sirris manufacturingday2011 qrm-harol

Kristof Souwens Process Manager, PMPArthur Vandebosch Operations Manager

Founding Father QRM

Kristof Souwens, PMP

Overview

What is QRM ?

1 The Company (History)

2 Problem Statement

3

QRM at Harol4

How ERP supports QRM5

First Results & Future Perspectives6


The Company (History)

Started in 1946 (wooden shutters)

One of the Leading European producers of sunscreens, shutters and sectional doors

320 employees

Annual turnover = 44 million Euros

The Company (History)1


The Company (History)

Till 1993: MS DOS

1993: AS 400 - MRP• PUSH-system

• No MRP for make-to-stock

• WIP level = extremely high → Delivery Reliability ↘ → Lead Time = 5 wks

2000: AS 400 – LEAN (KANBAN) => Pull System• No MRP for make-to-stock

• Production order produced by due date

• Bottleneck planned with unlimited capacity

• WIP buffer management through PULL-system

• Delivery Reliability ↗ → Lead Time = 5 d

2010: Microsoft AX Dynamics => Push & Pull• Production order by print date

• MRP for make-to-stock (through ERP implementation)

• Bottleneck planned with limited capacity

• WIP buffer management through CONWIP/KANBAN/POLCA) – MTO & MTS

• Delivery Reliability ↗ → Lead Time = 2 d

The Company (History)1


Problem Statement

STRATEGIC DIMENSION• Seasonality (Highly variable demand)• Product variety• Raw material cost (Aluminum)

TACTICAL DIMENSION• Capacity planning (huge swings in capacity utilization)• “Cross-functional” production process (painting & textile cell)• Variety in shifts between different cells

OPERATIONAL DIMENSION• Changeover times (color changes)• Special orders (rework, repair, …)• Unbalanced production lines ( partly Engineer-to-Order)

3 DIMENSIONAL VARIABILITY

Problem Statement2


What is QRM ?

QRM is a companywide strategy, aimed at increasing flexibility and responsiveness by the continuous shortening the lead time, that pursues the reduction of lead time in all aspects of a company’s operations (Externally as Internally).

A Competitive Strategy for High-Variability, Low-Volume or Custom-Engineered Products

Based on business strategy of Time-Base Competition (TBC) Using speed to gain competitive advantage

QRM implies Rapid delivery of existing products

ALSO, rapid development and introduction of new products

Source: Master class - Quick Response Manufacturing – Page 12-14 – Copyright © 2010 R. Suri

What is QRM ?3

QRM = Quick Response Manufacturing


QRM : The key to gaining your Competitive Advantage

Exploit

Eliminate

Dysfunctional Strategic

Choice of Strategy

Type of Variability

Source: 2010, It’s About Time - The Competitive Advantage of Quick Response Manufacturing, Rajan Suri – p 5

Lean

Lean/sigmaTools

QRM: YourCompetitive

Edge

What is QRM ?3


The Power of Time

Requires major PARADIGM SHIFT in management thinking

Lead Time drives everything Business understanding

Decisions

Measurements

Cost-Based Time-Based

Source: Master class - Quick Response Manufacturing – Page 32 – Copyright © 2010 R. Suri

What is QRM ?3


Organizational Structure

The Response Time Spiral for make-to-order products

Long Lead Times

Inaccuracy of Planning

Safety Time Inserted

High WIP and Inventory

“Hot” Jobs, Expediting

Regular Jobs Delayed @

Master Schedule: Need to plan way

ahead

Past performance

problems

Jobs started long before they are due, also some parts made but not used

till much later

Unacceptabellead times,

planning orders

Loss of focus for regular jobs

Planning organization decides to use longer

lead times


What is QRM ?3


Organizational Structure

Roots of the Spiral: Cost-Based Management

Minimize Cost

Break into simple (specialized) steps

Low Skills, Low Wages

Functional Departments

Managers: Minimize Cost

Minimize Resources,Maximize Efficiency,Maximize Utilization

Ensure Backlog, Batching

Long Feedback Loops, Backtracking,

Expediting

Poor Quality, Long Lead Times and OOPS! High Cost

Can’t be controlled: must be killed!

Focus on reducing the consumption of time throughout the system


What is QRM ?3


KANBAN vs POLCA

A 1 B 1

C 1

C 2

A1

B1

B1

C1

B1

C2

B1

C2

B1

C1

B1

C1

What is QRM ?3

M 1 M 2

KANBANKANBAN board

KANBAN card

POLCA (Paired Overlapping Loops with Cards of Authorization)


Implementation QRM Strategy

DO’s: INSIDE-OUT approach

Step-by-step

Focusing on the things that already work (direct results)

Continuously improving & optimizing the implemented system

Expanding gained knowledge

DONT’s: Not starting from Time-Based Competition Strategy (nor MCT)

Trying to get stakeholders buy-in by preaching (only theory)

Big BANG

QRM at Harol4


Customized QRM Game

QRM at Harol3


QRM at HAROL

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How ERP supports QRM – Past State

Independent (duplicated) authorizations

Unsystematic MTS planning

Unlimited Capacity Planning

No synchronization between production cells

No possibility to level out order intake

No mixed model scheduling


MRP

Order entryMTO

LogisticsMTS

Preperation Cell Painting Cell

Textile Cell

Assembly Cell

Plan

ning

Exec

utio

n


ERP

How ERP supports QRM – Current & Future State

1 authorization point

Systematic MTS planning

Limited capacity planning

Employee flexibility ↑

High synchronization between cells

Leveling out order intake

Automated mixed model scheduling

MRP

Order entryMTO

LogisticsMTS

Preperation Cell Painting Cell

Textile Cell

Assembly Cell

Capacity (Skill) Planning


Plan

ning

Exec

utio

n


First Results

QRMImplementation



Rajan Suri’s visit at Harol



Future Perspective (Strategy)

CUSTOMER INTIMACY

Customer Focused

Time-Based Competition

Strategic Growth

Quality & Service Speed

QUICK RESPONSE MANUFACTURING



Future Perspective (Strategy)

CUSTOMER INTIMACY

Customer Focused

Time-Based Competitionin office operations => Q-roc

Strategic Growth

Quality & ServiceSpeed

QUICK RESPONSE MANUFACTURING



More info on Quick Response Manufacturing

It’s About Time: The Competitive Advantage of Quick Response Manufacturing, by R.

Suri, CRC Press, 2010.

What is QRM ?1

Quick Response Manufacturing: A Companywide Approach to Reducing Lead Times, by R. Suri, Productivity Press, 1998.


Questions

sirris manufacturingday2011 qrm-harol

Technology

pmp3 qrm

competitive advantage

reduction of lead time

response time spiral

power of time

consumption of time

business strategy of

surikristof souwens