orange county convention center orlando, florida | june 3-5, 2014 planning board experiences –...
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Orange County Convention CenterOrlando, Florida | June 3-5, 2014
Planning Board Experiences – Scheduling and MoreJulie Lushbough and Veronica Morris
Hallmark Cards, Inc.
Production Planning Linkages / Relationships Technical Application of APO Planning Board Capacity Feasible Production Plans
Learning Points
Production Planning Linkages From Go Live to Current State Applying APO Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
Key Learnings
4Who we are…
Hallmark Cards, Inc. - Founded 1910 $3.9 billion business 40,000 US retail stores - 2,400 Hallmark Gold Crown 100 countries 3,400 staff in Kansas City 10,000 new and redesigned greeting cards annually 49,000+ products in stores
GiftwrapParty
plates,napkins, cups
Tissue Bows and RibbonStickers
Moveable Decorations
Gift Presentation and Party Product
SAP at Hallmark Cards, Inc.
MarketingSales
Product Development
Demand/Inventory Planning
Production PlanningManufacturingProcurement
Distribution WMTransportation
SAPLegacy Legacy
Business Systems
Key Learnings
Production Planning Linkages From Go Live to Current State Applying APO Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
Manufacturing/Procurement
Execute Production Plan on time ensuring Fulfilment of
Customer Need
Production Planning
Orders to Meet Customer Need within Capacity Constraints
Inventory Planning
Customer Need
$Exception Based
Collaboration
Total Cost of Product
Production Planning Linkages
Success: Dependent upon forecast accuracy with few surprises
Results:
• Direct alignment with Inventory Planning° Weekly tactical sessions ° Manager strategy sessions
• Connection with Marketing° Upcoming programs° Product complexity/trends
Business Partnership
Results (cont.) :
• Structured evaluation process for unforecasted demand
• Education° Inventory Planning / Production Planning /
Mfg / Procurement on-going discussions
• Expectations° System° Process
Business Partnership
Success:Dependent upon execution to production plans
Results:• Working production by date
° Trust in the system / plan° Asset utilization / Resource planning
• Setting Production plans and staffing° Weekly collaborative planning° Defined accountability
Manufacturing Partnership
Key Learnings
Production Planning Linkages From Go Live to Current State Applying APO Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
Customer Developmen
t
• Model Line SKUs Defined
• Ship Date
Demand Planning
• Weekly Forecast
• Signals when product is required
Inventory Planning
• Purchase Requisitions from DCs to Plants
Production Planning
• Planned/Production Orders
• Purchase Requisitions – raw materials
Materials to
Inventory
• Production Plan execution
APO
APO
APO/ECC
ECC
Supply Chain Planning Outputs
Go-Live May 2010:• Forward Scheduling 100 Days into the future
• Pushed too much into mfg without real priority • Increased Inventory at all levels (Mfg and DC)
6 Months Later:• Shortened Planning Horizon to 30 Days
• No Planned orders • Capacity Planning/Forecasting ability eliminated• Early data error resolution impossible
Where We Started
100 DAY HORIZON
TIME
VOLU
ME
CapacityDemand
Production Plan
Where We Started
30 DAY HORIZON
TIME
VOLU
ME
CapacityDemand
Production Plan
6 Months Later
Turned off batch scheduling process Opened planning horizon to 300 days Added Goods Receipt and Queue time, capacity
evaluation by work center Maintained backward planning using PPDS
(Production Planning Detailed Scheduling) MRP Made Planning Board Configuration changes Developed standard work for Production Planners
Key Changes
Forecast developed by Demand Planner
SNP (Supply Network Planning) Engine runs the DRP (Distribution Requirements Planning) Process at the distribution centers
Lot Sizing and multi-level MRP occurs at the manufacturing plant via PPDS
Production Planning creates an executable plan via the Detailed Scheduling Planning Board
Finished goods and components are capacity planned
Raw Material Planning in concert with Procurement
How it Works Today
Key Learnings
Production Planning Linkages From Go Live to Current State Applying APO Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
(Distribution Requirements Planning)
Forecast by Demand Planner SNP runs the DRP Process at the
distribution centers “lot for lot”
Forecast
Purchase Requisitions
DRP Process
Lot Sizing and MRP occurs at the
manufacturing plant via PPDS
Lot size rules determined by Inventory Planning for finished goods
PPDS – Multi-Level MRP Run(Production Planning Detailed Scheduling)
Finished Roll
Printed Stock
Raw Paper Stock
Lot Sizing and MRP occurs at the manufacturing plant via PPDS
Lot size rules determined by Production Planning/Mfg for semi-finished goods.
PPDS – Multi-Level MRP Run
Finished Roll
Printed Stock
Raw Paper Stock
Production Planning creates an executable plan
Note: Work is infinitely scheduled out of PPDS MRP run Only one machine available for this resource
Scheduling of Resources(Detailed Scheduling Planning Board)
A scheduling strategy is selected Backward Scheduled “Squeeze in Operation”
Scheduling of Resources
Temporary capacity changes
• Set Fixing/Planning Intervals
• Adjust Resource Capacity Profiles
Scheduling of Resources
Resource Capacity Profile
Utilization Rate
Number of Machines
Open Hours
Scheduling of Resources
A work center hierarchy ensures synchronization of components
Sequencing Hierarchy1 Hand packaging2 Multi-Pack3 Retail Packaging4 Components5 Tooling
Scheduling of Resources
Work Center Hierarchy
Key Learnings
Production Planning Linkages From Go Live to Current State Applying APO Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
Single mixed resource
Open 21 hours a day
Reschedule aligns work to capacity
1) Work infinitely scheduled out of the PPDS MRP Run
2) Fixing Interval added to secure short term Production Plan
3) Scheduling executed on packaging operations
Scheduling of Resources
PPDS MRP is run on components to realign orders to dependent demands
Scheduling is done on semi-finished good bottleneck work centers
Scheduling of Resources
ECC MRP runs nightly on raw materials Exceptions in MD06
Raw Material Purchasing Plan
Finished Roll
Printed Stock
Raw Paper Stock
300 DAY HORIZON
TIME
VOLU
ME
CapacityDemand
Production Plan
Today
33Benefits
• Standard Work
• Robust use of the Planning Board
• Efficient Planning
• Highly trusted plan
• Strategic Resource Planning- Units
Overtime
Key Learnings
Supply Chain Linkages From Go Live to Current State Applying Planning Board Techniques Scheduling Resources / Raw Materials Planning Setting Production Plans / Metrics
Data for illustrative purposes only
Setting Production Plans
Production goals set weeklywith Manufacturing
Current and Past Due Volumes
3/21 3/28 Carry over 4/11 Total
Required Production
Goal GAP 4/18 4/25
PartyRound Plates 13,000 21,000 34,000 16,200 maintenance 10,600Shaped Plates 0 83,000 83,000 108,000 110,000 47,050Napkins 0 72,120 72,120 150,100 49,300 154,000Cups 9,000 38,100 47,100 22,700 148,000 254,000
LabelLabel print 261,000 1,090,000 1,351,000 1,400,000 500,000 850,000
ToolingTooling - product 9 16 42 14 10 11Tooling - label 20 110 130 75 90 30
Next Weeks Requirements Production PlanCurrent and Past Due Volumes
3/21 3/28 Carry over 4/11
GAP 4/18 4/25
PartyRound Plates 13,000 21,000 34,000 16,200 maintenance 10,600Shaped Plates 0 83,000 83,000 108,000 110,000 47,050Napkins 0 72,120 72,120 150,100 49,300 154,000Cups 9,000 38,100 47,100 22,700 148,000 254,000
LabelLabel print 261,000 1,090,000 1,351,000 1,400,000 500,000 850,000
ToolingTooling - product 9 16 42 14 10 11Tooling - label 20 110 130 75 90 30
Future RequirementsCurrent and Past Due Volumes
3/21 3/28
Current week +
Past DuePartyRound Plates 13,000 21,000 34,000Shaped Plates 0 83,000 83,000Napkins 0 72,120 72,120Cups 9,000 38,100 47,100
LabelLabel print 261,000 1,090,000 1,351,000
ToolingTooling - product 9 16 42Tooling - label 20 110 130
Current and Past Due Volumes
3/21 3/28
Current week +
Past DueCarry over 4/11 Total
Required Production
Goal GAP 4/18 4/25
PartyRound Plates 13,000 21,000 34,000 34,000 16,200 50,200 50,200 0 maintenance 10,600Shaped Plates 0 83,000 83,000 83,000 108,000 191,000 191,000 0 110,000 47,050Napkins 0 72,120 72,120 0 150,100 150,100 100,000 50,100 49,300 154,000Cups 9,000 38,100 47,100 9,000 22,700 31,700 31,700 0 148,000 254,000
LabelLabel print 261,000 1,090,000 1,351,000 800,000 1,400,000 2,200,000 2,200,000 0 500,000 850,000
ToolingTooling - product 9 16 42 5 14 19 19 0 10 11Tooling - label 20 110 130 30 75 105 100 10 90 30
Next Weeks Requirements Production Plan Future Requirements
Data for illustrative purposes only
Example – Party packaging and component requirements
Work overtime
Carry over into
following week
Balance volume
between weeks
Setting Production Plans
37Metric - Evaluation
Data for illustrative purposes only
Current and Past Due Volumes
3/21 3/28
Current week +
Past DueCarry over 4/11 Total
Required Production
Goal GAP 4/18 4/25
PartyRound Plates 13,000 21,000 34,000 34,000 16,200 50,200 50,200 0 maintenance 10,600Shaped Plates 0 83,000 83,000 83,000 108,000 191,000 191,000 0 110,000 47,050Napkins 0 72,120 72,120 0 150,100 150,100 100,000 50,100 49,300 154,000Cups 9,000 38,100 47,100 9,000 22,700 31,700 31,700 0 148,000 254,000
LabelLabel print 261,000 1,090,000 1,351,000 800,000 1,400,000 2,200,000 2,200,000 0 500,000 850,000
ToolingTooling - product 9 16 42 5 14 19 19 0 10 11Tooling - label 20 110 130 30 75 105 100 10 90 30
Next Weeks Requirements Production Plan Future Requirements
- Evaluation of orders notmeeting on-time completion goal
- LEAN Problem solving / root cause analysis
Late ordersPerformance: On-time Completion
Manufacturing/Procurement
On-time CompletionRaw Materials Inventory
Production Planning
Executable Plan
Inventory Planning
Inventory Levels
Metric Linkage
ServiceabilityAsset Utilization
Production Planning Linkages / Relationships Technical Application of APO Planning Board Capacity Feasible Production Plans
Learning Points
QUESTIONS?
Thank You
THANK YOU !!
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SESSION CODE: 3104
[email protected]@hallmarkcom