Don't put socks on the Hippopotamus Bill BELT Emmanuel DE RYCKEL
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or you will screw up your Supply Chain. BEECHFIELD ASSOCIATES 2009
HIPPO ATTITUDE - inappropriate behavior - ignoring basic supply chain principles - jeopardizing oneself and one s s company
FIRST QUESTION How can you be 100% sure that every day, dozens of problems like material shortages, machine unavailability, unexpected customer demand will blow up in your face each time they occur? BEECHFIELD ASSOCIATES 2009
Lean SupplyChain Management includes: 1. Anticipation: expressing customer demand level by level throughout the supply chain 2. Acceleration : removing waste from value streams to serve customers with shorter lead times and lower costs 3. Direction : deploying strategy and monitoring the performance of the operational level of the supply chain BEECHFIELD ASSOCIATES 2009
Anticipation works like a mirror IT REFLECTS THE PROCESS WITHOUT CHANGING IT BEECHFIELD ASSOCIATES 2009
Acceleration works like a vise IT FORCES US TO MODIFY THE PROCESS BEECHFIELD ASSOCIATES 2009
Direction with Sales and Operations Planning (S&OP) MEANS: (1) DEPLOYING STRATEGY AND (2) MONITORING PERFORMANCE BEECHFIELD ASSOCIATES 2009
B1 LEAN SUPPLY CHAIN MANAGEMENT: the twolevels STRATEGIC LEVEL Direct the company with S&OP OPERATIONAL LEVEL Anticipate flows with MRP II Accelerate flows with Lean Production BEECHFIELD ASSOCIATES 2009
Slide 11 B1 Bill; 27/03/2007
LEAN SUPPLY CHAIN MANAGEMENT: the twolevels VOLUME Direct the company with S&OP MIX (PART NO.+QTY+DATE) Anticipate flows with MRP II Accelerate flows with Lean Production BEECHFIELD ASSOCIATES 2009
THIR D THIRD
SECOND QUESTION With an APS system, how can you make sure that any little problem like an equipment breakdown will have disproportionate consequences and create chaos in your Supply Chain? BEECHFIELD ASSOCIATES 2009
Technology Processes People BEECHFIELD ASSOCIATES 2009
THREE THINGS TO BALANCE FOR SUCCESSFUL IMPLEMENTATION PEOPLE PROCESSES INFORMATION TECHNOLOGY (IT) BEECHFIELD ASSOCIATES 2009
1 train their end Users, key Users and Managers 2 formalizing their Processes 3 prototyping efforts on the System
THIRD QUESTION How could you be absolutely sure, using an APS System to have all your customer orders always late according to the initial Customer Request date? BEECHFIELD ASSOCIATES 2009
Planning Time Fence
Planning Time Fence
The ProblemwithAutomatic Rescheduling (also called finite capacity loading) To do it correctly, you would have to run endless iterations. If a component can not be produced on time, for lack of capacity, finite capacity loading will push out its completion date, which modifies the Master Production Schedule, which modifies the load which had caused finite capacity to modify the date in the first place and so on. -- Oliver Wight
FOURTH QUESTION What s the other best way to always deliver your Customer Orders late, to destroy the efficiency of your machines and risk compromising the future of your plant? BEECHFIELD ASSOCIATES 2009
Ventes 12/02 1/03 2/03 3/03 4/03 5/03 6/03 7/03 8/03 9/03 Prévisions100 120 95 90 90 95 98 135 92 98 Ventes 12/02 1/03 2/03 3/03 4/03 5/03 6/03 7/03 8/03 9/03 Prévisions100 120 95 90 90 95 98 135 92 98 Réel 102 115 96 99 85 Réel 102 115 96 99 85 Ecart +2% -4% +1% +10% -5% Production S&OP Prévisions 100 115 100 85 85 100 1 15 125 80 80 Ecart +2% -4% +1% +10% -5% Production S&OP Prévisions 100 115 100 85 85 100 1 15 125 80 80 Réel 90 100 95 87 84 Réel 90 100 95 87 84 Ecart -10% -13% -5% +2% -1% Stocks fin de mois 125 110 109 97 96 101 118 108 96 78 Ecart -10% -13% -5% +2% -1% Stocks fin de mois 125 110 109 97 96 101 118 108 96 78 C U S T O M E R S TABLETING PACKAGING
THE CONCEPT OF DEMONSTRATED CAPACITY Definition : the average of actual production that the process has made in the recent past, projected into the future as the most reliable indicatorof plannedproduction. If planned production must be increased or decreased, start with demonstrated capacity as a base, and add or subtract according to real actions to be taken on the shop floor or at the supplier. The result is called plannedcapacity. BEECHFIELD ASSOCIATES 2009
MANUFACTURING RESOURCE PLANNING (MRP II) STRATEGIC SUPPLY CHAIN Marketing, Industrial and Financial Strategy Sales and Operations Planning (S&OP) VOLUME VOLUME OPERATIONAL SUPPLY CHAIN ROUGH-CUT CAPACITY PLANNING CAPACITY PLANNING DETAIL MASTER PRODUCTION SCHEDULING DEMAND MANAGEMENT DETAIL Lead time MATERIAL REQUIREMENTS PLANNING CAPACITY REQUIREMENTS PLANNING? CAPACITY CONTROL PRIORITY CONTROL Capacity Priority
FIFTH QUESTION Imagine you are promoted to Supply Chain Director. In this situation, how can you be sure that after a few weeks you will become fully overloaded doing firefighting all over your plant, ineffective, and finally perfectly useless?
SKY MY HUSBAND «If everybody sticks to his job, the hippos will be well taken care of» «a chacun son métier et les vaches seront bien gardées»
Pilotage des Flux : Le processus de planification 1 tour/mois S&OP S&OP mois... Faisabilité famille Charge/Capacitéde production Réunion PIC MPS Réunion PDP MPS sem Faisabilitéproduits finis & composants critiques Charge/Capacitémacro Procurt Scheduling jr Faisabilité composants Charge/Capacitédétaillées Lancements / Appels... Horizon Ferme Engagé Prévisionnel
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