This week I am doing the same as last week in Budapest. It is the same holding, but a different local client; the business is the same, but somehow the 2 sites are completely different.
I am doing the audit - Supply Chain Planning, Supply Chain Operations, and the Distribution Centre.
Showing posts with label SCP. Show all posts
Showing posts with label SCP. Show all posts
Wednesday, 9 September 2009
Saturday, 5 September 2009
Budapest, August 2009
I visited my client in Budapest for the week and undertook an audit of the management system I installed 2 years ago. The management system basically comprises the 2 main parts - an organisational separation from planning and operations, and the implementation of lean management tools which would help them to manage the operation efficiently.
I am flying to Budapest again in 2 weeks and continue and follow-up on the audit. I am also presenting a tool for stock management which will help them to make their stock situation visible and act accordingly.
I am flying to Budapest again in 2 weeks and continue and follow-up on the audit. I am also presenting a tool for stock management which will help them to make their stock situation visible and act accordingly.
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.
Thursday, 21 May 2009
The Brains and the Hands
Talking Supply Chain I'd like to start with the model. Like in many areas it is advisable to separate the "brains" from the "hands", which means, don't let the doers decide what they should do and how much. That never ends up at an optimum.
In a project I am always open for suggestions and agree happily on some alterations to the model and tools which I intend to implement, but on that issue I categorically stay tough: NEVER LET PRODUCTION DECIDE WHAT, HOW MUCH AND WHEN THEY HAVE TO PRODUCE SOMETHING!!!
In a project I am always open for suggestions and agree happily on some alterations to the model and tools which I intend to implement, but on that issue I categorically stay tough: NEVER LET PRODUCTION DECIDE WHAT, HOW MUCH AND WHEN THEY HAVE TO PRODUCE SOMETHING!!!
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