Heavy Rail Warehouse Processes Improvement

Business Case

Tier 1 contractor supplied new and rotable parts to mining clients from a regional warehouse and experienced major inventory issues.  Management team lost confidence in stock accuracy following major  discrepancies identified within consignment stock at client site, leading to immediate intervention to verify current processes.

Our team was engaged to support warehouse operations team to streamline current processes, establish stock accuracy and improve material and information flow across the value stream.

Approach

Based on the initial diagnosis it was established quickly that there was gap in team’s understanding of systems and existing processes. Additionally, some established cross functional processes were not optimal for regional warehouse operation due to uniqueness of the business unit.

To optimise processes, number of workshops were conducted with cross functional teams to capture key changes required to enable warehouse team manage operations efficiently. Also, key activities to improve material and information flow were implemented with in warehouse, followed by daily stand-up Visual Board Meetings to report key transactions.

Implementation plan for identified opportunities was developed and rolled out across the regional warehouse operation. Teams were coached and supported in identification of Lean Wastes within operations to improve inventory management and accuracy.

Results

• 61% reduction in Quarantined Parts.
• $600k reduction in warranty liabilities.
• Improved stock accuracy from 72% to 99%.
• Streamlined PRs and WOs processes, eliminating 100% backlog.