This document provides information on production planning optimization. It explains the difference between push and pull systems and defines runners, repeaters, and strangers. It discusses determining stock levels and minimum batch sizes based on demand profiles. The goal is to match production to demand efficiently while keeping costs low by minimizing stock levels and changeover times. Both push and pull approaches are used to balance reducing warehousing costs and satisfying varying demand.
Sales and Operations Planning (S&OP) OverviewMichael Ryan
Improved revenues, business performance, and customer satisfactions are outcomes of a strong Sales and Operations Planning (S&OP) process.
S&OP can be applied to a variety of industries, from cosmetics to aftermarket parts manufacturers.
Sales and Operations Planning (S&OP) OverviewMichael Ryan
Improved revenues, business performance, and customer satisfactions are outcomes of a strong Sales and Operations Planning (S&OP) process.
S&OP can be applied to a variety of industries, from cosmetics to aftermarket parts manufacturers.
This slides gives you the concept of SIOP(Sales Inventory & Operations Planning) and also the difference between traditional approach and SIOP approach.
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
Classifying inventory items by their value using ABC analysis has long been associated with “always better control”. However, classifying items based on one or two value factors can be too simplistic and limiting in today’s dynamic supply chain. To resolve the shortfalls, inventory can be optimized by pairing ABC analysis with XYZ analysis which classifies inventory items based upon their amount of demand variation.
With the combination of ABC analysis and XYZ analysis, inventory managers can effectively collaborate with other key functional managers in production, sales, logistics, accounting, and procurement. These functional departments can better work together to increase inventory optimization.
Combining ABC analysis and XYZ analysis delivers four key benefits:
• Refine inventory management policies and develop systems to implement best practices.
• Optimize the trade-offs among the costs, risks, and benefits of holding inventory.
• Break down of functional silos within an organization while factoring in stakeholders’ needs into the inventory policy.
• Better alignment of inventory systems and procedures with corporate strategic objectives.
Scheduling
Routing
Prioritizing
Dispatching
What is Scheduling ?
Forward Scheduling
Backward Scheduling
Finite LOADING
infinite loading
Schedule Gantt Chart
Line balancing
GOAL AND OBJECTIVE
LINE BALANCING PROCEDURE
Strategies and Costs
as early as possible
as last as possible
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Line Balance Optimisation is about maximising output at the critical machine by reducing or eliminating impact of upstream or downstream machine stoppages.
This slides gives you the concept of SIOP(Sales Inventory & Operations Planning) and also the difference between traditional approach and SIOP approach.
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
Classifying inventory items by their value using ABC analysis has long been associated with “always better control”. However, classifying items based on one or two value factors can be too simplistic and limiting in today’s dynamic supply chain. To resolve the shortfalls, inventory can be optimized by pairing ABC analysis with XYZ analysis which classifies inventory items based upon their amount of demand variation.
With the combination of ABC analysis and XYZ analysis, inventory managers can effectively collaborate with other key functional managers in production, sales, logistics, accounting, and procurement. These functional departments can better work together to increase inventory optimization.
Combining ABC analysis and XYZ analysis delivers four key benefits:
• Refine inventory management policies and develop systems to implement best practices.
• Optimize the trade-offs among the costs, risks, and benefits of holding inventory.
• Break down of functional silos within an organization while factoring in stakeholders’ needs into the inventory policy.
• Better alignment of inventory systems and procedures with corporate strategic objectives.
Scheduling
Routing
Prioritizing
Dispatching
What is Scheduling ?
Forward Scheduling
Backward Scheduling
Finite LOADING
infinite loading
Schedule Gantt Chart
Line balancing
GOAL AND OBJECTIVE
LINE BALANCING PROCEDURE
Strategies and Costs
as early as possible
as last as possible
Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. ... Plan manufacturing activities, delivery schedules and purchasing activities.
Line Balance Optimisation is about maximising output at the critical machine by reducing or eliminating impact of upstream or downstream machine stoppages.
The aim of this session is to:
Be able to apply the GROW model to coaching sessions
Use the GROW model for effective, structured methodology for goal-setting and problem-solving
Supply chain management is a set of approaches used to efficiently integrate suppliers, manufacturers, warehouses, and stores so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying service-level requirements.
Defination : Inventories constitute an important component of a firms working capital .The various features of inventory are inventory as current asssets ,level of liquidity and liquidity lags .
Purpose : The purpose of holding inventoryis to achieve efficiency through cost reduction, increased sales volume ,to avail quantity discounts ,reduce risk of production stoppages ,reducing ordering costs and time .
Inventory Management techniques : 2 types :
1. Economic order quantity : it is the order quantity that minimisesthe total cost associated with inventory management .
2. 2. ABC system : A – items of high value but small in number
B – items of moderate value and size require reasonable attention
C - items of smaller value
BravoConnect 2014: Sourcing a complex categoryBravoSolution
Sourcing complexity is derived from a handful of category attributes. On the top of the list is scale; the single biggest reason why sourcing professionals seek more powerful bid analytics. And while presenting a larger opportunity to the supply base can create additional leverage and resolving the proposals more quickly can create sourcing efficiency, it is only the tip of the iceberg.
Advanced and expressive bidding techniques and the enabling technologies allow sourcing professionals to tackle sourcing problems where supply markets are non-homogeneous, where dozens of stakeholders have firm beliefs about the shape of the answer, and what is being sourced is an entire value chain. In the most extreme cases, the scope of the problem goes well beyond sourcing into related supply chain functions (i.e. network design, component and SKU rationalisation, merchandising, inventory management, etc.).
This session introduced the audience to the concept of complex category sourcing, advanced and expressive proposal collection techniques, and the enabling proposal collection and optimisation-based analytical techniques. The concepts, techniques and technology were brought together via real customer case studies that demonstrated the value that can be generated when the problem is first redefined and then is attacked with an open mind.
The power of decoupling by Chad Smith.
Presented during the 37th annual SAPICS conference and exhibition held at Sun City, South Africa from May 31 to 2 June 2015.
Production planning and control refers to two strategies that work cohesively throughout the manufacturing process. Production planning involves what to produce, when to produce it, how much to produce, and more. A long-term view of production planning is necessary to fully optimize the production flow.
Production control uses different control techniques to reach optimum performance from the production system to achieve throughput targets.
Click below to ENROLL in the course OR Copy paste the URL below.
https://www.udemy.com/course/production-ppc
The key benefits of implementing SIC:
* Increased OEE (by focusing on immediate and relevant losses within the shift)
* Increased effectiveness (by utilizing high-quality data at its source to drive decision making)
* High speed of improvement (localized focus increases the speed of improvements)
* Improved employee engagement (teams gain significant control over how the line is run)
Line Crew Optimisation is a process that reviews and optimises the established flow patterns, links process steps in order to minimise cycle times and travel distance, and eliminates crossover points in order to achieve a continuous flow process
Part of OFX Academy Course: Improving Line Performance
http://academy.optimumfx.com/course/improving-line-performance/
Improving Packaging Line Performance –Using the correct Data and Drill Down Analysis
Part of OFX Academy Course: Improving Line Performance
http://academy.optimumfx.com/course/improving-line-performance/
Improving Packaging Line Performance –Using the correct Data and Drill Down Analysis
Part of OFX Academy Course: Improving Line Performance
http://academy.optimumfx.com/course/improving-line-performance/
Improving Packaging Line Performance –Using the correct Data and Drill Down Analysis
A ‘Continuous Improvement culture’ is one where both leaders and front line workers constantly drive for improvement, which will be evident from the ‘work habits’
What gets measured, gets managed! What gets managed can be maintained and improved upon. Auditing ensures that the meetings operate at a consistent high standard.
What gets measured, gets managed! What gets managed can be maintained and improved upon. Auditing ensures that the meetings operate at a consistent high standard.
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Specific ServPoints should be tailored for restaurants in all food service segments. Your ServPoints should be the centerpiece of brand delivery training (guest service) and align with your brand position and marketing initiatives, especially in high-labor-cost conditions.
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Foodservice Consulting + Design
Artificial intelligence (AI) offers new opportunities to radically reinvent the way we do business. This study explores how CEOs and top decision makers around the world are responding to the transformative potential of AI.
The Team Member and Guest Experience - Lead and Take Care of your restaurant team. They are the people closest to and delivering Hospitality to your paying Guests!
Make the call, and we can assist you.
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Foodservice Consulting + Design
2. Intent of Session
• Explain what production planning means for the company,
for the site and for the customer.
• Explain the difference between Push and Pull systems.
• Clarify what runners, repeaters and strangers mean and
how to segregate products into the three categories.
3. Why Plan?
The ultimate aim of planning is to produce goods that
satisfy the demand from the customers.
This needs to be done as efficiently as possible to minimise
production costs, warehouse costs and
transport/distribution costs so that it makes the goods
available to the consumer when they want it at the quality
and price they are willing to pay for it.
4. What is Planning Optimisation?
• Match production sequence to demand as much as possible
• Keep stock levels low due to expensive and restrictive warehouse
costs
• Minimise overall changeovers at site to maximise availability
• Understand the correct sequence of product changeovers to reduce
times between changing products therefore maximising availability
Note: By optimising buffer (stock) quantities and product changeover
sequence, the production volume can be maximised, as the time to
produce (availability) of the line is increased.
5. Creating an Optimised Plan
• Understand what product types are runners, repeaters and
strangers
• Decide on minimum buffer (stock) quantity for each product type
• Determine production batch size of each when minimum stock
quantity is reached – this may vary on future demand and
seasonality
• Put together a production plan to make products that have reached
their minimum stock quantity – decide between product mix and
volume required by taking into account plant/line capability with a
view to maximise plant/line availability
6. Information required for a Plan
Decide What to make When:
• Line’s true production efficiency (products/hour)
• Changeover times between product types
• Minimum batch size production capability
• Demand profile of all product types
• Frequency of orders
• Total warehouse (stock holding) capacity
• Shelf life of products
• Lead time of products, decided once a runners, repeaters and
strangers analysis is done
7. Push vs Pull Systems
• Traditional view of industry
Push the products out into the market
– Keep producing even when there is no demand
– Keep the factory running all the time
– Keep lots of stock
• Lean approach
Demand from the market pulls products
– Only produce what you can sell
– Don’t produce to hold in stock
– Keep minimum/no stock levels
8. Push Systems
• Benefits
– Products available in storage when required by the customer
– Large production runs possible
– Factory can keep on running
• Disadvantages
– Cost of land for the warehouse
– Cost of utilities and labour for the warehouse
– Cost of the products at their highest level as they have progressed through all
processes of manufacture
– Double handling of products and transportation costs
– Risk of expiration or deterioration of the products if not sold within the allowable
timeframe leading to write-offs and disposal costs
9. Pull Systems
• Benefits
– Low/nil warehouse costs
– Low working capital
– No risk of products expiring leading to high write-off costs
• Disadvantages
– Difficult to satisfy sudden peaks in demand if there is no capacity to produce
– Overall availability to produce is reduced due to large number of changeovers
• Requirements
– Very flexible production facility
– Very efficient changeovers with good running efficiencies
– Accurate sales forecasts
– Low lead times to produce
10. Approach
“To keep a balance between reducing overall
warehousing costs and be able to satisfy varying
demand (e.g. seasonal) as well as maximise availability
at the production facility companies utilise both the push
and pull approach”
For this reason it is necessary to pay particular
importance to optimising production planning
11. Inputs to Plan Production
• Sales forecasting (from traders)
• Demand forecasting (from history)
• Actual orders received
• Warehouse/Stock levels
• Weather/Seasonal demands – can generate a sudden unexpected peak
12. Company Planning vs Site Planning
To reduce overall costs, the company may have a strategy to lower
their warehousing (stock holding capacity) impacting the overall
capability to produce to meet demand
The impact on the production facility is:
– Increase in the type of products made in the timeframe compared to before
– Increased number of changeovers reducing the overall availability
– Reduced production efficiency due to start up and end production run rates
– Greater vigilance on quantities made as time to produce becomes more of a
premium
– Getting it right first time is critical to meet the customer demand on time and in
full (OTIF)
13. Strategy
• Site scheduling
– Group together same products to be made at the different times (e.g. in one
week) to schedule longer runs
– Schedule running order to minimise changeover times by developing a
changeover matrix (i.e. going from one product to another)
– Use current actual line efficiencies and changeover times to ensure that the plan
is delivered
• Increase in factory/line flexibility
– Optimise changeovers by using quick changeover (SMED) techniques
– Innovate and use technology to completely eliminate to minimise changeovers
between products (e.g. blow and go)
– Use techniques such as modular maintenance to increase overall availability of
the line
15. What does this Mean?
• Runners
– The products in this category typically represent 20% of the total demand volume
– The type of products in this category is low with high volumes required
– Demand (order quantities) and Frequency of orders for these products is high
• Repeaters
– The products in this category typically represent 60% of the total demand volume
– Demand of these products is less than the runners and include more product types
– Frequency of orders for these products can vary between large orders on less frequent basis or
more frequent orders with low order quantities
• Strangers
– The products in this category typically represent 20% of the total demand volume
– The demand of these products is low
– The number of products within this category can be quite high with low volumes required
– The Frequency of orders can vary between a high order quantity (amount is typically less than
repeaters) on low frequency or more frequent order with a very low order quantity
16. Product Details
After an analysis of Runners, Repeaters and Strangers
is done, for each product type look at:
– Frequency of Orders
– Batch size or Quantity ordered
– Storage Space
– Plant/Line Production Capability (true current OEE and not the
budget number)
17. Suggestions for Site Plan
• Runners
– To be produced every week
– High production volumes
• Repeaters
– Mixture of products in this category are produced week by week and cycle
repeated every 2-4 weeks
– Medium to high production volumes
• Strangers
– Only produced to replenish buffers or when there is an order requirement to
produce
– Low production volumes
Note: The greater the mix of products, the less the volume that can be produced.
The total volume will depend on the plant/line capability (OEE) which will vary
depending on the changeovers required.
Maximising Flexibility vs Maximising Volume
18. Stock Replenishment
• Stock to hold will depend on total stock holding capability
• Minimum Stock level to hold depends on Demand (frequency & quantity) of
orders and the Leadtime to produce/replenish the stock
• Once the Minimum trigger is reached, Production trigger is activated
• Quantity to produce depends on
– Site capability (line efficiency and availability)
– Demand profile of the product
– Mix of products to produce in any one week
– Minimum batch requirement by the site
Note: Different products could have a different minimum stock level and batch
quantity to produce when the minimum stock level is reached.
19. Stock Level to Hold
Quantity of product/pallets =
Demand x (Leadtime + Safety Leadtime)
Bin Quantity
Minimum stock levels take into consideration average demand and
peaks depending on leadtime to replenish
– Demand – average demand, can be adjusted due to seasonal variations
– Leadtime – production Leadtime dependant on runners, repeaters and strangers
– Safety Leadtime – time that it could take to replenish if there is a sudden peak in
demand or line efficiency falls below average
– Bin Quantity – amount per bin (or space location)
20. Stock Level Calculations
Runners – Product 3
Average Demand is 100 pallets
Leadtime is 1 week
Safety Leadtime is 2 weeks
Bin quantity of 1 pallet
Repeaters – Product 12
Average Demand is 50 pallets
Leadtime is 2 weeks
Safety Leadtime is 2 weeks
Bin quantity of 1 pallet
Strangers – Product 2
Average Demand is 10 pallets
Leadtime is 4 weeks
Safety Leadtime is 1 weeks
Bin quantity of 1 pallet
Min Qty of Pallets =
100 x (1+2)
1
= 200 pallets
Min Qty of Pallets =
50 x (2+2)
1
= 200 pallets
Min Qty of Pallets =
10 x (4+1)
1
= 50 pallets
21. Production Batch Size
• Minimum Quantity of product that can be produced will depend on volume of
product that needs to be mixed to make a batch
• Multiples of this amount can be produced depending on predicted demand
profile
• Standard production quantity should be decided and flexed by a certain
percentage depending on demand profile
• The mix of products will depend on how many products have reached their
minimum levels, flagging up production triggers
• A sensible mix of number of product types and maximising production volume
has be decided depending on the Line’s OEE (production capability)