The
Company
Rocco Building Supplies is a two-step wholesale building materials
distributor located in Harrisonburg, VA. Rocco services lumberyards
and retail home centers throughout Virginia and Maryland, including
limited territories in West Virginia, Pennsylvania, and Tennessee.
The company has consistently increased its sales volume since the
early 1970’s. To accommodate this growth, the company’s
warehouse facilities were enlarged with additions in 1976 and 1986.
The Situation
Rocco’s distribution process uses operators to drive forklift
trucks large distances. Lead-time and cycle times were high creating
additional costs and customer delays. Current capacity limited growth
potential.
The Response
GENEDGE ALLIANCE in partnership with the Shenandoah Valley Workforce
Investment Board recommended that a Value Stream Mapping Project
be implemented to establish an enriched plan that eliminates wastes
and improves customer service. GENEDGE ALLIANCE utilized an experienced
value stream mapping team of project managers and key Rocco personnel
to map the current processes to determine areas of improvement for
future implementation. Areas of improvement identified were: reduction
of inventory, classification of the inventory into categories, re-layout
of the facility, workplace reorganization, procedures, work assignments
and training.
The Results
Significant savings in lead-time, cycle time and travel distance
were achieved.
The main benefits of the results to Rocco are:
• travel distance for forklifts declined by 25% thus reducing
the necessary maintenance for the machines,
• improved capacity for receiving and distribution of 15%
resulting in receiving being able to operate the entire day,
• reduced inventory $100,000, while improving order fill rates,
• and reduced inventory adjustments $40,000 per year through
implementation of a weekly cycle count process.
Management’s Comment
Jeff Carriker, Director of Operations says, "Rocco Building
Supplies, LLC has benefited greatly from our relationship with GENEDGE
ALLIANCE. This particular Value Stream Mapping project, led by GENEDGE
ALLIANCE staff, coached the Rocco team members through a review
of the distribution function, which netted a savings of over $40,000
annually and improved levels of customer service. Prior to this
project, a group of Rocco staff members attended the GENEDGE ALLIANCE
Lean Manufacturing series of classes and has implemented the 'Lean
is Market Driven' approach to improving operations. Rocco will continue
to take advantage of GENEDGE ALLIANCE programs, as they are made
available."
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