Supply chain management is only the beginning

1
Supply chain management is only the beginning
Tim Lopes, Sergio Marrero, Michelle
SpivakApril 17th 2007
2
Agenda

• Corporate Overview
• Problem Statement
• Analysis Methodology
• Objective
• Goals
• Alternative Designs
• Solution
• Results

3
Corporate Overview

• Electronics distributor that sources, buys,
  stocks, reclaims, manages and sells electronic
  parts such as chips, circuit boards and monitors.

4
Problem

• Misplaced inventory misplaced due to inaccurate
  tracking and lack of centralized inventory
  information

5
Understanding the Flow
Manufacturers Distributors

• Information Tracked
• Unloading
• Dock Log
• Dock Calendar
• Work Orders
• Barcode Created
• Added Services
• Services Log
• Receiving
• WIP Log
• Receiving Sheet
• Inventory
• Receiving Sheets
• Bag Label Created

Unloading
Added Services
Reclamation
Receiving
Inventory
Shipping
Disposal
Recycle
-Areas of concern
Manufacturers
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Analyzing the Problem

• Fishbone Diagram

Errors in Data
Multiple Data Sources
CoreTracker does not capture all needed
information
Redundant data entry
Decentralized information flow
Former employees
Various technologies are used
Legibility of written instructions
Excel
Inventory Misplacement
Paper Docs
Calendars
White Board
Data not written considered common knowledge
Receiving Insts
Separate processes used for planning, managing
controlling
Separate office area for operations sales
Current location and other locations expanding
Not standardized
Cycle Counting
Processes are not standardized
Limited channels Mostly verbal email
Each area is highly customized
Multiple Processes
Inconsistent Communication
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Documentation Redundancy

• 20 Attributes
• 11 Documents
• 89 Entries

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Objective

• Improve SeaViews inventory management of
  electronic parts by creating a centralized
  information system that provides accurate
  monitoring and managing capabilities.

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Goals

• Enable management to plan, manage control
  inventory
• Capture inventory activity in a central location
  
• Reduce data redundancy
• Reduce inventory administration
• Minimize manual tracking of information
• Create a sustainable adaptable system
• Pilot electronic tracking system

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Alternative Designs

• Our Constraints
• Time
• Cost
• Experience
• Cooperation

• Considerations
• Adaptability Expandability
• Usability
• Multiple User Access
• Current Processes Preservation

11
Development Implementation Process
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
STEP 6
Source International Journal of Production
Economics, Volume 71, Issues 1-3, 6 May 2001,
Pages 157-164
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Selected Design

• Front-End
• Operators, Manager, Administrator
• Privileges based on login
• Locally installed

13
Selected Design

• System Features
• Scan gun barcode printing capabilities
• Dock calendar
• Work orders with default instructions by
  company
• Check splitting
• Employee assignment capabilities
• Part picture verification
• Reporting and training
• Installation package

• Concerns
• Database capacity
• Data integrity
• Security
• Maintenance
• Operator error

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Selected Design

• SeaView Inventory Tracking System (SITS)
• Eliminates data redundancy
• Provides simultaneous access, data consistency
• Captures metrics currently not stored (time
  stamp)
• Easy migration to MS SQL Server or MySQL Server
• Stored on SeaViews network
• Adaptable stored procedures to accommodate
  process change

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Back-End Design

• Back-End
• 7 Visual basic modules - user defined functions
• 44 tables
• Improved data integrity
• 170 MS Access saved queries
• 100 SQL queries executed in Visual Basic
• 4 Levels of user privileges
• 3of9 Font for barcode labels
• Migrated database to MySQL

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Capacity Analysis
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Data Entries

• 19 Attributes vs. 20
• 8 Documents vs. 11
• 36 Entries vs. 89
• 53 Eliminated Entries

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Front-End Design

• Front-End
• 87 Forms
• 12 Access reports
• Mirror current documents
• Employee accountability
• Customized homepage for each user
• Employee work assignment
• Part picture verification

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Main Menu
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Dock Calendar
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Dock Log
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Receiving Sheet/Log
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Barcodes

• Consignment ID replaced by inventory barcode

• Dock log barcode replaced by container barcode

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Routing Instructions Work Orders
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Scanners

• Symbol PSC 6000 Plus
• Workstation transactions
• Integrates with MS Access
• Linear barcode scanner
• Durable and ergonomic
• Symbol MC 9000 Scanner
• Mobile warehouse transactions
• Supports MS Access

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Capabilities

• Reports
• WIP report
• Inventory report
• Incomplete instructions report
• Communication improvement
• Check splitting
• Administrative interface
• Default company instructions

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Time Financial Impact

• Additional benefits
• Metrics
• Communication
• Historical reference
• Less error

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Future Recommendations

• Migration to MySQL Server or MS SQL Server
• Purchase scanners
• Symbol PSC 6000 Plus for workstations
• Symbol MC 9000 Scanner for warehouse floor
• Rename inventory locations
• Training workshop for employees

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Questions 22 Industrial DriveExeter, NH
03833(603) 436-3733www.seaviewtech.com
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Understanding the Flow
Manufacturers Distributors
Unloading
Special Services
Reclamation
Receiving
Inventory
Shipping
Disposal
Recycle
- Areas of concern
Manufacturers
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Understanding the Flow
Manufacturers Distributors
Unloading
32
Understanding the Flow
Manufacturers Distributors
Unloading
Unloading
Special Services
Reclamation
Receiving
33
Understanding the Flow
Manufacturers Distributors
Unloading
Unloading
Special Services
Special Services
Reclamation
Receiving
Reclamation
Receiving
Inventory
34
Understanding the Flow
Manufacturers Distributors
Unloading
Unloading
Special Services
Special Services
Reclamation
Receiving
Reclamation
Receiving
Inventory
Inventory
Shipping
Disposal
Recycle
Manufacturers