Musashi_Proposal_2021_Rev2

MUSASHI

DGI at a Glance
90+ Years of Experience
Privately owned distribution company enabling Advanced
Manufacturing stories like yours since 1927.
We Deliver Quality
30 stocking locations throughout US, Canada and Mexico with
1-2-day delivery. Specializing in cutting tools, abrasives, safety,
hand/power tools, metalworking fluids, etc. as a top 3 distributor
in the top brand names.
Trusted Advisor to 20K+ Customers
Industry recognition for innovation and documented
productivity savings. Ongoing training/knowledge database of
advanced methods in manufacturing
Highly Innovative
Technology leaders with a selective partnership in industrial
vending. Vending experience of 20+ years with over 400
installations.
Tailored Solutions
We develop customized solutions to address your specific
areas of improvement, such as non-critical processes.

VISION STATEMENT
Our vision is to create a system that is virtually seamless with
MUSASHI’S current procurement procedures while focusing on
introducing cost effective process and product solutions in a sustained
effort to play a recognizable role in MUSASHI’S profitability.

OBJECTIVES
1. Reduce Walk Path
• Deployment Point of Use Solution
2. Reduce Musashi involvement
• Procurement Process
• Replenishment & Equipment Management
• Regrind Program
• Inventory Management
• Database Management - AutoCrib
3. Part Accuracy - “Issue The Right Tool”
• Through Dynamic Filtering - Engineering BOM – Process Sheets
• Standardize to Manufactured ISO Nomenclature
4. Consignment Model/Cash Flow Impact
5. Proposal Summary & Future Opportunities

DEPLOYMENT PLANT - 1
19
RoboCrib 1
02 = Alum Arm
03 = Assembly
05 = CLP
16
18
New
02
05 03
RoboCrib 2
16 = Housing
18 = Studs
19 = Cross Drill
Est. Time Savings – Dep 2, 3, 5
Annual Trans = 4048
Avg Time Savings = 6 min
Annual Savings = 405 hours
18

DEPLOYMENT PLANT – 2
FORD
HONDA
RoboCrib 1
FORD
RoboCrib 2
HONDA
FX LOCKERS w/SCALES
LAPPING TAPE
GUN DRILLS
Est. Savings – FORD + HONDA
Annual Trans = 12,972
Avg Time Savings = 4 min
Annual Savings = 865 hours

DEPLOYMENT SUMMARY
PLANT 1
• Add a RoboCrib2000 – DGI to purchase
• Strategically placed to support multiple work cells
• Each RoboCrib will have approximately 50% room for expansion
• Existing RoboCrib2000 – DGI to purchase
PLANT 2
• Add a RoboCrib2000 – DGI to purchase
• Each RoboCrib will support Honda and Ford respectively
• Each RoboCrib will have approximately 50% room for expansion
• Existing RoboCrib2000 – DGI to purchase
• Add FX Lockers w/Scales
• Will support & manage the Lapping Tape & Gun Drills
Video here

DEPLOYMENT FX LOCKER DETAILS
PLANT 2
FX Lockers w/Scales (3 Racks)
• Will support & manage the Lapping Tape & Gun Drills
• Remove from the Tool Crib
• Remove MAP from Procurement & Replenishment Process
Gun Drills
• 4 Lockers assigned (714-210) – Required to manage 2 SKUs
Lapping Tape
• Managed with Scales as they are issued in different quantities
• 17 bins assigned (4 available for expansion)

PROCUREMENT PROCESS
Glen signs into SAP
In Purchasing
Module – Searches
by Item Class
(Ex: Inserts)
Suggestions to Buy are
listed (by Supplier)
Begins generating the SAP
Orders by Supplier (adds to
Supplier PO as each Item
Class is reviewed)
Notes: Glen reviews forecasts to determine purchase requirements
Vendor Ships Goods
to MAP
Vendor submit
Invoice - Daily
TCA – verifies
product and
receives in SAP
Glen – e-mails
orders to himself
then prints each PO
generated
Glen – prints PO,
signs, scans and e-
mails each PO to the
required Supplier
Items will then be delivered to Plant
1 and 2 for replenishment
(Vending or Tool Room)
In SAP - Inventory is held in
BLOCK SATUS
In Vending – Completes
Stock Receiving
UNBLOCKS
Every 90 seconds – Picks
up S transactions –
shows available in
AutoCrib and SAP
Our Findings – Weekly Time
Generating Orders = 4 Hours
Submitting POs = 5 Hours
Receiving SAP = 10 Hours
Replenishment = 10 Hours
Process Payment = 5 Hours
= 34 Hours
Accounting Process
Payment
Packing Slips are
filed

PROCUREMENT PROCESS - REGRINDS
How does the employee know
what tools go in the bin?
1. Arnold will only prepare where the
quantities meet min regrind quantity
2. Balance are placed in the Cabinet (wait
until next week review) 1. If tool cannot be reground –
thrown into recycle bin
Estimated Weekly Time
Regrind Process
= 3 Hours
Employees – when
the tool is used they
place in a bin
Wednesdays –
Arnold goes to each
work station to pick
up these bins
Arnold brings to the
Tool Crib and sorts
Tools
Arnold will prepare the
Tools for Pick-Up
(Regrinder = OSG &
Peninsula Tool)
Order is placed in
SAP of what is going
out for Regrind
Notes:
• Manual Process
Regrinder – If tool cannot be reground, they will
advise MAP and will not regrind balance b/c does
not meet min. (Will hold)
• Force Reference not
implemented
Thursdays –
Regrinders come to
pick-up
Arnold – will adjust new tools (from
Tool Crib) into the Vending if there
are no regrinds
• All new Tools available in
Tool Crib (free issue)
Regrinder – Do they
ship or drop off the
tools that are
reground
Arnold – Receives in
SAP
Regrinds will be placed in
Vending and the New Tools
Removed and placed back
in Tool Crib
• No Reporting/KPIs being
generated on Regrind vs New

TOTAL COST - ANALYSIS
Time Savings -
Reduction in Walk
Around Time - Plant 1
Time Savings -
Reduction in Walk
Around Time - Plant 2
Procurement Time
(POs/Replenishment/
Regrinds)
Finance - Time
Savings
Annual
Transactions
(Dept 2,3,5)
4,048 6 minutes 405 $25 $10,125.00
Annual
Transactions
Ford + Honda
Estimated
Time Savings
Estimated
Time Savings
Total Time Saved
(Hours)
Total Time Saved
(Hours)
Avg Shop Rate
Avg Shop Rate
Annual Time
Savings
Annual Time
Savings
12,972 4 minutes 865 $25 $21,625.00
Total Time
Estimated Time
Estimated Annual
Burden Rate
(Hours)
Eliminated
Savings
32 $75.00 50% $60,000.00
Total Time
Estimated Time
Estimated Annual
Burden Rate
(Hours)
Eliminated
Savings
5 $75.00 50% $9,375.00
Estimated Savings:
$101,125

Our Main Objective
To Maximize
Productivity
and Save
Money!

SUMMARY OF SERVICES
DGI Supply - Support
Account
Manager
Site
Champion
On-Site
$0/hour
• Provide product technical support
• Work closely with manufacture representatives to
collaborate on new products/methods with MAP
• Facilitate monthly meetings with MAP key stakeholders
• Review of key metrics, challenges and opportunities
• Support, record and recommend on cost saving initiatives
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr

SUMMARY OF SERVICES
DGI Supply - Support
Cost Saving Program – Web Based
Account
Manager
-Customized Dashboard
Site
Champion
On-Site
$0/hour
-Built-In Approval Process
-Reviewing Supporting
Documents
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr

SUMMARY OF SERVICES
DGI Supply - Support
Inventory Specialist
$42.82/hr
Account
Manager
Site
Champion
On-Site
$0/hour
APS Service & Support
$42.82/hr
• On-Site Support & Customer Service
• Sourcing, expediting, order entry
• Receiving & Replenishment to all point-of use locations
• Support & work with Account Manager in facilitating,
implementing and evaluating cost saving opportunities
• Responsible for functionality of AutoCrib Equipment &
Software
• Software updates/upgrades as required
• Preventative Maintenance & Repairs
• Provide 24/7 support

SUMMARY OF SERVICES
DGI Supply - Support
Implementing Solutions (ex: Regrind Program)
Account
Manager
Site
Champion
On-Site
$0/hour
-Tracking in/out of EVERY Tool
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr
-Access Controls in Place (Cross-
Reference)
-Lower Inventory Exposure

SUMMARY OF SERVICES
DGI Supply - Support
Account
Manager
• Collaborate and combine joint efforts with MAP’s
Inventory Champion to ensure that the stocking levels
and supporting inventory are in-line with MAP demands
Inventory Forecast Management Model
Site
Champion
On-Site
$0/hour
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr

Action Description Frequency Stakeholders Reason Outcome
Monthly Forecast
Detail Provided
Weekly Forecast
File Created
Weekly Forecast
Performance
Discussion
Weekly Forecast
Performance
Notes
Execution of
Actions from
Weekly Meeting
INVENTORY FORECAST MANAGEMENT
Current month + Future month item
forecast detail is provided by customer
champion to DGI inventory specialist
Using the monthly forecast provided DGI
Inventory Specialist will create a
forecast tracking file
Forecast file is provided to Customer
Champion weekly
Customer Champion and DGI Inventory
Specialist meet and review item
performance
Summary log of weekly meeting notes
discussion and decisions
Sent from DGI Inventory Specialist to
Customer Champion
Execution of all agreed to actions
Follow up as actions become complete
Monthly
Customer Champion
DGI Inventory Specialist
Weekly DGI Inventory Specialist
Weekly
Weekly
Customer Champion
DGI Inventory Specialist
DGI Inventory Specialist
Customer Champion
Daily DGI Inventory Specialist
To enable DGI to set up a weekly
forecast tracking
Document used to support weekly
discussions
Used to monitor sales, lead time, Po
details, ETA’s etc.
Used to monitor actual usage vs.
forecast
Discuss/suggestion variances in
usage vs. forecast (+/- variances)
Discuss any foreseen changes in
usage
Discuss/suggestion any foreseen
gaps in inventory vs. forecast
Discuss/suggestion possible
overages in inventory vs. forecast
Discuss item Lead time challenges
Discuss current or upcoming item
changes
To keep record of all decision points
To assign action accountability
To keep up to date on pending and
outstanding actions
Weekly forecast file
created
Supports weekly forecast
performance discussion
Weekly Forecast
Performance Notes
Execution of agreed to
actions from weekly
meeting

SUMMARY OF SERVICES
DGI Supply - Support
• Provide reports that categorize inventory exposure values
Account
Manager
Site
Champion
On-Site
$0/hour
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr

SUMMARY OF SERVICES
DGI Supply - Support
Account
Manager
• Collaborate with the Site Champion to document working
instructions
• Sharing best practices
Site
Champion
On-Site
$0/hour
• Provide on-site audits (minimum twice/year)
• Oversee the Functionality & Support of the Vending
Equipment & Software
Inventory Specialist
$42.82/hr
APS Service & Support
$42.82/hr

PART ACCURACY – DATABASE MANAGEMENT
Current State:
• Employees have issued wrong tools causing scrapped parts or re-work
• Leads to additional expenses for MAP (labour + material + lost time)
Example from Fabio:
• Recently a wrong tool was used and caused damaged to 3,000 parts
• 3,000 parts *40seconds/part (re-work) = 33.33 hours of labour

PART ACCURACY
DATABASE MANAGEMENT
“Issue the Right Tool” – Dynamic Filtering
Followin
g this
criteria
will
deliver
the

PART ACCURACY
DATABASE MANAGEMENT

PART ACCURACY
DATABASE MANAGEMENT

PART ACCURACY
DATABASE MANAGEMENT

PART ACCURACY
DATABASE MANAGEMENT
Standardize to
Manufactured
ISO
Nomenclature

CONSIGNMENT MODEL - TRANSITION
• All inventory procured through DGI Supply will be consigned
• Transition to Consignment
• MAP Procured Inventory will move to “Burn” (B) Field
• When “Burn” (B) items are issued – they will not be picked up in the Invoicing Report
• Invoicing Report will only pick up “Issue” (I) transactions – DGI Supply Consignment
• When DGI supplied items reach minimum – items will be replenished from DGI’s consignment vending account
• Items will be received in AutoCrib as “On Hand”

CONSIGNMENT MODEL – CASH FLOW IMPACT
Vending Spend/Month $236,756
Inventory Value Inventory Value
Monthly Spend Start
End Total Payable
May $236,756 $615,325 $378,569 $0
June $236,756 $378,569 $141,813 $0
July $236,756 $141,813 $0 $94,943
August $236,756 $0 $0 $236,756
September $236,756 $0 $0 $236,756
October $236,756 $0 $0 $236,756
Six Month Spend = $1,420,536 Six Month Cash Impact = $805,211
Cash available in <2.5 months =
$615,325
• Vending Spend/Month = $236,756 (Plant 1 = $89,590 & Plant 2 = $147,166)
• Inventory Value = $615,325 (Plant 1 = $281,325 & Plant 2 = $334,000)

PROPOSAL SUMMARY – VENDING EQUIPMENT
• DGI Supply to provide ($128,486 USD):
Description QTY Price (US$) Extended Price
RoboCrib2000 2 $47,185 $94,370
FX Lockers w/Scales (3 Racks) 1 $34,116 $34,116
• DGI to purchase from MAP - 2 RoboCrib2000 for $9,354 each ($18,708)
• Condition: DGI to perform audit to confirm that they are functioning properly
• DGI Supply will provide/include current Preventative Maintenance –
• Annual Cost to MAP = $4,860.50
• Implementation - $600/day (estimated 10 days)

PROPOSAL SUMMARY – MONTHLY MANAGMENT
At the end of each month - All Sales generated with DGI Supply are leveraged against the Sales Scale
to determine the Monthly Management Fee (if applicable)
Sales Scale
Monthly Sales
Monthly Management Fee
$0 - $150,000 $6,500
$150,001 - $200,000 $4,500
$200,001 - $250,000 $2,500
$250,001 - $300,000 $500
$300,001 + $0

PROPOSAL SUMMARY – MONTHLY MANAGMENT
DGI Supply will provide MAP with a rebate schedule as follows:
Qualified Rebate Purchase Levels Qualified Rebate $ Rebate % Rebate $
$4,000,000 - $4,500,000 $500,000 2% $10,000
$4,500,000 - $5,000,000 $500,000 4% $20,000
$5,000,000 - $5,500,000 $500,000 6% $30,000
$5,500,000 - $6,000,000 $500,000 8% $40,000
$6,000,000 + $500,000 + 10% $50,000 +

TO MAXIMIZE YOUR PRODUCTIVITY
SAVE MONEY

PROPOSAL SUMMARY
Services Provided
On-Site Champion
Replenishment Services
Inventory Management – Assigned to Inventory Specialist
AutoCrib Database Management
24/7 – Hardware/Software Support (PM)
Cost Savings Program
Consolidated Invoicing
Support MAP with internal initiatives
Consignment
Regrind Management
Tomorrow

PROPOSAL SUMMARY
2 months supply of on-site Inventory $250K - $450K
An Investment of $150K in new Technology
1 Full Time DGI Employee
Technical Sales Representative and Supplier partners
Inventory Specialist working with Musashi Champion
Replenishment Services
Cost Savings Program
Consolidated Invoicing
AutoCrib Database Management
24/7 – Hardware/Software Support

FUTURE OPPORTUNITIES
RECLAIM VALUABLE FLOOR SPACE
• Provides up to 80% more inventory to traditional shelving
• Save up to 1,400 SQ FT per VLM
• Footprint: 69” X 99”
• Tray: 56” X 26.5” – 500 LBS/Tray

THANK YOU
“The greater productivity of new and better tools has been
the indispensable key to all human progress.”
- Leighton A. Wilkie, DoALL Company Founder, 1979

MANAGING REGRINDS - PROPOSED
MAP Employee
needs a tool
Employee logs into
RoboCrib and enters
overhead information
Employee
selects tool
Is REGRIND
tool available?
NO
New tool is
dispensed
YES
• Tracking In/Out of EVERY Tool
• Access Control (Cross-Reference)
• DGI Supply to manage the entire process
• Consigned Inventory
• Lower Inventory Exposure
Regrind Tool is
dispensed

INVENTORY MANAGEMENT
• Inventory Specialist assigned to manage
your inventory requirements
• Provide reports that categorize
inventory exposure values
• Broken out by:
• New
• 3 Months-Slow
• 6 Months –Inactive
• Active

PROPOSAL SUMMARY
IMPLEMENTATION
• Implementation ($600/day – est. 5-10 days)
• Equipment Set-Up and Testing
• Building AutoCrib Database
• Loading of Inventory
• End – User Training
• Musashi Industries will be responsible for:
•Providing clean data on excel spreadsheet
•Providing clean dedicated area for required equipment
•Providing dedicated internet connection
•Providing 110V dedicated power supply
•Providing DGI employee training schedule

Thank You