Transcript 1 - Komatsu

KAIZEN presentation
STI-KUZ inventory
optimization
Kolesov Anatoly
Spare Parts Department, Product Support Division
Komatsu CIS, LLC
Date: March 1, 2012
[Capstone]
7th GTI
Page 1 -18
7th GTI
AGENDA
• Responsibilities outline
• DB Inventory status
• Target set up
•
•
•
•
•
•
•
•
Page 2 -18
Basic target action plan
DB inventory by region
Improvement zone selection (3 steps)
«19» items group investigation
Action plan development
First phase of improvement
Second phase of improvement
Schedule
7th GTI
RESPONSIBILITIES OUTLINE
Company outline:
Name: Komatsu CIS, LLC
Place: Moscow HQ, (3 branches)
People: 138 employees
Personal profile:
Experience: 7 years
Position: GM Parts department
Directly reporting to GM of BU
GD
[ Mr. Takatsuki]
Product support
Division
Other Division
Other Division
Total 15 people in
Parts Business Unit
Parts responsibility: DB support in parts business development
Totally: 8 DB in RUSSIA, 3 CIS
Parts BU
Sales &
Planning dep.
Operation dep.
Service dep.
Main responsibilities:
1) Sales planning, promotion by commodity; 2) Inventory control;
3) HANSEI activity; 4) Reporting control (DB & KCIS);
5) All scope of analytical work;
Page 3 -18
7th GTI
DB INVENTORY STATUS
CONSOLIDATED DB PARTS INVENTORY INCREASE
Target MOH
Mil.$
4.0
+105% & 1.1 points to MOH
5.2
Consumables
4.2
4.0
10-Mar 10-Sep
5.1
GAP
11-Mar 11-Sep
9.5
8.5
9.1
20.6
Functional
14.6
13.0
25.1
28.8
TTL
24.1
21.5
34.2
49.4
MOH
4.0
4.2
5.2
5.1
(205)
49.4
34.2
(100)
24.1
21.5
10-Mar
10-Sep
Consumables
11-Mar
Functional
11-Sep
MOH
Increasing inventory is a natural feature
for growing market development but should be
strictly regulated & monitored to prevent possible
financial risk for the company!
Chart # 1
BASIC Policy: Decrease DB inventory; Split responsibility for Functional & Consumables parts
Page 4 -18
7th GTI
ACTION PLAN (BASIC TARGET)
Define problem
Move to next
problem
Make a standard
policy
Analysis of
causes
IMPROVE RUSSIAN DB
MOH GAP
Action plan
development
Evaluate effect
Implement it
Page 5 -18
Set up target
7th GTI
DB INVENTORY BY REGION IN RUSSIA
TTL INVENTORY: 49.4
Inventory volume
(Mil. $)
ISTK-C
7.8
MOH: 3.5
MODERN
10.9
MOH: 4.1
CONSOLIDATED MOH: 5.1
STI-Spb.
3.4
MOH: 9.0
KOMEK
7.8
MOH: 4.9
MAGADAN
STI-KUZ
9.9
MOH: 11.7
Moscow
MACR
1.1
MOH: 4.0
STI-FE
4.6
MOH: 2.6
STI-Sib.
3.9
MOH: 5.7
URAL
CENTRAL
SIBERIA
FAR EAST
Basic inventory KPI is MOH so DB with biggest MOH index and abnormal
inventory amount should be selected for improvement!
Page 6 -18
7th GTI
Step
1
SELECT IMPROVEMENT ZONE
Biggest MOH
1st in Functional parts
2nd in stock volume
14.0
12.0
MOH
10.0
STI-KUZ
INV.:
2.0
MOH:
6.0
INV.:
7.9
MOH:
15.3
9.9, 11.7
STI-SPB
3.4, 9.0
8.0
KOMEK
INV.:
3.4
MOH:
4.0
STI-SIB
MACR
6.0
3.9, 5.7
1.1, 4.0
4.0
7.8, 4.9
INV.:
4.4
MOH:
6.0
INV.:
4.0
MOH:
3.0
STI-FE
4.6, 2.6
2.0
Target
MOH
MODERN
INV.:
6.9
MOH:
5.2
10.9, 4.1
ISTK-C
7.8, 3.5
0
2
4
Chart # 2
6
8
10
INVENTORY VOLUME (Mil. $)
Data source: DB monthly report by p/n
STI-KUZ SELECTED AS PRIOR TARGET!
Page 7 -18
7th GTI
12
14
KUZBASS REGION (PROBLEM ZONE) OUTLOOK
AREA
KCIS REMAN (MAY 2011):
•Total area of a building: 6 000 m2
• Repair shop: 2 000 m2
• Parts warehouse: 3 000 m2
• Office area.
Area: 95,5 k,km².
Population: 2.8 mln.
2 major cities: Kemerovo & Novokuznetsk
Main industry: Mining
Main product: Coal
Kemerovo city: “THE CAPITAL OF MINE REGION”
Leninsk-Kuznetsky
29,5 mil.$ (+14% vs last FY)
DEMAND
INDUSTRY
SUPPORT
Utility,
0,4
UNITS
Mining
Construction
Utility
TTL
114
212
35
361
Mining,
17,5
STI-KUZ (warehouse)
• Parts warehouse: 1 000 m2
Novokuznetsk
Mil.$
Const.,
11,6
AVAILABILITY
100%
75%
50%
0%
A
M
J
J
A
S
O
N
D
J
2nd in Mining machine fleet In RF
CUSTOMERS
COALvs DB SALES & INVENTORY
350
(172)
Chart # 3
300
COAL
250
200
(100)
SALES
150
100
50
0
(134)
(100)
STOCK
(103)
(100)
Apr
(Komatsu unit base):
KUZBASS RAZREZ UGOL (KRU) – 51 utit
KUZBASSKAYA TOPLIVNAYA KOMPANYA
(KTK) – 32 unit
UZNIY KUZBASS – 22 units
May
Page 8 -18
Jun
Jul
Aug
Sep
7th GTI
Step
2
SELECT IMPROVEMENT ZONE
27.0
26.0
25.0
24.0
23.0
22.0
21.0
20.0
19.0
18.0
17.0
16.0
15.0
14.0
13.0
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-
[Engine: 1, 339 items (20%) from 6, 563 ttl.]
FOCUS ON
HYDRAULICS ,
23.0
WORK
EQUIPMENT ,
18.4
ENGINE , 21.2
AREA TO INVESTIGATE!
GET , 12.3
HOSE , 11.5
FILTER , 8.5
OIL , 6.0
OTHERS , 12.7
UC , 4.6
AVG.
180.0
∞
160.0
-
0.5
Chart # 4
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
INVENTORY VOLUME (Mil.$)
140.0
120.0
100.0
[Total items analyzed 6, 563 ]
MOH
MOH
SELECT TARGET COMMODITY
Common features (Below average):
80.0
60.0
40.0
Related to Functional group
Excess qty (68% of total items) compare with MAD
Subsidiary responsibility (not DB)
70% of items have no sales record
20.0
-AVG.
-20.0
0.10
0.15
0.20
0.25
-40.0
Investigate with DB inventory analyst
Page 9 -18
0.05
INVENTORY VOLUME (Mil.$)
Chart # 5
7th GTI
Step
3
SELECT IMPROVEMENT ZONE
TTL: 73 items from 1, 339 (5%)
AVG.
*∞
160
180
MOH
140
120
19 ITEMS FOR INITIAL INVESTIGATION!
100
MOST CRITICAL FOR CURRENT INVENTORY!
80
60
40
20
AVG.
-20
-
0.05
0.10
0.15
0.20
0.25
INVENTORY VOLUME (Mil. $)
*∞- NO SALES IN LAST 12 MONTHS
Chart # 6
1,3 mln. (43% of Engine commodity)
MOH: 75.82
Page 10 -18
7th GTI
“19 items” group
investigation
Investigation of “19” items group (1)
FOCUS GROUP FOR FACT FINDING
From DB:
INVENTORY SPECIALIST
PARTS MANAGER
SERVICE MANAGER
Warehouse visual check
Reports data analysis
PIC
“Round table” negotiations
“Brain storm analysis”
From KCIS:
INVENTORY SPECIALIST
PARTS MANAGER
SALES ANALYST
PIC
Important to find the fact of keeping functional parts & excess quantity parts!
Important to find a way for inventory optimization!
Take countermeasures!
Page 11 -18
7th GTI
Investigation of “19” items group (2)
DB inventory data analysis +
Discussion with PIC (DB & KCIS)
Page 12 -18
###: ETC (## Mil. $)
MOH: Low sales
WHY
#5: HOW
PumpLONG
(0,03ON
Mil.
$)
STOCK?:
8 MONTHS!
WHY
MOH:
No KEEPING:
sales
WHY
Service request
WHY
#4:HOW
Connecting
rod
(0.08
$) Not quite WHY
LONG
STOCK?:
8Mil.
MONTHS!
DO
YOUON
KNOW
THE POLICY:
WHY
MOH:
57.45
WHY
WHY
KEEPING: Service request
#3: Crankshaft
ass’y
(0.05 Mil.
$)
WHY
HOW
ON STOCK?:
8 MONTHS!
WHY
DOLONG
YOU KNOW
THE POLICY:
Not quite
WHY
MOH:WHY
No sales
KEEPING: Service request WHY
#2: Connecting
rodSTOCK?:
(0.08 Mil.
$)
WHY
HOW DO
LONG
ON
8
MONTHS!
YOU KNOW THE POLICY: Not
quite
WHY
WHYWHY
MOH:WHY
No KEEPING:
sales
Service request
#1:HOW
ENGINE
(0.17
Mil.$)
LONG
ON
STOCK?:
8 MONTHS!
WHY
WHYWHY
DO YOU KNOW THE POLICY:
Not quite
WHY
MOH:
No
sales Service request
WHY
KEEPING:
WHY
WHY
HOW
ON STOCK?:
10
DOLONG
YOU KNOW
THE POLICY:
Not quite
WHY
MONTHS!
WHY
WHY
WHY KEEPING: Customer request
DO YOU KNOW THE POLICY: Not
WHY
quite
7th GTI
Investigation of “19” items group (3)
STI-KUZ
Poor inventory planning
Absence of clear inventory policy
No reliability to KCIS inventory
Just hired inventory specialist
Low level of inventory ICT utilization
Service request
WHY STI-KUZ
STOCK “19” items?
Long L/T
No forecasting
Absence of necessary
parts in region
Request to keep
Lack of training
Not clear provided inventory policy
Lack of communication
Lack of feedback
CUSTOMER
KCIS
30
100%
90%
25
80%
Focus
20
Preventive measures
70%
60%
15
50%
40%
10
30%
20%
5
10%
0
0%
Not clear inventory Lack of communication
policy
Page 13 -18
Low level of ICT
Exclusive parts request
(no reliability)
Service request
7th GTI
Poor planning
Customer request
Lack of training
Target: decrease functional parts inventory at STI-KUZ
Due to analysis, the basic problem part of DB inventory is Functional parts
FY12 DB INVENTORY TARGET (ALL DB)
FY12 STI-KUZ INVENTORY TARGET
Mil.$
Functional parts
down ▲ 4.6 mil. $
11.9
5.1
Functional parts
down ▲ 53%
57.6
3.2
3.0
14.9
40.7
12-Mar/ACT
Functional
42.7
20.3
Functional
4.1
4.4
Consumables
13-Mar/BP
MOH
STI-KUZ Functional parts decrease
13-Mar/BP
Consumables
MOH
Phase one:
Immediate action to
parts decrease to
achieve the target
In order to keep serviceability level KCIS will
assure certain parts inventory in the region
including parts taken from DB!
Action plan
Page 14 -18
8.5
9.0
20.4
12-Mar/ACT
6.5
12.2
7th GTI
Phase two:
Develop tools (ICT,
Policy etc) to prevent
recurrence
ACTION PLAN DEVELOPMENT
ACTUAL STEPS:
Phase One
(Just Do It action)
CUSTOMER
KCIS
KAIZEN
DB
Efficient inventory policy is
one of the key points for
product support
a) Appoint people to project team (Inventory development team) to
organize Functional parts transfer to KCIS:
KCIS Parts manager, Inventory specialist, Financial manager, Jurist, Warehouse
manager
DISTRIBUTOR Parts manager, Inventory specialist, Financial specialist, Jurist,
Warehouse manager
b) KCIS ICT development
Add new stocks in the system (Required to control transferred parts)
Functional parts control tools development
Buyback &/or transfer Functional parts with low rank to KCIS responsibility
Page 15 -18
7th GTI
ACTION PLAN DEVELOPMENT
ACTUAL STEPS:
CUSTOMER
KCIS
Phase Two
KAIZEN
DB
Efficient inventory policy is
one of the key points for
product support
a) Inventory policy deployment
• Develop inventory policy with restrictions & responsibility splitting (include in
PPPM)
• Implement inventory policy development at DB (internal)
• Periodical inventory meetings with PIC (manager position)
b)
•
•
•
KCIS/DB ICT development
Parts orders control (SO control)
Implement inventory control by segments (Commodity, Industry etc)
Parts database maintenance
c) Inventory control improvement
• Continue trainings for DB inventory analyst by KCIS planning group
• Conduct overhaul planning & control meetings (information exchange)
Page 16 -18
7th GTI
EXECUTION SCHEDULE
Action steps
Mar/12
Apr/12
May/12
Jun/12
Jul/12
Aug/12
Sep/12
Oct/12
Nov/12
Dec/12
Phase one
Target set up
All DB
Project tem set up
Select
PIC
ICT development (initial)
Inventory shift (From DB to KCIS)
New W/H
adding
1st lot
2nd lot
Phase two
Fix key
issues
Policy development
- Re- ussue of PPPM rus (Manual)
Release
to DB
Inventory policy meeting with DB (Management)
Inventory training / meeting ,round
table)(Management + specialists) Overhaul
planning
Database maintenance
ICT development (long term software to control)
Legend:
Page 17 -18
Scheduled action,
Upload to
system
Control
Points fixing
Periodical update
7th GTI
3rd lot
4th lot
Jan/13
Feb/13
Mar/13
Page 18 -18
7th GTI