Welcome. How we changed the planning process. Supply Chain Conference
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- Eleanore Farmer
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1 Welcome How we changed the planning process Supply Chain Conference
2 1. Company information 2. Back ground 3. The APS project 4. Q&A 2
3 Company Information 3
4 Bucher Industries AG Bucher Hydraulics Kuhn Group Bucher Municipal Bucher Specials Emhart Glass 4
5 Advanced Glass Forming Machines 5
6 Animation process 6
7 Worldwide Presence... Owensville MO Elmira NY Windsor CT Clearwater FL Manchester (UK) Örebro (S) Sundsvall (S) Moscow (RUS) Neuss (D) Cham (CH) Savona (I) Kawasaki (J) Singapore Johor, Malaysia 7
8 Worldwide Installed IS Machine Base 3374 active IS Lines active Sections 1167 Emhart Glass IS Lines 9740 Emhart Glass Sections 8
9 Supply Chain of Bucher Emhart Glass Örebro Sundsvall Material Parts Luxemburg Johor-Bahru 9
10 10
11 Emhart Glass Örebro - Facts 135 employees, 100b, 35w 80 direct machine operators 40 CNC machines, key resources, 3 shift production 100 work centers, planned resources Production responsibility of 3000 item numbers Annually; We supplies strategic parts for 50 IS-machines We make kg s of parts, and sub-assemblies We run our machines hours We introduce 300 new items in production annually 98 years of experience from machining production Milling, turning, drilling, grinding, honing, heat-treatment, welding, painting, assembly and testing. 11
12 Back Ground 12
13 How It was a selection of things we used to say We only got 1500 hours of past due production in the work shop now So we are in good shape! I ve got 200 hours to produce in my machine this week, so we can skip over time this week-end! Right? It s so difficult to make a production plan Especially if has to be a plan for the future. This machine has been overloaded for several months now, maybe we should out-source some production? Well, let s wait for another week or so and see what happens. Yes, I can make that re-schedule analyze, but it will take me almost a week to get it done So let s say we make the change and hope for the best 13
14 What can we do? Advanced Planning Systems can fix that! ERP system BPCS is missing; - Resource capacity constraints - Visual interface - Day by day capacity calendar - Material availability check - Etc.. In addition to that... - We are used of MRP style production plan and we adopted some bad habits - It s not just a new system we need it s also a new mind set - A wise man said to me once A fool with a tool is still a fool 14
15 Constraint Work load Expectation 15
16 The APS project 1
17 Budget and expected savings Budget: 2,414 MSEK Expected savings Efficiency increase due to automated planning process Year KSEK Year KSEK WIP & Stock reduction due to decreased thru-put times 700 KSEK (one time) 20% less overtime usage, due to better production plans 320 KSEK Less shipping costs, reduced air freight PBT: 2,3 Years, NPV KSEK 2
18 APS Project Organization Steering Group LWAN, CFOR MSVE, PSTE Project Manager APS-Project MBRI Procurement MLIN Project Leader APS Implementation Örebro MSAN IT LWAN,ASJO Project Team AAHN,CULA,HTOI CSOH,JGUS,MHOO Implementation Consultants from Supplier 3
19 Time Schedule Investment approved System supplier quotes evaluation finalized Assignment description approved with system supplier ITinfrastructure installed Design finished Interface ready Production plan and simulation generated Test finished Go Live Project sign-off Apr Jun Jun Sep Oct Nov Dec Jan Feb Apr 4
20 As simple as possible All reporting done thru ERP system BPCS = Nothing changed for job reporting etc. 90% of the users All old KPI s and reports remains thru go-live, will be changed later, towards Tableau generated reports All affected users deeply involved in project = no surprise at Go live day, we all knew what was coming 5
21 Order flow Sundsvall Facility 50 Final assembly Suppliers Raw-material, parts, subassemblies DRP- Orders Örebro Facility Örebro51 Facility Parts 51 manufacturing Customers Central sales Cham Switzerland Johor Barhu Facility 82 Final assembly Luxemburg Facillity 57 Global spare parts 6
22 Production process Purchased Rawmaterial & parts Sub-contracted operations Parts Machines Assembly Assemblies 7
23 Visible/noticeable effects Production out-put +23% Delayed order lines +-0 Less over time, (planners) Order release is now 2-3 hours compared to 8-10 hours per week More time is left to think about and plan strategical, not just executing MRP proposals Planners and supervisors plan ahead, 2-3 months perspective, compared to days or weeks in the past Visual interface is really helpful in getting a overview, material availability, capacity bottlenecks etc Hours per day produced A P S G o li v e 8
24 Visible/noticeable effects Progress reporting started before go live, since this was recognized as mandatory information to run the scheduler. Each direct operator/fitter reports achived production by end of each shift. This created un-intentional a a competition effect, and significantly equlized and increased productuion out-put. 9
25 Visual 10
26 Planning Processes addressed by iplanner Production Planning Release manufacturing proposals Reschedule orders taking constraints into account Picking and release to production Order Planning Release forecast to customer order (DRP) Schedule customer order (DRP) according to iplanner suggested due date Operational Purchasing Identify most critical shortages. Review POs with delivery issues in iplanner.
27 Delay Dashboard Projected service level using 4 different measures
28 Load Graph Total Plant Grid with filtering possibilities Total load Shop Order Total load Shop Order Proposals
29 Demand Dashboard Demand graph based either on commit or required week Double click on bar to drill down and change coloring
30 Bottleneck Report Using finite or infinite plan Using daily, weekly or monthly buckets
31 Capacity Details Detailed load per resource and time bucket
32 It s still early days but we see the sun rising Thank you Optilon for excellent project support Q&A 17
33 Thank You Contacts: Mattias Brink Emhart Glass Sweden AB Skebäcksvägen 44 PO Box 6063 SE Örebro Sweden Telephone Mobile
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