1. Run for 20K min.
2. Reset and run for 60K min.

1. AS-IS information
   1. IDEF3 diagram
   2. Statistics of original AS-IS (machines, buffers, labor)
   3. Summary of AS-IS performance
   4. List of key indicators
2. TO-BE information
   1. Document the strategy used for process improvement (training,, hiring, etc.)
   2. IDEF3 Diagrams (if necessary)
   3. Statistics of To-BE (machines, buffers, labor)
   4. Summary of TO-BE performance
   5. List of key indicators
3. Summary of the differences between AS-IS and TO-BE.
4. "Delight the customer"- remember your task is "To win the contract"

Following is a set of interviews from Shockerphant Manufacturing.

General Plant Manager - Steve Buchelle

Consultant: Good morning, thanks for your time today.

Steve: I have been here for thirty-three years and I know this factory like the back of my hand. I really think we have a smooth running facility and doubt that we can improve it any more, but, corporate wants you guys to do this so...

I will try to be a "team player" and help in any way I can.

Consultant: What is the basic flow of the process here at Shockerphant?

Steve: Well, Of course first there is a demand for products. Sometimes, we also get demand for custom products. If it is a standard product, the order is sent to PREPARE ORDER department. If it is a special order, the GENCUST department receives it and a quote to the customer is prepared and sent. If the customer agrees to the quote, PREPARE ORDER department receives that also. The PREPARE ORDER department receives the orders and generates a work order packet that is sent to the MFG department. MFG sends the completed product along with the work order packet to SHIPPING. SHIPPING sends the ordered products to the customer along with an invoice. The receivable information is sent to the RECV department. The RECV department administers the payment policy and etc. You really need to get with them on all the administrative nonsense they perform. They interface with just about everyone else here.

Consultant: Well, thanks, that's a lot of good information. Do you have a copy of an organization chart I could have so that I know who to contact?

Steve: Sure, I'll get Wanda to give you a copy on the way out. But just FYI, the major functions here: Business Operations (Custom Orders, Prepare Orders, and Receiving Payment), Production Operations, and Shipping and Receiving.

Consultant: As you are aware, we need visibility to wage and benefit information for your employees to determine how best to improve your processes. How would the best way to get this information?

Steve: Well, for salaried personnel, I can get Wanda to give you a copy of that also. But, for union people, that's a different story. I'll need to check on that.

Consultant: Thanks, you've been most helpful. We really appreciate your time and help.

Business Operations - Joe Canseco

Consultant: Good morning, thanks for your time today.

Joe: Hey, this is really interesting. I want to help you guys in any way I can. I have been here for twenty-two years and I have pretty much reached as high as they will let me go in this backwards company. I know this department like the back of my hand. I would really appreciate it if you would let me know what's going on because I am really interested.

Consultant: What processes do your departments have?

Joe: Basically, we prepare orders and also generate custom orders.

Consultant: What is the basic flow of the process when you generate custom orders?

Joe: Well, Of course we get inquiries for custom products. What's really great is we can meet the specifications of custom products 95% of the time and again can meet their schedule 95% of the time. To top it all off, 45% of the quotes we send out are accepted TRI(1,1.5,7) in days. After we get the inquiry either Sue or I log the inquiry TRI(2,10,20) and then I review the customers needs TRI(10,20,30). Then Taz and I TRI(5,15,45) are both needed to determine if the product specifications can be met. If this is so Sue gets the task TRI(2,5,7) to inform the customer that we can't do their job. On each same order, Mel and I are both needed to determine if schedule can be met TRI(2,5,10). When both of these conditions are met, Taz determines production costing TRI(30,45,120). I determines order pricing (10,20,30). I then generate a quote TRI(30,40,50). Steve then approves the quote TRI(5,10,15). Then Sue gets to distribute the quotes TRI(5,7,9) to the customers.

Consultant: Thanks, now what is the basic flow of the process when you prepare orders?

GC: Well, Of course we get either orders for our standard products or a customer acceptance of a quote for a custom product. Then either Sue or Sally logs the order TRI(10,15,25). Then I verify the order details TRI(5,10,12). About 15% of the time the order needs to go back through the GENCUST department as it is not consistent with our standard procedures. Then Sue verifies the customers credit TRI(2,5,7). Our records show that only 3% of the time the credit history is not favorable and the Sue OR Sally informs the customer of an inability to accept order TRI(2,5,7). If the customer has good credit, then Sue OR Sally informs the customer of the approval of their order TRI(2,5,7). Then Sue OR Sally generates the work order packet needed to initiate production activities TRI(15,20,45). Mel reviews and then releases the work order packet to production TRI(5,10,20).

Consultant: Well, thanks, that's a lot of good information. Thank you very much.

Production - Mel Kyper, Jr.

Consultant: Good afternoon, thanks for your time today.

Mel: I'm sorry, but I have a meeting in fifteen minutes, so let's go!

Consultant: What is the basic flow of the production control process?

Mel: John in Production Control receives a work order packet and determines if non-stock items are required TRI(15,20,25). 15% of the time John is required to write a PO for non-stock items TRI(10,15,30). Mel AND John review the PO TRI(5,15,20). Then John takes only 1 minute to send the completed purchase request to purchasing. Then Mel again looks at the entire order and determines if there are special production requirements TRI(10,12,17). 10% of the time there are special requirements and Mel generates special production instructions TRI(30,50,70) and places special information in the work order TRI(10,12,15). Then Mel determines order processing TRI(3,5,7) and determines resource and material availability TRI(3,5,7). Finally, Mel allocates resources to the production order TRI(2,3,5) by releasing the work order instructions to production and submits a request to release material to production operations.

Consultant: Now what about the other departments?

Mel: Here, let John tell you about inventory control department.

Consultant: Well, Mel thanks for the good information.

John: Okay, where were we? Oh, that's right I receive a purchase request for stocked items and determine quantity of items needed to support production TRI(20,30,45). Then I determine the quantity of items to be ordered TRI(10,15,20). About half of our ordered items are single sourced, and if it's not a single source item, I select the supplier TRI(10,12,15). Then I prepare the purchase order TRI(10,12,15) and send one copy to the vendor and send the purchase order information to receiving.

Shipping and Receiving - Tommy Johns

Consultant: Good afternoon, thanks for your time today.

Tommy: Hi, what's up?

Consultant: We're trying to complete this analysis and appreciate your willingness to help. What is the basic flow of receiving?

Tommy: Well, I do pretty much everything in receiving. I am the receiving department!

Consultant: So, can you please tell us what you do for a specific order of material? Just track an order through your process.

Tommy: The materials and components come in and I accept their delivery TRI(2,3,5). I check that the shipment is complete TRI(2,5,10) and if it is sign the freight bill TRI(.5,1,1.5). I then unpack the shipment TRI(1,3,5). I then verify that contents of the shipment matches the packing list (1,3,5). I also take the PO and match the product description on the packing list to the product description on the PO TRI(1,3,5). Then I determine the received items meet PO requirements TRI(1,3,5) and about 97% of the time they do. If not, I have to get Mel and we both get the privilege of informing production management of a problem TRI(10,15,25). Otherwise, I register receipt of material of our newly installed and perfectly running inventory control system TRI(1,2,3). With the inputs of the signed freight bill, packing list after I verify it, and the log in the inventory control system, I then send receiving documents to accounts receivable TRI(1,3,5). Seventy percent of the items are sent to inspection TRI(1,2,3); Twenty-three percent are placed in inventory TRI(1,2,3); Four percent go straight to production TRI(1,2,3); and three percent are sent back to the vendor due to problems TRI(1,2,3). That's about ALL I do!

Consultant: Well, thanks, now can you tell us about your shipping process in the same manner?

Tommy: Well, we receive a finished product from manufacturing and I receive and check products and order information TRI(5,10,12). Then I pack the product for shipping TRI(10,12,15) and determine if the customer has a hold on their credit TRI(2,3,5). 5% of the time they do and I have to set the shipment aside TRI(2,5,20) and then Sue or Sally gets the fun job of contacting them and telling them why we are not shipping their product TRI(2,5,7). When their credit is good I make arrangements with the carrier TRI(2,10,20) and record the details of the shipment (ship date, partial order or complete, etc.) TRI(2,3,5). Then I place a copy of the shipping ticket in a file TRI(1,2,3) and I get a truck and ship the order. We have about five trucks a day (Exponential distribution). I also take another copy of the shipping ticket and verify it against the order TRI(2,5,10). 5% of the time it's a partial order and I resubmit the remainder of the order to order preparation TRI(3,5,10). But still for all orders Grace prints an invoice TRI(10,12,15). And then Grace has three tasks; she must send a copy of the invoice to the customer TRI(5,7,10) and sets a side a copy of the invoice to file later when she has time TRI(2,3,4). She also has to log the invoices into the accounts receivables system TRI(2,3,4).

Consultant: Well, you have a good amount of work to keep you busy, so we wont take any more of your time. Thanks a bunch!

Note: For the purpose of this project assume the customer pays the invoice as soon as they get the invoice!

Quality - Chipper Jones

Consultant: Good afternoon, thanks for your time today.

Chipper: Hey, let's knock this one out!

Consultant: Okay, please tell us what you do to inspect a specific component? Just track a component through your process.

Chipper: I receive the components requiring inspection and inspect the parts TRI(10,25,45). About 5% we reject and Mel, John, Tommy, and I inform purchasing and shipping and receiving TRI(10,15,45). About 25% are non-essential components and I turn the material directly over to shipping to be returned to the supplier TRI(10,20,30). If the component is essential, I inspect 100% TRI(30,60,120) of those components and about 10% of these are the defective parts and these are again turned over to ship back to the supplier.

Consultant: Well, you have a good amount of work to keep you busy, so we won't take any more of your time. Thanks a bunch!

Inventory: Phil Niekro

Consultant: Thanks for your time today.

Phil: Okay, What's the deal?

Consultant: We're trying to document what your company does. Trying to look at it's processes and document them for analysis purposes. We would appreciate your help in finding out what happens in Storage. Please tell us what you do with material you receive. Just track some sample material through your process. Please include any special cases.

Phil: Well, you realize we do not receive any material directly; it all must go directly to shipping and receiving or inspection. You know, union rules and all. Then they send it to us and my assistant, Ellen or I then gets it TRI(3,5,7) and one of us then determines if there is a need for the materials immediately from the material shortage information TRI(1,3,5). One of us places the items in the assigned inventory locations TRI(5,10,15). About 15% of the time, some, not all, of the materials from a given shipment are pulled for production by only me TRI(10,12,15) and then I determine which order is short and its current location on the shop floor TRI(2,3,5). Then I take the kitted components to the shop floor TRI(15,20,30) and then I ensure that production acknowledges receipt of the material TRI(5,7,10).

Now, with that said all shipments of material still go through this process. We receive from production control a request to release material to production. Ellen determines if the official BOM matches current practices TRI(5,10,15). About 5% of the time it doesn't and Mel and Ellen both make needed changes to the BOM to reflect current practices TRI(5,30,120). Then Ellen determines if the components are available to kit the order TRI(5,7,10). About 10% of the time, they aren't and she has to: 1) Attach a material shortage sheet with the work order TRI(3,5,7) and 2) update material shortage tracking system (which by the way, was developed the last time we had some high paid consultants in here!) TRI(3,5,7). But for every request we receive, I have to pull the material that is available from storage TRI(5,10,15). Then Ellen determines if material needs to be reordered TRI(3,5,7). 25% of the time it does and Ellen gets to use that new system to write up the purchase/production request memo TRI(3,5,7). And again, for every request we receive, I take the kitted components to the shop floor and have production acknowledge receipt.

Consultant: Well, we promise that we will keep you informed of findings and make sure you get trained on any new systems. Thanks for your time.

Accounts Receivable: Grace Tou

Consultant: Thanks for your time today.

Wanda: Howdy, how are you boys today?

Consultant: We're trying to document what your company does. We would appreciate your help in finding out what happens in Accounts Receivable. Please tell us what you do with each payment you receive. Just track a payment through your process. Please include any special cases.

Wanda: Well, when I get a payment, and we're always happy to get those payments, cause payments pay the bills, heh, heh! Anyway I log the receipt of a payment TRI(3,5,7). I then get the receivables information and reconcile the invoice and the payment tracking system TRI(3,5,7). For every payment I post to the accounts receivable ledger, close the order, and file the order documentation TRI(10,12,15) as time permits. Also for every payment, I determine past due accounts based on ever changing payment policy TRI(10,12,15). 90% of the time our customers take care of their responsibilities and pay their bills and no action is required. Of those 10%, 75% forget or just let it slip. I think this because it's their first notice of being overdue and I just send them another payment notice TRI(10,15,20). But for those jerks that still can't pay and have already received a notice, send another notice and put their credit on hold in the system TRI(20,35,40). And that's about it, is that what you boys wanted to know?

Consultant Yes, ma'am. Thank you for your time.