A manufacturer of CNC Machines was buying fasteners and other Class C production parts from multiple vendors with the parts stored in a central area. Production Technicians were making many trips daily to the central storage area searching for needed parts.
The lack of parts stored in common groups within the same bin caused additional time to find the needed part/s. The process to add new parts was time consuming. Accounting was dealing with numerous invoices from several vendors.
We presented the idea of supplier consolidation, with point-of-use stocking within the different assembly areas. The items required for each type of machine were identified, placed in roll-around bins, labeled accordingly, and maintained in each individual production area.
Working with purchasing we made sure all stocked items were listed in the company’s operating system. For each item, our system lists the bin location, and with several items being set up with multiple stocking locations the customer knows where all parts are going.
All items are labeled with product information along with the bin location which makes for accurate restocking. We inspect the bins for needed material and restocking them weekly. We implemented a once weekly summary invoice that provides all the information the customer needs to enter accurate information into their system.
- Stock outs have been eliminated
- The average time to secure needed parts decreased by 80%
- What used to be 8-12 weekly invoices is now 1 single consolidated invoice
- The time to enter new product additions, set up stocking location/s, and have need product on-hand is decreased by 75%
- Purchasing time that was spent on setting up new items and securing initial inventory is now devoted to higher value parts and raw materials
As their business grew they moved production between two locations and added a new satellite location, with Falcon responsible that the needed parts are always available in the correct location.