Pull flow is not a new technique. In the industrial era, Kanban loops have been around since at least the middle of the 20th century. The principle has likely been around for much longer, since it’s so simple and logical: replace what has been consumed, to align the supply chain with actual consumption. Who knows, … Read more
In a production workshop, with a supplier, in transport, there are …brrr, it’s a bit scary… yes, yes… supply chain EMERGENCIES. In my career, I’ve seen all kinds: red, bright red, dark red, and even black. At a car parts manufacturer I once worked for, you were never to raise your hand if the boss came … Read more
Cleaning up demand histories is a classic discipline for any forecaster in the supply chain. When generating a statistical forecast, you must first ensure that the historical data has been cleaned of outliers. Otherwise, beware of GIGO! (Garbage In, Garbage Out). This historical clean-up is generally carried out on monthly buckets, sometimes on weekly buckets. … Read more
How do you manage job shop complexity? It involves manufacturing products, often complex ones, in a succession of manufacturing operations carried out on equipment specialized by technology. For example, we carry out a succession of machining, painting, and assembly operations, with detours through subcontracted operations. Each piece of equipment – a lathe, a milling machine, … Read more
When you’re looking for IT systems to manage your supply chain, chances are you’ll be directed toward large, complex, and expensive systems. This trend dates back to the advent of ERPs in the 90s and is self-sustaining for an entire industry. If a system – an ERP, for example – is complex, it will require … Read more
In the ERPs of most factories, at any given time, there are many production orders with an end date in the past. A production order in the past means: “We will produce this product last week”. Spoiler alert: it won’t happen!… Unless you have the secret to going back in time, or a De Lorean. … Read more
The graph below shows the production orders created for a line of strategic finished products in an aeronautics plant. These are production orders, not planned orders. Each bar represents one day. Blue bars are production orders released to production: the workshop has the right to work on them. The gray bars are orders created, but … Read more
In the early 90s, I was in charge of IT at a Philips industrial site and had the good fortune of being in charge of our IBM 38 replacement with the brand-new AS/400 implementation, which had come out in 1988. This was a huge step forward, including for the planet (which wasn’t our concern at … Read more
One of the strengths of the DDMRP methodology is its ability to efficiently manage dynamic stock buffers. A DDMRP buffer with three zones (red/yellow/green) describes a replenishment loop that continuously adapts to changes in the pace of demand. The reorder point (top of yellow) increases during periods of high demand, and decreases when demand slows … Read more
We were recently approached to tender by a company looking for a forecasting and procurement solution. The tender included all the buzzwords of the moment: AI, big data, and a system that could process millions of planning actions per day (sic). When we talk to this company to understand their context, we quickly realize that … Read more
Since the introduction of computer-based material planning solutions, planners and supplier chain managers have been scratching their heads trying to determine how to properly size inventory buffers and safety stock settings. Try a Google search today reveals a multitude of different theories and formulas on how this can be done. Yet, planners today are still … Read more
When the world becomes more complex, a little nuance doesn’t hurt… A binary approach doesn’t usually solve problems. This adage also applies to the planning of our supply chains. Our management systems, by definition, are binary – running on computers more at ease with zeros and ones, true/false, than with progressive, nuanced gradation. The material … Read more
