Here we present a set of useful information about internal logistics audit in the format of answers to frequently asked questions. The author is Rafał Stachowicz, the operational director of the logistics division at SURET. The following set of questions is based on extensive experience gathered during audits/inventories conducted by SURET in many facilities. The knowledge gained was the basis for assessing the existing situation and building a cooperation offer on outsourcing principles.
FAQs
What is an internal logistics audit conducted by SURET? The term “audit” among manufacturers and business managers often evokes different feelings, sometimes even fear, as it is associated with control, a list of accusations, etc. An internal logistics audit conducted by the SURET team is a completely different case, determined by a single common goal – generating savings. It involves a fresh “out of the box” look at the process. Simply put, SURET, based on its experience from various industries, points out what and how to change step by step to reduce costs and increase efficiency within the plant. We elevate our clients to a higher level of organization! We start by taking a “snapshot of the day,” including an inventory of the equipment in the examined area. Based on the obtained data, we build a model and simulate the material flow in the process. We analyze transport units and equipment for moving resources. It is crucial to 100% adapt the intralogistics to the cycle time of the serviced workstations. As it is commonly known, internal logistics is the “aorta” of the production process and must function perfectly. That is our goal! With a complete model and conclusions from the simulations of process bottlenecks, the audit team indicates solutions and improvements step by step. This is the stage of building a new “tailor-made” service model for the client. The re-simulated flow (based on the proposed changes) confirms the correctness of the applied solutions. Next, we develop a schedule (recipe) for implementing changes and improvements. Then, together with the client, we monitor and oversee the stages of implementing the new internal logistics model. The final stage – the client counts the benefits of optimization!
What is the source of cost reduction in your model? Primarily the optimization of human and equipment resources. Today, in the era of galloping inflation (and the associated increasing expectations of employees) and the dynamics of price changes on the market for logistics equipment, minimizing the necessary personnel and equipment resources has become crucial. Operational proficiency resulting from experience in balancing intralogistics processes supported by the latest technologies (including dynamic task management) offers a wide spectrum of savings. Additionally, freeing machine operators from logistics-related activities such as packing and arranging goods generates their free capacity for production, for example. Thus, defining the correct principles of cooperation between production and logistics directly improves the efficiency of the client’s production processes. Well-functioning internal logistics increases operational and production capabilities. Simply put – it drives continuous development and growth in the client’s process efficiency!
How can you be sure that logistics costs will be lower than current expenditures? Internal logistics at our clients’ sites is rarely as appreciated as their manufacturing and production processes. The core business of every plant is to manufacture the products for which it was created. The constant expectation of increased efficiency focuses attention on automating lines and other equipment improvements related to the production area. Often, internal logistics is oversized or not adapted to the process, generating unnecessary costs for purchasing or renting equipment. A significant component of losses we see during the audit is the costliness associated with the operation or repair of equipment. Our actions also aim at standardizing and unifying equipment, which directly translates into replaceability in case of substitution in another area or incidental support due to temporary production peaks. Our experience allows us to “flood” the client with examples of good changes in logistics and, most importantly, implement them immediately.
What will the audit report contain? The report includes:
- Description of the current state (found during the audit), including a full inventory of human and equipment resources.
- The entirety of all activities typically belonging to internal logistics.
- Recommendations for changes in specific areas (operator duties, their scope of activities, necessary equipment, and tools).
- Task map for each transport unit.
- Proposals for improvements concerning storage units, tools, layout.
- Changed schedule – step-by-step instructions on how to implement the new internal logistics model.
- SURET’s offer for comprehensive service according to the new logistics model.
How much does an audit conducted by SURET cost? The cost directly depends on the cooperation path chosen by the client. It is always economically tailored to the client’s expectations and the process being audited. Option I: Analysis of the current state and model building based on improvements proposed by SURET. The amount directly depends on the size of the area and scope. Option II: Includes Option I + project management and supervision of changes implementation. Coordination of actions according to the planned schedule. The cost depends on the coordinator’s time involvement. Option III: Options I and II plus comprehensive implementation, including human and equipment resources according to the proposed optimization solutions (resulting from the audit). In this option, the client outsources responsibility for the process and related risks to SURET. The client only counts the growing savings.
Rafał Stachowicz Operational Director of the Logistics Division
