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John Darlington_VATX_10 TOCPA_Feb 2014_India - FIN
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10th International Conference of the TOC Practitioners Alliance - TOCPA
Feb 21-22, 2014 Noida, India
10th International Conference of the
TOC Practitioners Alliance - TOCPAwww.tocpractice.com
VATX Flow Analysis: Core
Problems and Customised
Solutions
John DarlingtonValueflow, ManagementUniversity of Buckingham, UK
21 February, 2014
10th International Conference of the TOC Practitioners Alliance - TOCPA
John Darlington
John Darlington is originally an accountant. John
qualified as a "Lean and Six Sigma Expert" through
the Renault Institute of Quality Management and as
a "Jonah" through the Goldratt Institute. He
worked for Allied Signal for thirteen years in the
Turbocharger division. His roles varied from
Financial Controller and IT Manager to Plant
Manager of the European Aftermarket. He spent
two years as Kaizen Director of the largest Forging
Group in the UK, where his role involved him
heavily in the systematic application of Lean
Manufacturing and Supply Chain Management. He
combines application with teaching for the
University of Buckingham on their MSc in Lean
Enterprise, specialising in Mapping, Capacity
Planning and Costing. John has been a guest
speaker at APICS, and SAPICS where he won the
Toyota Prize for Best New Idea
Contact details: [email protected]
+44 (0) 7811 440847
10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis
Plants classified by the BOM shape/ material flow.
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10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX is a constraint management method for determining the general flow of parts and products from raw materials to finished products.
Through conceptualisation it enables the identification of typical areas for improvement.
VATX Flow Analysis
10th International Conference of the TOC Practitioners Alliance - TOCPA
VAT Analysis - Dominant Characteristics and Issues
(1 of 4)
Metals Food Chemicals
V plant.
Few raw materials
Wide variety of finished products
Points of divergence/differentiation
Specialised plant and machinery
Often process flow orientated
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Issues:
V Plants
Plant utilisation important, often run campaigns
WIP too high
Lead time too long
Due date performance spread, late and early
Perceived to be not cost competitive
Always trying to reduce operating expense
10th International Conference of the TOC Practitioners Alliance - TOCPA
VAT Analysis - Dominant Characteristics and Issues
(2 of 4)
A plant.
Assembles products
Assembly driven
Many raw materials & bought out components
Process time a fraction of lead time
General purpose machines often in cells
Capital goods Aerospace
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Issues:
A Plant
Labour utilisation important, keep them busy
syndrome
WIP too high
Lead time too long
Due date performance poor, usually late
Lots of expediting, massive overtime
10th International Conference of the TOC Practitioners Alliance - TOCPA
VAT Analysis - Dominant Characteristics and Issues
(3 of 4)
T plant.
Wide range of products customised at assembly
Core of common components
High bought-out content
Market/customer service orientation
The modern assembly plant
Vehicle manufacture Electronics
TMaterial
flow
Issues:
T Plants
Component supply important, cannot forecast accurately
Usually problems with purchased parts lead times
Due date performance very spread, very late very early
Very high component stocks
Shortages everywhere, shortage steal shortage vicious circle
Wandering bottlenecks
Overtime everywhere
10th International Conference of the TOC Practitioners Alliance - TOCPA
Aftermarkets Repair & Overhaul Remanufacture
X plant.
Wide variety of components and finished products
Often short lead time response required
Different ratios of bought out and made in house
Contractual arrangements regarding product life
cycle support
Hub and local distribution issues
Issues
X Plants
Trade off between service and carrying costs
No statement of policy regarding target customer
service
Sourcing from suppliers
Inter company rivalries
Aged profile of stock
Pricing and copiers
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VAT Analysis - Dominant Characteristics and Issues
(3 of 4)
10th International Conference of the TOC Practitioners Alliance - TOCPA
VAT Analysis
Plants classified by the BOM shape.
Typical: Food / Metal / ChemicalSPECIALISED MANUFACTURING
CAPABILITIESM
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USUALLY A WELL DEFINED PROCESS FLOW FOLLOWED BY MOST PRODUCTS
ISSUES*COST*CAPACITY*DELIVERY
10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis
SPECIALISED MANUFACTURING CAPABILITIES
One way or another spare capacity is sold and a balanced plant emerges causing due
dates to be missed and creating extra unplanned operating expense
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Opportunities for products to be sold at various stages of production
Or bought in for additional processing
Plant lurches from under activity and cost saving mode when sales are low, to
bottleneck status and lates when sales are high
10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis
Unlikely to have a conventional MRP system(What for? Doesnt address our needs)Will Have:
-RAW MATERIAL STOCK (IN STORES)-CUSTOMER ORDERS
SHOULD HAVE:-ROUTINGS-WIP TRACKING
UNIQUE CAPACITY IS THE KEY (This is what you sell)GOOD SERVICE CAN OFFER SIGNIFICANT COMPETITIVE ADVANTAGE
10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis
Many materials and parts few finished products
Parts manufacture Often organised by type of machine
Sometimes by part type in cells
Separate Assembly and sub assembly areas
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10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis
Plants classified by the BOM shape.
SHIPS AIRCRAFT AERO WINGS BODIES
Typical material flow:
PRODUCT OR COMPONENTSYNCHRONISATION IS THE KEY
ISSUES:*STOCK*SYNCHRONISATION*LEAD TIME
10th International Conference of the TOC Practitioners Alliance - TOCPA
TMaterial
flow
Many finished products assembled from common components
Models options variants specials
Parts often purchasedCompetitive market
VAT Analysis
Plants classified by the BOM/Route shape.
10th International Conference of the TOC Practitioners Alliance - TOCPA
Automotive, Electronic Instruments, Furniture, Hydraulic Controls, Telecommunications
SUPPLIERS
CUSTOMERS
VAT Analysis
Plants classified by the BOM/Route shape.
PRE ASSEMBLY BUFFER
PRODUCTION ASSEMBLY
10th International Conference of the TOC Practitioners Alliance - TOCPA
MARKET ORIENTATEDPRODUCT ORIENTATED
Customisation to maintain volume/price
COMPETITION
On time delivery (DAS)
Procurement planning problems
Shortages* Kit Robbing/Stealing
ISSUESDelivery On time Lead Time
VAT Analysis
Plants classified by the BOM/Route shape.
10th International Conference of the TOC Practitioners Alliance - TOCPA
What are the implications of
these models on planning and
scheduling?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Terminology: Planning and Scheduling
Planning
A set of longer term actions that define the desired demand
profile, and capacity required to deliver it, such that the purpose
of the organisation is satisfied. Planning tends be to over longer
horizons and the buckets of times are often in months or
quarters or years
Scheduling
The critical difference distinguishing scheduling is that it also
involves sequencing of work and the time horizon is much shorter.
Depending upon the organisation and business the time buckets
can be hours or days but often not much more than a couple of
weeks
10th International Conference of the TOC Practitioners Alliance - TOCPA
Planning and Scheduling: Process Characteristics
Strategic
Tactical
Operational
Planning
Planning
Scheduling
Constrained
Least
Most
Horizon Bucketed Purpose
Months/Quarters
Weeks/Months
Days/hours/minutes Bucket less
Years
Months
Days
Acquisition and DisposalsMajor plant investmentMarket strategy
To ensure there is sufficient capacity and materials to meet customer demandTo Resolve conflicts
To execute the planTo meet specific due datesTo optimise resource utilisation within the constraints of the plan
10th International Conference of the TOC Practitioners Alliance - TOCPA
Process Flow
Forecast & Customer Orders
Management Policy The RulesWorking CapitalHeadcountOvertimeCustomer Service
Planning
SchedulingMRP or DBR
Material availability
Capacity availability
Stock,
Orders,
BOM
Resources,
Routes,
Calendars
Schedules
Drum Buffer Rope, Heijunka, Kanban
Conwip
10th International Conference of the TOC Practitioners Alliance - TOCPA
How does it apply to VATX
plants?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Scheduling For Flow In a true V Plant
300
120
8060
40 50 100 70
Schedules Essential At:ConstraintsPoints of DifferentiationDespatch
Shipping Buffer
Raw Materials
10th International Conference of the TOC Practitioners Alliance - TOCPA
Scheduling For Flow In a true V Plant
300
120
8060
40 50 100 70
Schedules Essential At:ConstraintsPoints of DifferentiationDespatch
Shipping Buffer
Raw Materials
InvInv
Inv
Buffering of Constraint Processes
10th International Conference of the TOC Practitioners Alliance - TOCPA
Scheduling For Flow In a true V Plant:
understanding the constraint characteristics
300
120
8060
40 50 100 70
Schedules Essential At:ConstraintsPoints of DifferentiationDespatch
Shipping Buffer
Raw Materials
InvInv
Inv
Buffering of Constraint Processes
The size of the required buffers are a function of process variation AND issues around the points of divergence
10th International Conference of the TOC Practitioners Alliance - TOCPA
Scheduling For Flow In a T Plant
Schedules Essential At:ConstraintsAssemblyDespatch
Shipping Buffer
Buffering of Constraint Process
A detailed schedule would try to get to a status where a non constrained parts should never hold up a constrained part in the Pre-Assembly Buffer. Assemble to order or finished goods. Manufacture by replenishment to the pre assembly buffer
Inv
300
78
120
100
48
38
75
Pre
Assembly
Buffer
Raw Material
280 300
120
100
Raw Material
Raw Material
46 Assembly
10th International Conference of the TOC Practitioners Alliance - TOCPA
Scheduling for Flow in an A Plant
A Plants: Complex MRP essential to nett of demand
per BOM level Likely to be many manufacturing
centres BOM accuracy vital MRP NOT used for scheduling,
maybe sequence Even APS systems are not
dynamic enough
Best to produce an MPS for each centre, and use
appropriate pull system for scheduling
For the centre a good description of the capacity
constrained resource is essential
10th International Conference of the TOC Practitioners Alliance - TOCPA
ERP/MRP have taken modern organisations as far as they can go in terms of
delivery of short lead time manufacturing. It should be retained for: -
Netting against current inventories and showing future demands
For rough cut capacity planning but for the most part Without the lead time
offsets applied first
In A plants manufacturing centres should be effectively decoupled compared
with today.
Each centre should become autonomous at a tactical level and completely
responsible for achieving the due date required by the customer centre(s).
Each centre should become responsible for what it buys and when
Each centre should determine when to launch work into work in progress
using the DBR or appropriate methodology, taking all constraints into account
simultaneously
The Manufacturing Centres should become responsible for their capacity planning
Requiring greater precision regarding product process characteristics
The planners need to get back to BEING PLANNERS not administrators of ERP
Summary : - Planning and Scheduling
10th International Conference of the TOC Practitioners Alliance - TOCPA
VATX Analysis Applied:Case Examples
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10th International Conference of the TOC Practitioners Alliance - TOCPA
A Case Study example Its too expensive to stop
10th International Conference of the TOC Practitioners Alliance - TOCPA
ControlCooled
Heat Treatment
Finish North Line
Finish South Line
Joy Mining Line
Die Shop
Cutting
Induction Heating
ForgeShotblast
Shotblast
The Schedule for the Forge is sensitive to batching.
Finishing only pulls what is required for the immediate
week ahead
DBR solution fits V plants very well: there are
often multiple scheduling points
Scheduling Points
Raw material
28.10 days
Finished goods
11.30 days
Work in Progress
34.70 days
10th International Conference of the TOC Practitioners Alliance - TOCPA
Measure of Improvement:
More Sales & lead time
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Closing WIP (Pcs) 10409113441250712693 8812 9360 7336 8739 7633 6781 6159 5136 7352 4945 4207
Sales (Pcs) 111071174814275130851440113945110101144013700156002075912476151041647316216
WIP Days 28.1 29.0 26.3 29.1 18.4 20.1 20.0 22.9 16.7 13.0 8.9 12.4 14.6 9.0 7.8
28.1 29.0
26.3
29.1
18.420.1 20.0
22.9
16.7
13.0
8.9
12.414.6
9.07.8
0
5
10
15
20
25
30
35
0
5,000
10,000
15,000
20,000
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Period
Manufacturing Lead Time as Measured by Days Inventory in WIP
10th International Conference of the TOC Practitioners Alliance - TOCPA
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VATX Analysis Applied:Case Examples
10th International Conference of the TOC Practitioners Alliance - TOCPA
Russian Factory
10th International Conference of the TOC Practitioners Alliance - TOCPA
Russian Factory Background
Core Problems
Low Delivery performance
High level of stock in finished goods and work in progress
Shortages of parts holding up main builds
Contributing Factors
Tendency to stick with manufacturing to an annual plan no matter what was really happening to demand
Large batch sizes compared to demand driven quantities made in the belief it saves cost of set up
Some Piece Part Payments
DOS based system but had been sold Advanced Production Software
10th International Conference of the TOC Practitioners Alliance - TOCPA
Complex Flow
Assembly Shop 26
Finished StockShop 61
Purchased Parts
Mechanical Shop 2
Base Elements Shop 15
Preparing Shop 11
Raw Materials
Orders
Assembly Shop 13
10th International Conference of the TOC Practitioners Alliance - TOCPA
Russian Factory Mapping Exercise
10th International Conference of the TOC Practitioners Alliance - TOCPA
The quantity of parts required is
lower because planning was set
for lot to lot. However the range
of parts required is likely to be
bigger
2009 Planned with batching2009 Planned lot for lot
Phase 1 Batching & Prioritising Shortages
10th International Conference of the TOC Practitioners Alliance - TOCPA
Phase 1
Phase 2
Phase 3
Primary MRP using XXX software at Shop/Area level to generate a Prioritised List
Gathering sufficient data at M/C centre level to develop Capacity Planning and more accurate Schedules (see sample Slide 27)
Identify logical constraints and apply a combination of APS if required, sensible buffering and pull/replenishment systems
Months 3 6 Months 7 15 Months 16 24
The stages of the improvement implementation journey
This is practical: we cannot leap to APS immediately!
10th International Conference of the TOC Practitioners Alliance - TOCPA
From To Move
Shop Shop 40 hours
Shop Area Shop Area 8 hours
Within Area Within Area 2 hours
Phase 1 Creating the prioritised list
Exceptions where XXX Co feel this is not sufficient
From To Move Time Based
Minimum
Batch Qty
Shop Shop 40 hours
Shop Area Shop Area 8 hours
Within Area Within Area 2 hours E.g. Batch size not less than 120 minutes of
processing time
10th International Conference of the TOC Practitioners Alliance - TOCPA
Route From To Lead Time for
Prioritisation ONLY
RC0201 RC0201 RC0202 8 HOURS
RC0202 RC0202 RC0401 40 HOURS
RC0401*2 RC0401 RC0402 8 HOURS
RC0402 RC0402 RC0403 8 HOURS
RC0403 RC0403 RC1001 40 HOURS
RC1001 RC1001 RC1002 8 HOURS
RC1002 RC1002 RC1099 8 HOURS
RC1099 RC1099 RC1101 40 HOURS
RC1101*1 RC1101 RC1102 8 HOURS
RC1102 RC1102 RC1103 8 HOURS
RC1103 RC1103 RC1307 40 HOURS
RC1307 RC1307 RC2601 40 HOURS
RC2601 RC2601 RC6099 40 HOURS
RC6099 RC6099 RC6199 8 HOURS
RC6199
TOTAL 304 HOURS
Phase 1 Creating the prioritised list
10th International Conference of the TOC Practitioners Alliance - TOCPA
Phase 1 Creating the prioritised list
RC1101*1 Part 6B8680374-05 Current Batch Size 220 Covers Demand for 5 months
RC0401*2 Part 6B8126085 Current Batch Size 200 Covers Demand for 1 month
10th International Conference of the TOC Practitioners Alliance - TOCPA
Phase 1 What would the Prioritised list look like?
Note that as we are working lot for lot the quantities are those really required by the customer work centre
Note that lists are in prioritised Job Order
Note that the start dates are likely to be in the past at first because of arrears. So the schedule start date is from now but the prioritisation is valid
Note current batch sizes are a waste of capacity, money & get in the way of more urgently needed parts
10th International Conference of the TOC Practitioners Alliance - TOCPA
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VATX Analysis Applied:Case Examples
10th International Conference of the TOC Practitioners Alliance - TOCPA
High Level Concept Tplant
PRE
ASSEMBLY
BUFFER
PRODUCTION
ASSEMBLY
3rd PARTY
SUPPLIERS
Order Book
(due date sequence)
Order 1
Order 2
Order 3
1234
42
32
Kanban movementsKanbans card(?)
Significant
characteristic:
Commonality of
parts
Scheduling options:
DBR
Kanban
Hybrid systems
10th International Conference of the TOC Practitioners Alliance - TOCPA
Introduction
Workshop 26th & 27th March 2007
Venue: Conference Suite
The objective was to have a common understanding
by all of the "Current State information systems
describing Demand Management, Capacity
Management, Inventory Management and the
Systems approach including measurements.
The following areas were represented to help
achieve this objective:
Forecasting and order entry
Sales
Production
Planning and scheduling
Purchasing
IT
Finance
Engineering
10th International Conference of the TOC Practitioners Alliance - TOCPA
Questions to be answered by the maps
Order Fulfilment system: How do we offer a delivery date? Order Forecasting and management: Do we achieve the
promised delivery date? Inventory: What inventory do we have where, for how long,
for who? Financials: What sales did we achieve, with what working
capital, at what operating expense? What was the throughput?
Do we have a joined-up system? Is the system predictable?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Questions to be answered by the
Forecasting and Order promising map
How do we forecast future demand?How do we set inventory levels for make to stock items?How do we offer a delivery date?Do we achieve the promised delivery date?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Questions to be answered by the
order fulfilment map
How well does production perform?How well is capacity described in assembly and primaries?How are batch sizes calculated?How frequently are batch sizes reviewed?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Questions to be answered by the
Inventory and Financial Maps
What inventory do we have?Where is it?How long has it been there?Why are we holding it?For whom?Did we achieve required levels of sales?Was the throughput as expected?Was the working capital as expected?Was the operating expense as expected?Are results predictable?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Workshop 26th 27th March 2009
World Wide Lock Maker
10th International Conference of the TOC Practitioners Alliance - TOCPA
Introduction
ASSA ABLOY Thinkflow Workshop 26th & 27th March
2007
Venue: Portobello Conference Suite
The objective was to have a common understanding
by all of the "Current State information systems
describing Demand Management, Capacity
Management, Inventory Management and the
Systems approach including measurements.
The following areas were represented to help achieve
this objective:
Forecasting and order entry
Sales
Production
Planning and scheduling
Purchasing
IT
Finance
Engineering
G.Morgan (IT), K.Andrews (Logistics), R.Essom (Mul T Lock Logistics), L.Wales (Thinkflow), J.Darlington (Thinkflow), L.Powers, Logistics) S.Newlands (Operations), Ian Turner (Planning) Dave Richards (Primaries) K.Bajwa (Logistics), A.Killip (Logistics), l.Robbins (Cylinders), M.Woodhouse (Padlocks), J.Cooper (Planning), N.Harkness (Purchasing), D.Chambers (Planning), L.McCourt (Bus Improvement), S.Firmstone (Planning), T.Brittle (Mortice), S.Allen (Bus Improvement), T.Neale (operations), R.Simpson (Planning), L.Philp (Engineering), I.Bartlett (Union Sales), T.Morton (Abloy Sales), K.Barry (Yale Sales), R.Tame (Thinkflow), P.Deans (Cyl RIM), D.Gilbert (Export), P.Curtis (Purchasing), I.King (Planning), D.Perry (Operations Director)
10th International Conference of the TOC Practitioners Alliance - TOCPA
Questions to be answered by the maps
Order Fulfilment system: How do we offer a delivery date?
Order Forecasting and management: Do we achieve the promised delivery date?
Inventory: What inventory do we have where, for how long, for who?
Financials: What sales did we achieve, with what working capital, at what operating expense? What was the throughput?
Do we have a joined-up system? Is the system predictable?
How do we forecast future demand?
How do we set inventory levels for make to stock items?
How do we offer a delivery date?
Do we achieve the promised delivery date?
How well does production perform?
How well is capacity described in assembly and primaries?
How are batch sizes calculated?
How frequently are batch sizes reviewed?
What inventory do we have?
Where is it?
How long has it been there?
Why are we holding it?
For whom?
Did we achieve required levels of sales?
Was the throughput as expected?
Was the working capital as expected?
Was the operating expense as expected?
Are results predictable?
10th International Conference of the TOC Practitioners Alliance - TOCPA
Forecasting Map Order Fulfilment Map
Work In Progress Map Financial Map
10th International Conference of the TOC Practitioners Alliance - TOCPA
The Final Forecasting and Order
Management Map
10th International Conference of the TOC Practitioners Alliance - TOCPA
The Final (?) Finished Goods Map
Source
Average
Finished
Goods
Inventory
overall in
Days
Average
Finished
Goods
Inventory
last 3
months in
Days
Overall
Saving /
(Additions)
's
Min
Order
Qty
Lead
Time
Review
Time
Target
Service
Level Over 's Under 's Nett 's
UKMANUF 51.24 55.00 320,152 10 7 7 95 1,148,195 (828,043) 320,152 FACTORED 205.24 211.46 3,637,292 100 84 7 95 5,113,549 (1,476,257) 3,637,292 FACT_PACK_UK 56.23 62.39 (94,860) 20 14 7 95 271,461 (366,321) (94,860) Check total 4280314Grand Total 147.37 152.12 4,280,314 6,533,205 (2,670,620) 3,862,584
Assumptions Uneveness
10th International Conference of the TOC Practitioners Alliance - TOCPA
The Final Financial Map
10th International Conference of the TOC Practitioners Alliance - TOCPA
Features of the Future State
1. Analyse the demand profile to determine which are suitable formake to stock and make to order
2. Develop a forecasting system for finished goods (UK Manufactured, Factored and Fact-Pack)*
3. Develop a forecasting system for the pre assembly buffers*(components located around the cells whether they be sourced from primaries, or bought out components)
4. Develop a time based capacity planner for areas/cells which is easy to use
1. Technical1. Mass update to BPCS for routings
5. Design the pull mechanism to finished goods replenishment or make to order such that it appears to be one system on the shopfloor
6. Assist in the design of training required to prepare the plant for the new system.
10th International Conference of the TOC Practitioners Alliance - TOCPA
How much and where should we hold inventory? We need finished goods if customers will not tolerate manufacturing lead times We need intermediate inventories e.g. pre-assembly buffers to indicate by
consumption what must be replenished by upstream processes
Flow of Parts out of Kanban SiteFormal Kanban SiteFlow of Parts between Secondary opsKanban Replenishment Signal
Key
Flow of Parts out of Kanban SiteFormal Kanban SiteFlow of Parts between Secondary opsKanban Replenishment Signal
Key
PADLOCKSASSEMBLY
PADLOCKSMACHINING
CYLINDER RIM
ASSEMBLY
CYLINDERSASSEMBLY
SPECIAL MORTICE
ASSEMBLY
VOLUME MORTICE
ASSEMBLY
CYLINDER RIM
MACHINING
CYLINDERSMACHINING
SPECIAL MORTICE
MACHINING
VOLUME MORTICE
MACHININGPainting
PlatingPRESSED
PARTS
CASTING
BO PARTS
TURNED PARTS
Subcontract
Whse = [W2]
RAW MATERIAL
Sequencing Board/Planner
Temporary Kanban Card Printing Station
PADLOCKSASSEMBLY
PADLOCKSMACHINING
CYLINDER RIM
ASSEMBLY
CYLINDERSASSEMBLY
SPECIAL MORTICE
ASSEMBLY
VOLUME MORTICE
ASSEMBLY
CYLINDER RIM
MACHINING
CYLINDERSMACHINING
SPECIAL MORTICE
MACHINING
VOLUME MORTICE
MACHININGPainting
PlatingPRESSED
PARTS
CASTING
BO PARTS
TURNED PARTS
Subcontract
Whse = [W2]
RAW MATERIAL
Primaries Secondary Ops
Operational Kanban Structure
Primaries Final Assembly
Operational Kanban Structure
Sequencing Board/Planner
Temporary Kanban Card Printing Station
10th International Conference of the TOC Practitioners Alliance - TOCPA
KANBAN CARD Example
Supermarket shelf is permanently identified in fixed location.
Each container contains a card, which are passed to the replenishment process kanban board and a copy to planning for keeping the w/o ERP system up to date when consumed by final assembly
10th International Conference of the TOC Practitioners Alliance - TOCPA
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VATX Analysis Applied:Case Examples
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Demand Categories
Type DescriptionNormal Continuous history with relatively high volumes, can be
forecast with confidenceErratic Intermittent history with medium to high volumes, can be
forecast with reasonable confidenceLumpy Very intermittent history with medium to high volumes, can
be forecast but with limited confidence. Preferably not made to stock
Slow Low volumes with some intermittent history, can be forecast with limited confidence. More suitable to make to order
Management Control
New
Very intermittent and unpredictable demand. Should not be made to stock
More than 6 periods with zero demand but with 4 most recent periods with demand greater than zero
All Demands Zero No demand in the last 12 months
10th International Conference of the TOC Practitioners Alliance - TOCPA
Sales Analysis Y Co
Demand Class No of PartsNo of
Parts as a %
Demand Demand as %
Normal 56 36.13% 18514 95.4%Erratic 29 18.71% 611 3.1%Lumpy 30 19.35% 280 1.4%Management Control 40 25.81% 5 0.0%New 0 0.00% 0 0.0%Active Demand 155 100.00% 19410 100.0%
No Demand last 12 months 63Total 218
10th International Conference of the TOC Practitioners Alliance - TOCPA
Y Sales Analysis (Sample of Normal Demand)
10th International Conference of the TOC Practitioners Alliance - TOCPA
Y Sales Analysis (Sample of Normal Demand
with Seasonality spotted)
10th International Conference of the TOC Practitioners Alliance - TOCPA
Y Sales Analysis (Sample of Lumpy Demand)
10th International Conference of the TOC Practitioners Alliance - TOCPA
Safety stock data requirements
10th International Conference of the TOC Practitioners Alliance - TOCPA
Summary:
For real optimum results, the One schedule fits all strategy is not true
To optimise results and flow, planning and scheduling has to use the most
appropriate solution for the department/ plant/ supply chain
The VATX concept is a simple way to understand typical characteristics and
issues of the systems
By studying the demand profile carefully and understanding the type of
plant you work in you can make an informed decision about which pull
system to adopt to deliver high customer service with less inventory which
will significantly improve bottom line performance.