Complex Reverse Logistics SCM Process Improvement

Summary

As a contract manufacturer, my employer was the service provider for both manufacturing and reverse logistics and repair services of a major brand of high end enterprise network and cybersecurity equipment.

The company faced with a backlog of units waiting to be repaired and the the monthly commit process reliability was suffering. Growing number of a month’s commit was not being delivered due to various planning and operational issues.

Goal is to enhance & design a sustainable repair operation model to support customer's aftermarket services requirement and provide complete project visibility at executive level.

Roadmap

Identifying a rapid response team for this project.
Participating workshop with extended team to identify shortcomings and defined improvement projects for:
1. Planning (Commit process- Production Planning-Repair BOMs)
2. Execution-(Shop Floor Planning- Capacity Optimization, Transformation to Pull System)
3. Management System-(Work Orders Management, KPIs, Communications)
Defined the sub projects within each workstream with focuses on:
1. Improving forecasting model by conducting Variation Analysis in the process
2. Improving Repair BOM accuracy by normalizing sampling and eliminating noise induced by biased sampling
3. Creating interlock between Rough Cut Capacity and Production Capacity models.
4. Improving the RCCP Model to include additional real life situation variables into the model.
5. Improving Planning Process to include E2E capacity
6. Transformation of job shop planning function to operational planning- optimization of capacity vs focus on utilization
7. Improved signaling between process steps- communication improvement

Result

Improved predictability of process outcomes.

End result: out of compliance Improved by 50%

Reliability of the commit process improved by 80%

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