Excessive movement and handling can be costly to your business in many ways. Moving product can hurt your business and can be difficult to reduce due to the perceived costs of moving equipment and processes closer together. It is often hard to determine which processes should be next to each other. Mapping product flows can make this easier to visualise for most steel business associated with manufacturing, fabrication and building.
Transportation tends to hide problems on the workshop floor and overall business processes, which must be identified and resolved in order to improve operating performance. Unnecessary transport can increase lead times, allows for unproductive floor space, delays the identification of internal problems, and inhibits communication. By achieving a seamless flow between production and the required movement of product will lead to an improvement in customer service and reduce other wastes and associated costs.
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.