This is the full slide deck of our #bluecruxtalks session of March (31 March 2021, 3PM CET-9AM EST), presented by bluecrux.

1. #bluecruxtalks in March
Plant reliability in times of COVID-19

2. Nice to meet you!
Dimitri Princen
Supply Chain & Operations Professional
Falk Lenk
Supply Chain & Operations Professional

3. The source of plant disruptions
Being capable of identifying all
sorts of variability in your
production site, negatively
amplified by COVID-19.
Bring end-to-end visibility
Being capable of making
production and planning
processes visible in your site
while breaking through a silo
way of working.
Pro-act agilely
Being capable of isolating the
variability from your native
pace and pro-acting agilely to
resolve caused and further
harm to your supply chain.
So, what WILL we learn?

4. 4
Today we talk about…
1 Pressing factors challenging your plant’s effectiveness
2 The operating model for a sustained plant reliability
3 The journey towards a reliable plant

5. 1
Pressing factors
challenging your plant’s
effectiveness

6. 6
Know what you’re fighting against
Different sources of variability
caused on the supply side,
demand side and on-site
Pitfalls on your native pace of working
Driving departmental continuous
improvement results in reaching your
efficiency plateau
Efficiency
Plateaus
Variability

7. 7
Business continuity to the rescue?
Variability
Tolerance – upper limit
Tolerance – lower limit
COVID-19 as amplifier of
stability disruptions
• Peaking employee
absenteeism
• Scarcity on raw materials
• High demand fluctuations
• Logistic bottlenecks on
shipment
• Current production
processes not conform
COVID-19 regulation
Disruptions are continuously flirting with your tolerance level. Any unforeseen event on top will likely trigger BCP to survive the
ST operational hurdles. Don’t let it seduce you to be a sustainable solution on the tactical level. This is an absolute No-Go!
Short-term Business Continuity
Process Measures
✓ Installing priority lists for
FIFO departments
✓ Allowing last minute
schedule changes
✓ Alignment meetings
✓ Escalation for criticalities
✓ Allowing overtime
Mid-term Business Continuity
Process impact
× Departmental backlog creation
× Last minute production
preparation and changeovers
× Disrupted staging, limited by
storage capacity
× Chaotic goals & objectives
× Increased employee stress &
inter-departmental nervousness

8. 2 The operating model for a
sustained plant reliability

9. 9
Plant Reliability is about stability & agility
Fast Track
Management
Exception
Management
Capacity
Management
Performance
Management
Standard Flow
Mapping
Standard Planning
Processes
Plant Reliability

10. 10
To understand the native pace, ins and outs of your plant
Performance
Management
Standard Flow
Mapping
Standard Planning
Processes
Standard lead times
Decoupling points
Safety stocks
Inbound flows
Outbound flows
Production lines
Volume output
Site organization
Brand overview

11. 11
To stabilize the plan on the short term
Standard Flow
Mapping
Standard
Planning
Processes
Exception
Management
Today
Detailed Scheduling
horizon
Slushy/Reactive horizon Mid term MPS horizon Month y + n
Week x Week x+n Month y
PTF
2
1
2
1
Supply planning
volumes
Inbound
Capacity
Warehouse
incoming
QC Lab
QA
Disposition
Production
Capacity
Outbound
Capacity
Warehouse
outgoing
BRR
QC/QA
Releases
Financial
Analysis/Update
The biggest part of all interactions between
planning and operations will be rules by a
stable detailed schedule that will provide
visibility and confidence to operations.
Frozen Horizon
Release Horizon
Rhythm wheels

12. 12
Exception Management shines visibility on your disruptions,
serving as a baseline for establishing plant stability & agility
To isolate deviations from your native pace
Standard Planning
Processes
Exception
Management
Fast Track
Management A disruption should be RECOGNIZED, not IGNORED
• Identify what the deviation is (time delay, quantity mismatch)
• Identify when a deviation should be documented (triggers)
• Identify who needs to be specifically informed (communication)
• Identify where the deviation should be logged (tooling)
• Identify why the deviation occurred (failure modes)
… As it is the source for 3 different ACTIONS
Corrective Action
Preventive
Action
Proactive
Action
Exception Log
Exception Management is at the source
of purposeful continuous improvement

13. 13
To pro-act agilely and prevent further delays
Exception
Management
Fast Track
Management
Capacity
Management
Working native pace
Exception happened
& logged
Fast Track
Qualification
Fast Track Order
Processing
Performance
Management
FT required
FT not required
Fast Track lead times
Fast Track capacity
Governance
Communication
Decision tree
Does NOT mean to go as fast as possible
➔ It means to go as fast as necessary with the right actions to
deliver on time
➔ Not all departments are impacted every time there is a fast
tracked order
Fast track does NOT mean to start today or tomorrow
➔ It means to foresee issues and use fast track capacity
accordingly to deliver on time

14. 14
To set and respect each other’s bandwidth
Fast Track
Management
Capacity
Management
Performance
Management
Work Center/Lab/Warehouse…
100% 24 hours per day
X
hours
of
planned
machine
use
per
day
X
hours
of
net
production
per
day
Net capacity
The Fast Track Corridor is the Capacity Sweet spot
between fulfilling standard orders and fast track
orders without hurting your native pace
The Capacity elasticity allows you to always plan
100% of your nominal capacity, yet still being able
to foresee bandwidth to go as fast as necessary
Nominal capacity

15. 15
To bring end-to-end visibility and to act upon it
Capacity
Management
Performance
Management
Standard Flow
Mapping
Effectiveness KPIs
Site organization
Performance gov.
SLA
Supplier Input Process Output Customer
Who supplies
the process
inputs?
What inputs are
required?
What are the different departmental
activities and what is the expected
LT for completion?
What are the
process outputs?
Who receives
the outputs?

16. 16
Plant Reliability is about stability & agility
Exception
Management
Standard Planning
Processes
Fast Track
Management
Capacity Management
Performance
Management
Standard Flow
Mapping
Plant Reliability
To understand the native pace,
ins and outs of your plant
To bring end-to-end visibility
and to act upon it
To set and respect each
other’s bandwidth
To stabilize the plan on the
short term
To isolate deviations from
your native pace
To pro-act agilely and
prevent further delays

17. 3 The journey towards a
reliable plant

18. 18
Key success factors for a lasting implementation
Break down
silo thinking
Move Away
from local
optimization
Drive
performance
end-to-end
Overcome
vertical
management
Apply
comprehensive
change
management
Dovetail
operations
and Planning
Install cross-
functional
project team
Centralize
data
knowledge &
availability

19. 19
Our experience in a nutshell
Biologics Food & Beverages FMCG
Manufacturing
Site Accountability
• On Time Release (OTR), On Time Delivery (OTD) & On Time In Full (OTIF)
• Customer targeted 96% and demonstrated 98% sustainably for 4 years
Life Sciences
Internal Site Performance
• Site LT Adherance
• Customers had a 40% increase or reached >90%
after Reliability program
Performance Contribution to network
• Stockout Reduction in the network
• Customer moved from 50+ to 0 since 2017
X
Stockouts : 0 Internal Service Level : 90%
OTR : 98%

20. So, what DID we learn?
The source of plant disruptions
Being capable of identifying all
sorts of variability in your
production site, negatively
amplified by COVID-19.
Bring end-to-end visibility
Being capable of making
production and planning
processes visible in your site
while breaking through a silo
way of working.
Pro-act agilely
Being capable of isolating the
variability from your native
pace and pro-acting agilely to
resolve caused and further
harm to your supply chain.

21. Thank you!
Are you
following us
already…?
Questions? Let’s connect!
Dimitri Princen
Supply Chain & Operations Professional
Falk Lenk
Supply Chain & Operations Professional