Lumber Manufacturer

Project Description: Client is a North America’s leading manufacturer of interior wood finishing. Client was looking technical expertise in SAP simplification, Item master standardization and Inventory stock level analysis to resolve its most pressing issues. Client was planning to transition from 100% Make to Order to partial Make to Stock. It required assistance to identify stock items, stock levels and stock staging and replenishment process.

lumber

Project Approach

The projected consisted of three main work streams

Item master standardization

  • Develop simplified item master nomenclature design
  • Develop a plan for item rationalization
  • Develop Master Data Management governance process

BOM and routing simplification

  • Implement simplified BOM and routings in SAP system
  • Develop mass upload tool to simplify BOMs and accelerate implementation
  • Train supervisors and operators on the impacted changes for work order creation and SKU serialization

Inventory stock level analysis

  • Develop optimal Semi Finished Good and Finished Good stock levels to support production schedules
  • Identify staging areas for inventory
  • Design and implement inventory replenishment process with clear roles and responsibilities – and train supervisors on execution of the process

Delivered Value

 

  • Standardized nomenclature across all different product category types and redefined new business rules resulting in 50% reduction on item master count ; Defined governance process to address all the activities in the lifecycle of a material

  • Conducted time studies on impacted processes by all three work streams. Identified soft and hard savings by different stages. Hard savings from labour and machine time capacity increase estimated to at least $340K year over year.