1. 1 © The Delos Partnership 2003 Supply Chain Techniques Getting the plan executed

2. 2 © 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

3. 3 © The Delos Partnership 2003 Forms of Capacity Planning Two types of Capacity Planning Rough Cut Capacity Planning –Crucial for IEL –Also can be used at MPS level Detailed Capacity Planning –Information for each work centre –Each Level of BOM

4. 4 © The Delos Partnership 2003 Rough Cut Capacity Planning Objective –Translate SOP Family Volumes into Capacity Requirement –Test validity of plan against demonstrated capacity How –Use Planning profiles –Use Critical Resources –Use Demonstrated Capacity Result –Possible problem areas

5. 5 © The Delos Partnership 2003 Detailed Capacity Planning Can be used to check all machines Rough cut may “miss” some work centres Bottlenecks wander Capacity issue may appear as a result of rescheduling Final check before release of work

6. 6 © The Delos Partnership 2003 Capacity Requirements Plan Opn No Work Centre OperationSetRun 1045Inspect0.50.10 2055Paint1.00.5 3065Assemble1.00.2 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 Engine Assembly

7. 7 © The Delos Partnership 2003 Capacity Plan resolution

8. 8 © 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 ?

9. 9 © The Delos Partnership 2003 Creation of Work to List 12345678 Projected Gross Requirements 10 20 Scheduled Receipts20 Projected Available Balance 30 Planned Order Release Opn No Work Centre OperationSetRun 1045Inspect0.50.10 2055Paint1.00.5 3065Assemble1.00.2 Routing Work Centre Information Engine Assembly – Lass0069

10. 10 © 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 TimeNext/Prev WC Status 407 Lass0069 Engine201010/312/324/510.07.520Q 403 Lass0070 Engine401009/0313/327/50.02.030R 409 Lass0071 Engine20 14/316/323/410.08.030S 411 Lass0072 Engine103014/318/321/48.010.060Q 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 Lass0071 Body30 10/313/323/43.05.040R 425 Lass0075 Barrel20 11/314/322/45.010.020R 430 Lass0074 Top254013/315/327/42.07.020Q 440 Lass0072 Cap400514/317/304/045.07.020Q Work Centre Number 65 Description : Assembly Date : 12/3 Jobs Currently at Work Centre Jobs Coming to this Work Centre

11. 11 © 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

12. 12 © The Delos Partnership 2003 Kanban Means “visible signal” Replaces need for Work to List Replaced by –Card –Empty square –Tennis Ball –Empty package

13. 13 © The Delos Partnership 2003 Creation of Vendor Schedule 12345678 Projected Gross Requirements 10 20 Scheduled Receipts20 Projected Available Balance 30 Planned Order Release Supplier Schedule Part Number : 14356 D escription : Red Pen Line Part Number DescriptionQtyScrap PerFactor 1043768Pen Barrel10.0 2076452Finished Nib10.0 3089563Cap10.0 Bills of Material Planning Data Lead Times Order Quantities Safety Stock

14. 14 © The Delos Partnership 2003 Vendor Schedule Part No. 1/78/715/722/729/75/812/819/826/8SeptOct12 m Total 2346720 80 960 2456610 3060 1040 354673570 35 140 1680 1437620 40 1601801920 2543610 4080620 Supplier : ACME Grinding Equipment Limited OrdersPay for materialsVisibility Orders :PartQtyDue 14532623467201/7

15. 15 © The Delos Partnership 2003 Vendor Scheduler Manages Exception messages Reviews and manages performance Operates MRP for their items Releases vendor schedule Point of contact for suppliers

16. 16 © The Delos Partnership 2003 Vendor Scheduling Vendor Scheduling Customer Supplier Buying and Scheduling Buying Short/ Medium Term Short/ Medium Term Long Term Long Term

17. 17 © The Delos Partnership 2003 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