NORTH AMERICA

BATTERY
TRANSACTIONAL
LEAD TIME
REDUCTION TPI
KAIZEN

JUNE 17-21, 2024

MOTOLITE
SANTA MARIA,
BULACAN,
PHILIPPINES

Niela
 KAIZEN TEAM
Team Members
Back
Pabby Artillero (Plant Operations Head)
Louie Quiogue (Vice President -IT)
Larry Alba (Plant Head PBI)
Karlo Alcalde (Formation Planner)
Martin Dela Cruz (CI team)
Toribio Hechanova III (CI team)
Sophia Camacho (SPD)
Imbo, Angelo (SPD-OCB)
Erymar Reyes (Central Procurement Head)

2nd row
Helen Samontanez (RBI Supply Chain)
Dominic Pinili (IT)
Robert Conception (Inbound Logistics Manager)
Weng Abardo (Outbound Logistics Manager)
Patricia Principe (Process Analyst)
Hazel Dizon (Continuous Improvement RTI)

1st Row
Nikka Rivera (RBI Demand Planner)
Noeme Manay (CI team)
Niela Meneses (PBI Planning Manager)
Mark Cleope (Demand Planning PBI)
Jashen Gloriani (CI team)
Mark
Facilitator:
PBI VALUE STREAM MAP

ON GOING
TPI EVENT

DONE

DONE

DONE
Toby
 CHARTER
Kaizen or Value Stream Name: Lead Time Reduction for RBI Operations Challenge: Current Order leadtime takes too long
Why are we doing this workshop?
Problem statement what is driving this event. Safety? Quality? Delivery? Cost? Working Capital Inventory?
jeopardizing future NA DS sales revenue
Currently, PBI's lead time to serve RBI is around 28 days. This 28 day lead time needs to go down to 15 days to serve an expected growth of customers for RBI. Within the order
lead time, the transaction time is a total of 9 plus 4 days, a total of 13 days. 9 days as measured from the time an order is received until Planning releases the order to and potential growth
manufacturing. 4 days as measured from arrival at FG warehouse of packaged batteries until dispatch. As a result we are incurring a loss from revenue for every additional lead
time above the 15 day target.

Objective: Reduce Order Leadtime from 28 to

The 9 day trasactional lead time at the front-end consists of the following, first queueing of orders worth 7 days. RBI Demand Planning accumulates 7 day batch of orders then
process them on a cut-off date, recurring per week, processing of these accumulated orders happens in a day (7th day). The RBI Demand planner then gives these orders to
Production Planning which processes these orders until the actual job packet is received at production after 2 days.

The 4 day transactional lead time stems from ships being available only once a week at a recurring day of the week. From the the time the ten pallet load is available and ready
for loading to a truck, the truck becomes available after 4 days. This wait happens because of scheduling of trucks based on ship availability. Since ship availability is not within
15 days (46% reduction) and
the control of the company at least for this kaizen event, this'll be out of scope.

There are also transactional processes happening during manufacturing that is not included in the 13 days.
Transactional leadtime
-After Assembly, the GB that was assembled needs to wait at the end of the shift to get confirmed to SAP, leading to a lead time of 10 hours on the extreme case (production
orders done at the start of the shift). from 13 to 8.5 days (53% reduction)
If Green batteriess for RBI orders are already available (meaning battery doesn't need to be assembled) at the GB warehouse, we can skip the 7 day transactional lead time at
the front end. Once an order has been confirmed to have GB's it can bypass the cut-off date of processing by RBI demand planning and gets processed at production

Scope: Receipt of order to dispatch of

immediately. (E.g. If the cut off date is Tuesday, and an order has arrived wednesday, the usual processing needs for it to wait for next week tuesday. But if it already has GB,
the production plan for it to get charged can be processed immediately that wednesday.)
Objectives (Should be measurable and start with an action verb. Think Safety, Quality, Speed, Productivity, Inventory, Cost)

product. Transactional process only (excludes

Utilize Transactional Process Improvement and Value Stream Mapping (VSM) methodologies to develop a roadmap and implement improvements aimed at consistently
reducing the lead time from 30 to 15 days. The primary focus of this event is to achieve a lead time reduction from 30 days to 15 days.

MEASURABLE GOALS (How will we know if objectives have been met)

Metric Current Target
manufacturing processes). This includes all NA
Total Order Lead Time (days), 85%
Total Order Lead Time (days), 15%
24
24
9
15
15
4.5
DS SKUs (~100 SKUs) -- runners, fillers, and odd
Total Transactional Lead time (85%)
Total Transactional Lead time (15%) 9 4,5

Scope (Beginning point to ending point, what's included and excluded)

(1) RBI Customer sending orders to Customer Service, Planning and Finished goods warehouse processes
FROM: INCLUDES:
(2) Batteries are received at finished goods warehouse North America Product Families (85%, 15%) (Please see file)
(1) Planning sends orders to production, (2) Batteries
Lead time from when the order was given by planning to production until receipt of batteries
TO: are available at the FG warehouse (available to be EXCLUDES:
at Finished goods
shipped/ cargo ready)
Deliverables (The tangible things that the team can show at the end of the week)
Present a Value Stream Map (VSM) detailing RBI's operations from ordering to dispatching, encompassing both a Current State Analysis and a Future State vision post-
improvements. Identify specific opportunities in planning, production, and dispatching that will facilitate achieving the 15-day lead time.

Mark
TRANSACTIONAL PROCESS IMPROVEMENT
(TPI)

Toby
Current State Process Map

Current state cycle time per

order: 6.45 hrs

Current state transactional lead

time per order: 312 hrs (13 days)
RBI:7 days
Identified 32 total pain points
PBI:2 days
Top Pain Points
Dispatch :4 days
1. Queuing and Batching
2. Materials Availability
3. Systems Variance
4. Systems Capability
5. Systems Downtime

Helen
Information Spaghetti Map (Transactional Only)

RBI-PBI Transactional Flow

Systems Used​: 8
Swim Lanes/Functional Areas: 15​
Touch points​: 30

Each touchpoint adds delays and

contributes additional lead time

Noeme
Impact Effort Matrix

Total Solutions Identified: 17​

​
High Impact- Low Effort: 6 ​
Low Impact-Low Effort: 6​
High Impact- High Effort:5​
Low Impact- High Effort:0

QUICK WINS

Ara
Future State Process Map

Top Improvements

• Digitalization of WETFIN SAP report

• From batching to one piece
flow (RBI-PBI)
RBI:1 day • From Push system to combined
push-pull system
• Real time transfer of
PBI Demand &
production tag
Planner:1 day Kitting & and confirmation in sap system
Dispatch:2 days • GB inventory level setting and
replenishment process

Karlo
 CRITICAL IMPROVEMENT #1: ONE PIECE FLOW
(ORDER CONSOLIDATION RELEASE)

Area: RBI & PBI Planning

BEFORE AFTER
Old Condition: 1 week review interval Improved Condition: Daily Releasing of
All orders received from Current week will be Customer Order to PBI Demand Planner
consolidated.

New Transactional Lead Time: 2 Days

Transactional Lead Time: 7 Days

Impact: This will reduce the lead time from 7 days

down to 2 days (71% improvement)
Can Be Used Where Else: Not applicable SOP: Standard Operating Procedure
Nikka
 CRITICAL IMPROVEMENT #2: STANDARDIZE ORDER KITTING PROCEDURE
Area: Wetfin Final Packaging and FG Warehouse
BEFORE
Old Condition: PO quantity is being packed
incompletely and reaches up to dispatching
team
Impact: Ensuring In-full delivery (from 37% to 100%) -
reducing transaction lead time from 4 days to 2 days (50%
improvement)
Can Be Used Where Else: Can be applied to other markets
AFTER
Improved Condition: FG warehouse will only
receive PO with complete/100% required qty
Warehouse receiver will check received pallets from
production vs. The PO quantity based on this form
Worst case scenario: Warehouse receiver will not accept pallet with
incomplete PO qty > pallet will be returned to Final packaging team
Bob/ Weng
 CRITICAL IMPROVEMENT #3: RBI ORDER ENTRY
Area: RBI Customer Service and RBI Demand Planning

BEFORE AFTER
Old Condition: Some customers are Improved Condition: Short term solution –
not ordering based on the standard layer Create SOP for Order Entry process in RBI SAP.
or per quantity. Long term solution – maintain pallet quantity
and control in the system.

Impact: This will reduce the lead time from 1 day

down to 5 mins (99.7% improvement)
Nikka
 CRITICAL IMPROVEMENT #4: ONE PIECE FLOW
(ACTUAL PRODUCTION ORDER RELEASE)

Area: PBI Planning

BEFORE AFTER
Old Condition: Improved Condition: Daily
Releasing of PRD to Production.

Transactional Lead Time: Days

New Transactional Lead Time: 1 Day
Transactional Lead Time: 2 Days
Impact: This will reduce the lead time from 2 days
down to 1 day (50% improvement) for the identified
"Runner SKUs"
Can Be Used Where Else: Other Markets SOP: Standard Operating Procedure Karlo
 CRITICAL IMPROVEMENT 5: DIGITALIZATION OF WETFIN SAP REPORT
Area: Wetfin Production Planning, GB Whse, Planting and Endline

BEFORE AFTER
Old Condition: Manual fill out of hard Improved Condition: Consolidation of SAP
copies of 2 forms (Planting, Endline) Reports into 1 Shared File
and submitted at end of shift (~6 hrs delay)

Planner WHSE Planting Endline SAP confirmation

Reduction

~91%

Manual

Impact: Real time available data for SAP posting from

~6 hrs to ~30m via online (~5.5 hrs savings) (-91%) QTY, Balance,
JO #, SKUs, Order
Online/faster visibility of Production Output/ Inventory Defects, Remarks IMBO
Can Be Used Where Else: All Lines and Sections
 IMPROVEMENT #6: SKU MATRIX
Area: PBI Planning & PBI Production

BEFORE AFTER
Old Condition: Odd SKU and Regular Improved Condition: SKU Matrix
SKU Category (PUSH SYSTEM) Runner, Filler & Odd SKU Category (PULL-
PUSH SYSTEM)
We release production order based on forecast (inventory
build up) after actual orders

SKUs are segregated into 2 categories:

Regular - SKUs that meet MOQ and complies

with Long Run Policy

Odd - SKUs that fall below MOQ and will be

a disruption on our Long Run Policy

Impact: To ensure consistency and help with

the decision making in initiating one piece flow for
different families
Can Be Used Where Else: other markets
Niela
 IMPROVEMENT #7: REAL TIME TRANSFER OF PRODUCTION TAG
AND CONFIRMATION IN SAP SYSTEM
Area: Wetfin Final Packaging and SAP confirmer

BEFORE AFTER
Old Condition: No standard procedure Improved Condition: Standardized
when to confirm and transfer the orders in procedure. Order confirmation and
the system transfer to the system to be done every 1
packed pallet

Formed batteries wait

until the end of the
shift before they are
transferred to SAP
confirmer and
transferred to the
system

Impact: Reduced waiting time of 6hrs 22mins/shift

for order confirmation
Can Be Used Where Else: To other export/domestic
market
Jashen
IMPROVEMENT #8: STAGING OF FG BATTERIES FROM FLOOR STACKING TO KANBAN PER PO

Area: Finished Goods (FG) Warehouse

BEFORE AFTER
Old Condition: The FGs are floor-stacked and the warehouse Improved Condition: Designated Kanban of FGs
personnel has to look for the batteries to attach the export per PO – visibility to the real-time status of
packing slip tag and complete the PO requirement completion of the PO

Impact: Reduced searching and walking time,

quick identification of the material and possible
stock-out
Can Be Used Where Else: To other export markets
Bob
 IMPROVEMENT #9: GB INVENTORY LEVEL SETTING (FILLERS ONLY)
Area: RM Warehouse and Wetfin Production

BEFORE AFTER
We do not have a tool to determine the right mix of SKU Created an SKU matrix to prioritize target inventory
and quantities of Runners, Fillers, and Odd SKUs level

Impact: Improve and sustaining DIFOT

Can Be Used Where Else: Other Markets
Helen
 IMPROVEMENT #10: DAILY UPDATE OF RBI ORDERS
Area: RBI Demand Planning

BEFORE AFTER
We are updating order status weekly causing Update more frequently on a daily basis to
delays in identifying problems detect problems earlier

Impact: We can take actions earlier to respond to problems

Nikka
 IMPROVEMENT #11: TRAINING PLAN
Area: Production Planner, Prod Sup, Team Leader, SAP Confirmer

BEFORE AFTER
Manual transactions and Hard copies Digitalization of SAP reports (consolidation)

Users:
Team Leaders (Planting, Harvesting, Endline)

Impact: Faster transaction , Paperless process , Improve overall efficiency.

Can Be Used Where Else: All other new improvements for other initiatives Hazel
POST KAIZEN AUDIT

These tools will help us sustain process

performance and results.

Martin
KAIZEN IN ACTION

Fina
RESULTS SHEET
Metric Current Future Improvement %
State State
NA Battery transactional Lead Time (days) 13 4 -69%

NA Battery order Lead Time (days) 28 19 -32%

NA Battery transactional cycle Time (hours) 6.45 2.2 -66%

Estimated annualized QUALITATIVE RESULTS

total hours saved (extra
resource capacity)
Total FTE freed up
Estimated annualized
inventory carrying cost
reduction, Php
• Improve and sustain DIFOT
4,250 • Better inventory visibility and
2.01 traceability
• Better process standardization
• Better space utilization
• Less transportation waste
3.4 M

Mark
KAIZEN NEWSPAPER
The Kaizen event is not
complete until the kaizen
newspaper is complete

13 out of 17 (76.5%) solutions are completed

The remaining 4 are projects.

Niela
LESSONS LEARNED
Name Lessons Learned
Helen Grace • Your efficient process can be someone else pain points.
Nikka • "Better" not "Perfect"
Niela • We can "IF"
Ara • Small efforts from several people can have a high impact when combined.
Weng • Simple improvement in our process will have a great impact/improvement in our daily activities.
• The camaraderie develop with other team members is amazing.
• Open Mindedness
BOB • Spaghetti Map is a great tool for identifying waste and information flow.
Patricia • Data must drive decision not personality nor emotion.
Jashen • In every transaction, the more decision points, the more data's quality becomes
prone to inaccuracy & errors.
Noeme • "We can If" , Be open to everyone's idea.
Karlo • Prioritizing action plans that can greatly affect the result of the kaizen event.
Mark • Open mindedness is a must when you're in a Kaizen event. Better not Perfect.
Angelo • Deliver quick critical improvements through multifunctional team
Hazel • Teamwork
• Technique/Methods to remove 7 waste
• Integration of ideas from team members.
LESSONS LEARNED
Name Lessons Learned
Martin • Learning TPI tool is a great opportunity for me as a CI Lead. This will help us to replicate in other
department to also reduce their transactional lead times.
• WE CAN achieve our targets IF everyone cooperates and remains open to ideas, rather than being close-
minded.
Fina • Process & System integration thru different dept.
• New Kaizen Tools to Help
• Appreciate openess/ideas from team
Tobi • Even if there are standard targets for improvement, challenging the team with jaw dropping
targets drives them to achieve even more than expected.
• Targeting 4.5 days reduction to 10 days!
Questions?
HIGH VIEW VSM
13 DAYS TRANSACTIONAL LEAD TIME
15 DAYS MANUFACTURING LEAD TIME