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CIRCOR S&OP with Suppliers_ 19 feb_2015
1. "Sales & Operations Planning (S&OP)
for the management of SC capacity”
Milano
19 Febbraio 2015
Stefano Tornaghi
Vice President Engineered Valves
Fabrizio Albino Russo
Director Sourcing and Supply Chain
CIRCOR Pibiviesse
2. CIRCOR Group
2
CIRCOR Aerospace & Defense
Highly engineered system, subsystem
CIRCOR Energy
Customer focused, highly engineered solutions for the world's
most demanding energy applications
Engineering Customer Focused Solutions that Enable the Complex
Growth of the World’s Infrastructure.
Sales & Manufacturing Facilities: United States, Canada, Brazil,
Italy, Germany, France, England, Netherlands, China, India and
Morocco
New York Stock Exchange (NYSE): CIR Employees: 3000+
3. CIRCOR Engineered Valves Division- Pibiviesse
Ø MAIN BUILDING
12,500 m2
8m height
Lifting capacity -10 tons/K
Ø LARGE BORE BUILDING
3,576 m2
12,50 m. height
Lifting capacity: 40 ton
Ø PACKING AND OFFICES
1,193 m2
3
REVENUES 2014: 92 M€
Employees: 220
5000 valves/year
7. 7
Planning Team Organization- APICS
Planning
horizon
:12
months
Time
buckets:
months
Planning
horizon:
3
months
Time
buckets:
weeks
Planning
horizon
2
weeks
Time
buckets:
days
S&OP manager
MPS manager
S&OP mMRP
Teamanager
PAC manager
8. Planning with 2 noise sources
8
ENGINEERING
SUPPLY
CHAIN
INSPECTION
ASSEMBLY
TESTING
SHIPPING
CUSTOMER
END
USER
PLANNING
Dept.
PROJECT
MANAGEMENT
OFFICE
Change of scope
Change of schedule
Change of specs
Hold for inspection
Uneven load
Overload
Poor forecast/planning
Quality issues
Late submittal of docs
Planning «mission impossible»
- Poor On Time Delivery
- Low efficiency
- High cost for expediting
- Poor forecast
LEAD
TIME
20-‐52
weeks
9. S&OP- Supply Chain Planning Improvement
9
ENGINEERING
SUPPLY
CHAIN
INSPECTION
ASSEMBLY
TESTING
SHIPPING
CUSTOMER
END
USER
PLANNING
Dept.
PROJECT
MANAGEMENT
OFFICE
Direct
planning and
control
Indirect Capacity
Control Improved/
Early
communication
Close monitoring-
Low control
Goal: reduce and control the noise coming from SUPPLY CHAIN in the
early stage of the project
10. S&OP
§ Schedule of the meeting fixed (every month at 3 p.m. of the second Friday)
§ Attendees:
– Sales Director
– SC Director
– Finance Director
– Engineering Director
– Planning/Production Manager
– Project manager
– S&OP manager
– Controller
§ Output: S&O Plan + Forecast + Action plan
10
11. 11
Sales & Operations Planning
Backlog
analisys-‐
Delivery
plan
of
prospect
new
orders
Crossing
of
PorducTon
Plan
with
requested
Delivery
in
the
P.O.–
Balancing
of
the
workload
12. 12
Sales & Operations Planning
Backlog
analisys
to
idenTfy
and
remove
potenTal
boZleneck
(capacity/mix)
13. 13
SI&OP
GE.CO
PLAYBOOK
SUPPLIERS
BOOKINGS
SUPPLIERS
WORKLOAD
STATUS
SUPPLIERS
EXPEDITING
PLAN
SUPPLIERS
POs
SUPPLIERS
PRESIDIUM
PLAN
MASTER
PLANNING
MRP
From S&OP to POs
14. 14
Playbook
CLIENTE JOB
Tipo
JOB
ITEM JOB
Notes
HOLD
SIZE CLASS ENDS TYPE Q.TA'
BODY/BONNET/
CLOSURE
Material
BALL
Material
Raw
Material
dimensions
ITP
ready
Final
drawing/BOM
Ready
in
PBVS
PROSPECT
SUPPLIER
ESTIMATED
LT
DAYS
ESTIMATED
SAVING
in
%
ESTIMATED
SAVING
in
Euro
PROSPECT
SUPPLIER
ESTIMATED
LT
DAYS
ESTIMAT
ED
SAVING
PROSPECT
SUPPLIER
ESTIMATED
LT
DAYS
ESTIMATED
SAVING
PROSPECT
SUPPLIER
ESTIMATE
D
LT
DAYS
ESTIMATED
SAVING
PROSPECT
SUPPLIER
ESTIMATE
D
LT
DAYS
ESTIMATED
SAVING
CUSTOMER
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per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
CUSTOMER
1 130220 SO 76 Materials
from
West
Europe
countries
only
as
per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
CUSTOMER
1 130220 SO 77 Materials
from
West
Europe
countries
only
as
per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
CUSTOMER
1 130220 SO 78 Materials
from
West
Europe
countries
only
as
per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
CUSTOMER
1 130220 SO 79 Materials
from
West
Europe
countries
only
as
per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
CUSTOMER
1 130220 SO 80 Materials
from
West
Europe
countries
only
as
per
project
requiremts. H 2x1-‐1/2 150 RF T1 1A105N F316 HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD HOLD
ITALY
EAST
EUROPE CHINA INDIA OTHERS
15. 15
€ %
CURRENTLY
INCHARGE
CURRENTLY
INCHARGE
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
CURRENTLY
INCHARGE
BOOKABLE
TOT(CURR.IN
CHARGE+
BOOKABLE)
1 FORNITORE 1 10.000 3.000 0 0 0 886 886 3.391 3.391 0 0 1.542 1.542 0 0 0 0
2 FORNITORE 2 25.000 10.000 0 0 685 685 0 0 0 0 3.736 3.736 0 0 0 0
3 FORNITORE 3
X
X
X
X
X
25.000 10.000 0 300 300 9.546 9.546 7.013 7.013 617 617 14.137 14.137 0 0 0 0
4 FORNITORE 4
X
X
420.000 80.000 0 4.888 4.888 5.967 5.967 1.435 1.435 114 114 88 88 0 0 0 0
5 FORNITORE 5
X
50.000 10.000 0 120 120 211 211 21 21 475 475 21 21 0 0 0 0
6 FORNITORE 6
X
X
X
250.000 80.000 0 0 0 0 0 0 0 0 0 0
7 FORNITORE 7
X
X
X
X 85.000 40.000 0 33.456 33.456 9.875 9.875 7.030 7.030 6.930 6.930 750 750 1.250 1.250 0 0
8 FORNITORE 8
X
X
X
100.000 40.000 0 2.808 2.808 2.166 2.166 3.848 3.848 260 260 9.870 9.870 530 530 0 0
9 FORNITORE 9
X
X
X
X
250.000 40.000 0 0 0 700 700 0 0 0 0 0 0 0 0 0 0
10 FORNITORE 10
X
30.000 5.000 0 1.542 1.542 0 0 0 0 0 0 0 0 0 0 0 0
11 FORNITORE 11 30.000 4.000 0 0 0 0 880 880 0 0 0 0 0 0 0 0
12 FORNITORE 12
X
200.000 40.000 0 780 780 0 0 0 0 0 0 0 0 0 0 0 0
13 FORNITORE 13
X
X
X
X
100.000 30.000 0 132 132 6.320 6.320 2.176 2.176 2.346 2.346 4.637 4.637 75 75 0 0
14 FORNITORE 14
X
X
X
X
400.000 80.000 0 10.285 10.285 2.770 2.770 19.550 19.550 25.140 25.140 11.605 11.605 6.750 6.750 0 0
15 FORNITORE 15
X
X
40.000 10.000 0 3.466 3.466 4.343 4.343 11.310 11.310 1.753 1.753 3.175 3.175 1.233 1.233 0 0
16 FORNITORE 16
X
X
50.000 10.000 0 140 140 160 160 700 700 0 0 0 0 0 0 0 0
17 FORNITORE 17
X
X
X
X
X
30.000 10.000 0 1.930 1.930 7.255 7.255 4.285 4.285 12.600 12.600 3.950 3.950 0 0 0 0
18 FORNITORE 18
X
X
375.000 40.000 0 11.275 11.275 20.776 30.000 50.776 39.063 -19.865 19.198 10.502 10.502 2.650 2.650 0 0 0 0
19 FORNITORE 19
X
X
300.000 50.000 0 3.644 3.644 22.211 22.211 8.611 612 9.223 0 0 17.000 17.000 0 0 0 0
20 FORNITORE 20
X
X
X
100.000 20.000 0 0 0 0 0 0 885 885 0 0 0 0 0 0 0 0
21 FORNITORE 21
X
50.000 10.000 0 480 480 723 723 0 1.090 1.090 0 0 0 0 0 0 0 0
22 FORNITORE 22
X
X
X
30.000 5.000 0 78 78 1.367 1.367 344 100 444 2.908 2.908 0 0 0 0 0 0
23 FORNITORE 23 50.000 10.000 0 0 0 0 0 -19.865 -19.865 0 0 0 0 0 0 0 0
24 FORNITORE 24 25.000 10.000 0 0 0 0 0 612 612 0 0 0 0 0 0 0 0
25 FORNITORE 25
X
X
150.000 40.000 0 0 0 650 650 728 885 1.613 0 0 0 0 0 0 0 0
26 FORNITORE 26
X
X
X
150.000 40.000 0 8.475 8.475 5.254 5.254 2.853 1.090 3.943 0 0 0 0 2.853 2.853 0 0
27 FORNITORE 27
X
X
X
X
X
40.000 18.000 0 0 0 0 15.000 15.000 14.389 612 15.001 0 0 23.760 23.760 0 0 0 0
28 FORNITORE 28
X
X
X
X
X
X
75.000 20.000 0 10.471 10.471 6.355 20.000 26.355 22.205 885 23.090 270 270 6.100 6.100 540 540 0 0
29 FORNITORE 29
X
X
X
X
X
300.000 50.000 0 0 0 15.000 15.000 15.000 612 15.612 3.794 3.794 6.300 6.300 0 0 0 0
30 FORNITORE 30
X
X
150.000 30.000 0 8.550 8.550 46.173 -7.333 38.840 18.870 1.090 19.960 2.745 2.745 1.820 1.820 980 980 0 0
31 FORNITORE 31
X
X
200.000 30.000 0 95 95 0 0 0 1.090 1.090 0 0 0 0 0 0 0 0
32 FORNITORE 32
X
X
X
300.000 50.000 0 0 0 12.100 7.900 20.000 6.900 100 7.000 0 0 0 0 0 0 0 0
33 FORNITORE 33 50.000 15.000 0 0 1.403 1.403 705 705 1.035 1.035 2.118 2.118 0 0 0 0
34 FORNITORE 34
X
190.000 40.000 0 4.500 4.500 6.510 6.510 7.000 7.000 3.360 3.360 0 0 1.650 1.650 0 0
35 FORNITORE 35
X
X
X
90.000 20.000 0 2.820 2.820 3.000 3.000 7.500 7.500 0 0 0 0 5.850 5.850 0 0
36 FORNITORE 36
X
X
15.000 5.000 0 0 0 391 391 426 426 47 47 361 361 0 0 0 0
37 FORNITORE 37
X
X
X
170.000 30.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
38 FORNITORE 38
X
X
X
X
X
250.000 50.000 0 1.580 1.580 14.446 14.446 3.590 3.590 840 840 20.332 20.332 0 0 0 0
39 FORNITORE 39
X
X
X
X
75.000 20.000 0 7 7 4.519 4.519 770 770 422 422 134 134 0 0 0 0
40 FORNITORE 40
X
X
140.000 40.000 0 0 0 950 950 1.360 1.360 2.800 2.800 0 0 0 0 0 0
41 FORNITORE 41
X
X
X
X
X
250.000 50.000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
42 FORNITORE 42
X
50.000 10.000 0 0 0 680 680 480 480 400 400 2.020 2.020 0 0 0 0
43 FORNITORE 43
X
X
50.000 10.000 0 0 0 4.174 4.174 689 689 13.330 13.330 0 0 0 0 0 0
44 FORNITORE 44
X
X
300.000 50.000 0 0 0 7.194 7.194 0 0 5.550 5.550 0 0 0 0 0 0
45 FORNITORE 45
X
X
300.000 50.000 0 50 50 0 0 0 0 0 0 0 0 0 0 0 0
46 FORNITORE 46
X
X
300.000 50.000 0 0 0 840 840 0 0 0 0 0 0 0 0 0 0
47 FORNITORE 47 500.000 80.000 0 0 0 0 0 0 0 0
May 20XX Jun. 20XX
BALL
BODY
BONNET
CLOSURES
GLANDPLATE
CAGECOATING
BALLCOATING
SEATSCOATING
Supplier
Dec.20YY
Jan.20XX
Feb. 20XX Mar. 20XX Apr. 20XX
SEATS
SupplierMonthly
Capacity
Jul. 20XX
STEM
Supplier's PBVS Available
Monthly Capacity
SUPPORTS
SPRINGRINGS
WELDING
Components
WELDOVERLAY
SupplierCode
Supplier Bookings & Load
18. 2014 Demonstrated Lead Time
18
Demonstrated lead time goes below market standard, predominantly
depending on size and material
40
35
35
29
36"-72"
24"-35"
12"-23"
1/4"-11"
Lead Time (Weeks)
SizeRange(in.)
Competitors