Steps For Pull Implementation

Steps for Pull implementation 1) Get the supplier list for all parts. This would be useful if one supplier is supplying more than one part 2) Establish the as-Is inventory levels for the parts. This can be done first using SAP stock and then if possible through physical stock taking. However make sure that you do the inventory record accuracy exercise and the records corrected in SAP. 3) Fill in the excel template attached to get to categorize parts according to their importance value wise. This will give you an idea of what parts to concentrate on. 4) Get the following data: a. Schedules: To give you the understanding of frequency of ordering and firm zone duration. You can suggest reducing the firm length duration. b. Lead time information: Transit time (From invoice data) c. Replenishment size: From action 101 d. Quality rejects data: Will give you an idea of number of rejects happening. This is important as ideally in pull, parts should go directly to line without any inspection. So if rejects are high then you might need to look into quality aspect as well. e. Future production plan so that you can find out how many of parts would be required for a time period f. Physical dimension of the part, approx. volume occupied g. POU information: Where the parts are getting consumed, how the parts are being replenished, quantity in which they are getting replenished, who is replenishing them, who is triggering the replenishment and when, what are the operators saying etc. Anything which helps you understands the existing process. 5) Understand the as-is process from following viewpoints: a. Scheduling frequency b. Supplier’s concerns in areas of production planning, packing, production, dispatch, quality and excise or other tax concerns c. Internal material movement: How material is picked from warehouse and sent to the line, how does the process starts, who starts the process, what all documents are generated in the process, what all IT systems are involved in the same, how does the process ends, any exception to the process etc… d. Touch-points in the process (Who is doing what activity)

e. Time taken by each touch-point (For e.g. how many days quality takes for incoming inspection etc.) f. Inventory at each level g. Logistics: How the material is being transported, in what container, in what quantities, by whom (by supplier or by 3 PL) 6) Think a. b. c. d.

about following opportunities in face of constraints: Establishing super markets Kanban Kits Clubbing different components together to achieve logistics optimization 7) Watch out for following: a. Storage space constraints b. Maximum inventory that can be stored at POU c. Impact of to-be solution on existing IT system and on existing documents d. Feasibility of pull: If volumes are very low or the market is seller’s market then sometimes cost of carrying material might be less than cost of ordering in bulk. 8) Make the following: a. VSM for all parts b. Process maps