Yamato Engine Specialists
Yamato Engine Specialists, an engine and transmission manufacturing company, approached Lucid with an inventory dilemma.
Yamato's manufacturing process was very complex and involved an ever-changing materials list as various engines were remanufactured. Yamato's MAS200 inventory reports were showing their parts inventory was going negative on a regular basis. This was cause for concern for the purchasing department. The purchasing agent wasn't able to reliably determine what parts were needed in order to meet the demands of the production floor. Any delays in production would had a significant impact on the bottom line.
Lucid's analysis of Yamato showed the client had a robust manufacturing accounting package in place and users who were very knowledgeable and experienced. Together with Yamato's IT Manager, Lucid staff met with each involved employee and noted their interaction and impact on the process. It was quickly determined that the negative inventory issue was related to timing and communication. It was found that parts were being relieved from inventory before they were "received" in the accounting system due to the timing of the posting.
In a conference room meeting with receiving, accounting, and purchasing staff present, Lucid conducted a discussion of workflow. The workflow process was explained so each employee understood the impact of their particular role along the process. A timeline for executing each step of the process was brainstormed and created. By entering and posting receipts by a particular deadline each day, it ensured inventory would be physcially present and on the books before it was actually relieved.
In the Yamato case, Lucid was able to take advantage of the tools the company already in place, highly capable employees and an exceptional manufacturing system. Improved timing and communication created a workflow process that resulted in accurate inventory numbers and proper costing.