All MRO items were being kept in the storeroom, so the customers always had to come to the crib. This resulted in time wasted which meant less productivity.
Martin and the customer got together on the best way to solve that problem. The solution that we arrived upon was to establish Point of Use cabinets. This involved determining the product mix, Min/Max levels, and frequency of refill.
Martin provided a golf cart to aid in the filling and make sure that the cabinets could be filled quickly.
Department Supervisors were now able to keep their employees in their work areas at all times. Foot traffic in the stockroom went down, so as a result there was no need to increase the headcount. The customer agreed that the cost avoidance from the cabinets was $7,630.