IMPROVEMENT ON FIFO PROCESS

Current FIFO process is un control due to we dont have the identification of earlier production output that can be controlled in the system and in the actual process-( Batch No is not defined and Delivery Note is not stated what is the earlier out put that have to be delivered first) IF Batch No is stated in the Delivery Note, Warehouse will have difficulty to locate the stock with the mentioned batch No

BREAKING FIFO RULE

DEAD STOCK CUSTOMER COMPLAINT HIGH INVENTORY LEVEL

FLOW OF DELIVERY FIFO PROCESS MAP CUSTOMER CSR PRODUCTION LOGISTIC

Start

Purchase Order

Sales Order

stock ready? YES

NO

Production Process

Finish Good c/w batch number

Delivery Plan based on PO details

Delivery Note creation with batch No

pick pack load follow the batch no in the Delivery Note

End

Delivery to customer

CTQ:CONTROLABLE FIFO PROCESS

GOALS
DELIVERY NOTE WITH BATCH NO. FOLLOW FIFO

SCOPE
LAMIPAK SDA

Project Leader Member

TEAM MEMBER : YUNI : IT TEAM LOGISTIC TEAM PPIC TEAM MANUFACTURING TEAM QC/QA TEAM

SIPOC PROCESS MAP

SUPPLIER INPUT PROCESS

DELIVERY PLAN

CSR

PICK PACK LOADING AT WAREHOUSE

CUSTOMERS WAREHOUSE

DELIVERY NOTE FIRST IN FIRST OUT

CUSTOMER

OUTPUT

First In First Out

Identify the earlier production output Locating the earlier production output Control the FIFO process

Identify the earlier production out put

Set up the batch number - by shift - Identification need : date/machine no/shift no - Create the secondary batch no if rework is needed, as rework is part of our production process, but this batch No will be able to be traced in the system Implementation batch No - System will produce Batch No automatically when production issued POV on the pass on/hold/reject and also when POVR is issued - Warehouse will posting the FG with batch No. - Identification on the box by stated in the Label - If rework is needed, than the previous label is replaced by the new one after rework is done

Batch Numbering Sequence Without Rework

XX X XX XXX X X

09A01AMS11
This Date is Production Schedule Date

YEAR : 09

MONTH : A A Jan B Feb C Mar D Apr E May F June G July H August J L Sept Nov K Oct M Dec DATE : 01

MACHINE CODE : AMS

MACHINE NO. 1

SHIFT : 1

Batch Numbering Sequence With Rework

XX X XX XXX X X X

09A15AMS11A
This Date is Rework Date

YEAR : 09

MONTH : A A Jan B Feb C Mar D Apr E May F June G July H August J L Sept Nov K Oct M Dec DATE : 01 -30

MACHINE CODE : AMS

MACHINE NO. 1

SHIFT : 1 Identified Rework process : A, B,C etc

Locating the Earlier production output Identify the Storage Location and BIN in the warehouse - Warehouse optimization lay out , number of SLOC and BIN - Re-arrange W/H : identify dead stock,slow moving and fast moving product - New W/H for dead stock and slow moving - Identify each product in each SLOC/BIN ? - Numbering the racking by SLOC and BIN Manage warehouse management in the system - Adding SLOC and BIN once W/H do posting F/G - Blocking the each SLOC and BIN capacity in the system

Control FIFO Process 1. 2. Delivery Note only can be printed after stock is ready in the warehouse Eliminating DN1, agreed by all function, Urgency of the Delivery is controlled by having a better Order Management,Inventory Report and PPC Control on the Production output Batch No must be stated in the Delivery Note No option for batch No selection

3. 4.

Support need Speed up the process on the pick pack load , - Forklift - maintenance - Hand pallet availability - W/H capacity is only enough for the Fast Moving Product Rework Process - Due to second label have to be done after Rework, so QC should have the Box Label stock - Rework process will be reviewed on the separate project

NEW ORDER STATUS RISK ANALYSIS :Better Order management

(known the order status earlier and minimizing the urgent delivery, can informed to all function---Eliminating DN1)
Order Status REGION QTR Order No Sales Sales OPEN CRH ISP Sales OPEN ISP Q2 Q2 Q2 Q2 Q2 Q2 Q2 East East East East East East Sold to Name Material Material Description VOL QTY AMT (total) OED RDD 3-Apr-09 6-M ar-09 1-Jun-09 2-Jun-09 5-M ay-09 5-Apr-09 2-Jun-09 20-M ay-09 5-M ay-09 23-Apr-09 7-M ar-09 6-Jun-09 1-Jun-09 1-Jun-09 1-Jun-09 5-Apr-09 7-M ay-09 5-Jun-09 6-Apr-09 4-M ay-09 2-Jun-09 5-M ay-09 2-Jun-09 6-M ay-09 2-Jun-09 30-Apr-09 23-M ay-09 23-M ay-09 23-Apr-09 17-M ay-09 3-Jun-09 2-Jun-09 5-M ay-09 4-Apr-09 19-Jun-09 20-Jun-09 15-Jun-09 18-M ay-09 25-Jun-09 20-Jun-09 5-Jul-09 23-M ay-09 20-Apr-09 15-Jul-09 30-Jun-09 20-Jun-09 30-Jun-09 20-Apr-09 5-Jun-09 10-Jul-09 7-M ay-09 6-Jun-09 30-Jun-09 20-M ay-09 25-Jun-09 20-M ay-09 30-Jun-09 23-M ay-09 30-M ay-09 30-M ay-09 30-Apr-09 14-Jul-09 23-Jun-09 24-Jun-09 ATP Shipping Plant Can be billed? response CS WHY N 8-M ay-09 TNG 6-Apr-09 PND 6-Jul-09 PND 23-Jun-09 PND 20-Jun-09 PND 23-M ay-09 PND 15-Jul-09 PND 20-Jun-09 PND 5-Jul-09 CKR 6-Jun-09 CKR 5-M ay-09 PND 15-Jul-09 PND 30-Jun-09 PND 14-Jul-09 PND 20-Jul-09 PND 30-Apr-09 PND 8-Jun-09 PND 10-Jul-09 PND 7-M ay-09 PND 6-Jun-09 PND 30-Jun-09 PND 25-M ay-09 PND 8-Jul-09 PND 21-M ay-09 CKR 30-Jun-09 PND 24-M ay-09 PND 6-Jun-09 CKR 30-M ay-09 CKR 1-M ay-09 CKR 14-Jul-09 PND 3-Jul-09 PND 24-Jun-09 PND Sales Sales N N N Sales N Y Q3 Y Sales Q3 N N N Sales Y Q3 Sales N Y Sales N Sales Y Sales Y Sales Sales Q3 N Y sales sales N N N sales N Y Q3 Y sales Q3 N N N sales Y Q3 sales N Y sales N sales Y sales Y sales sales Q3 N Y SUPPLY-CAPACITY SUPPLY-CAPACITY CREDIT CANCEL SUPPLY RM SUPPLY-CAPACITY SUPPLY-CAPACITY SUPPLY RM CREDIT CUSTOMER REASON

PERHIM.PELAYANAN KES E060015102 HEROCYN TALC 150ML WHITE Comp. west RH/0017/2008 RS/1007/2009 SANOVA PT. S360125201 100 NAT+CAP ORANGE+PLUG COEX

50000 15000 55000 40000 30000 30000 465 5300 50000 465 2000 55000 10000 20000 50000 15000 15000 15000 15000 2000 10000 50000 936 984 10000 10000 10000 2000 30000 28000

PT.ROLIMEX KIMIA NUS BERL.100 ROUND COEX WHT SET R160015202 Q2 East RS/0493/2009 RS/1130/2008SANDAI FARMAS070015203 ** NEOVRINE 20 HDPE WHT COMPL.SC RS/0385/2009 SURYA DERMATO MDESOLEX 30 Wht Loc - Compl PT S480035202 RS/0887/2009 SURYA DERMATO MDESOLEX 30 Wht Loc - Compl PT S480035202 RS/1378/2008 SANOVA PT. RS/2127/2008 PT.FORUM BINTANG PER F100325202 BERL.500 ROUND COEX WHT COMP.

S360325201 500 ML NAT+PLG+CAP ORANGE 50000 COEX

** BERL. Next Quarter west RH/0017/2009PT ERLIMPEX E130015202 100 COEX Wht+CAP Wht+PLG Q3 PT.I.JAMU BOROBUDURBTL+CAP PETRO HDPE 100 WHITE L240012202 ISP Q2 west RH/0015/2009
Sales OPEN ISP OPEN Sales ISP Sales CRH OPEN Sales ISP Sales OPEN Sales ISP Sales Sales OPEN OPEN Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 East East East East East East East East East East East East

RS/2127/2008 PT.FORUM BINTANG PER F100325202 BERL.500 ROUND COEX WHT COMP. RS/2126/2008 PT.FORUM BINTANG PER F100685201 BERL.250 ROUND COEX NAT.COMP. RS/0493/2009 PT.ROLIMEX KIMIA NUS BERL.100 ROUND COEX WHT SET R160015202 RS/0494/2009 PT.ROLIMEX KIMIA NUSBERL.250 ROUND COEX WHT SET R160025202 RS/1006/2009 SANOVA PT.

Next Quarter East Q3

S360685201 250 ML NAT+PLG+CAP ORANGE 15000 COEX

** C210040102 BIOSEPTON 60 PVC METAL WHT Q2 East RS/2180/2008PT.CORONET CROWN RS/1955/2008 Sdr.ARIEF GUNAWAN BERL. 60 Scrw PVC Brown A330010118 RS/0713/2008 SUTRISNO S940015885 100 D.BLUE + CAP + WAD Bpk. TABLET RS/0556/2007 SUTRISNO S940015886 100 PVC GREEN + CAP/WAD Bpk. TABLET RS/0713/2008 SUTRISNO S940015885 100 D.BLUE + CAP + WAD Bpk. TABLET RS/0556/2007 SUTRISNO S940015886 100 PVC GREEN + CAP/WAD Bpk. TABLET RS/2126/2008 PT.FORUM BINTANG PER F100685201 BERL.250 ROUND COEX NAT.COMP. RS/0494/2009 PT.ROLIMEX KIMIA NUSBERL.250 ROUND COEX WHT SET R160025202 RS/1722/2007 SURYATI RS/1329/2008 SURYATI S380790120 5 GALLON FREE ITEM A BLUISH S380790120 5 GALLON FREE ITEM A BLUISH

Next Quarter East Q3

PT.I.JAMU BOROBUDUR L240012202 BTL+CAP PETRO HDPE 100 WHITE west RH/0015/2009

** PT.MIROTA KSM INC LACTONA 120 BLUE COMPLETE ND M121195419 west RH/0025/2008 ** PT.MIROTA KSM INC LACTONA 120 BLUE COMPLETE ND M121195419 west RH/0025/2008 ** PT.MIROTA KSM INC LACTONA 120 BLUE COMPLETE ND M121195419 west RH/0025/2008 RS/0862/2009 CATUR BUDIONOC190012201 BTL RATU AYU 60 NAT+CAP WHITE RS/1747/2008 SURYA DERMATO M PT S480012202 KETOMED 60 Scalp Solution+CAP RS/0053/2009 SURYA DERMATO M PT S480012202 KETOMED 60 Scalp Solution+CAP
East East

Next Quarter East Q3

OED : Order Entry Date Date of Customer Service enter the Order from customer into system RDD : Request Delivery Date Customers ETA ATP : Available to promise : date when PPC confirm on the availability

INVENTORY STATUS PLANT RM/FG/GIT PRODUCT CODE Product Name Stock forecast order Safety Stock Process order planning order Sales Order STP0 Delivery QC date details 23-Jun

: :

Unrestricted 5000

restricted

Total

1-Jul 1-Aug 1-Jul SO No.

5000 20000 -10000 -20000

and each will be link to each batch No

New Inventory Report will update how many we have in the production Line, or how many demand we have from customer, better planning process

Improvement on Controlling the Production Schedule Result to Eliminate the DN 1

PPIC PRODUCTION QC LOGISTIC

planning process

Production Process

Finish Good c/w batch number

schedule produksi

Qty sched prod will be reduce auto once FG is posting in W/H

reject machine

POV

QC Inspection process

batch no auto generated from system

QC result

PASS ON

labelling process

REJECT

HOLD

rework process

POVR

batch no auto generated from system

labelling process

PROJECT MILESTONE
PIC Define the problem statement and CTQ Define the batch numbering order New Process flow of DN creation New Process flow of DN creation Identify batch No in the Box Label Process batch No in the system Process New Delivery Note Creation in the system Identify SLOC and BIN based on W/H layout Identify SLOC and BIN based on W/H layout in the System Nenden ALL Nenden Nenden ALL Beny/Gunawa n Beny/Gunawa n Yuni/Udin Beny/Gunawa n 6/22 6/29 7/6 7/13 7/20 7/27 8/3 8/10 8/17 8/24 8/31 9/7 9/14 9/21 9/28

Transfer of Dead stock and Slow Moving to new place Include define new W/H place Yuni/Udin Re-arrange W/H with identify Dead stock,Slow Moving, fast Moving Racking numbering with SLOC and BIN Blocking SLOC /BIN Capacity Eliminating DN1 process Warehouse Total Cost (New W/H, Rearrange, Hand pallets etc to improve process pick pack load IT Total Cost ( Infrastructure or others?) Training and socialitation of FIFO Process Yuni/Udin Yuni/Udin Beny/Gunawa n All

Yuni/Udin Beny/Gunawa n Yuni/ Gunawan

Outstanding item
Costing IT IT Time line to support this new process, Batch no and DN creation and SLOC/BIN Costing warehouse Warehouse Lay out and optimization capacity W/H details on Dead Stock,SMI, and Fast Moving product Schedule of W/H rearrangement Socialitation and training of this new project