen, the cell would improve its OTD performance at least 13% more than the
actual average.
Objectives
1. Customer demand forecast definition including a smothering process to improve
planning horizons from the current standard 4 weeks forecast with peaks bigger
than the safety stock levels.
2. Improve material delivery from the manufactured and purchased components to the
point of use by implementing pull signals and improving inventory accuracy.

The key metrics related to improvements are: in quality, delivery, cost and ‘soft issues’.
Link to policy deployment:
Work Statement

Projected savings (Choose All that Apply)

KPI Percent Saved KPI Percent Saved
Lead-Time Reduction 10% Utilisation Increase
On-Time Delivery 13% Floor Space
Increase Reduction
Inventory Turns Increase 46% Other:
Productivity Increase 5%
Scope
 Starting Point of Project: RB 72 cell demand analysis
 Ending Point of Project: RB 72 cell material delivery to Customer
 Area the Project is focused on (Value Stream, Cell, etc.…): RB72 Value Stream
 Out of Scope: Other cells such as RB73

Time-frame for Projected Savings: (Should be within 90 Days)

 Kaizen event (March 20)
 Follow up activities and close (March 23)
 Sustain the improvements (May 30)
 Define next steps (May 6)

Participants: (Depending on scope of event this should be 8-12 people)

Name Position Full- or Part-Time
Oscar Martínez Planner- Manufacture Components Full
Gustavo Mata Planner- Manufacture Components Full
Oscar Martínez Process Engineer. Full
Abraham Ávila Production Supervisor - Assembly Full

Alejandro Rivera Production Supervisor -Machining Full

Liliana Arias Warehouse coordinator, Qro Full
Javier Alonso Warehouse Supervisor, Qro Full
Uriel Morales Continuous Improvement Eng Full
Liliana Arias Warehouse coordinator, Qro Full
Javier Alonso Warehouse Supervisor, Qro Full
IMI grad Engineer, Qro Full
IMI grad Engineer, Qro Full
Assembly Operator Full
Material Handler Full
Work Statement

Signature for Agreement: (Needs to be Signed Prior to Booking Event)

Site Leader Julio Mejia
Site Lean Coordinator Edgar Mendoza
Facilitator Jill Gunson
Divisional Lean Director David Ivan

Proposed Date: (March 12, 2018)