1. Kaizen Report Out RTS - New Part Number Creation
2/23/16 – 2/25/16 –

2. New Part Number Creation (RTS)
The Leadership team realized a lot of issues that inhibit flow of Customer orders. It was decided that the PO booking & RTS process was loaded with waste and non value added steps that caused delays and extra resources to book the Purchase Orders into the system and confirm to the customer.
This Kaizen is focused on creating a new PO booking & RTS process that will get the Customer PO booked in 48 hours.
Keys to the improvements;
Create a “As Is” & “To Be” Process Map - streamlining the execution process - customer order to load into SAP ready for release to production.
Defining roles and responsibilities – All that touch the process
Create the deployment actions to transform to the To Be Process.
Develop a PIM process which includes Leader Standard Work and improved visual management for key lead metrics.
Establish an escalation process for lead metrics (early warning) that are not to target. (Regular Cadence)

3. Preparations 3 Benefits of Improving the Process:
Reduce Lead time of the process to increase Customer Satisfaction and potentially market share
PO acknowledgment to Customer in 48 hours
Clarify roles and responsibilities
Standardize the Process
Customers of the Process:
Final end Customer
Customer Service
Manufacturing
Outputs:
Part Number with Lead time
Confirmed delivery date to Customer SAP
Pricing / Cost
BOM / Routing 3

4. Preparations 4 Clarify the Assumptions:
Customer Pending PO or Customer order part setup
Only part # release or reactivation process
Global PE streamlining Part # creation may effect in future
Establish Boundaries:
Start : Receive Customer PPO
End : Order booked & confirmed(step 1), RTS complete (step 2)
Functional Areas:
Customer Service Product Engineering
Materials Master Team Mfg Engineering
Customer Master Data Team Cost Accounting
Purchasing Material Planning
Customer Product Management
Industrial Engineering Quality 4

5. “AS IS” PO booking & RTS Process
20 Kaizen Bursts – OpportunityFor Improvement
Best Case Lead Time
6 days 4 hrs
Average Lead Time
13 days 7 hrs
Worse Case Lead Time
49 days 11 hrs

6. Opportunities Identified

7. “TO BE” PO booking & RTS Process
RTS Post PO booking Process
PO Booking Process
PO Booking Process < 48 hours
RTS Process (if needed) < 10 days
Goal of “New Process” - 90% of orders book in less than 48 hours.
Goal of “RTS new part creation is – 90% done in 10 days or less.

8. “TO BE” PO booking & RTS Process
Best Case Lead Time – 4.5 days
Worse Case Lead Time – 13 days
Average Lead Time – 7 days
47% Reduction
74% Reduction