Standardizing and Improving the Container Flow

 12/12/2019
By Dr. Alin Posteucă

In every manufacturing company there is a flow of container transport to the work places (tour and return). But often there are numerous losses & waste associated with delays and/ or non-compliant supplies of containers. The annual costs associated with these types of losses & waste, together with the annual lost profit opportunities are high and hidden. Not long ago, I made such a calculation at a section of a company and the total annual loss was over € 5 million (lower operating profit).

The specific causes of these losses & waste differ from one company to another. However, the standardization and improvement of leadtime of a container flow synchronized to production takt time must be a continuous concern to tend to the state of Just-In-Time (JIT). This standardization must take into account several elements such as: production plan, production capacity, warehouse capacity, domestic transport capacity, container capacity, supermarket capacity, the need for items on each shift, distances, speeds, stopping points, leveling box/ kanban box, set-up etc.

So, what are the main challenges of standardizing and improving the container flow?

Source: Alin Posteucă on LinkedIn

Dr. Alin Posteucă is the founder and CEO of Exegens®, a global consulting firm specialized in cost competitiveness improvement and operational excellence. It helps customers create and implement profitable strategies and cost improvement programs that ensure a unit cost improvement of at least 6% per year for each of the next 5 years by maximizing the efficiency and effectiveness of operations.

He is the author of Manufacturing Cost Policy Deployment (MCPD) concept, published in three books at Productivity Press – Routledge/ CRC, New York (USA). The latest, ”Manufacturing Cost Policy Deployment (MCPD) Profitability Scenarios: Systematic and Systemic Improvement of Manufacturing Costs” (October 2018) is based on its main belief that the annual and multiannual target profit can be achieved irrespective of the sales volumes, increasing or decreasing. He is also the co-author of the book ”Manufacturing Cost Policy Deployment (MCPD) and Methods Design Concept (MDC): The Path to Competitiveness”, published at Productivity Press New York (USA), 2017, as well as the author of the book ”Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability”, published at Productivity Press din New York (USA), February 2018.

Alin Posteucă has more than 20 years of experience in Cost Improvement consulting and training. He has a PhD degree in Industrial Engineering and a PhD degree in Economics.