TOCICO

This presentation describes a case study of Intel distribution including the company background; implementation; initial results; TPS, lean and SPC; process control and reporting tools; and results summary. The background includes a description of the Intel distribution centers (essentially factory warehouses and DCs combined), largely a manual process, linear process flow, layout, equipment and process standardized, no cycle time metrics and scope (order pick to ship). Before drum buffer rope (DBR) the sites had high WIP, high cycle times, difficulty in determining output capacity, a balanced capacity policy and staffing mode and safety risks (due to high WIP levels). The objective of the project was to reduce order processing cycle time. The implementation process is described. Work was released based on buffer management. Cycle time control charts and buffer reports were developed to monitor flow. Six implementations in six countries have occurred. Average cycle time reduction exceeds 70%; standard deviation reduction over 75%; minimum improvement over 50%; WIP reduction over 65%; increased employee safety; no increase in OE or investment required and fast delivery of feedback information from 3 weeks to 1 hour delay (over 500% faster). TOC in the DC was published in Industrial Engineering in June 2005.