April 2013 Consulting.
Advice and Assistance for Manufacturers.
The assumption that bigger is better has been with us for many years and is built into many of our management systems and assumptions.
Posted in Inventory, Lean, Management, Manufacturing, Operations Management Tagged change-over times, collaborate, components, fixed costs, flexibility, forecast, inventory, Just-In-Time, Lean, lot size, management systems, materials, operations management, price break, production, quantity, raw materials, receiving, shipping costs, suppliers, unit cost, volume price, warehouse
It’s that time of year again. Time for digging out the snow blower and shovels, time for making resolutions, and time for business planning for 2013. Uncertainties include pending changes in federal tax law.
Posted in Inventory, Management, Planning, Risk Tagged agile strategy, agility, Budget, debt ceiling, economy, forecast, inventory, lead times, market trend, planning, resources, risk, risk management, S&OP, sales and operations planning, tax law, tax policy
Material requirements planning (MRP) is the calculation of potential shortages and replenishment activity from the master schedule using the bill of material and inventory availability data. Developed in the early 1950s, the basic approach still is at the center of every enterprise resources planning (ERP) system more than half a century later.
Posted in ERP/MRP, Inventory, Lean, Manufacturing, Operations Management, Planning Tagged capacity, competition, demand, Demand driven MRP, enterprise resources planning, ERP, ERP implementation, flow production management, forecast, global, inventory, inventory availability, kanban, Lean Manufacturing, Manufacturing, master schedule bill of material, material management, material requirements planning, MRP, MRP implementation, Orlicky’s Material Requirements Planning, position and pull, product cycles, production management system, production planning and control, push-oriented approach, replenishment activity, short lead times, shortage, software developer, theory of constraints, Toyota Production System
Supply chain and operations management professionals have a love-hate relationship with inventory. In production, there’s nothing worse than getting ready to start a job and discovering that parts are unavailable. Likewise, from a customer service perspective, it’s impossible to fulfill customer demand without the right amount of the right inventory at the right time. People in our profession love having parts and products when we need them, but hate any amount of inventory that ties up company money; takes up space; and causes extra, non-value adding work to handle, store, count, and manage.
Posted in Customer Service, Inventory, Operations Management, Planning, Procurement, Supply Chain Tagged buffer, customer demand, customer service, demand, fill rate, finished goods, forecast, inventory, inventory control, operations management, parts, plant floor, procurement, production, purchasing, raw materials, safety stock, service level, supply, supply chain, visibility
Advice for Manufacturers.
In the earlier days of the spread of Lean Manufacturing, there was a perception among many that you have to make a choice – Lean or ERP.
Posted in ERP/MRP, Inventory, Lean, Manufacturing, Operations Management, Planning Tagged capacity requirements planning, demand, demand-driven production, dispatching, engineering, ERP, financial management, flow manufacturing, flow production, forecast, inventory, kanban, Lean, Lean Manufacturing, make to demand, Manufacturing, Master Scheduling, material requirements planning, materials, MRP, physical inventory, planning, production activity, production activity control, production rate, receiving, repetitive management, replenish, replenishment, resource planning, rough-cut capacity planning, S&OP, sales and operations planning, scheduling, shipping
Advice and Assistance for Manufacturers.
Inventory is always a topic of interest for manufacturing people – there’s always too much overall, never enough of what you really need when you need it, and inventory ties up a lot of the company’s cash so it has the attention of executive management.
Posted in Inventory, Management, Manufacturing, Operations Management, Planning Tagged batch sizes, bill of material, critical path, cumulative lead time, demand, economy, equipment changeover times, flexibility, forecast, inventory, inventory management, lead time, management, Manufacturing, manufacturing lead times, processes, purchased lead times, shortage, shorter lead times, stocking levels, suppliers, wait times
The assumption that bigger is better has been with us for many years and is built into many of our management systems and assumptions. When we ask for the price for a quantity of goods, we naturally expect that the
Posted in Best Practices, Inventory, Lean, Management, Manufacturing, Procurement Tagged agility, collaborate, fixed costs, flexibility, forecast, inventory, JIT, Just-In-Time, Lean, lot size, management systems, production run, quantity, raw materials, receiving, shipping, storage, unit cost, unit price, volume discount, volume price
In manufacturing and distribution, there are differing approaches to inventory management characterized as either “push” or “pull.
Posted in Customer Service, Inventory, Manufacturing, Operations Management, Planning Tagged demand, distribution, distribution center, distribution management, forecast, inventory control, inventory management, lead times, lot sizing, Manufacturing, operations management, production, pull, purchasing, push, replenishment, warehouse
March 2012. Advice and Assistance for Manufacturers. Raw materials and parts inventory is maintained at a level that is required to meet the needs of the plant based on the production schedule and adjusted by procurement considerations like lot sizing
Posted in Best Practices, ERP/MRP, Inventory, Manufacturing, Operations Management, Process Improvement Tagged buffer, capacity planning, DBR, demand, drum-buffer-rope, ERP, finished goods, forecast, lead time, lot size, lot sizing, parts inventory, plant floor, procurement, production, production schedule, raw materials, safety stock, supply, theory of constraints, TOC, WIP inventory, work center, work flow, work-in-process
This unusually mild and snow-free winter calls to mind thoughts of forecasts and how inaccurate they can be. Does your business depend on the weather? Demographics? Economic cycles? Some other outside factor that may or may not be predictable? If so, then accurate forecasts may be particularly challenging. Is there a cure for the bad forecast blues?