About this Presentation
This presentation describes a case study of Intel distribution including the company background; implementation; initial results; TPS, lean and SPC; process control and reporting tools; and results summary. The background includes a description of the Intel distribution centers (essentially factory warehouses and DCs combined), largely a manual process, linear process flow, layout, equipment and process standardized, no cycle time metrics and scope (order pick to ship). Before drum buffer rope (DBR) the sites had high WIP, high cycle times, difficulty in determining output capacity, a balanced capacity policy and staffing mode and safety risks (due to high WIP levels). The objective of the project was to reduce order processing cycle time. The implementation process is described. Work was released based on buffer management. Cycle time control charts and buffer reports were developed to monitor flow. Six implementations in six countries have occurred. Average cycle time reduction exceeds 70%; standard deviation reduction over 75%; minimum improvement over 50%; WIP reduction over 65%; increased employee safety; no increase in OE or investment required and fast delivery of feedback information from 3 weeks to 1 hour delay (over 500% faster). TOC in the DC was published in Industrial Engineering in June 2005.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Intel's distribution centers are essentially the same in terms of equipment, layout, and process, with the only difference being volume.
The company didn't have any cycle time metric before the implementation, which made it difficult to determine the output capability of each site.
The implementation of cycle time metric and statistical process control has significantly improved the efficiency of the distribution centers.
Instructor(s)
Jennifer Eckman
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.