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
The fact is, we have, and will continue to have, more and more destabilizing events for our supply chains.Your company may have a supply chain that was conceived in a different context to that of today. In the heyday of globalization, sourcing components from the other side of the world was the norm, and the … Read more
It took Brexit, the end of international law, a pandemic, a few near-global wars, and other vicissitudes for the Supply Chain planet to finally (almost) begin to free itself from the dictate: “Make accurate forecasts and you’ll ensure your company’s success by having the right product at the right time in the right place”. The … Read more
When you mention a Kanban board to the younger generation, they immediately think of a visualization board for to-do / in-progress / completed tasks – and the Agile project management method. Just do a web search, and that’s what you’ll find… For veterans like me, a Kanban loop is a replenishment management method – when … Read more
Particularly in the supply chain, good performance is above all the result of good processes, followed by committed teams… To establish these processes and define a supply chain improvement path, you need a compass. In my professional experience, I have been successively responsible for the supply chain of several companies. From the very first weeks … Read more
Production planning means striking a balance between shop floor efficiency and the agility required to meet customer needs. Planners and schedulers are torn between the injunctions of customers, production, and finance – reducing lead times, serving new urgent orders, resources optimization, limiting the time spent on changeovers, stabilizing the schedule, not being under constant stress … Read more
