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Optimization of Logistics at LEONI

The document outlines a project aimed at optimizing logistical flows at LEONI Morocco, focusing on improving the management of material and product flows from suppliers to customers. It employs the DMAIC problem-solving methodology to identify and address inefficiencies in logistics processes, including receiving, storage, production, and shipping. The project is part of a final study internship for an engineering student and aims to enhance logistics performance through better planning and management strategies.

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0% found this document useful (0 votes)
12 views8 pages

Optimization of Logistics at LEONI

The document outlines a project aimed at optimizing logistical flows at LEONI Morocco, focusing on improving the management of material and product flows from suppliers to customers. It employs the DMAIC problem-solving methodology to identify and address inefficiencies in logistics processes, including receiving, storage, production, and shipping. The project is part of a final study internship for an engineering student and aims to enhance logistics performance through better planning and management strategies.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

I.

Project context

I.1. Logistics at LEONI:


Logistics includes all activities to deliver a product or service to the end customer. And this to
through information, distribution, physical, and financial flows. These elements are:
supply, production, and distribution. Material management can reduce costs
if we are sure that the parts are in the right place, at the right time and the company's resources
are being properly utilized.

Customers LEONI Suppliers


Value Chain Value Chain Value Chain

Supply Chain
Management

Customers Suppliers
Production Plan Management
Management Management

Demand Raw Materials


Effective planning and scheduling
Management Planning

Logistics Management

Transportation planning,

Inventories management,
Warehousing, Kanban ...

Performance Measurement

Key performance indicators

Figure 1: Supply chain management at Leoni.

I.2. Objectives of logistics:


The various objectives of logistics are centered around the control and management of flows of
materials and products from their source of supply to their point of
consumption.
Planning
Level Objective
process

Evaluate customer demand and the workload


Sales & work for the next 18 months.
Business Evaluate the necessary capacity (surface, lines
Operation
unit of production, machines, tools)
Planning
Provide the 18-month forecast to the supplier.

Evaluate customer demand and the workload for


the next 20 weeks.
Master Smooth the production plan.
Factory
Production Respect the product stock targets
Schedule finished.
Plan the component needs based on
the production capacity.

Confirm the firm needs to the


Material
suppliers.
Factory Requirement
Send the DELINS to suppliers with 26
Plan
forecast weeks

Material Check the actual production capacity.


Factory Requirement Check the stock coverage (finished products
Plan and components.

Figure 2: Data flow from the Business Unit to the factory

I.3. Problematic:
In an economy undergoing significant transformation and shaped by strong competition, the
need, especially when it comes to an industrial company, to master, balance and improve its
the process is strongly required.

Thus, like any company concerned with process management, LEONI Morocco considers
to optimize and improve its logistics processes.
In this perspective, I chose to work on the project 'Optimization of logistical flows at the Ain site.
Sebaâ 3", for a period of six months during which I will initially identify the
various problems related to current processes, afterwards I will analyze and provide some
reflections and proposals for the organization and improvement of flows at the level
from the reception of raw materials, the storage area, the production lines and shipping
finished products.

I.4. Project presentation:


Logistics is a comprehensive approach to managing flows (physical, informational) that is based on
on a cross-cutting vision of activity and organization that is particularly interested in
the management of the multiple intra- and inter-company interfaces involved in logistics processes.
These multi-actor and multi-organization processes begin internally within the company as soon as the
Reception of raw materials to the shipping of finished products.

We then commit to studying, analyzing, and then providing reflections for the organization.
and the improvement of these internal logistical processes of the company based on the method of
DMAIC problem solving in the processing of relevant processes and the contribution of
suggestions for improvement.

[Link] objective:
Initially, we developed a specifications document for the project to define the problem.
and guide the work throughout the phases of this project.
The horned stupid diagram below expresses the goal of the project to be completed:

Who does he pay homage to? What does it act on?


Logistics Department AS 3 The supply chain in
his of the site LEONI AS 3

Optimization of logistical flows


at the level of the area of
receiving, storage (G, W) and
the expedition

For what purpose?

Implement a stock management dashboard and optimize


the performance indicators of the reception process;
Identify dysfunctions, areas for improvement, increase
logistics performance
Reduce movements, waiting, improve the level of 5s and
visual management;
Optimize the storage space for raw material references;
Facilitate the work of the stock clerk when supplying the racks
Improve the shipping logistics flow

Figure 3: Horned Beast Diagram


[Link] context
This project is part of the final study project internship, which is essential for the
validation of the training acquired at the National School of Arts and Crafts Casablanca and
the obtaining of the state engineer diploma awarded by the latter.

I.4.3. Project actor:


Project Manager: The National School of Arts and Crafts Casablanca (ENSAM
Casablanca) Department of Industrial Engineering, State Engineering Cycle, Management Option
industrial systems, represented by the state engineering student Soufiane ASSEFAR.
Client: LEONI Morocco Ain Sebaâ 3, which is a wiring harness manufacturing company.
electric located in Bouznika.
Department: Logistics Department

I.5. Charte du projet :


The project charter below gathers information related to the project definition in
terms of objectives, deadlines, stakeholders, and expected gains.

Project Charter
Project Title: Optimization of internal logistics flows
Origin LEONI Ain Sebaâ 3
Service Responsible Rachid Choukri
concerned : Logistics project:
Start date: 12-02-2016 End date : 25-07-2018
Perimeter: Receiving area - Store - Self - Production lines - Shipping
Problematic: Presence of waste in the internal logistic flows
Implement a dashboard and optimize the indicators of
performance of the reception, production, and shipping process;
Setting up small trains at the production lines
Identify dysfunctions, points for improvement, increase
logistics performances;
Objectives of
Reduce movements, waiting, improve the level of 5S and
project :
visual management;
Optimize the storage space for raw material references;
Facilitate the work of the storekeeper when stocking the racks
Improve the logistics shipping flow

Optimize the storage space of raw material references;


Facilitate the work of the warehouse worker during the stocking of the racks
Team: Improve the shipping logistics flow

Results for the Better organization and control of inputs, flows, and outputs of
company : different processes.
Measurable Non measurable
Increase the % of the value
added Improve the image of the
Reduce downtime due to company brand
Project gain: missing components Reduce fatigue of
operators
Optimize storage space Improve the image of
references of materials the company in front of the
first clients and competitors
Facilitate the work of the stock keeper
when feeding the
shelf placements.

Table 1: Project Charter

I.6. The choice of project management strategy


[Link] and comparison of resolution methods
In order to be able to solve problems in a scientific, efficient, and permanent way, we must
to resort to an effective and well-suited problem-solving methodology for the context and nature
of the problem submitted for study, each problem-solving methodology revolves around
of a well-defined number of steps, however there are not as many differences between these approaches,
On the other hand, the parameter to consider when opting for a methodology is
especially the type of problem.

In other words, problem-solving approaches such as 5G, DMAIC, PDCA, A3 and well
Others can be grouped based on the following two factors:

What is the size (small, medium, or large) of the problem to be solved? The solution to this
Is the problem known?
Does the problem-solving strategy rely on an improvement process?
does she continue or is she trying to solve a unique problem (e.g., a customer's complaint)?

We will define the methods: 5G, DMAIC, PDCA, and A3:

PDCA :

The PDCA cycle, also known as Deming's Wheel, is the classic problem-solving method.
in a Lean environment. PDCA is used for medium-sized problems and the phase
The "Act" implies that PDCA is part of a continuous improvement approach. Furthermore, the phase
"Plan" requires special attention and it is not uncommon for it to account for at least 50% of the
total time of the PDCA cycle.

A3

The A3 approach was developed by Toyota. It is an 8-step PDCA that must fit on a single sheet.
A3 paper size. This constraint requires conciseness to highlight
the essential. This tool aims to be collaborative and visual, as graphs are often integrated.
The A3 is mainly used to solve medium-sized problems, which can be
resolved within about 1 to 2 weeks, or even less. A3 reports are very common in
the world of Lean.

5G :

5G (Gemba, Gembutsu, Genjitsu, Genri, Gensoku) are simple acts that materialize 5 steps
fundamentals to be accomplished one after the other, in order to effectively solve a given problem.
It is a Japanese problem-solving method whose purpose is essentially based on
the arbitration of the conflict between: theory (the concepts) and practice (the reality); what we want
do and what can actually be done.
DMAIC :

The DMAIC problem-solving approach has its origins in the Six Sigma world.
simplified, it is a 5-step PDCA cycle used to solve complex problems for
for which a large amount of data is available. This is why DMAIC is
often wrongly associated with statistical approaches and tools. The duration of a DMAIX project can
exceed 3 months, depending on the complexity of the problem to be solved or the process to be improved.

Despite their differences, all these approaches have in common that they are based on a process.
scientific and methodological to solve a problem. Below is the summary table that
résume l’analogie des phases entre les quatre méthodologies présentées auparavant:
PDCA A3 5G DMAIC
Clarify the problem Go to the field Define
Break down the
problem Observe and examine Measure
Define the target
Prepare (Plan)
Analyze the causes
Pull out statistics
roots
Analyzer
Develop the counter- Refer to the
measures documentation
Implement the
Do Improve
countermeasures
Apply thestandards
Evaluate the results and
Check of work
the processes Control
Adjust (Act) Standardize success

Table 2: Comparison of Different Problem-Solving Approaches

I.6.2. The chosen method


In view of the definitions and comparisons made between the different methods and based on
the parameters 'size of the problem to be solved', 'the complexity of the problem' and its nature
the academic aspect of the project, we opted for the DMAIC method. This choice was validated by
my supervisor during a meeting dedicated to project planning.

I.6.3. Steps of the DMAIC method


The DMAIC approach is a structured and rigorous methodology used in improvement.
performance and more specifically in approach6-sigmain Kaizen breakthrough or for everything
problem solving. It consists of 5 steps whose initials form the acronym DMAIC.

D M A I C
Define Measure Analyzer Improve Control
The Objective and The The The The setting under
the extent of performance causes of performance control of
project of the process problem of the process process

Figure 4: The 5 steps of the DMAIC method

The five steps of the DMAIC method are as follows:

Define: It is about defining the scope of the subject we wish to address and targeting.
the objective to be achieved, in line with the client's request. This phase also allows for
to produce a project charter with a realistic schedule. In order to better target the need
client, tools such as SIPOC (supplier input process output client) or QQOQCP and
Ishikawa diagrams are implemented.

Measure: The goal is to collect field data that is representative of


the current situation, in order to better understand the root causes of the problem (statistics
descriptives - Pareto diagram.

Analyze: This involves identifying and establishing the influence of the parameters that cause the
variabilities of the process through the use of data collected in the previous phase.
The root causes can be highlighted using problem-solving tools.
problems (brainstorming – Ishikawa diagram – 5 whys method).

Improve: Based on the results of the analysis conducted earlier, it is about


to establish the solutions that must allow to control the process in order to
reduce the variabilities

Control: This final phase aims to ensure the sustainability of the solution defined in the phase
previous by establishing monitoring or supervision indicators of control of the
process, in this phase the implementation of procedures and operating methods is
very effective.

I.7. Project planning


The schedule presented below will serve as a guiding thread throughout the project. It will help us
will allow for adjusting the drifts and controlling the management of the time allocated for the completion of this
project:

Figure 5: Gantt diagram part 1


Figure 6: Gantt chart part 2

Figure 7: Gantt chart part 3

The sequence of project steps is based on the DMAIC approach, the tasks are described as
suit
Analysis of the existing
Detailed analysis of logistics processes
Detection of process issues
Data collection
Data entry and processing
Improvement proposals
Estimation of gains
Simulation and validation

This approach will be applied to the different logistical processes under study, namely the
receiving flow, storage, production and shipping lines.

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