Professional Documents
Culture Documents
Policies:
-
One
on
one
-
Safety
stock
Manufacturing
methodologies
Pros
Cons
Make
to
Stock
Could
be
Push
System,
they
already
have
it
Make
to
order
Could
be
pull
-
-
Finished
Goods
Sub-assembles
Raw
materials
Forecasting Methods
Push
(MRP)
-
Integrated
-
Hard
to
change
orders
Planning
in
advance,
forecast
-
Computer
implementation
-
Severe
impacts
with
production
disturbance
based,
e
asier,
m
ore
Production
variability
Control
Pull
(JIT)
-
Inherent
cap
on
WIP
-
Cant
work
on
complex
product
without
a
master
-
Low
CV
is
Requested
order
(LEAN)
-
Less
cycle
variability
production
scale
better
More
effort,
coordination,
-
Maintains
flexibility
low
variability,
reveals
-
Limits
inventory
quality
problems
Judgment
-
Profit
margins
Experts,
Lack
of
data,
-
More
multisite
production
Combination
-
Increasing
competition
Reasons
for
focusing
-
World
economy
with
customization
on
the
SC
-
Customer
service
including
fast
delivery
Market
research
Focus
group,
representative
Time-series
Use
past
values
Trends,
seasonality,
cycles
Causes
of
variability:
-
Process
variance
-
Minimum
stock
-
Supply
variance
Causal
Use
another
characteristics
-
Demand
variance
to
explain
this
one
Information
_
90%
fill-rate,
good?,
depends
on
the
other
10%
Operation
-
-
-
-
-
-
Poor
coordination
Incomplete
shipment
methods
analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Product/Situation
OUTSOURCING
Dependent
on
knowledge
&
capacity
Outsourcing
is
risky
-
Design
Outsourcing
is
very
risky
Outsourcing is an opportunity
Outsourcing is an option
Actions
to
improve
SC
Supplier
Performance
Product
Process
-
-
-
-
Remove
bottlenecks
Size
buffers
appropriately
Adjust
FGI
safety
stock
Change
transportation
mode
-
-
-
-
Manufacturing
Customer
Demand
Lower
tolerances
Pool
engineering
change
orders
Reduce
product
offerings
options
Design
for
localization
Exponential:
!!! = ! (! ! )
!
= ! + !
! = + (1 )(!!! )
!
Double
Exponential
!
! = ! + (1 )(!!! + !!! )
!!! = ! + !
! = (! !!! ) + (1 )(!!! )
! =
!
!
! = (! !!! ) + (1 )!!!
!!! = (! + ! )!!!!!
Safety
Stock
= + !
Information
Get
things
to
the
right
place
and
right
time
Logistics
Reductions
in
unit
cost
as
the
size
of
facility
and
usage
levels
of
other
Economies
of
scale
Lead
time
Aggregate
forecast
Moving
Average
Stationary
Buffer
KISS
Tactical
Strategically
Customer
deliveries
SKU
FGI
QFD
EOQ
Fill-rate
Silo
organization
Why
sub-optimizing
SC
doesnt
work?
Physically
constraint
inventory
Inventory
Reductions
techniques
MOQ
multiple
order
quantity
inputs
increase
Time
required
for
the
product
to
get
to
the
next
echelon
Ussually
more
accurate
Lags
behind
trends
Independent
time
Reduce,
less
Keep
it
simple,
stupid!
Shorter
term
horizon
Longer
term
horizon
Can
impact
demand,
demand
goes
to
another
place
Stock
keeping
unit
Finished
good
inventory
Convert
need
into
engineering
characteristics
Economic
order
quantity
%
Orders
satisfied
Every
department
dont
care
of
the
other
Each
piece
will
hold
safety
stock,
increase
in
bullwhip
effect,
higher
prices
to
end
customers
Bigger
facility
Safety
stock
(tight
management
of
usage
rates,
leads
times
and
ST)
Counting
practices
(HM,C,,lLt
racked
as
close
to
real
time,
SM,nC,
sL
every
month
or
quarter)
Shift
inventory
(Suppliers
and
retailers
to
hold
more
inventory
,
MOQ)