1 © The Delos Partnership 2003

Supply Chain TechniquesSupply Chain Techniques

Getting the plan executed

2 © The Delos Partnership 2003

Planned OrdersPlanned Orders

PlannedOrders

CapacityRequirements

Plan

ComponentPlan

Red Item

14356

Sub-Item

43781

2 per

•Automatic re-plan•Plans Matched sets of Parts•Plans hours for CRP

3 © The Delos Partnership 2003

Forms of Capacity Forms of Capacity PlanningPlanningTwo types of Capacity Planning

• Rough Cut Capacity Planning– Crucial for IEL– Also can be used at MPS level

• Detailed Capacity Planning– Information for each work centre– Each Level of BOM

4 © The Delos Partnership 2003

Rough Cut Capacity Rough Cut Capacity PlanningPlanningObjective

– Translate SOP Family Volumes into Capacity Requirement

– Test validity of plan against demonstrated capacity

How– Use Planning profiles– Use Critical Resources– Use Demonstrated Capacity

Result– Possible problem areas

5 © The Delos Partnership 2003

Detailed Capacity PlanningDetailed Capacity Planning

• Can be used to check all machines

• Rough cut may “miss” some work centres

• Bottlenecks wander

• Capacity issue may appear as a result of rescheduling

• Final check before release of work

6 © The Delos Partnership 2003

Capacity Requirements Capacity Requirements PlanPlan

Opn No

Work Centre

Operation Set Run

10 45 Inspect 0.5 0.10

20 55 Paint 1.0 0.5

30 65 Assemble 1.0 0.2

Routing

Work Centre Information

0

10

20

30

40

50

60

1 2 3 4 5 6 7 8

Reqd

Demo

8

Planned Order Release

00Projected Available Balance

2525Scheduled Receipts

202020202020Projected

Gross Requirements

97654321Periods

55 55 55 55 1010 -15-15 1010 1010 1010 -10-10

2525 2525

1515

Engine Assembly

7 © The Delos Partnership 2003

Capacity Plan resolutionCapacity Plan resolution

Capacity Plan WC 65

105

85

107125

112

75

132123

110

020406080

100120140

1 2 3 4 5 6 7 8 9

Weeks

Ho

urs

Required

Demo

8 © The Delos Partnership 2003

Operation Due DatesOperation Due Dates

Job Number Description Works Order Due

Date

Operation Due Date

3458 Turn 21/5 11/5

3462 Mill 19/4 12/4

3756 Turn 22/3 11/3

3893 Mill 24/5 12/5

Department 10 – Which job next ?

9 © The Delos Partnership 2003

60

30

30

20

Next/Prev WC

8.0

10.0

0.0

10.0

Set up Time

21/4

23/4

27/5

24/5

Order Due Date

10.0

8.0

2.0

7.5

Run Time

18/3

16/3

13/3

12/3

Op’n DueDate

14/3

14/3

09/03

10/3

Op’n Start Date

Q30

10

Top

32672

411

S20

20

Cap

47823

409

R10

40

Cap

43678

403

Q10

20

Barrel

24575

407

Status

Op’n Number

Quantity

Description

Part No.

Order No.

20

20

20

40

Next?prevWC

5.0

2.0

5.0

3.0

Set up Time

04/04

27/4

22/4

23/4

Order Due Date

7.0

7.0

10.0

5.0

Run Time

17/3

15/3

14/3

13/3

Op’n DueDate

14/3

13/3

11/3

10/3

Op’n Start Date Q0

540

Cap

47823

440

Q40

25

Top

32567

430

R20

20

Barrel

34732

425

R30

30

Body

25763

420

Status

Op’n Number

Quantity

Description

Part No.

Order No.

Work Centre Number 10 Description : Turning Date : 12/3

Jobs Currently at Work Centre

Jobs Coming to this Work Centre

Creation of Work to ListCreation of Work to List

1 2 3 4 5 6 7 8

Projected

Gross Requirements

10 10 10 10 20 20 20 20

Scheduled Receipts 20

Projected Available Balance

30

Planned Order Release

Opn No

Work Centre

Operation Set Run

10 45 Inspect 0.5 0.10

20 55 Paint 1.0 0.5

30 65 Assemble 1.0 0.2

Routing

Work Centre Information

Engine Assembly – Lass0069

10 © The Delos Partnership 2003

Work To ListWork To List

Order No. Part No. Description Quantity Op’n Number

Op’n Start Date

Op’n Due

Date

Order Due Date

Set up Time

Run Time Next/Prev WC

Status

407 Lass0069 Engine 20 10 10/3 12/3 24/5 10.0 7.5 20 Q

403 Lass0070 Engine 40 10 09/03 13/3 27/5 0.0 2.0 30 R

409 Lass0071 Engine 20 20 14/3 16/3 23/4 10.0 8.0 30 S

411 Lass0072 Engine 10 30 14/3 18/3 21/4 8.0 10.0 60 Q

Order No. Part No. Description Quantity Op’n Number

Op’n Start Date

Op’n Due

Date

Order Due Date

Set up Time

Run Time Next?prev

WC

Status

420 Lass0071 Body 30 30 10/3 13/3 23/4 3.0 5.0 40 R

425 Lass0075 Barrel 20 20 11/3 14/3 22/4 5.0 10.0 20 R

430 Lass0074 Top 25 40 13/3 15/3 27/4 2.0 7.0 20 Q

440 Lass0072 Cap 40 05 14/3 17/3 04/04 5.0 7.0 20 Q

Work Centre Number 65 Description : Assembly Date : 12/3

Jobs Currently at Work Centre

Jobs Coming to this Work Centre

11 © The Delos Partnership 2003

Work to ListWork to List

• Must show today’s date

• No past due orders

• Requires communication

• Requires Feedback from shop-floor to planner

• Shows which job to work on next– Operation due date is the priority

12 © The Delos Partnership 2003

KanbanKanban

• Means “visible signal”

• Replaces need for Work to List

• Replaced by– Card– Empty square– Tennis Ball– Empty package

13 © The Delos Partnership 2003

Creation of Vendor Creation of Vendor ScheduleSchedule

1 2 3 4 5 6 7 8

Projected

Gross Requirements

10 10 10 10 20 20 20 20

Scheduled Receipts 20

Projected Available Balance

30

Planned Order Release

Supplier Schedule

Part Number : 14356 D escription : Red Pen

Line Part Number Description Qty ScrapPer

Factor10 43768 Pen Barrel 1 0.020 76452 Finished Nib 1 0.030 89563 Cap 1 0.0

Bills of MaterialPlanning Data• Lead Times• Order Quantities• Safety Stock

14 © The Delos Partnership 2003

Vendor ScheduleVendor Schedule

Part

No.

1/7 8/7 15/7 22/7 29/7 5/8 12/8 19/8 26/8 Sept Oct 12 m

Total

23467 20 20 20 20 20 80 80 960

24566 10 10 30 60 60 1040

35467 35 70 70 35 35 140 140 1680

14376 20 20 40 40 160 180 1920

25436 10 10 10 40 80 620

Supplier : ACME Grinding Equipment Limited

Orders Pay for materials Visibility

Orders : Part Qty Due

145326 23467 20 1/7

15 © The Delos Partnership 2003

Vendor SchedulerVendor Scheduler

• Manages Exception messages

• Reviews and manages performance

• Operates MRP for their items

• Releases vendor schedule

• Point of contact for suppliers

16 © The Delos Partnership 2003

Vendor Scheduling

Vendor Scheduling

Customer Supplier

Buying and SchedulingBuying and Scheduling

BuyingBuying

Short/MediumTerm

Short/MediumTerm

LongTermLongTerm

17 © The Delos Partnership 2003

Execution - PrerequisitesExecution - Prerequisites

• In order for Manufacturing and suppliers to achieve the schedule we need– A Valid plan, balanced with respect to capacity and materials– Correct planning data– Effective Demand Management– Proper Time Fence Policies– Accurate planning data– A commitment to the schedule– Communication when things are wrong [ADR = Advise of

Delay Report]– All dates in the system in the future for unreleased planned

orders, and due dates in the future for released orders– A supporting framework of Integrated Enterprise Leadership