Original Date: 11/12/2001
Revision Date: 01/18/2007

Frontier Electronic Systems’ aggressive analysis of its receiving process and rearrangement of the work area have reduced its incoming material cycle time by 87%. This systematic approach of developing optimum material flows and processes enabled the company to increase efficiencies and reduce processing costs of non-value added operations.

The receiving and inspection area at Frontier Electronic Systems (FES) was arranged in such a way that unnecessary time was spent trying to locate and process materials which were in or supposed to be in the receiving area. Not only was this area being used for its intended purpose, but also as a storage area for open/closed purchase orders, old drawings, and inspection equipment not needed on a daily or weekly basis. The receiving and inspection area lacked visual controls, a single piece material flow, and a way to determine material status while in this area. Realizing the inefficiencies of the area, FES personnel established goals to increase available floor space, reduce incoming material cycle time, and decrease inspection time.

The first step toward accomplishing these goals was to remove all materials or processes that were unnecessary to the receiving process. This effort gave FES additional floor space and eliminated some clutter. The next step involved mapping out the desired flow of material within the area. Based on the map flow, FES installed color-coded shelving to indicate current status of material within the receiving process. The shelving also promotes a set path for the material to follow while in the receiving and inspection area. When material is delivered, it is placed on a shelving unit with a particular color label. If the material only needs verification of count and inspection for shipping damage, it is placed on another color-coded shelf. It is then quickly processed and placed on a shelf color-coded for delivery to inventory. Materials requiring more in-depth inspections are taken to shelving with yet another color code where, after processing, it goes to the shelf color-coded for delivery to inventory.

Analyzing the receiving process and rearranging the work area have greatly improved the receiving and inspection area at FES. Unnecessary equipment and material are gone. The current status of material in the area can quickly be identified just by looking at the color-coded shelves. The layout now focuses on processing the materials. Since implementing these improvements, FES has reduced its receiving personnel from two inspectors per day to one inspector who spends only six hours per day at this station. This change equates to a 79% reduction in man hours, not including the time previously spent by employees just looking for materials. Additional benefits include a 25% increase in floor space, a 90% reduction in travel time, and an 87% decrease in cycle time.

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