An airplane is complex. There are tens of thousands of parts in the bill of materials for an airliner. To supply these parts, there’s a whole network of tier 1 suppliers, tier 2 suppliers, and n suppliers. The supplier base is made up of large multinationals, as well as a network of SMEs and mid-sized companies with very specific skills – it’s a … Read more
Factories prioritize value creation – the flow analysis from a factory determines the company’s ability to respond to its markets. When you visit a factory, beyond the state-of-the-art machines, the impressive technologies, and the exemplary 5S (or not), try to understand how these flows are connected to the needs of the company and its customers. A visit is quick – … Read more
A company seeks to satisfy the demand of its market – and therefore to ensure the availability of the goods and services it provides. A company faces capacity constraints – machines, people, skills, materials. To remain sustainable, a company must generate profitability – i.e. cash flow in excess of expenditure. Balancing availability, capacity, and profitability is therefore at the heart of day-to-day operations, and this balance must be assured for the future. All in … Read more
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
