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Smiths Plastics (Pty) Ltd Smiths Plastics (Pty) Ltd

SMITHS PLASTICS (PTY) LTD - THE MANUFACTURING PROCESS

CUSTOMER ORDERS AND FORECAST

Smiths Plastics currently receive from all its customers a six (6) months look ahead on components that are supplied. These orders includes a three (3) month's firm forecast with another three (3) month's forecast for the order of raw materials. Smiths Plastics receives on a daily basis the actual requirements for delivery and when to deliver. This process is conducted via two systems:

  1. Information/data is downloaded daily via portal directly onto our system in a Kanban format; this is then printed and dispatched to the customer when required.
  2. Information /data is received via CX MY EXCHANGE in release format which is entered manually into our system, this also is then dispatched, when required, to the customer. All customers get ASN (advance shipping notice) sent to them prior to shipping.

PRODUCTION PLANNING

Based on the firm order received from customers for the month, the daily average quantity requirement is calculated. This information then determines the min / max stock levels in our finished goods store. Based on the daily average quantity, the production department will plan on a daily basis what is to be produced over the next 24 hours so as to ensure that the stock levels remain between the min / max in our finished goods store. Production planning will also consider what daily orders are being received and this will be incorporated into the 24 hour plan to ensure any urgent orders will also be covered.

KANBAN SYSTEM

Smiths Plastics (Pty) Ltd - Kanban SystemSmiths Plastics Kanban system is currently a dual system between manual and electronic. Based on the min / max levels in finished goods store, the daily average quantity requirement and the packing quantity, calculations are conducted as to how many kanban cards per part are to be created in the system. The kanban cards are used to scan the stock into the finished goods store when received from the production department. The same cards are sent again to the production department when the produced parts are dispatched to the customer. The kanban system further advises production planning of any sudden increase or decrease in pull from the customer.

MRP

Smiths Plastics uses Material Requirements Planning (MRP) to give its Suppliers firm orders or forecast based on the customer's requirements. Once all forecast or change requests from the customers have been updated, Smiths Plastics MRP system is then run on a weekly basis. Once MRP has been run, an action report is then printed with recommendations to either increase, decrease, pull forward or push out any orders to its Suppliers based on the customer's changes.

MATERIAL ORDERING:

Smiths Plastics (Pty) Ltd - Material OrderingThe Purchasing department confirms all orders at the end of each month. This is done immediately after material requirements planning (MRP). The material planner / expeditor answers messages in JDE based on updated customer requirements. All orders are reviewed by management, taking into account scrap and other factors prior to placing the order. Releases are thereafter generated by the material planner / expeditor and sent to all suppliers electronically. The Suppliers then confirms the orders by return email; thereafter the supplier produces the stock to the specific requirement and releases the order only on request. The material planner / expeditor communicate to suppliers on a weekly basis with regards to requirements. Smiths Plastics aim is to ensure Lean Inventory at all times.

RECEIVING

Stocks are received daily into the plant and thereafter undergo an inspection process prior to acceptance. The quality inspector inspects according to sample size and the company's standard operating procedures (S.O.P). Once stocks are approved, the quality inspector stamps the goods as accepted, ready for transfer into stores. If stocks are rejected, the quality inspector will quarantine the stock and notify the Purchasing department. The Purchasing department will thereafter take the required action, i.e. accept stocks under deviation depending on functionality, etc. or return all stocks to the supplier.

Smiths Plastics (Pty) Ltd - StorageSTORAGE

The Stores personnel transfer the stock into stores after acceptance by quality inspector. Stock is transferred to fixed locations in stores. Stores are situated in a closed off area with no unauthorised entries permitted. FIFO system is in place to ensure continuous rotation of stock. The min / max system stock level is followed to ensure that no "stock out "and "overstock "situations arise. Stores personnel record stock levels and forward to material planner / expeditor on a weekly basis. The material planner / expeditor replenish stocks according to stock levels on a weekly basis.


MANUFACTURING PLANNING

Manufacturing Planning uses a Kanban system, which is fully integrated into the ERP system. The system utilizes barcoding which drives the JDE (ERP system).

Smiths Plastics (Pty) Ltd - PlanningThe manufacturing process is primarily injection moulding with value adding processes such as painting, plating and assembly being applied, if so required by the product.

Quality inspection and product testing or validation is carried out to the customer specification and this is conducted in house or outsourced. Internal dimensional capability is ensured by our Quality Control lab (3D measuring machine).
Finished Goods is managed by a replenishment kanban system which visually controls stock levels to ensure level production.

DESPATCH AND DELIVERY

Smiths Plastics (Pty) Ltd - Dispatch & Delivery

Stock is scanned into stores from the different areas namely: Moulding Assy plant and Paint plant.
The dunnage controllers then move the stock to the stores and then locate the stock onto flow racks or demarcated areas with its own defined min/max stock levels as per the customer forecast. The stock holding policy is between 1 to 1.5 days stock for Toyota and 5 days for our weekly customers.


The orders for Toyota are received via the Toyota portal which is downloaded by the data capture clerk and he automatically creates an electronic sales order on JDE. Thereafter the kanban cards are printed in sequence and then placed onto a kanban board by date and time order. The picker then sorts the kanban cards and picks the parts from fixed locations. The parts are then staged and labelled and then the dispatch clerk checks the parts against the customer order or manifest and this is verified by ticking the order sheet. The delivery is then dock audited and then loaded onto the truck. Trenstar, Toyota's service provider, emails an electronic POD which is then stored electronically.


Smiths Plastics (Pty) Ltd - Dispatch & Delivery

We receive a picking list from the sales coordinator for all the other OE and P&A parts who also arranges transportation as per the customer. The parts are picked and a sales order and invoice is generated by the data capture clerk and a waybill is completed. An ASN (Advance Shipment Notification) is completed via the internet on MyX change where labels are generated per bin /cage which is then attached. The truck is then loaded and then shipped to the customer.
All orders for Smiths Manufacturing are raised electronically on JDE. The kanban cards are received from Smiths Manufacturing. The deliveries are currently 30 minutes apart on a cycle of 1-16-4. The parts are picked according to the order and then transported by a Cushman to the point of dispatch where the invoice is raised and is checked by their security. Then the customer collects its order.

Copyright 2007-2012
Smiths Plastics (PTY) LTD
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