The world of supply chain experts loves a good turf war. When, ten years ago, I began to take an interest in the subject and to promote Demand Driven tactics in France, it was because they echoed in a relevant way my then almost 30 years of industrial experience in several industries. What appealed to … Read more
In our education, delaying work is not good. If you’re in the supply chain business, you’re even more inclined to anticipate – you’re resolutely forward-looking. If you’re in the supply chain business, you like to get things done, and make decisions – you’re resolutely action-oriented. These two qualities combined, plus a little friendly pressure from … Read more
We meet companies who are investing hundreds of thousands or even millions of dollars in their own digitalization projects – systems designed to meet their specific supply chain processes. It’s the “yes, but it’s different here” syndrome. There are solutions on the market that allow for extreme customization solutions, in all areas of the game: … Read more
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
