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Prototype Engineering Supply Chain - Charter

Prototype Engineering Supply Chain - Charter. Project Title: Prototype Engineering Supply Chain Project Leader: Mark D’Amico/Tom Wolcott Project Team: S. Call, J. Pasek, B. Nusbaum, L. Bjornstad, T. Hahn and P. Taylor

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Prototype Engineering Supply Chain - Charter

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  1. Prototype Engineering Supply Chain - Charter • Project Title: Prototype Engineering Supply Chain • Project Leader: Mark D’Amico/Tom Wolcott • Project Team: S. Call, J. Pasek, B. Nusbaum, L. Bjornstad, T. Hahn and P. Taylor • Mission Statement: Streamline the Prototype Part Manufacturing Process for procuring “engineered parts”, commercial parts and completing the typical rework/modifications required during the R&D cycle • Background: • From 1/2011-6/2012 approximately $2.1M in prototype engineered components was procured, accounting for 2,698 different parts, spread across 3,038 purchase orders • Peoplesoft IT platform has limited flexibility to accelerate this process; however has accurate project cost tracking capability • Priorities for prototype components are co-mingled with service, aftermarket, and production demand • Detailed design schedule is in flux during prototype NPD phase • Project Goal: • Implement a methodology for purchasing simple “engineered” parts including dedicated suppliers, etc. • Implement a methodology for ordering commercial parts • For parts that are supplier specific, implement a methodology for determine ways to manage capacity and reserve time in production schedules and competing projects • Locate and develop a local supplier/machine shop that can complete quick rework/part modifications • Increase available supplier capacity to better manage ““prototype/surge’s” in machining and fabricating • Maintain ability to track costs for NPD projects

  2. Mokena / NPD Part Mix Data ordered by NPD/R&D

  3. Key Problem Areas • Key problem areas to address that lead to a longer than desired lead time for parts include: • Mfg Lead Time / Capacity at Suppliers • Suppliers being managed by first in / first out for all Production, Service, Engineering and R&D parts • R&D parts are delayed during peak production demand • Reprioritizing any one part will have ripple effects across the entire supply chain and external customer orders • Rework / simple changes need rapid turnaround • Current Peoplesoft system requires multiple transactions to process parts in and out of Provisur for minor rework • Ease of System Use • Multiple steps are needed for part acquisition

  4. Key Goals to Define Success • Implement a supply chain for NPD Engineered Parts that is streamlined and outside of production and engineering part requirements • Streamline the process to complete “rework / modifications” • Review and implement streamlined Peoplesoft processes where appropriate

  5. NPD Parts Supply Options Option #1: Attached shop w/ full mfg capabilities for large & small parts Mokena R&D Build - Fully manned Prototype Shop Estimated (Rough) Costs Building Build out/ Electrical $600K Full Equipment List Sheet Metal Laser $400K 3 Axis Lathe $200K 5 Axis Mill $500K Misc Machines & Tools $300K Two Machinists $180K/Yr • Con’s • $2.0m estimate start up • $350/yr estimate yearly cost • Would only produce “basic” parts • Operators Idle at low points in demand • Pro’s • Fastest Turnaround • No need to use Peoplesoft Action: No further action at this time while exploring other options

  6. NPD Parts Supply Options Option #2: Mokena R&D / WW Engineering Prototype Mfg Center Mokena R&D Whitewater Fully manned Prototype Shop Estimated (Rough) Costs Two Machinists / Welders $180K/Yr Machine Upgrades $TBD • Pro’s • Fastest Turnaround / easy to prioritize • No need to use Peoplesoft • Area available • Able to leverage WW Knowledge • Able to utilize existing tooling inventory • Provisur would own mfg knowledge • Raw material availability • Con’s • $350/yr estimate yearly cost • Shipping would be somewhat delayed to Mokena • Would need to identify correct part mix • Pressure to use machinists for production parts on occasion • May run in to tooling bottlenecks with shared production equipment Action: To schedule a review at WW for further brainstorming

  7. NPD Parts Supply Options Option #3: Set up dedicated “NPD ONLY Suppliers” Mokena R&D NPD “New Supplier” Idea: Pay for set time in designated “new” NPD shops for small / easily mfg parts with little development work • Con’s • Would have to “buy” production time – most shops are normally scheduled out for 3 weeks • No leverage of existing business • No ability to pull resources from production business in the event of a crisis • Would cost $ even if time is not utilized • Pro’s • Completely outside of production / engineering capacity constraints

  8. NPD Parts Supply Options Option #4a: Dedicated space at existing suppliers / Sheet Metal Ace / Prototype Cell Mokena R&D Idea: Have a set cell – with scheduled hours – for rapid R&D parts – to prevent uninterrupted shipment of production & engineering parts Parts segregated from production parts Quick turnaround for rework parts / simply tag and return / hourly rate for modifications Have people / team available to come on site at Provisur for minor changes (welding etc) • Pro’s • Ace close / daily shipments • Would pick up parts w/o any scheduling of shipments • Can complete rework outside of system with billing afterwards • Would not have to pay for un-used capacity • Con’s • Would still have to plan for large upticks in volume • Action: Meeting with Ace on Dec 4th for follow-up and brainstorming session with Sourcing & Engineering

  9. Current Sheet Metal Suppliers and NPD Fit Action: Scheduled to visit Ace Dec 4th for further brainstorming

  10. NPD Parts Supply Options Option #4b: Dedicated space at existing suppliers / Machine Shops Mokena R&D Designated Shop Time/ Machinists available ? We have met with suppliers to solicit feedback Idea: Does it make sense to: a) Designated time scheduled at machine shops suitable for “one off” work b) Have a resource to have machinists “on call” to come in and work on our machines (may make sense for additional machine investment at Provisur) • Action: Meeting with top “one off” machine shops (Irmko & Alpha) for ideas and will follow up at next meeting

  11. NPD Commercial Parts Flow Purchasing Flow Idea: Often times, engineers talk direct with suppliers to determine cost and availability. Can we set up standard suppliers to accept limited purchases (ie. under a certain amount) to be able to order direct and/or using a P-Card or some sort of blanket engineering P.O.? Engineer Researches and Identify P/N & Manufacturer needed Engineer Creates Requisition Sourcing Reviews request and identifies appropriate distributer Sourcing sends out RFQ Supply Base reviews and sends in quote and LT Sourcing reviews and issues P.O. Distributer Ships to Provisur Dock Receives in and delivers to Engineering • Action: Continue to explore ideas with the team

  12. Current Process Flow / NPD vs Rework Purchasing Flow Re-Work Flow Engineer Creates Requisition Engineer Creates Rework Requisition Sourcing Reviews prints and identifies appropriate supply base Sourcing Creates P.O. for rework Eng/Sourcing moves part to the dock Sourcing sends out RFQ Dock ships part out to supplier Supply Base reviews and enters quote on line Supplier completes rework. Sourcing reviews and issues P.O. Supplier Ships to Provisur Supplier makes part / Ships to Provisur Dock Receives in and delivers to Mokena Dock Receives in and delivers to Mokena Current rework flow takes 2-3 days minimum • Action: Continue to explore ideas to streamline re-work with supply options

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