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MindMap Gallery Supply chain management-production operation strategy (applicable to machinery and equipment)

Supply chain management-production operation strategy (applicable to machinery and equipment)

Demand management/production planning/material control/inventory control, the purpose of supply chain management: to meet the increasingly unreasonable demands of customers with the lowest possible sluggish inventory, thereby achieving rapid turnover of corporate inventory.

Edited at 2024-03-08 21:07:55

PlotWizard

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Supply chain management-production operation strategy (applicable to machinery and equipment)

PlotWizard

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Outline

supply chain management Production operations strategy

The purpose of supply chain management: to meet the increasingly unreasonable demands of customers with the lowest possible sluggish inventory, thereby achieving rapid turnover of corporate inventory

Demand management

From the perspective of demand and production capacity, any demand of any industry or company cannot exactly match your production capacity. How to carry out "moving mountains and filling seas" and "peak-shaving and valley-filling"---advancing or postponing demand to meet production needs? Meet demand as much as possible while achieving "balanced production"

Gross - Sales Demand

Customer demand data - "Market Insights" looks at the macro, industry trends, and customers

Gross - Forecasted Demand

Historical Sales Data - Passive Forecasting - High Risk

Gross demand is in an "unconstrained" state, and the final demand plan must consider "inventory control variables" Output: "MPS Master Production Plan"

master production schedule

Master Production Schedule (MPS, Master Production Schedule) is a planning tool that mainly plans materials with independent requirements (what to do and when to do it). It is a bridge between market demand and factory capacity. Its output can be used as the source of MRP.

Production plan PS: reducer manufacturing plan/parts finished product manufacturing plan

Resource control plan: Plan annual resource plan based on annual order plan

Material Requirements Planning

Determine the use of internal and external resources based on supply capacity assessment "Dynamic Capacity Assessment" and inventory strategy

Personnel needs planning

Rapid development based on the company's high quality

Equipment requirements planning

Based on the "internal" resource investment part of "Dynamic Capacity Assessment", it can also be used as a source-supplier equipment

site requirements planning

Based on equipment, inventory control, and work activity space

process control plan

Based on product design, the process has been reliably verified - there is a quality control plan to ensure delivery

Material Requirements Planning

Material Requirement Planning (MRP, Material Requirement Planning) refers to converting demand into a demand plan for materials based on various demands (orders, forecasts, master production plans) and considering product structure (BOM), inventory, basic material data and other information. What to produce and when to produce, what to purchase and when to purchase)

Demand time fence: The demand time fence is a point in time during the MPS/MRP planning period, set between the current date and the planning time fence (between the current date and DTF, including confirmed customer orders. During this period , the production plan cannot be modified except after careful analysis and modification approved by superiors.

Planning time fence: The planning time fence is between the demand time fence and the last date of the planning period. Between the demand time fence and the planning time fence, it includes actual and forecast orders, while after the planning time fence, only the forecasted orders are included. Customer orders.

data analysis

Positive - there is a sales forecast

Based on "Requirements Management"

Reverse-No Sales Forecast-Grab Method

Sales model-important parts analysis

Production picking - filtering workshop/scrap repair abnormal picking

Inbound and outbound running account - abnormal data needs to be filtered

The analysis results should be fully evaluated - the results are used to adjust the execution of "planned orders" in a timely manner - to correct the "inventory threshold" to maintain corporate cash flow

Planning

Data cleaning:

1. Production picking-filter conditions: assembly workshop/date/material name/delete red words

1. One-level data - year, quarter, month/material category - use pivot tables for data summary

2. Second-level data - summary and perspective first-level data (previous year's data)

Eliminate end of life/set change-red

Mark materials with low consumption-non-standard/large models/new models-yellow

2. Sales Model - Parts Analysis

1. Condition confirmation: Determine whether it is a regular material/customized material (need to ask the customer for cooperation intention)

2. View product trends - set related demand materials - usage coefficient (guaranteed/impact)

Annual - Evaluates total usage over the past 2 years

Analyze single part-component cost object usage (observe monthly trends) and set component coefficients

Eliminate unstable customized materials (exclusive customers)

Summary based on component coefficient - Develop a single monthly reference plan usage (lower limit/average/upper limit)

3. Prepare gross-material requirements plan-evaluate the usage trend of materials (including ingredients)* combined with this year's "business goals"

Look at the usage in the past year (quarterly and monthly fluctuations)

3. Inbound and outbound journal - abnormal data needs to be filtered - not used yet

Material categories

raw materials

Steel, aluminum, forgings, die castings

Standard Parts

Needle rollers, rollers, gaskets, bearings, circlips, oil seals, O-rings, screws, set screws, flat keys, transition plates, jackets, locking nuts, reducing sleeves

Processed parts

Ring gear, output shaft, planet carrier, planet gear, sun gear, gear shaft, flange, rear housing, input shaft, intermediate shaft, angle housing, bevel gear, gear

Packaging materials

Carton wooden box, pearl cotton, shaft sleeve, anti-rust bag

Excipients

Tools, grease, cutting fluid, packaging boxes, labor protection supplies, bubble bags

inventory strategy

Pickup plan

External-Customer Pickup Plan

Internal-parts requisition plan

Inventory control variables:

1. Material production lead time

1. Production capacity/time*space

2. customer service level

2.1. Fluctuations in actual demand

3. ordering strategy

3.1. Economic batch size

3.2. Material availability

4. Quality control level-yield

5. PLC product life cycle

5.1. New productNPI

5.2. Suppose variable EC

5.3. End of life EOL

inventory planning

After passing the "Inventory Control Variable" constraint, the calculation satisfies the requirement of "day/week/month" to maintain inventory (safety stock)

Safety stock - dynamic maintenance (according to actual order trend vs. supply capacity) combined with supply-side delivery plan (our company takes the initiative)

Planned order execution PR

Granularity by time: annual, quarterly, monthly

The time point of analysis must be considered - it is dynamic, confirm the "generated MPS/MRP"

scenes to be used

Long-term - annual material requirements planning → not for actual execution of orders → as input for other resource items in "Resource Planning" (internal production, external suppliers)

Mid-term-T March plan for placing quarterly orders → increasing production delivery flexibility

Short-term - Calculate the difference rate = (actual usage - planned usage) / planned usage, adjust the T March production plan according to the actual demand trend, and actually use (weekly and monthly delivery plan) to balance inventory

Procurement plan P0

Standard Category - Supply Capacity (Filing Period)

Supply management - access, performance, volume and price, payment cycle

Based on quality-price-delivery-service

raw materials

Forgings and die castings - supply capacity (initiation period)

Steel, aluminum-supply capacity (filing period)

Production plan WO

Production Scheduling PS Fine Scheduling - According to the part production process/standard working hours - from equipment to people

Dynamic capacity assessment

Capacity calculation formula

[Unit hourly production capacity = (60 minutes * utilization rate) / standard working hours (minutes)] * production time / (day/month/year)

Standard working hours = program working hours, clamping working hours

Utilization rate = startup rate * performance utilization rate * yield rate

Power-on rate = power-on time/working time

Performance utilization rate = current man-machine ratio loss (for example - 1 person watching 1 unit 100%/unit, 1 person watching 2 units - 90%/unit)

Yield=Number of qualified products/Total number of production

Internal and external supply capabilities

Standard working hours (single process, overall)

Equipment efficiency*quantity, production hours*shift

Human-machine matching rate

Material planning level measurement indicator: complete set rate FKR

Complete set of reducer materials/complete set of process flow materials

Information management

As a support tool - business and financial integration - operational transparency - provide effective decision-making

Supply chain operation health check list

Delivery achievement rate OTD

Deliver resilient OTDD

Delivery ReliabilityOTDC

Inventory turnover ratioITO

Inventory accuracy IDA

Dead inventory E&O

Cash flow turnover C2C

Return on assets ratio ROL

Inventory holding cost ICC

Accounts receivable cycle ARD

Payable Period APD

Operating profit after tax PAI

Average inventory holding days DOS

Case: Company A and Company B both make similar reducer products, with sales of 100 million each. A-The company has a net profit of 20 million W, 50 employees, and fixed asset investment of 100 million; B-Company has a net profit of 1,000W, 100 employees, and fixed asset investment of 150 million; Gap analysis (marketing system analysis, production operation and maintenance analysis)? How to improve our performance? Where to start? How to control costs? How to effectively monitor improvements?