PSL-PI: PFEP - Plan for Every Part Presentation

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PFEP (PLAN FOR EVERY PART)

Benefits of PFEP
• The PFEP, once carefully established, filled with parts information, and
properly managed, enables you to:
– Begin creating a lean material-handling system and subsequently
developing purchased-parts market, delivery routes, and pull signals.
– Store pertinent current data on all parts in one central, accessible
location.
– Sort parts data by various categories, such as container size, supplier
location, and usage.
– Provide quick response to operations questions regarding parts and
suppliers.
– Extend the lean material-handling system to your plant-to-plant material
movements.This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/psl-pi-pfep-plan-for-every-part-presentation-2173

Create a Future State Value Stream Map
• One of the most common methods of creating Material Flow and Storage plan
is to develop a Value Stream Map (VSM). VSM will define the boundaries of the
project and what improvement activities need to be completed.
• VSM is a “map” showing the flow of material and information from order to
delivery. Start by create a simple connection map showing the current flow of
material and information. On the map you will identify: what production steps
are involved in producing this product, how the material is stored, is it enough?
Or is it too much? How the material is delivered from one process to the other.
What is the process? Who is responsible for the delivery of material?
• The next step is to create a Future Sate Value Stream Map. On this map you
will show what needs to be done. The Future Sate Map will show you how
many Supermarkets you plan to implement, what product families you keep in
these Supermarkets and where the parts need to be delivered. It will also show
how in the future the production will be scheduled for production and how
material will be delivered to individual user locations.
This document is a partial preview. Full document download can be found on Flevy:

PFEP – Plan for Every Part (Continued...)
• This data base must be user friendly, must have sorting capabilities, and be
accessible to read and print through out the facility. Most facilities start with an
Excel spreadsheet. Ideally PFEP should be established in the Company’s MRP
or ERP system. You need to identify individuals responsible for entering the
information, updating the information and controlling its accuracy.
• PFEP is a foundation for the Materials Management Strategy and continuous
improvement of the material handling system. Information contained in the
PFEP data base will used to determine required inventory levels, setting up
Supermarkets and storage locations, establishing delivery routes and frequency
of deliveries, designing parts presentation at “point-of-use”, creating pull signals
and controlling material and information flow.
• You need to have a PFEP data base for every Supermarket in the Plant. Most
common Supermarkets are Purchased Parts (raw materials, packaging
materials, supplies, tooling, etc …) and Finished Goods Supermarket. The
following is a step-by-step procedure for developing a Plan-for-Every-Part.

Step 1 – Create a PFEP Date Base (Continued...)
• Begin filling the PFEP with parts data from one cell or a production line. Add
data cell-by-cell for all the cells in the value stream. Ultimately, it will include
comprehensive information on every part in the entire facility.
• The tables on next slides show the most common categories of parts
information for PFEP. However, this is not a finalized approach. Every plant
is different. You might want to add a column that you need and take out one
that you do not find useful.
• Furthermore, as conditions change, the specific items in your PFEP may
need to change. The key point for the PFEP is flexibility, so you need to
insure that your information management system is able to accommodate
continuous change.

PFEP Data Base: Current State Information –
Container Information
Information about the Container
Container Type Packaging type of the container (e.g., cardboard box, reusable
tote, wire basket, etc …). Use common names.
Standard Pack Quantity Is Standard Pack Quantity followed? Yes or No.
Quantity per Container Quantity count – number of parts in one container
Container Instructions For example – returnable, recycle, scrap, etc …
Container Weight Weight of an empty container
Part Weight Weight of one unit of material (part)
Full Container Weight Weight of a full container of material
Container Length Length or depth of the container
Container Width Width of the container
Container Height Height of the container

Supplier Information
Supplier Name Name of the material Supplier
Supplier Type Either External or Internal supplier
Supplier City City where the supplier is located
Supplier State State, province, region, district where the supplier is located
Supplier Country Country where the supplier is located
Supplier Performance Supplier rating that includes on-time delivery, quality, etc.
Supplier Information

Part Readiness
Readiness of the Part
Line Ready? Is the container ready for line delivery? Yes or No. Write in
“Comments” what improvements need to be made to the
container.
Supermarket Ready? Is the container ready to be stored in the Supermarket or does it
needs to be changed or modified? Yes or No.
Repacking? Does the container need to repacked before stored in the
Supermarket or delivered to the Line?

Information Review
• Once you start to create the PFEF data base you need to review this
information with all user departments including: Production Control, Material
Handling, Engineering, Quality, Operations, Purchasing, Sales and
Marketing and Accounting. Success of the Materials Management Strategy
program depends on the support and acceptance from all users of the new
system.

Information Review ...
• All these questions and answers you need to discuss and review with
warehouse employees, material handlers and employees at the Line. These are
your Customers and your job is to get them to agree and accept a new
methodology for storing and delivering parts. This is not an easy job. The
following is a list of additional fields to include in the PFEP data base to
document the Plan.
• The PFEP data base, once carefully established, filled with correct parts
information, and properly managed, enables you to:
– Begin creating a lean material-handling system and subsequently
developing purchased-parts market, delivery routes, and pull signals.
– Store pertinent current data on all parts in one central, accessible location.
– Sort parts data by various categories, such as container size, supplier
location, and usage.
– Provide quick response to operations questions regarding parts and
suppliers.
– Extend the lean material-handling system to your plant-to-plant material
movements.

PFEP Data Base – Additional Fields for Planning
(Continued…)
Inventory Reduction and Control Plans
Target (Max) Cost of
Inventory in $ per Month Planned maximum cost of Inventory for this part in $
MAX # of Containers Maximum number of containers to be kept in the
Supermarket
MIN # of Containers Minimum number of containers to be kept in the
Supermarket
Re-order point When to order more parts from the Supplier
Minimum Order Quantity Minimum quantity that can be ordered
Buffer Stock - Days Level of Inventory in days
Buffer Stock - Weeks Level of Inventory in weeks
Cycle Stock Level of Cycle stock
Safety Stock Level of Safety Stock – if needed

Step 3 – Sustaining and Maintaining Integrity of
PFEP Data Base
• PFEP data base is a “living thing”. It is a data base that continuously requires
updates, changes and modifications. After the initial implementation of
Materials Management Strategy our Materials Improvement Team will be
working every day on making improvements to the system. This Team will
work on eliminating re-packaging activities, further reducing inventory levels
by more frequent deliveries and smaller containers. They will be changing
storage locations and delivery addresses. Once you start working with your
Suppliers there will be a lot of changes related to supplier deliveries, container
types and sizes. There also will be new product development and new arts
arriving daily.

• You should also institute a guideline that requires every part to be
documented in the PFEP and approved by the PFEP manager
before it could appear on the shop floor. This is aided by a PFEP
Change/Add Request Form.
• By establishing a PFEP manager and developing precise guidelines
for changes in any information in the PFEP, you ensure that the
PFEP is always up-to-date and accompanied by a paper trail of
changes. If done properly, this also makes it impossible to change a
part on the floor without communicating that change to all affected
departments.
Step 3 – Sustaining and Maintaining Integrity of
PFEP Data Base

PFEP Change/Add Request Form
• Please refer to the Word Doc attached to this presentation.

Is the PFEP Lean?
• Is development and updating of the PFEP a value-creating process? No,
because it does not directly create value from the standpoint of the
customer. Instead, it is important incidental work that will significantly
increase the percentage of value-creating activities that occur throughout
your plant.
• Many firms believe they have the functional equivalent of a PFEP
"somewhere in the system," and wonder if creating and continually updating
a PFEP as a distinct data set really creates value. The answer is that when
information is in many places and hard for everyone to see, value-creating
activities throughout the plant can't be supported with accurate and timely
information. Wastes of many sorts become unavoidable.

Thank You!
Questions & Answers

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PSL-PI: PFEP - Plan for Every Part Presentation