1. 1 © The Delos Partnership 2003 Business Excellence Overview Execution of plan

2. 2 © The Delos Partnership 2003 End Item Level MPS – Make to Order Weeks123456789101112 Forecast 00510 Actual Demand 10 5 Proj Avail Balance 0010 00 00 Available to Promise 0520 Cumulative ATP 00555525 45 Master Schedule 20 Part Number: 12345 Lead Time: 2 weeks Safety Stock: 0 Min Ord Qty: 20 On Hand: 10

3. 3 © The Delos Partnership 2003 Bill of Material Item 12345 Brake Item 14356 Brake Part 1 per

4. 4 © The Delos Partnership 2003 MRP “Spreadsheet” 123456789 Projected Gross Requirements202020 Scheduled Receipts25 Projected Available Balance0 Planned Order Release Weeks Part Number Description : 14356 Brake Part Lead Time : 3 wks Order Quantity : 25 Safety Stock : 0 5 5 5 5 10 10 -15 -15 10 10 -10 25 25 15 15

5. 5 © The Delos Partnership 2003 Planned Orders Planned Orders Capacity Requirements Plan Component Plan Red Item 14356 Sub-Item 43781 2 per Automatic re-plan Plans Matched sets of Parts Plans hours for CRP

6. 6 © The Delos Partnership 2003 Different types of Order TypeAutomatically Replan Creates Requirements Scheduled /Released No FirmNoYes PlannedYes

7. 7 © The Delos Partnership 2003 Scheduled Receipt A Released order Either on order with supplier or Work in Process Should only be rescheduled after discussion with –Factory Supervision/Manager –Purchasing/Outside Supplier

8. 8 © The Delos Partnership 2003 Releasing an order 1.Review action message to release 2.Do a component availability check 3.If components available, release order 4.Components allocated 5.Pick list generated 6.Stock picked, and issued to works order.

9. 9 © The Delos Partnership 2003 Rules on releasing order 1.Do not release order if components are not available according to component availability check 2.Do not release orders earlier than the system recommends release of orders 3.Do not ignore these rules

10. 10 © The Delos Partnership 2003 Result of Releasing an order 1.Components issued to order 2.Order becomes work-in-process 3.Order will now appear on Work-To-List 4.Operation Due Date becomes the priority data for Assembly and manufacturing

11. 11 © The Delos Partnership 2003 Capacity Requirements Plan Provides detailed information of requirements of hours by week Needs information –Where is product made –How long does it take –What work is carried out –How much capacity available

12. 12 © The Delos Partnership 2003 Detailed Capacity Planning Can be used to check all machines Is used to determine if load at work centre is feasible Capacity issue may appear as a result of rescheduling Final check before release of work

13. 13 © The Delos Partnership 2003 Principles of CRP Required Capacity calculated from Scheduled receipts or Planned Orders x standard hours Planned Capacity calculated from demonstrated capacity Required Capacity must be less than or equal to Planned Capacity

14. 14 © The Delos Partnership 2003 Capacity Requirements Plan Opn No Work Centre OperationSetRun 1045Inspect0.50.10 2055Mix1.00.5 3065Pack1.00.2 Routing Work Centre Information 8 Planned Order Release 0Projected Available Balance 25Scheduled Receipts 202020Projected Gross Requirements 97654321 Periods 5 5 5 5 10 10 -15 -15 10 10 -10 25 25 15 15

15. 15 © The Delos Partnership 2003 Work Centre Information 1.Work Centre Number 2.Work Centre Description 3.Queue 4.Set-up Time 5.Number of people or Machines 6.Number of hours per shift 7.Number of shifts 8.Load Factor 9.Shop Calendar – number of days available

16. 16 © The Delos Partnership 2003 CRP 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 Centre OperationSetRunSetRunTotal Hrs Total Days 10 45Inspect0.50.10.52.531 203055Assemble2.02250527 Product 14356 Lot Size : 25 Calc 1 day7 days Works Order Start Date Works Order Due Date Op Due Date Op Due Date

17. 17 © The Delos Partnership 2003 Routing uses Calendar MondayTuesdayWedThursdayFridaySaturdaySunday 1234567 891011 1314 15161718192021 22232425262728 293031 March 2004

18. 18 © The Delos Partnership 2003 Workshop Determine Due dates on operations from the above information on timings given a due date of 31st March for the Works Order

19. 19 © The Delos Partnership 2003 ItemNumber Shifts Per Day Machines/Operator per shift Hours per shift Total Hours per day Work Days Available [incl Sat/Sun] Total Hours Available Actual Output Total Hours Available Load Factor Calculation of Demonstrated Capacity – Load Factor Last four weeks Actual Output = 420 hrs 2 2 8 32 20 640 65% 420

20. 20 © The Delos Partnership 2003 ItemPlanMaximum Shifts Per Day Machines/Operator per shift Hours per shift Total Hours per day Work Days Available [incl Sat/Sun] Total Hours Available Load Factor Total Hours Available Planned Capacity Calculation of Planned Capacity Next week ….. 2 2 8 32 5 160 2 2 10 40 6 240 65% 160 240 104 156 + 1 Day + 2 hrs

21. 21 © The Delos Partnership 2003 Calculation of required work 1.Calculate the amount of work required in Work Centre 55 – Assembly for Part Number 14356 in week commencing 22 nd March 2.What will be the load on the work centre for the week – given a demonstrated capacity of 104 hours per week ?

22. 22 © The Delos Partnership 2003 Capacity Plan resolution

23. 23 © The Delos Partnership 2003 Input/Output Control Work Centre no : 55 Tolerance +/- 30 Description : AssemblyDate : 22/2 Desired Queue : 60 IN OUT Week -4-3-2Now+1+2+3 Plan 107110104100104107100120 Actual 10990115105 Cum Diff +2-18-7-2 Plan 104 125 Actual 11010585 Cum Diff +6+7-12-31 Plan 6369 59 625853 Actual 6059447494 Cum Diff +9-110+10

24. 24 © The Delos Partnership 2003 Capacity Planning Process Review Weekly with Production –Performance to Schedule –Demonstrated Capacity –Reduction in Queue –Improvements in Capacity Performance measures –Achievement of planned capacity –Achievement of Schedule –Planned capacity/Available Capacity

25. 25 © The Delos Partnership 2003 Capacity Planning 1.Checks if available hours for machines and people are available 2.Based on demonstrated capacity 3.Bottom up re-plan to get out of problems 4.Reschedule as a last resort 5.Use Firm Planned orders to get stability and control, and a valid plan.

26. 26 © The Delos Partnership 2003 Factory – working the plan AND/ OR What do I make next ? Kanban Work To Lists

27. 27 © The Delos Partnership 2003 How to trigger action VARIETY LOWHIGH VOLVOL LOWWTL HIGHKANBANWTL /KANBAN

28. 28 © The Delos Partnership 2003 Creation of work to list Opn No Work Centre OperationSetRun 1045Inspect0.50.10 2055Mix1.00.5 3065Pack1.00.2 Routing Work Centre Information 8 Planned Order Release 0Projected Available Balance 25Scheduled Receipts 202020 Projected Gross Requirements 97654321 Periods 5 5 5 5 10 10 -15 -15 10 10 -10 15 15

29. 29 © The Delos Partnership 2003 Planned versus released orders Appear on Work to List

30. 30 © The Delos Partnership 2003 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 ?

31. 31 © The Delos Partnership 2003 Priorities are set by date Product 24575 – 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 43678 – 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 = 13 March Operation Due Date = 14 March Operation Due Date = 14 March

32. 32 © The Delos Partnership 2003 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

33. 33 © The Delos Partnership 2003 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 Time Next/ Prev WC Status 40724575Barrel201010/312/324/510.07.520Q 40343678Cap401009/0313/327/50.02.030R 40947823Cap20 14/316/323/410.08.030S 41132672Top103014/318/321/48.010.060Q Order No.Part No.DescriptionQuantityOp’n Number Op’n Start Date Op’n Due Date Order Due Date Set up Time Run Time Next?pre v WC Status 42025763Body30 10/313/323/43.05.040R 42534732Barrel20 11/314/322/45.010.020R 43032567Top254013/315/327/42.07.020Q 44047823Cap400514/317/304/045.07.020Q Work Centre Number 10 Description : Finishing Date : 12/3 Jobs Currently at Work Centre Jobs Coming to this Work Centre

34. 34 © The Delos Partnership 2003 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

35. 35 © The Delos Partnership 2003 Work-To-List - Rules 1.Do not stop one job in the middle of a set-up just because another one has a higher priority 2.Honour no hotlists 3.Ignore telephone calls from the Managing Director 4.Let someone know if you are going to be late – Silence is approval

36. 36 © The Delos Partnership 2003 Kanban Means “visible signal” Replaces need for Work to List Replaced by –Card –Empty square –Tennis Ball –Empty package

37. 37 © The Delos Partnership 2003 Kanban in Operation Operation 10Operation 20

38. 38 © The Delos Partnership 2003 Kanban – multiple parts A1 B1 C1 A2 C2 B2 A3 C3 B3 C1C2 C3

39. 39 © The Delos Partnership 2003 Kanban – mixed with WTL C1 A2 C2 B2 A3 C3 B3 C2 C3 What’s next On the WTL ?

40. 40 © The Delos Partnership 2003 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

41. 41 © The Delos Partnership 2003 Kanban Works to keep the “Kanban” full When full must stop Do not build extra Result is –less WIP –Improved Quality –Shorter Lead times

42. 42 © The Delos Partnership 2003 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

43. 43 © The Delos Partnership 2003 What determines order quantity ? Efficiency Quality Stability of plan Fewer changeovers Less hassle Quiet life Easier to manage

44. 44 © The Delos Partnership 2003 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

45. 45 © The Delos Partnership 2003 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

46. 46 © The Delos Partnership 2003 Set Up Reduction Set Up Reduction StageStepTimeChangeover TypeImprovements TotalStepInternalExternalWaste Startup0’.00” 1 Clean Hopper with air blower 32’00” A smaller hopper than 150kg ? 2 Get cleanser to put in hopper 34’00”2’00”Relocate cleanser 3 Keep cleaning injector 52’00”18’00”Avoid walking to switch 4 Feed ABS pigment to hopper 60’00”8’00”Unnecessary? 5 Use air blower to clean hopper 67’00”7’00”Cassette type min- hoppers ? 6 Do a free shot to inject plastic into mould 96’50”29’50”Moulds with 25 kg too large. Unnecessary step ProcessColour ChangeResponsibleA JonesItemHousing MachineMitsubishiMeasured ByB BrownChangeover time96’50”

47. 47 © The Delos Partnership 2003 Set –up Time reduction Objective is –Smaller Batch sizes –Quicker Lead Times –More flexibility It is not to –Fill up with extra production –Reduce people

48. 48 © The Delos Partnership 2003 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

49. 49 © The Delos Partnership 2003 Quality problems identified from the process charts Problems

50. 50 © The Delos Partnership 2003 Reduce Process Variability Eliminateproblems Reduce the variation

51. 51 © The Delos Partnership 2003 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

52. 52 © The Delos Partnership 2003 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

53. 53 © The Delos Partnership 2003 Capacity plan allows time for improvements Opportunity For Improvement Activity

54. 54 © The Delos Partnership 2003 Schedule Achievement - Production  Definition  Purpose  Horizon  Source of Information  Number of works orders completed to required date into stock or next operation  Improve manufacturing process  Product Lead Time  Shop Floor control module

55. 55 © The Delos Partnership 2003 Source of Data At point of order release record –Operation Due Dates –Works Order Due Date Store away first due date

56. 56 © The Delos Partnership 2003 Schedule Achievement Report Schedule Achievement = 3/6 = 50 %

57. 57 © The Delos Partnership 2003 Schedule Achievement Report Commentary Schedule achievement suffered from unplanned absenteeism The Zanara machine needs repairing

58. 58 © The Delos Partnership 2003 Root Cause Analysis - Trace Works Orders Not completed on time Works Orders Not completed on time N = 27 People Lack of Skill Absenteeism Processes Material Not available Not to spec Failed in use Equipment Breakdown Availability N = 2 N = 5 N = 8 N = 2 16 % N = 5 N = 1 N = 2 N = 5 N = 9 Lack of Training N = 2 N = 1 Order closing Order release Advice of delay N = 2 N = 1 Run rate N = 2

59. 59 © The Delos Partnership 2003 Performance Targets  Objective  Target  Milestone What would your target be ?

60. 60 © The Delos Partnership 2003 Closed Loop 1.Planner plans the work 2.Factory works the plan 3.Planner releases when materials and capacity available 4.Factory advises when they cannot achieve the plan Silence is approval !