Crate consolidation and standardization using lean manufacturing systems

Abstract

This project was sponsored by a world-class leader in agriculture and construction equipment for nearly 200 years, hereafter referred to as Industrial Sponsor. The Sponsor’s five main brands consist of farm machinery, agriculture equipment, tractors, and various types of construction equipment. The machinery supplied by the Industrial Sponsor varies from tractors, harvesters, seeders, fertilizers, and field cultivators. For this project, a senior design team was assigned to work with the disc harrow product group at the Industrial Sponsor facility. The project scope had 3 problems: a) a large variety of crates which resulted in high pack-out times and material costs, b) an inefficient standard crate packing process due to an unorganized inventory storage area, and c) an incorrect number of parts packed in standard crates relative to the sales order. To address these problems, a variety of data sources, analysis tools, and experimental designs were employed to understand the current state, identify the risks and issues, improve the processes, and develop recommendations. Furthermore, simulations were conducted to determine the increase in efficiency based on the proposed inventory storage area. A reorganization of inventory and the use of the spaghetti diagram improved travel distance efficiency by 88 % for stationary crates and 98 % for moving crates. Yamazumi's analysis showed an improvement of 31 % in efficiency among experienced workers, compared to 0 % for new hires. The future state with a stationary crate showed an increase in efficiency of 76 % due to a significant reduction in walking distance, and the future state with a moving crate showed an increase of 86 %. In order to reduce recurring shipping errors, Kanban cards and poka-yoke systems were recommended. In addition to the variation of crates, the team identified other areas for improvement within the standard crate area, such as safety issues. This was accomplished by conducting a safety risk assessment. Finally, an implementation plan was developed to summarize and explain the process that the Industrial Sponsor would implement to fix existing inefficiencies in its crate packing operations.