Sorry for not updating my blog, but I am writing a book at the moment about my life in the UK. I guess it will be finished at some stage in July. And then I shall be back.
The book is called: "Dont mentschen ze var - a German on his Search for the Cucumber Sandwich".
Monday 29 June 2009
Thursday 4 June 2009
KPIs of SCP
SCP has a few KPIs by which one can see how well (or not so well) they have done.
Customer Service measured as Customer OTIF (On Time In Full). This KPI measures the orders a customer wants at what date with the ones actually delivered on that date. Whether these should be orders or order lines needs to be decided case by case.
Internal OTIF from factory to distribution centre (also called Factory OTIF). This is a shared KPI with SCO and measured the weekly planned orders with the actually produced orders which enter the distribution centre for distribution to the customers. This is more interesting in an MTS (Make To Stock) environment where SCP would be responsible for reorder points, safety stock, etc, as MTS orders are mainly generated by SAP or any other production planning system.
Stock. These stock KPIs can be expressed in total nominal stock value (raw material, finished goods, work in progress, packaging, goods for resale) or days of stock/inventory. Also, obsolete stock should be measured.
Customer Service measured as Customer OTIF (On Time In Full). This KPI measures the orders a customer wants at what date with the ones actually delivered on that date. Whether these should be orders or order lines needs to be decided case by case.
Internal OTIF from factory to distribution centre (also called Factory OTIF). This is a shared KPI with SCO and measured the weekly planned orders with the actually produced orders which enter the distribution centre for distribution to the customers. This is more interesting in an MTS (Make To Stock) environment where SCP would be responsible for reorder points, safety stock, etc, as MTS orders are mainly generated by SAP or any other production planning system.
Stock. These stock KPIs can be expressed in total nominal stock value (raw material, finished goods, work in progress, packaging, goods for resale) or days of stock/inventory. Also, obsolete stock should be measured.
Monday 1 June 2009
The Role of SCP (Supply Chain Planning)
The main task of SCP is to manage the forecast, plan and communicate, whereas it needs to be decided case by case to which amount and detail the planning part is to be undertaken.
I am perfectly happy with the minimum planning as in output planning, a wish list of which products need to be in the distribution centre at what date. Some planning departments also take over the whole of production planning (scheduling) as in scheduling which product needs to be produced at which line on what day, etc... I truly believe though that this kind of planning should remain within operations (more detail later).
Talking about communication, SCP should bundle the information which gets from the front end (sales and marketing) to operations. Nobody should be allowed to get in touch with operations but SCP.
And, SCP should manage the forecast of Sales and Marketing and allow operations (SCO) to plan resources.
I am perfectly happy with the minimum planning as in output planning, a wish list of which products need to be in the distribution centre at what date. Some planning departments also take over the whole of production planning (scheduling) as in scheduling which product needs to be produced at which line on what day, etc... I truly believe though that this kind of planning should remain within operations (more detail later).
Talking about communication, SCP should bundle the information which gets from the front end (sales and marketing) to operations. Nobody should be allowed to get in touch with operations but SCP.
And, SCP should manage the forecast of Sales and Marketing and allow operations (SCO) to plan resources.
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