© The Delos Partnership 2007 page 1 Supply Chain Techniques Getting the plan executed

© The Delos Partnership 2007 page 2 Factory – working the plan AND/ OR What do I make next ? Kanban Work To Lists

© The Delos Partnership 2007 page 3 Creation of Work to List Projected Gross Requirements Scheduled Receipts20 Projected Available Balance 30 Planned Order Release Opn No Work Centr e Operatio n SetRun 1045Inspect Mix Pack Routing Work Centre Information

© The Delos Partnership 2007 page 4 WTL and the routing Put Away Set-up & Run Q Move Set-up & Run Q Pick 1 day Dept 10 2 days Dept 30 Opn No DeptWork Centr e Operatio n SetRunSetRunTotal Hrs Total Days 10 45Inspect Mix Product Lot Size : 100 Calc 2 day7 days Works Order Start Date Works Order Due Date Op Due Date Op Due Date

© The Delos Partnership 2007 page 5 Operation Due Dates Job NumberDescriptionWorks Order Due Date Operation Due Date 3458Turn21/511/5 3462Mill19/412/4 3756Turn22/311/3 3893Mill24/512/5 Department 10 – Which job next ?

© The Delos Partnership 2007 page 6 CRP and the routing Put Away Set-up & Run Q Move Set-up & Run Q Move Set-up & Run Q Pick 1 day 2 days1 day Dept 30 Dept 20Dept 10 1 day2 days Put Away Set-up & Run Q Move Set-up & Run Q Pick 1 day Dept 10 2 days Dept 30 Product Lot Size : day7 days Product Lot Size : days5 days

© The Delos Partnership 2007 page 7 Priorities are set by date Product – Job 407 Put Away Set-up & Run Q Move Set-up & Run Q Move Set-up & Run Q Pick Put Away Set-up & Run Q Move Set-up & Run Q Pick Product – Job 403 Order Due Date 27 March Order Start Date 8 March Order Due Date 29 March Order Start Date 2 March Dept 10 Operation Due Date = 13 March Operation Due Date = 14 March

© The Delos Partnership 2007 page 8 Operation Due Dates Job NumberDescriptionWorks Order Due Date Operation Due Date 3458Turn21/511/5 3462Mill19/412/4 3756Turn22/311/3 3893Mill24/512/5 Department 10 – Which job next ?Today’s date 15/3

© The Delos Partnership 2007 page 9 Work To List Order No.Part No.Descriptio n QuantityOp’n Number Op’n Start Date Op’n Due Date Order Due Date Set up Time Run TimeNext/Prev WC Status Barrel201010/312/324/ Q Cap401009/0313/327/ R Cap20 14/316/323/ S Top103014/318/321/ Q Order No.Part No.Descriptio n QuantityOp’n Number Op’n Start Date Op’n Due Date Order Due Date Set up Time Run TimeNext?prev WC Status Body30 10/313/323/ R Barrel20 11/314/322/ R Top254013/315/327/ Q Cap400514/317/304/ Q Work Centre Number 10 Description : Turning Date : 12/3 Jobs Currently at Work Centre Jobs Coming to this Work Centre

© The Delos Partnership 2007 page 10 Work 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

© The Delos Partnership 2007 page 11 Kanban Means “visible signal” Replaces need for Work to List Replaced by  Card  Empty square  Tennis Ball  Empty package

© The Delos Partnership 2007 page 12 Kanban in Operation Operation 10Operation 20

© The Delos Partnership 2007 page 13 Kanban Visible instruction to make or move Highlights problems Requires line balance Requires Andon – traffic light operation Operator responsible for own quality Must not pass on known defects Small batch quantity required

© The Delos Partnership 2007 page 14 Kanban Works to keep the “Kanban” full When full must stop Do not build extra Result is  less WIP  Improved Quality  Shorter Lead times

© The Delos Partnership 2007 page 15 Kanban vs WTL Visible feedback Signal driven not date driven  Both require feedback  Good Quality helps both  Problem solving tools should support both  WTL needs MRP and CRP; Kanban needs SOP and RCCP

© The Delos Partnership 2007 page 16 Creation of Vendor Schedule Projected Gross Requirements Scheduled Receipts20 Projected Available Balance 30 Planned Order Release Supplier Schedule Part Number : D escription : Red Pen Line Part Number DescriptionQtyScrap PerFactor Pen Barrel Finished Nib Cap10.0 Bills of Material Planning Data Lead Times Order Quantities Safety Stock

© The Delos Partnership 2007 page 17 Vendor Schedule Part No. 1/78/715/722/729/75/812/819/826/8SeptOct12 m Tota l Supplier : ACME Grinding Equipment Limited OrdersPay for materialsVisibility Orders :PartQtyDue /7

© The Delos Partnership 2007 page 18 Vendor Scheduler Manages Exception messages Reviews and manages performance Operates MRP for their items Releases vendor schedule Point of contact for suppliers

© The Delos Partnership 2007 page 19 Discussion Areas Fast Tech Score Cards Forecasts Dell Value Chain

© The Delos Partnership 2007 page 20 Supplier Community Web Site View and Download Build Sequence

© The Delos Partnership 2007 page 21 Supplier Community Web Site View and Download Contract Orders

© The Delos Partnership 2007 page 22 Vendor Scheduling Vendor Scheduling Customer Supplier Buying and Scheduling Buying Short/ Medium Term Short/ Medium Term Long Term Long Term

© The Delos Partnership 2007 page 23 Execution - 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