The Steel Efficiency Review® process recommends operations and productions teams to move product based on customer demand not business inefficiencies. Transportation often leads to operations having to wait for product to be delivered due to delays (the waste of waiting), thus costing steel business more money as well as extending lead times and creating customer delivery problems. Excessive transport also gives many opportunities for handling damage and losses, building more problems and allowing for product quality to deteriorate.
To help with Excess Transportation, our SER® consultants have recommended the following 3 key solutions:
1- REVIEW OF WAREHOUSE LAYOUT AND PRODUCTION LINES. Layout should be reviewed and changed as per the principles of lean manufacturing, create value streams and make that value flow at the pull of the customer.
2- ENABLING JUST IN TIME (JIT) PRODUCTION. By making value flow at the pull of the customer, the idea of Just in Time (JIT) production can be enabled.
3 – CHALLENGE AND REDUCE PRODUCT MOVEMENT. Challenging and reducing transportation and the movement of product internally and externally will expose other linked wastes, such as over production and time in motion.
We have found if you could eliminate or possibly reduce Excess Transportation the savings would go straight back on your bottom line. The Steel Efficiency Review® aims to provide recommendations to change and improve our customer’s business and at the same time our product and service offer.
Download our Waste Reports for our insights and learnings on Motion and Transportation wastes from businesses of all shapes and sizes across Australia. To register for your own FREE Steel Efficiency Review® click here.