1. Team members
Bowen Dai
Yiteng Zhang
Mengzhe Zhao
Vishal Honavar
Maninder Singh
Raw Material Management:
GEP East Wall

2. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
2
Agenda

3. 3
FOUNDERS:
Henry Sherwin and
Edward Williams
ESTD:
Founded in 1866 and
incorporated in Ohio in
1884
PRIMARY BUSINESS:
manufacture, distribution
and sale of paint, coatings
and related products
ASSET CAPABILITY:
The biggest paint
manufacturing facility in
North America.
MATERIALS:
164 raw materials are
used in this division,
out of which 63 are
the primes ones which
are used in GEP for
the production.

4. 4
Supplier: Raw
Material
Garland
Emulsion
Plant (GEP)
Distribution
Center at
Waco,TX
Sherwin-
Williams
Stores
Building
Constructors
Retail Stores
(Wal-Mart,
Searsetc.)
Dallas
Emulsion
Plant (DEP)
Customers
Supplier Manufacturer Distributor Retailer End Customer

5. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
5
Agenda

6. 6
Supplier: Raw
Material
Garland
Emulsion
Plant (GEP)
Distribution
Center at
Waco,TX
Sherwin-
Williams
Stores
Building
Constructors
Retail Stores
(Wal-Mart,
Searsetc.)
Dallas
Emulsion
Plant (DEP)
Customers
Supplier Manufacturer Distributor Retailer End Customer

7. • Introduction
• Supply Chain Network
• Problem Statement : Process Map
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
7
Agenda

8. “Understand the Raw Material Management
process followed at the Sherwin Williams facility
and conduct an assessment of the existing
process. Additionally, provide business
recommendations around the most critical raw
materials that affect manufacturing productivity.”

9. “The storage location is not structurally well
organized .”
And
“Raw materials are in excess quantity
against existing space availability. ”

11. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
11
Agenda

12. Measure
Analyze
Improve
Define
• Research and study
industry practices
• Study As-Is Process Map
• Data gathering
DMAIC
12
• Fishbone Analysis
• Pareto Analysis
• ABC Analysis

13. 13
Source: Sherwin Williams’ GEP officials and employees

14. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
14
Agenda

15. 15
Raw Materials Breakup

16. 16
ABC Analysis
Source: Company data

17. 17
Pareto Chart

18. 18
Data Analysis : Docking and Storing
Source: Company data
Condition criteria
Constraints
Pallet Area (Sqft.) 13.33
Load per pallet (lbs) 2000
Month 30 Days
Holding cost 12% annually
Pallets per lane 12
Order per month 140
DOCKING CONDITION TRUE
WAREHOUSE AREA
(Sqft.) 11781 658 220
STORING CONDITION FALSE

19. 19
Data Analysis : Material Allocation
ORDERS PER MONTH 140
ORDERS PER YEAR 1695
Pallet Dimensions (Sqft.) 13.33
Pallet Weight (lbs) 2000
Total Pallets per year 34913
Total Pallets per month 2909
Storage Location Pallet Availibility
Storage 1 (Sqft.) 1908
Storage 2 (Sqft.) 105
Storage 3 (Sqft.) 30
Total (Sqft.) 2043
Excess pallets per month 866
Class A pallet allocation 1430
Class B pallet allocation 511
Class C pallet allocation 102
Demurrage cost per truck (USD) $300
Excess orders in total 41
Total valuation $12,377
Yearly valuation $148,529
4 year evaulation $594,117
Source: Company data

20. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
20
Agenda

21. Implementation EffortDifficult
ValuePotential
Low
High
Easy
Lane
Classification
based on ABCDrive-In
Racking
System
Better
Visibility of
Stock
Building
New
Warehouse
Safety Stock
reduction
Low hanging fruit
Don’t botherLeast worthy
More Analysis Needed

23. Drive-In Racking
System
Lane classification based
on ABCExisting process
Build a Warehouse

24. 24

25. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
25
Agenda

26. Continue with
existing process
and design lane
classification,
ABC
Step I
4 – 6 Weeks
(Approx.)
Implement ABC
lane classification
and measure its
benefits
Step II
4 – 7 Weeks
(Approx.)
Get approval for
building a new
warehouse, if
not then follow
step 4
Step III
10 – 20 Weeks
(Approx.)
Get approval for
Drive-In Racking
System and get
it built
Step IV
10 – 12 Weeks
(Approx.)
26

27. • Introduction
• Supply Chain Network
• Problem Definition
• Research Methodology
• Quantitative Analysis
• Recommendations
• Implementation Roadmap
• Summary
27
Agenda

28. • Root cause of the problem
• Quality Control tools
• Process Improvements
• Recommendations
• Mitigation Plans
28

29. Prof. Gene Deluke| Instructor: Capstone Project| UT Dallas
29
Special Thanks
Kenny Linger| Continuous Improvement Manager| Sherwin Williams

30. 30

31. 31