Regulars / Continuous improvement | 39Simplify internal logistics with KanbanSupply chain disruption has put a focus on converters’ internal logistics, writes Paul Brausshe supply chain issues impacting delivery from raw material paper and flm suppliers have caused an extreme distraction for converters and are impacting their business focus. There improvement by examining Thave been several articles written explaining the cause for this upfront processes including inability to satisfy demands but it is tough for converters to be material availability and empathetic to the suppliers when their end customers are feeling presentation. The amount of waste generated by damaging raw the stress caused by outages and outrage from consumers. The material from overhandling can easily add 5-15 percent to overall bullwhip effect of supply chain drama and fatigue has fractured waste. The current fragile raw material supply chain has exacerbated many relationships, jeopardizing business taken years to obtain. the problem. Raw material suppliers are pushing lead times and missing committed ship dates often communicated just days before. These problems have persisted for two years with little relief “As converters wrestle with in sight. As a result, converters trying to take a global perspective of material availability are forecasting demands in hopes they can take problems outside their control, they preventive action and avoid costly material shortages. It has also become diffcult to discuss longer-term growth opportunities when are also learning that their internal the organization is focused on keeping the customers.logistics controls are wanting”Operation leaders are taking action by looking to substitute materials and are busy trying to qualify other material suppliers. Everyone is looking for relief, often pulling people away from Just-in-case purchasing has ensued and we are now seeing their typical jobs to help expedite and fnd alternative solutions stockpiles of raw material show up on the docks. The facilities to the missed delivery or missed opportunity. These special are not prepared for an infux of raw material, with little room activities are called workarounds or substitute processes. Substitute for storage and often lacking an inventory control system. These processes are put in place, often accidentally, and have a costly stockpiling substitute process steps are now driving a need for impact on productivity. An example is a salesperson who has to unscheduled spending for material handling equipment such repeatedly call a client to inform them of another delay when as narrow web fork trucks, rack systems, and even mezzanine they should be spending their time making sales calls. At the same construction. Unprepared material control groups are staging time, the salesperson is explaining another round of pricing impact material in any nook they can fnd in their facility including to an already irate customer. Some organizations’ salespeople the offce area, where I have seen rolls of raw material in the are reporting a 40 percent loss of productivity in these types of lunchrooms and between desks. This is not the normal safety stock activities. When the material fnally does arrive, scheduling yields in practice but rather a case for hoping they have the right material. expediting drives activities like breaking production runs, duplicate Longer-term, all of these shops are also looking for IT investments set-ups, overtime, air freight, and loss of the plant’s cadence to for software solutions to help manage the situation. IT projects a standard demand. All of these substitute processes cost the often call for a different set of expertise than most converters converter signifcantly. A problem with one customer can easily have in-house. lead to a problem with many if the substitute processes are not Separating external focus from internal focus needs eliminated quickly. There is nothing more costly than the loss compartmentalization. Internally some steps can help control some of a customer. of the chaos. Many material management systems ‘push’ demands based on forecasts in addition to real orders. This requires a fully Logistics accurate bill of material and extensive computer system knowledge As converters wrestle with problems outside their control, they are that may be working blindly to what is actually occurring on the also learning that their internal logistics controls are wanting. Many production foor. The push process assumes all the pick sheet converters have never had sophisticated inventory management data is accurate and backfush driven by closed orders is occurring systems, relying heavily on the supplier’s distribution channel to timely. Unplanned variables introduced during production also play satisfy quick demands from multiple warehouses. Variability of a factor, such as damaged rolls in transit, quality issues during the supply was of little consequence and converters focused their production run, stock outages caused by late delivery, unreported efforts on the demand side of the business. The growth patterns material substitutions or other uncontrolled factors. This push of the market provided ample opportunity for all converters and leads to overbuying inventory. The better answer is to implement continuous improvement activities primarily focused on lead a simple ‘pull system’ less dependent on forecast accuracy and time reduction by improving set-up times and working on press sensitive to real-time behavior in production. The better software operational effciencies. solutions have learned how to incorporate pull demands but there I’ve demonstrated there is a dynamic opportunity to gain is no need to wait for a new software system to get started. The Apr - Jun 2022