1. Operational Excellence Communicating the plan and closing the loop

2. Vas Exec - 2© The Delos Partnership 2004 The Delos Model For Business Integration Innovation Innovation Vision Strategy Prioritisation Prioritisation Demand Support Supply

3. Vas Exec - 3© The Delos Partnership 2004 Basic Equations Item Data BOM’s And Routes Stock And Capacity Master Schedule ForecastsOrders Suppliers Factories What do they Want ? What have We got ? What does it need ? What do we need to do ?

4. Vas Exec - 4© The Delos Partnership 2004 Factory – working the plan AND/ OR What do I make next ? Kanban Work To Lists

5. Vas Exec - 5© The Delos Partnership 2004 Creation of Work to List Routing Work Centre Information Opn No Work Centre OperationSetRun 1045Inspect0.50.01 2055Mix1.00.05 3065Pack1.00.02

6. Vas Exec - 6© The Delos Partnership 2004 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 ?

7. Vas Exec - 7© The Delos Partnership 2004 Work To List Order No.Part No.DescriptionQuantityOp’n Number Op’n Start Date Op’n Due Date Order Due Date Set up Time Run TimeNext/Prev WC Status 407 0040.042DF88P 201010/312/324/510.07.520Q 403 40000178N_C1 401009/0313/327/50.02.030R 409 0040.042DF88P 20 14/316/323/410.08.030S 411 40000178N_C1 103014/318/321/48.010.060Q Order No.Part No.DescriptionQuantityOp’n Number Op’n Start Date Op’n Due Date Order Due Date Set up Time Run TimeNext?prev WC Status 420 0040.042DF88P 30 10/313/323/43.05.040R 425 40000178N_C1 20 11/314/322/45.010.020R 430 0040.042DF88P 254013/315/327/42.07.020Q 440 40000178N_C1 400514/317/304/045.07.020Q Work Centre Number 10 Description : Mixing Date : 12/3 Jobs Currently at Work Centre Jobs Coming to this Work Centre

8. Vas Exec - 8© The Delos Partnership 2004 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

9. Vas Exec - 9© The Delos Partnership 2004 Kanban Means “visible signal” Replaces need for Work to List Replaced by –Card –Empty square –Tennis Ball –Empty package

10. Vas Exec - 10© The Delos Partnership 2004 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

11. Vas Exec - 11© The Delos Partnership 2004 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

12. Vas Exec - 12© The Delos Partnership 2004 Basic Equations Item Data BOM’s And Routes Stock And Capacity Master Schedule ForecastsOrders Suppliers Factories What do they Want ? What have We got ? What does it need ? What do we need to do ?

13. Vas Exec - 13© The Delos Partnership 2004 Creation of Vendor Schedule Supplier Schedule Bills of Material Planning Data Lead Times Order Quantities Safety Stock CITRIC.C Citric Acid 934.5794 GC Purchased 400001 78N_C1R1.2 39.7720 GM Manufactured 0040.042 143.8x108.0/400/0.165 1 EA Purchased SIRALOX.P Siralox 30/200 (Si stabilised) 800 GC Purchased ZEBETA.P Beta Zeolite (CP814E) 200 GC Purchased 200028 AS1Z3_R1.1 214.1000 GC Manufactured P10.2406 DF88P(min)/40/1:0:0 1 EA Manufactured PU2406 DF88P(min)/40/1:0:0 1 EA Manufactured PT/PTNIT.S Pt as Pt Nitrate 65.4206 GM Purchased

14. Vas Exec - 14© The Delos Partnership 2004 Vendor Schedule Part No. 1/78/715/722/729/75/812/819/826/8SeptOct12 m Total 34567 3000 600030006000 14563 10 3060 1040 17634 3570 35 140 1680 19875 20 40 1601801920 14376 10 4080620 Supplier : ACME Suppliers Limited OrdersPay for materialsVisibility

15. Vas Exec - 15© The Delos Partnership 2004 Vendor Scheduler Manages Exception messages Reviews and manages performance Operates MRP for their items Releases vendor schedule Point of contact for suppliers

16. Vas Exec - 16© The Delos Partnership 2004 Buyer Negotiates on basis of Total Value Proposition Works with suppliers to get mutual improvement Reviews Performance on vendor rating system Spends 80 % of time outside of office

17. Vas Exec - 17© The Delos Partnership 2004 Buyer reviews strategic options Core Products And materials Non – Core Products and Raw Materials Production materials Manage with a few key partnerships Outsource to favoured partner Non Production materials Outsource to favoured partners Review, reduce and outsource

18. Vas Exec - 18© The Delos Partnership 2004 Critical Partners 1.Create formal partnership agreement 2.Share information on long-term strategy 3.Create visibility of requirements from IEP process 4.Encourage development of Best Practise 5.Manage their production through your planning system 6.Daily review of production from their planning system – particularly sub-contract partners

19. Vas Exec - 19© The Delos Partnership 2004 Line Stoppers 1.Clear definition of on-time delivery 2.Emphasise with supplier that they must deliver 100 % of the time on time to right quality 3.Drop-dead time/date needs to be clear 4.No tolerances on early or late 5.Vendor Schedule is key 6.Cost of delay to production should be calculated and charged to supplier

20. Vas Exec - 20© The Delos Partnership 2004 Establish Improvement programme 1.Use Delos assessment 2.Establish plan based on gap analysis 3.Review opportunities for change in Systems Processes People 4.Agree project plan for improvement based on ERP/Lean/Quality programme

21. Vas Exec - 21© The Delos Partnership 2004 Business Excellence – source of value They wantWe provide by having Long term visibilityIntegrated Business Planning StabilityFirm master schedule, Accurate data Long term relationshipStrategic view of purchasing, rather than tactical

22. Vas Exec - 22© The Delos Partnership 2004 Opportunities for Improvement 1.SMED 2.Quality Tools 3.Batch versus Flow 4.5 “S” and Housekeeping 5.Root Cause analysis

23. Vas Exec - 23© The Delos Partnership 2004 Set up- Definition The time taken between the completion of the last good quality piece and the start of production of the next good quality piece Time can be categorised into –External set up time –Internal set up time

24. Vas Exec - 24© The Delos Partnership 2004 SMED – how to achieve Take a video Record all activities related to change-over Record as internal or external Set up group of operators Brainstorm ways to reduce internal, or convert internal to external Implement Do it again and again

25. Vas Exec - 25© The Delos Partnership 2004 Quality Tools required Simpler ideas force higher quality Quality is in the process not the product Operators need to do root cause analysis to identify process problems –Hence pareto charts –Histograms –Run charts

26. Vas Exec - 26© The Delos Partnership 2004 Quality problems identified from the process charts Problems

27. Vas Exec - 27© The Delos Partnership 2004 Today’s job shop environment Drilling Department Turning Department Sanding Department Finishing Department Goods Out

28. Vas Exec - 28© The Delos Partnership 2004 Tomorrow’s flow environment Flow Line 1 Flow Line 2

29. Vas Exec - 29© The Delos Partnership 2004 Eliminate Waste “5 S’s” –Organisation –Orderliness –Cleanliness –Standard Clean up –Discipline Japanese Seiri - sorting, i.e., proper arrangement of all items, storage, equipment, tools, inventory and traffic Seiton orderliness Seiso cleanliness Seiketsu standardization Shitsuke self-discipline

30. Vas Exec - 30© The Delos Partnership 2004 Root Cause Analysis Late Deliveries Late Deliveries People Processes Unrealistic Promises Lack of Training Systems Data Order Entry Pricing No Customer Required Date Availability Inaccurate Order Due Dates Wrong Product Codes Delivery Lack of Training Functionality

31. Vas Exec - 31© The Delos Partnership 2004 Housekeeping “Pick it up your mother does not work here” Clean, tidy ordered workplace Locations for everything –Tools – shadow boards –Supplies – clear locations –Materials –Gloves, Overalls etc - cupboards