ENHANCED program – Shopfloor 1 module

Receiving alert management

30th of March 2016 (V6)

Alert management

Principles of alerts
 Goal: react in case of deviation to standard

 A trigger must be defined

 Reaction & escalation rules must be defined:

 Reaction rules: who does what.
 Escalation rules: who to inform. The person informed may be the same for several levels.

 Reaction & escalation rules must bring the plant back to standard

 Several levels can be defined depending on the time needed to return to standard
 criticality level

 An alert board is used to centralize the alerts

 3-sheet carbon alert card is recommended to communicate the details to the persons involved and keep them for
QRCI

 The number of alerts is tracked

Receiving alert management V6 - Enhanced version 5

Receiving / Warehouse alert management

Principles
 Receiving alert management

 Standard: BOP / RM quantities requested by Material planners (Manifest / Receiving list) are physically received from
suppliers.

 Trigger: An alert is open when ____________________________________________________________________

(part number, quantity and delivery time are indicated on the Receiving board). Includes late truck.

 Warehouse alert management

 Standard: BOP / RM stock level in the warehouse is always above the Min stock level.

 Trigger: An alert is open when ____________________________________________________________________

______________________.

Min stock level can be located inside the flat warehouse or in a specific isolated Safety stock area.

Receiving alert management V6 - Enhanced version 6

Receiving / Warehouse alert management

Reaction and escalation rules

 Receiving alert management
Example of reaction & escalation rules: * Decide, at plant
level, of the definition
OPEN ALERT of a Late truck
TRIGGER :
A truck is late* OR the quantity of physically received material is lower than requested on the Manifest.

REACTION / ESCALATION RULES : ** Make sure the Receiving

Receiving operator:
GAP leader can find easily
1. Take a blank alert card and fill the white section of the card. who the corresponding
2. Inform Receiving GAP leader. Material planner is
3. Place the card in the Receiving alert board 'New alerts' box.

Receiving GAP leader:

1. Call + email corresponding Material planner**.
2. Verify that Manifest is left in scheduled Delivery time slot (late truck) OR in NOK box (quantity discrepancy) on Receiving board. *** Define, at plant
level, the frequency of check
Material planner:
or trigger, of the
1. Come to pick up alert card*** (+ Manifest if quantity discrepancy). Receiving & alert boards
2. Calculate Production shutdown time****. by Material planners
3. Contact Supplier, confirm situation, define a recovery plan if needed.
4. Depending on Recovery time versus Production shutdown time, place alert card top copy on Alert board.
**** Define, at plant
level, the way to calculate
Production shutdown time
(ZPPPS transaction,
Customer portal, etc.)
Receiving alert management V6 - Enhanced version 7
Receiving / Warehouse alert management

Reaction and escalation rules

 Warehouse alert management
Example of reaction & escalation rules: * OR First box from
isolated Safety Stock
WAREHOUSE : OPEN AN ALERT is used
TRIGGER :
Stock level drops below Min level in Flat warehouse*.

REACTION / ESCALATION RULES :

Line feeder:
** Make sure the PC&L
1. Take a blank alert card and fill the white section of the card. GAP leader can find easily
2. Inform PC&L GAP leader. who the corresponding
3. Place the card in the Warehouse alert board 'New alerts' box.
Material planner is
PC&L GAP leader:
1. Check that parts have not been misplaced or available in warehouse.
2. If NO, count remaining parts in plant and call + email corresponding Material planner**. If YES, replenish Flat warehouse and close alert.

*** Define, at plant

level, the frequency of check
Material planner:
1. Come to pick up alert card***.
or trigger, of the
2. Calculate Production shutdown time****. Receiving & alert boards
3. Contact Supplier, define a recovery plan. by Material planners
4. Depending on Recovery time versus Production shutdown time, place alert card top copy on Alert board.

**** Define, at plant

level, the way to calculate
Production shutdown time
(ZPPPS transaction,
Customer portal, etc.)
Receiving alert management V6 - Enhanced version 8
Receiving / Warehouse alert management

Example of alert card (must be adapted to match your plant needs)

RECEIVING ALERT CARD WAREHOUSE ALERT CARD

Line feeder
Late truck Shorter quantity Part number : _______________________________________________
Receiving operator

Carrier : ______________________ Supplier : ____________________ Alert date / time : ____________________ Inform PC&L GAP leader :
Manifest # : ___________________ Are parts located somewhere else? ______________________________
Supplier : _____________________

PC&L GAP leader

Part # : ______________________ (Dock, Receiving, incorrect lane, etc)

Requested qty : ________________ If NO, Stock in warehouse [in pieces] : ____________________________

Requested delivery date/time : _____
Received qty : _________________
Stock on train [in pieces] : _________________________________
Alert date / time : _______________ Inform PC&L GAP leader :
Stock on Production line [in pieces] : _________________________
Material Planner

Material Planner
Production shutdown date / time : ________________________________
Production shutdown date / time : ________________________________
Can parts be received at least 8 hours before Production shutdown?
Can parts be received at least 8 hours before Production shutdown?

B
YES / NO

B
YES / NO
If YES, ETA : ______________ Create and display Shortage Manifest :
If YES, ETA : ______________ Create and display Shortage Manifest :
(if necessary)
(if necessary)

Can parts be received no more than 8 hours before Production shutdown? Can parts be received no more than 8 hours before Production shutdown?
Material Pl.

B
YES / NO

Material Pl.
B
YES / NO
If YES, ETA : ______________ Create and display Shortage Manifest : If YES, ETA : ______________ Create and display Shortage Manifest :
(if necessary)
(if necessary)
Inform PC&L Manager : Inform PC&L Manager :

Alert PC&L Manager : Alert PC&L Manager :

Material Planner

Material Planner

Is final Customer at risk? ______________________________________ Is final Customer at risk? ______________________________________

Check all solutions (PDP modification, Safety Stock usage, help between Check all solutions (PDP modification, Safety Stock usage, help between

B B
Faurecia plants, Purchasing support, BOP subtitution, etc) : Faurecia plants, Purchasing support, BOP subtitution, etc) :
ETA : ____________________ Create and display Shortage Manifest : ETA : ____________________ Create and display Shortage Manifest :
(if necessary) (if necessary)

If Customer at risk : Alert Plant Manager : If Customer at risk : Alert Plant Manager :
PC&L Mng

PC&L Mng

Inform Customer and propose Recovery plan : Inform Customer and propose Recovery plan :
Initiate AMS alert system : Initiate AMS alert system :

QRCI # : __________________________________________________ QRCI # : __________________________________________________

3-color sheet : Receiving alert board - Yellow sheet : Receiving board - Blue sheet : Material Planner 3-color sheet : Receiving alert board - Yellow sheet : Receiving board - Blue sheet : Material Planner

Receiving alert management V6 - Enhanced version 9

Receiving / Warehouse alert management

Principles
 Levels: The alert level should be defined by comparing the delivery of the BOP / RM in shortage situation with the time the
production line will be affected.

 The alert is raised to level yellow / orange / red, depending on the time needed to return to standard
 indicates the risk level of impacting Production.

Example of level triggers:

 Yellow level (low risk of impacting Production): ___________________________________________________________
______________________________

 Orange level (medium risk of impacting Production): _______________________________________________________

______________________________

 Red level (high risk of impacting Production): _____________________________________________________________

______________________________
Does 8 hours
work for
your plant?

Receiving alert management V6 - Enhanced version 11

 Receiving / Warehouse alert management

Reaction and escalation rules

 Reaction rules & escalation rules: define your rules according to the plant JIT/non JIT profile, manpower availability and
autonomy, distances to walk, stock level at the plant, etc.

Example of reaction & escalation rules:

YELLOW ALERT ORANGE ALERT RED ALERT
DEFINITION : DEFINITION : DEFINITION :
The BOP / RM delivery is scheduled at least 8 hours before Production The BOP / RM delivery is scheduled no more than 8 hours before Production The BOP / RM delivery is scheduled after the Production Shutdown.
Shutdown. Shutdown.
REACTION / ESCALATION RULES :
REACTION / ESCALATION RULES : REACTION / ESCALATION RULES :
Material Planner:
Material Planner: Material Planner: 1. Once the alert card is complete, place the 2nd copy on the Receiving Board at the slot
1. Once the alert card is complete, place the 2nd copy on the Receiving Board at the slot 1. Once the alert card is complete, place the 2nd copy on the Receiving Board at the slot corresponding to the Delivery date / time with the Manifest showing the Part number in Alert.
corresponding to the Delivery date / time with the Manifest showing the Part number in Alert. corresponding to the Delivery date / time with the Manifest showing the Part number in Alert. Keep the 3rd copy for follow up and root cause analysis.
Keep the 3rd copy for follow up and root cause analysis. Keep the 3rd copy for follow up and root cause analysis. 2. Inform PC&L Manager about the situation. Review with him / her the available solutions (PDP
2. Follow up on delivery status. 2. Inform PC&L Manager about the situation. modification, Safety Stock usage, help between Faurecia plants, Purchasing support, BOP
3. Make sure the Supplier understand the criticality of the situation and alert you at the slightest risk subtitution, etc) to avoid Customer stoppage.
of delay. 3. Make sure the Supplier understand the criticality of the situation and alert you at the slightest risk
- When material is finally received - of delay.
4. Follow up on delivery status.
Receiving GAP leader: 4. Follow up on delivery status.
• If the Part number(s) is (are) not received on time or with the correct quantity, immediately calls
+ emails the Material Planner. - When material is finally received -
PC&L Manager:
Leave the alert 2nd copy on Receiving board. Receiving GAP leader: 1. If the final Customer will be impacted, alert Plant Manager.
• If the Part number(s) is (are) received on time with the correct quantity, update the visual • If the Part number(s) is (are) not received on time or with the correct quantity, immediately calls 2. Inform Customer and propose recovery plan.
management on the shopfloor* once the material has been stored in warehouse. + emails the Material Planner.
3. Initiate AMS alert process.
Move the Alert card to "Closed alerts" location on the Receiving alert board. Leave the alert 2nd copy on Receiving board.
• If the Part number(s) is (are) received on time with the correct quantity, update the visual
management on the shopfloor* once the material has been stored in warehouse. - When material is finally received -
* If stock level is still under Min level in warehouse (or isolated Safety stock is not refilled), initiate a
warehouse alert. Move the Alert card to "Closed alerts" location on the Receiving alert board. Receiving GAP leader:
• If the Part number(s) is (are) not received on time or with the correct quantity, immediately calls
* If stock level is still under Min level in warehouse (or isolated Safety stock is not refilled), initiate a + emails the Material Planner.
warehouse alert. Leave the alert 2nd copy on Receiving board.
• If the Part number(s) is (are) received on time with the correct quantity, update the visual
management on the shopfloor* once the material has been stored in warehouse.
Move the Alert card to "Closed alerts" location on the Receiving alert board.

* If stock level is still under Min level in warehouse (or isolated Safety stock is not refilled), initiate a
warehouse alert.

Receiving alert management V6 - Enhanced version 12

Receiving / Warehouse alert management

Alert card
 Alert card: used to gather all information related to the alert. It is also designed in the way the users will be forced to respect
the process. Exact time to return to standard must be indicated.

 Recommended format: A5, 3-sheet paper:

 1 sheet for the ________________, placed at the slot when part is re-scheduled,
 1 for ________________, to keep details of the alert part number, quantity, time, etc.,
 1 for the ____________, for visual management.

Receiving alert management V6 - Enhanced version 13

Receiving / Warehouse alert management

Example of alert card (must be adapted to match your plant needs)

RECEIVING ALERT CARD WAREHOUSE ALERT CARD

Line feeder
Late truck Shorter quantity Part number : _______________________________________________
Receiving operator

Carrier : ______________________ Supplier : ____________________ Alert date / time : ____________________ Inform PC&L GAP leader :
Manifest # : ___________________ Are parts located somewhere else? ______________________________
Supplier : _____________________

PC&L GAP leader

Part # : ______________________ (Dock, Receiving, incorrect lane, etc)

Requested qty : ________________ If NO, Stock in warehouse [in pieces] : ____________________________

Requested delivery date/time : _____
Received qty : _________________
Stock on train [in pieces] : _________________________________
Alert date / time : _______________ Inform PC&L GAP leader :
Stock on Production line [in pieces] : _________________________
Material Planner

Material Planner
Production shutdown date / time : ________________________________
Production shutdown date / time : ________________________________
Can parts be received at least 8 hours before Production shutdown?
Can parts be received at least 8 hours before Production shutdown?

B
YES / NO

B
YES / NO
If YES, ETA : ______________ Create and display Shortage Manifest :
If YES, ETA : ______________ Create and display Shortage Manifest :
(if necessary)
(if necessary)

Can parts be received no more than 8 hours before Production shutdown? Can parts be received no more than 8 hours before Production shutdown?
Material Pl.

B
YES / NO

Material Pl.
B
YES / NO
If YES, ETA : ______________ Create and display Shortage Manifest : If YES, ETA : ______________ Create and display Shortage Manifest :
(if necessary)
(if necessary)
Inform PC&L Manager : Inform PC&L Manager :

Alert PC&L Manager : Alert PC&L Manager :

Material Planner

Material Planner

Is final Customer at risk? ______________________________________ Is final Customer at risk? ______________________________________

Check all solutions (PDP modification, Safety Stock usage, help between Check all solutions (PDP modification, Safety Stock usage, help between

B B
Faurecia plants, Purchasing support, BOP subtitution, etc) : Faurecia plants, Purchasing support, BOP subtitution, etc) :
ETA : ____________________ Create and display Shortage Manifest : ETA : ____________________ Create and display Shortage Manifest :
(if necessary) (if necessary)

If Customer at risk : Alert Plant Manager : If Customer at risk : Alert Plant Manager :
PC&L Mng

PC&L Mng

Inform Customer and propose Recovery plan : Inform Customer and propose Recovery plan :
Initiate AMS alert system : Initiate AMS alert system :

QRCI # : __________________________________________________ QRCI # : __________________________________________________

3-color sheet : Receiving alert board - Yellow sheet : Receiving board - Blue sheet : Material Planner 3-color sheet : Receiving alert board - Yellow sheet : Receiving board - Blue sheet : Material Planner

Receiving alert management V6 - Enhanced version 14

Receiving / Warehouse alert management

Alert board
 Alerts are centralized on an alert board (or several alert boards).
 The alert board(s) must be located close to the Receiving board / Flat warehouse and at a convenient and visible
location.
1700 mm

 It must contain:

150 mm

80 mm
 The reaction & escalation rules BOP SHORTAGE ALERT BOARD
Reaction rules

 The yellow / orange / red areas

 Blank cards location A4
320 mm

 New alert cards location Magnetic system to

 Closed alert cards location A4
320 mm hang the alert card.
Script: DIN Bold

 Alert tracking
320 mm
A4
2050 mm Tracking Chart of the alerts
BLANK NEW ALERTS CLOSED ALERTS TPA alert tracking must to be show n on the
Re d l e v e l
board.
320 mm
FORMS Ora n g e l e ve l

A4 A4
Ora n g e l e ve l

A5 A5 A5

300 mm

Paper Alert form : 3 sheets.
1 copy in the Receiving board at the
ETA for the parts.
1 copy on the BOP Shortage Alert
Board.
1 copy for the Planner.
Alert card must to be removed from Work instruction to explain
the 3-colour area by the Receiving how to manage Alerts.
operator w hen parts are received in
the correct quantity; then kept by
the Material Planner for further
analysis of root causes.

620 mm

Receiving alert management V6 - Enhanced version 15

 Receiving

FES expectations
LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5
Chapter Question
Very basic Basic Above basic Expected Excellence
13.5.1 Picking Center There is a daily routine for 80% of bought out parts Identification of parts in Picking After reception, parts are After reception, parts are
each material planner or (volume) are arriving from Center are clear and visual. directly moved to Picking directly moved to Picking
warehouse manager which suppliers in small boxes. Identification can be read from 5 Center (no mass storage or Center in standard conditions
includes a visual check on meters with maximum of 4 overstock; internal cross dock with work instruction (move of
the Picking Center for Picking center is small (< 2 characters (reduce mental load accepted). each box of the manifest is
shortages and over-stock. days for A), compact with no of operator; use of easy standardized: time to unload,
empty lanes (except when reference = Sebango). Less < 2days of stock in to store, to use and location).
Picking center is centralized, alerts are raised). Alerts in picking center are picking center for A and B-
in flat storage and well-kept. clear and visual (Min & Max class. Reusable packaging are
All boxes of components are visible). dedicated, identified by
There is a booking point after identified with automotive Mass storage is organized or by Use of Lisa Pallet Labels if a supplier and empties are
picking center. standard labels (no manual reference (with zoning) or if cross dock is used. visually separated.
labels). chaotic with FIFO Board. In both
situations, max is visible.
Alert system is in place with
paper copy, tracking and a
line/UAP QRCI for re-
occurrences.
FAU-S-PSG-5056 Good alert system does not Chronical empty lanes means If exists mass storage in the No mass storage, no
Line feeding & replace daily routine. bad usage of space and no plant, no need max on picking overstock. Standard
BOP storage Routine: prove evidence compact. center. conditions: move of each box
instructions
that regular gemba is Min is defined at the flat storage of the manifest is
FAU-I-PSG-5050
performed by material and mass storage. standardized (time to unload,
Small box check-
list planners or warehouse Safety stock is NOT a mass to store, to use and location).
manager (min 2 times per storage (can be included in the
day). Expectation is not to MIN or can be isolated). Reusable packaging
check only the alert board. identified: for A and B-
Check that distribution of paper suppliers.
Booking point after picking copy is correctly done.
center not mandatory for JIT
Receiving - V1 plants with less than 0,5 days 16
of BOP in WIP.