MANAGE

Summary

Most organiza,ons expend a lot of ,me and resources constantly re-priori,zing workow in order to meet customer commitments. Re- priori,zing work in one area o=en has a cascading eect requiring work in other areas to WHILE YOUR COST OF DELIVERY DECREASES. be re-priori,zed. Addi,onally, the need to repriori,ze work is usually not recognized un,l Business Issues there is liDle or no ,me Variability in customer demand and resource availability makes it dicult to know when or where devasta,ng stock-outs will occur. remaining in which to make the Buering variability with physical buers alone increases required course correc,ons. inventory and reduces working capital. The results are a larger ongoing Priori,za,on without visibility into the eects of shi=ing work- priority causes a cascading set of issues with other jobs and expenditure of resources (i.e., processes, and o=en leads to excessive expedi,ng and increase over,me, premium freight, costs. cross shipments, outside buys, Costs are increasing from expedi,ng, over,me, premium freight, more inventory, etc.) and cross shipments, outside buys, etc. Workload and priori,es are constantly shi=ing. customer commitments that Inventory turns are too low. s,ll aren't sa,sed. The Too much inventory of some items and not enough of others. MANAGE Capability in the provides an easy to understand Key FuncNonality of MANAGE priority system for all in-process ONE number priority system: BRP (Buer Recover Percent) that provides focused priori,za,on and enables proac,ve management. work which signicantly Integrated Document Planning that accounts for process and improves execu,on resource variability when establishing the plan start and nish dates of each control document (e.g., purchase order, work order, etc.) for management. Problem areas a realis,c, viable plan . are iden,ed and priori,es adjusted while there is s,ll ,me Business Benets to do so without the need for Improved delivery performance. addi,onal resources. Reduced delivery costs. The results: beDer on-,me Improved customer vendor rela,onships. Increased resource eec,veness fewer and more focused shi=s in delivery performance with priori,es. shorter more reliable lead ,mes at a lower overall cost.
Learn more about how MANAGE improves your bo8om-line

The leverages your investment in ERP and MRP solu,ons by turning exis,ng data into easily and ac,onable informa,on to provide greater control over opera,onal processes (e.g., produc,on, repair, logis,cs, vendor management, etc.). The results: beDer on ,me delivery, shorter more reliable lead ,mes, lower costs (e.g., over,me, premium freight, cross shipments, outside buys, etc.). MANAGE u,lizes a patented process that monitors actual to planned material movement in rela,on to ,me buers with a ONE number priority system where the lowest value always indicates highest priority. The boDom line: YOUR DELIVERY CAPABILITY IMPROVES

WHY MANAGE WORKS

MANAGE

Physical Inventory Buers

In today's world, a great deal of aDen,on is given to sizing and loca,ng physical inventory buers. Inventory buers serve two purposes. First, they absorb the variability in customer demand. Second, they account for the variability in the ,me that it takes to replenish those inventory buers. When all is said and done, relying on physical buers alone does not provide the visibility needed to see when variability in customer demand, and/or ,me to replenish, will result in out-of- stock condi,ons. While knowing the status of shelf stock may indicate a poten,al problem; eec,ve proac,ve ac,on requires knowing where our re-supply of inventory is in rela,on to where it is supposed to be, and where and when correc,ve ac,on is needed. The solu,on is to MANAGE the ow of material in ,me to ensure the reliability of the re- supply process.

Buering variability with physical buers alone increases inventory and reduces working capital. If the ,me to reliably replenish our inventory buers is not properly aligned with customer demand, then out of stock and/or over-stocked condi,ons are likely to occur. For more informa,on on establishing customer demand paDerns based on this alignment process see the ANALYZE Capability of The .

Document Planning (e.g., work order, repair order, purchase order, etc.) of the re-supply process takes into account the variability associated with resources not always being immediately available to begin working on a job as soon as it arrives in their queue. Resources not being immediately available to work on a job could be the result of other planned ac,vi,es (e.g., vaca,on, preven,ve maintenance, etc.), or other unplanned ac,vi,es (e.g., currently working on another job, a job is taking longer than planned, out sick, machine broken, etc.). These add to the ,me required to reliably complete all steps in the re-supply process. To compensate, the inclusion of properly posi,oned and sized Time Buers into the Document Planning process provides the means by which we account for these sources of variability in re-supply. Using properly sized and posi,oned Time Buers, in conjunc,on with the ,me required to perform the actual work and the desired delivery date, provides the basis for dening the planned movement; which is used as the baseline for monitoring actual movement. Actual movement is derived from exis,ng transac,on informa,on. With Time Buers dened it is now possible to monitor their actual consump,on of ,me compared to their planned consump,on. The result is we can determine where and when over consump,on is likely to jeopardize mee,ng the planned delivery date.

It is the rela,onship between actual and planned Time Buer Remaining that powers the "ONE number priority system you can rely on.

BUFFER RECOVERY PERCENT (BRP) MANAGE

a new powerful operational measure that enables proactive management

The Buer Recovery Percent (BRP) is the key measure used to establish prioriNes. The lowest BRP indicates the process which has consumed the most buer, and as a result needs the most immediate a8enNon.
Tracking the consump,on of buers is the key because it allows managers to respond before problems cause real damage. The BRP relies on comparing actual material-ow movement to plan. Actual movements are based on transac,onal data taken from an exis,ng ERP system. Planned movements are established by calcula,ng the document plan, taking into account the variability associated with processing and resource availability. Using a patented process, MANAGE is able to normalize these values for a ONE- number priority which considers the varia,on caused by resource unavailability, supply channel disrup,on, demand varia,on, and work centers that operate on dierent schedules and ,me zones.

What it Takes to Run MANAGE

What You Already Have in Place
Dened work centers and process steps Iden,ed repor,ng points where transac,on data are captured within process ows Regular transac,on data updates Established Work Day Calendars for each Work Center/ Repor,ng Point Required Work Content (RWC)

What You will Need to Do

q Establish Reliable (NOT Average) Lead Times for replenishment and made to order commitments; i.e., a planned period of ,me between the placement and receipt of an order that is o=en greater than, and seldom less than the actual ,me required for each order placed to be completed q View Lead Time in terms of components that directly relate to managing the eects of supply chain variability, primarily: q Required Work Content (RWC) and Allocated Time Buer (ATB) at each Repor,ng Point q Safety Time Buer (STB) between the last Repor,ng Point and the planned nish date of the Document q Dene Allocated Time Buers (ATB), and the Safety Time Buers (STB) q Review and adjust scheduled start and nish dates in accordance with the MANAGE established planned start and nish ,mes to avoid star,ng too early or having a planned nish date a=er the scheduled nish date

THE BIG SUPPLY PROBLEMS

DELIVERY

& COST OF DELIVERY

To learn more about the capabili,es of: ANALYZE MANAGE IMPROVE PLAN SCHEDULE

Missing delivery commitments to internal customers, external customers, or

partners devastates an organiza,ons reputa,on. But all organiza,ons, whether vendor, manufacturer, wholesaler, or retailer, are challenged with not only accurately forecas,ng in the sales cycle, but in living up to promised delivery dates. Physical inventory buers only go so far in cushioning the eects of unpredicted supply chain problems or resource availability issues; this is why repriori,za,on of workow tends to consume more management-,me than it should. But, the problem with simply repriori,zing is that, while well-inten,oned, it results in sacricing delivery dates for one customer (or more) in order to sa,sfy another. In other words, the nega3ve cascading eect of workow repriori3za3on comes about because of lack of visibility into what ought to make up a priority, and an ability to see priori3es in rela3on to other priori3es. What is needed is a coherent, objec,ve, easy to understand priority system, for aligning all priori,es based on demand, resource availability, and supply chain performance, which accounts for the varia,on that impacts all three of these elements. MANAGE provides just such a measure.

FIND OUT MORE

and how MANAGE can put you in control of improving your delivery performance and reducing your costs of delivery; contact your AGI representa,ve today or visit www.goldraD.com.

USA: (203) 624-9026

Rising costs occur when we lack insight and a clear method to understand how

priori,es of work interplay with one another. Resources become stuck in a constant mode of expedi,ng, and managers are unable to accurately predict outcomes. Both issues are costly. The eects of over expedi,ng are well known, and add to opera,ng costs because of: (a) over-,me, (b) inecient alloca,on of resources where people are forced to work on the wrong thing at the wrong ,me, (c) increased reliance on costly physical inventory buers, (d) the eects of pira,ng inventories designated for other processes or customers, and (e) costs associated with acquiring addi,onal resources at short no,ce. All of these add up to unnecessary addi,onal opera,ng costs and lower boDom-line protability.

Copyright 2007-2013, Avraham Y. GoldraD Ins,tute, LP All Rights Reserved.

and are service marks or trademarks of the Avraham Y. GoldraD Ins,tute, LP in the United States and other countries.

U.S. Patent No. 8,433,592 and Japanese Patent No. 5039025 for ANALYZE. U.S. Patent No. 8,401,905 and Foreign Patents Pending for MANAGE and IMPROVE. U.S. and Foreign Patents Pending for PLAN and SCHEDULE modules.

Data contained in this document serves informa,onal purposes only. Na,onal product specica,ons may vary.

The fastest way to improve execuNon management is to

improve resource eec,veness while improving overall delivery performance. MANAGEs patented material management process monitors actual to planned material ow and provides the needed visibility into the status of material ow in ,me and in rela,onship to delivery performance.

These materials are subject to change without no,ce. These materials are provided by The Avraham Y. GoldraD Ins,tute, LP and its aliated companies for informa,onal purposes only, without representa,on of warranty of any kind, and The Avraham Y. GoldraD Ins,tute, LP shall not be liable for errors or omissions with respect to the materials. The only warran,es for the Avraham Y. GoldraD Ins,tute, LP group of products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as cons,tu,ng an addi,onal warranty.

MANAGE The ONE number priority system that works for you