SME Conference: Computer Integrated Manufacturing. A Take Back Manufacturing to Toronto Imperative. May 24 th Presenter Chriss Poliquin

Transcription

1 SME Conference: Computer Integrated Manufacturing A Take Back Manufacturing to Toronto Imperative May 24 th 2012 Presenter Chriss Poliquin 1

2 Agenda I. Targeting your objectives and concerns II. What are the main components of Computerized Planning for Manufacturers III.Demand Planning and Forecasting: What, How and Why Steps of the process Expected Improvements Typical Benefits IV.Production Planning & Scheduling: Methods of Scheduling What is Detailed Production Scheduling Top Detailed Production Scheduling Myths and Misconceptions Typical Benefits V. About West Monroe Partners 2

3 Targeting your objectives and concerns 3

4 What are the main components of Computerized Planning for Manufacturers 4

5 Overall Supply chain planning and execution Purchase Orders DP&F Sales Orders Forecasts Prod. & Distr. Requirements Sales historical data Inventory Resources/BOM Orders Routings BOM Schedule Confirmations APS Manufacture Assembly Packing 5

6 Demand Planning and Forecasting 6

7 Demand Planning & Forecasting: What, How and Why Demand planning is a multi-step process used to create reliable forecasts combining current and expected final product demand. The approach begins with a statistical forecast. Data sources for the forecast include planned sales orders, customer contracts and intercompany standing orders. The final forecast is shared with key stakeholders, such as suppliers and production planning and distribution. Purchase and Produce what is needed when is needed in the right quantity. 7

8 Demand Planning & Forecasting: Steps of the process Gathering and Importing and preparing data Calculate sales forecasts using the best statistical model Share and improve statistical forecasts on a collaborative way Importing historical sales data, customer forecasts, current customer orders Adjust for promotions Building consensus forecasts and adjust for exceptions Automatic sorting of histories Forecasts calculation at an aggregate level Consideration of trends and seasonality Calculation and analysis of forecasts reliability Send to production and purchasing Promotion anticipation, market shares increase, Launching and product life cycle anticipation Financial Marketing R&D Production coherence 8

9 Demand Planning & Forecasting: Expected Improvements Quantity Planning timing Forecasts reliability Service level Inventory level Stockout percentage Customer tolerance delay Quality Visibility Agility, rapidity Collaboration Better decisions Process strength Budgets respect Operational margin Competitive advantage 9

10 Demand Planning & Forecasting: Typical Benefits Improvement in Gross Profit Margin: from 5 to 15 points Decrease in Working Capital Needs: from 5 to 25% 3 to 6 months ROI Improvement in Forecasts Reliability: from 10 to 40 points Improvement in service level: from 6 to 30 points Reduction in stocks from 10 to 50% Elimination of stock outs and unsold products (figures taken from Dynasys typical use case benefits) 10

11 Production Scheduling 11

12 Methods for Scheduling 1. Production Meeting 2. Production White Board 3. Excel-Based planning systems 4. ERP - Rough-cut planning 5. FCS (Finite Capacity Scheduling) and APS (Advanced Planning and Scheduling) Source: Mike Liddell Lean Scheduling International 12

13 Methods for Scheduling: 1- Verbal Production Meeting Priorities managed locally Multiple Lists Poor mid-term visibility Crisis management Inability to know impact of decisions 13

14 Methods for Scheduling: 2- Visual White Board A static decision support tool 14

15 Methods for Scheduling: 2- Visual White Board A static decision support tool To handle dynamic problems?!? 15

16 Methods for Scheduling: 3- Excel Multiples linked Excel Files Multiple formulas Difficult to maintain Decentralized and tribal knowledge Non-Consistent and manual 16

17 What is Detailed Production Scheduling Computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation based on finite capacity scheduling (FCS), resource planning and scheduling, material and constraints synchronization and others. Minimize Late Deliveries / Deliver On-Time Maximize Resources Usage Minimize Setups and change overs Minimize Work In Progress Maintain right level of Inventory Labor and Skills optimization Visibility on the production and when will the customer s order be done Provide Visibility and What-If Functionality for Decision Makers Dynamically Manage Kanban Buffers Communicate Between Schedule & Shop Floor with integrated Manufacturing Execution System Prioritize, Sequence & Synchronize Upstream Cells 17

18 ERP Capacity Planning V.S. Detailed Scheduling Total Setup Time 100% Used Capacity Planning A A6 6 A A5 5 A A4 A4 A3 3 A A2 2 A1 A Detailed Scheduling A6 A5 A4 A3 A2 A1 Capacity Gain Preferred Sequence is Green, Blue, Red for minimized setup Resource Resource

19 Detailed Production Scheduling: Accurate & detailed model of the plant SME Conference: CIM a TBM Imperative 19

20 Top Detailed Production Scheduling Myths and Misconceptions 1. APS is a PUSH System SME Conference: CIM a TBM Imperative 2. APS and LEAN are incompatible 3. I am LEAN therefore I do not need APS 4. APS is hard to implement and too costly 5. APS are for big companies 6. My ERP planning tools are sufficient 7. My process is too complex to schedule 20

21 Detailed Production Scheduling: Typical Benefits 10% increase in productivity 3 to 6 months ROI 10% reduction in raw material stock 25% reduction in work-in-process 50% improvement in delivery performance (figures taken from various Preactor case studies)

22 About West Monroe Partners 22

23 About West Monroe Partners How we define ourselves - West Monroe Partners in the marketplace Our Position We are a team of business and technical experts working together with clients in industries undergoing profound change. We help companies solve their most complex challenges so they can rapidly adapt, shift gears and thrive. Our Personality Traits Our Purpose: Do the work we love with the people we trust Authentic Motivated Upbeat Flexible Collaborative Curious Confident 23

24 About West Monroe Partners The West Monroe team combines the deep technical expertise with core functional capabilities and extensive industry experience to drive better business decisions Highlights areas of excellence of the Canadian team 24