PFEP – Plan for Every Part Definitions Marek Piatkowski – August 2016 1

Introduction - Marek Piatkowski Professional Background Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from 1987-1994 TPS/Lean Transformation Consulting - since 1994 Professional Affiliations TWI Network – John Shook, Founder Lean Enterprise Institute (LEI) – Jim Womack Lean Enterprise Academy (LEA) – Daniel Jones CCM/CAINTRA – Monterrey, Mexico SME, AME, ASQ, CME Lean Manufacturing Solutions - Toronto, Canada http://twi-network.com

What is Plan for Every Part (PFEP) ? PFEP is a data base created to gather and maintain information about all parts, components, supplies, WIP inventories, raw materials, finished goods and any other form of material used in your processes PFEP data base must have sorting capabilities. (Most common Excel and Access) It also can reside on your current ERP or MRP system This data base must be user friendly and accessible to read and ability to print anywhere in your facility

Establish a position of an Inventory Analyst Inventory Analyst is responsible for the PFEP data base The only person that can modify PFEP system Must be notified of any and all changes that are made to any part Needs to maintain the PFEP on a common drive so that anyone throughout the company can view the information If this position cannot be created assign this responsibility to an individual in your Production Control department Inventory Analyst must drive Inventory Policy Creates less inventory! ( purchased and finished goods) Produce what you need when you need it! Step 1

Inventory Analyst Step 1 Key Points - Responsibilities Reasons Maintenance and control of max/min levels, lead times, order quantities, re- order points, etc… in SAP/MRP system Maintenance of BOM and Pick Lists Management of new and obsolete parts and components Plan-for-Every-Part (PFEP) Introduction and maintenance of a Kanban cards and system Inventory policies (levels, controls and management) To maintain and to keep all information in the system up to date and to provide feedback to management Update information at least monthly Add new parts and remove obsolete once from the system Single source of information Kanban cars get lost and Kanban cards must be updated on regularr basis To review inventory information at monthly Sales and Operations meetings

Identify the Type of Parts in your PFEP Data Base Purchased Parts Finished Goods Step 2

Start collecting Information for (PFEP) For every part, gather information related to: Part identification – part #, description, unique features … Storage information – container type, pieces/container … Transportation - what equipment needed to move parts Delivery – how frequently do we ship and deliver Production capabilities – daily or hourly production rates Customer Requirements – forecast and actual shipments Group every part into one of the three categories: Runners (A), Repeaters (B), or Strangers (C) Step 3

Establishing PFEP – How much detail? Part number Description Daily usage Point of use location Storage location Order frequency Supplier name Supplier city Supplier country … Container type Length Width Height Weight Standard pack quantity Delivery frequency Carrier Transit time … Step 3

PFEP – Information about the Part Purchased Parts Finished Goods Step 4 Part number Customer Part Number Part Description Part Name Model/Color

PFEP – Information about the Container Purchased Parts and/or Finished Goods Step 5 Container Type Standard Container Quantity Unit of Measure Quantity per Container Container Instructions Container Dimensions and weight

PFEP – Shipping Information Purchased Parts and/or Finished Goods Step 6 Order Frequency Lead Times Carrier Shipment Frequency Min Shipment Size Number of pieces per Shipment Is Inspection Required ?

Developing the PFEP Plan Once you populate the data base you can start planning Develop delivery plans or production plans based on standard Container sizes Identify inventory re-order points and quantities Identify re-order frequencies Implement standardized parts and components delivery methods Identify inventory levels required at each machine and work station Identify inventory levels at each storage location and Supermarket Define and minimize Standard Pack Quantities Step 7

Size of Containers Step 7 Identify if each container is “Line Ready” – YES or NO Small box, easy to lift Less than 12 KG (30 lbs) Step 7

Step 8 Does the part need repacking? Or the container is Line Ready?

Step 8 Should we start talking to our Supplier about delivering parts in Line Ready containers?

Step 8 Why do we spending so much money on packaging by Suppliers when we do not use it and do not need it?

A B C – Analysis of all Current Parts Are all current parts in the Data Base active? When was the last time some of these parts were used? Which ones are obsolete or not-active? Step 9

PFEP - Keys to Success Step 10 Controlled maintenance of a single database Established system to provide data for updates Use database that has sorting capabilities Load data in smallest element possible (container size should be three different entries-length, width and height) Step 10

Changing the World. One Transformation at a time This presentation is an intellectual property of W3 Group Canada Inc. No parts of this document can be copied or reproduced without written permission from: Marek Piatkowski W3 Group Canada Inc. iPhone: 416-235-2631 Cell: 248-207-0416 Marek.Piatkowski@rogers.com http://twi-network.com

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