【正文】 f material handling cycles 16 CONTENTS ? Current state assessment ? Target state design ? Opportunity and future operating metrics 17 Z X H 3 1 2O C O 4 . 0 1. 0115F U T U R E S T A T E P R O C E S S M A PN o t e : As s u m e s 2 s h i f t s , 7 . 0 8 h o u rs / s h i f t 。 plete paperwork Tray set up Bond Backfill Leak test Load Component 100% = 55 90 43 100 51 VALUEADDED IMPROVEMENT POTENTIAL Percent。 McKinsey shop floor observations Load stretch Mold Trim and pin Cutting Tipping Trim Bond Bond 2 Inspect Distal Bond 3 Inspect Com ponent veri fication Apply tube Crimp Final inspect Coil product Seal tray Pack aging final SFP audit TT 177。 S amp。 Company personnel. No part of it may be used, circulated, quoted, or reproduced for distribution outside McKinsey amp。 2Week Assessment Summary MEDICAL DEVICE MANUFACTURER Sanitized example Date CONFIDENTIAL This report contains information that is confidential and proprietary to McKinsey amp。 Company and is solely for the use of McKinsey amp。 Company. If you are not the intended recipient of this report, you are hereby notified that the use, circulation, quoting, or reproducing of this report is strictly prohibited and may be unlawful. 1 CLIENT OPPORTUNITY SUMMARY Significant gains in lead time from subassembly to ship from 32 days to 4 ?., Product A lead time = 32 days to 4 days Parallel reduction in inventory of potentially 70%overall ?Subassembly WIP from 183,600 to 7,200 units ?Final Assembly and Product A WIP = 17,000 to 1,920 units Significant quality gains in selected areas ?Subassembly from 83% to 95% ?Component Form, Fold from 85% to 95% to 98%+ ?Final Assembly from 90% to 95% Labor productivity gains of 25%+ from removing waste (., handling) and work bination Potential improvement in floor space utilization allowing better flow and increasing plant capacity Simplified information flow, switch from SAP forecast control to distribution center replenishment 2 CONTENTS ? Current state assessment ? Target state design ? Opportunity and future operating metrics 3 2WEEK ASSESSMENT (OBJECTIVES AND APPROACH) * Joint McKinsey/client Team activities Source: McKinsey Main activities ? Understand current demand pattern for product groups ? Complete detailed mapping of material and information flow ? Define clear vision of target lean state (including performance levels) ? Assess a reasonable estimate of target operational metrics and their financial impact Approach ? Initial meeting McKinsey/client ? Understand current state* –Map material flow –Map information flow –Understand current performance levels ? Define vision of Lean Target State* –Target material flow –Target information flow –Target performance levels ? Report out 4/19 4/20 4/21 4/22 4/26 4/27 4/28 4/29 4/30 W e e k e n d 4 DEMAND PATTERNS – PRODUCT A * Monthtomonth change in percent Source: client sourced sales database。 OP build plan spreadsheet Units Thousands 0 15 30 45 60 75 90 105 120 135 Oct Nov Dec Jan Feb Mar 1998 1999 1Q99 6% sales volatility* 34% schedule variability ? Actual demand is relatively stable ? Demand appears to be volatile to shop floor Sales worldwide Schedule (client site) Warning! Page not originally created by Production. Fake data chart!!! 5 SOURCES OF SCHEDULE VARIABILITY Result in ? Supplier inventory – excessive subassembly inventory ? DC setting high safety stocks of finished goods inventory ? Shop floor inefficiencies – Manpower – Equipment – WIP – Floor space – Excess raw material Schedule variability 34% Total variability Sales volatility New product launches Product yields fluctuation Schedule: market demand disconnect Part shortages (primarily highvalue ponent) Source: Team interviews ESTIMATE 6 CURRENT STATE INFORMATION FLOWS Key points ? Start schedule can be different from prod