Go Beyond Simple Productivity improvement with Optimized Production Scheduling

Transcription

1 Go Beyond Simple Productivity improvement with Optimized Production Scheduling Michael Evans Marketing Manager The Preactor Group Denis Ouellet Director West Monroe Partners Chriss Poliquin Senior Architect West Monroe Partners

2 Biography Presenters Michael Evans, The Preactor Group Marketing and Communications Manager at the Preactor Group 15+ years prior experience in marketing for various companies such as Dell, Sprint and other specialized software vendors Responsible for coordination of all marketing activities for Preactor for the North American market Denis Ouellet, West Monroe Partners Director of Supply Chain Planning Practice at WMP Manufacturing Engineer with 23 years of experience Former Manufacturing, Planning, Logistics and IT manager in various industries In consulting since 2002 More than 20 production scheduling optimization projects realized throughout North America Chriss Poliquin, West Monroe Partners Senior Architect, Co-Leading the Preactor Practice at WMP Background in Software Engineering and computer science More than 10 years of software engineering experience applied to Supply chain Over 20 projects in Supply chain (Architect, Project Manager, Functional, Technical, Integration) Expert in solutions architecture, advanced data manipulation and analytics 2

3 Agenda I. 11: 00 - Introduction to West Monroe Partners and Preactor - 5 min II. 11:05 - Challenges in Manufacturing / Planning & Scheduling - 20 min III. 11:20 - Introduction to Preactor Advanced Scheduling - 5 min IV. 11:30 How Preactor APS can help - Demo - 10 min V. 11:40 Typical Project Costs, Effort and Value Proposition - 10 min VI. 11:50 - Question Period - 10 min 3

4 The Preactor Group is the editor of the software Preactor, the most deployed Advanced Planning and Scheduling software in the world with over 4500 customers, 11,000 licenses. Today our network includes over 400 partners providing local expertise and support to our customers in 70 countries. Dallas, TX USA Chippenham England Lyon France Bangalore India Preactor Group company Gold Partner Accredited Partners and Our Own Staff offers Worldwide Support

5 West Monroe Partners 5

6 Who We Are About Us Our Position: We are a team of business and technical experts working together with clients in industries undergoing profound change. We help companies solve their most complex challenges so they can rapidly adapt, shift gears and thrive. Established in Founded by a team from Arthur Andersen, West Monroe is full-service business and technology consulting firm People. We have more than 375+ experienced consultants. Organization. We are 100% employee owned. We answer to our people and our clients only Growth. We are growing at a fiveyear growth rate of 206 percent. Holistic Business Solutions. Rely on industry, functional and technical expertise to drive strategy, manage execution, and measure results Seamlessly Serve Clients. Ability to serve the needs of Fortune 500 and remaining flexible to provide solutions to more nimble, middlemarket clients Geographically Close. Serve clients on site across North America Key Partnership with The Preactor Group for 10+ years. 6

7 Our distinctive combination of functional expertise, industry experience, and deep business & technical know-how delivers sustained success. 7

8 Why are we here today? Manufacturing Market pressures 1. Increased Agility 1. Cut manufacturing cycle times 2. Quickly react to customer requests / order changes 2. High reliability and predictability 1. Increase On-Time delivery Performance 2. Be able to easily and quickly predict delivery 3. Do More with Less / Become as Lean as you can (margin erosion) 1. Increase plant, assets and employee productivity 2. Reduce, Cut down WIP and Raw material inventory 4. Supply Chain Integration and Visibility 1. Customer intimacy 8

9 Why are we here today? Key Planning & Scheduling Challenges and their impact on overall competitivity 1. What should we be producing in the next days, weeks to come? 2. Which machine, operator should we use for a particular order? 3. Which sequence will yield the best results? 4. How can I balance WIP, OTD, Setup Reductions and Efficiency? 5. What should be my lot sizes? 6. How can I know the impact of a rush order <insert> on my commitments to other customers? 7. How can I plan and react for unexpected events such as downtime and key operator absence? 8. What is my right level of staffing for the next weeks, months to come? 9. What should I forecast and buy in the next months to balance service levels with inventory levels? 10. How can we integrate forecasting, planning, scheduling and execution in a reliable and efficient manner and promote better collaboration between the operations and sales teams? 9

10 Planning & Scheduling in Manufacturing 10

11 Levels of Planning Levels of Planning Annual Strategic Planning Budgets Monthly, Weekly Tactical Planning S&OP, MPS, Capacity Planning Daily, hourly Operational Planning Detailed Scheduling Real Time Execution Shop-Floor Control and monitoring 11

12 Planning vs. Scheduling Planning Mid to long term Often aggregated Typically bucketed More abstract Detailed Scheduling Shorter term Real world less abstract Based on a model of the process Constrained Understands sequence

13 Planning vs Scheduling Planning versus Scheduling Total Setup Time 100% Used Capacity Planning A 6 A6 A 5 A5 A 4 A4 A A3 3 A A2 2 A A Detailed Scheduling A6 A5 A4 A3 A2 A1 Capacity Gain Preferred Sequence is Green, Blue, Red for minimized setup Resource Resource

14 Methods for Scheduling Which Methods for Scheduling are you using?? 1. Production Meeting 2. Production White Board 3. Excel-Based planning systems 4. ERP - Rough-cut planning 5. Lean Heijunka 6. FCS (Finite Capacity Scheduling) and APS (Advanced Planning and Scheduling) 14

15 Methods for Scheduling 1- Verbal Production Meeting Priorities managed locally Multiple Lists Poor mid-term visibility Crisis management Inability to know impact of decisions 15

16 Methods for Scheduling 2- Visual White Board A static decision support tool 16

17 Methods for Scheduling 2- Visual White Board To handle dynamic problems. 17

18 Methods for Scheduling 3- Excel Multiples linked Excel Files Multiple formulas Difficult to maintain Decentralized knowledge Non-Consistent and manual 18

19 Methods for Scheduling 4- ERP : Rough-Cut Capacity Planning Demand Management Final Assembly Scheduling Task Production Planning Master Production Scheduling Materials Requirements Planning Tool Resource Requirements Planning Rough Cut Capacity Planning Capacity Requirements Planning Long Range Medium Range Capacity is by weekly/monthly buckets No notion of sequencing No notion of constraints Plans generated are NOT always feasible Production Activity Control Input/Output Control Operation Sequencing Short Range 19

20 Methods for Scheduling 5- Lean Heijunka & Kanban Kanban: Pull system that triggers replenishment of material based on buffer depletion Kanban is also a scheduling system that tells you: What to produce When to produce it How much to produce A Heijunka box uses Customer Kanbans to visually smooth production Heijunka blends Customer Kanbans and Stocking Kanbans to level production. 20

21 Methods for Scheduling 5- Lean Heijunka & Kanban The number of Kanban cards is based on historical demand data There must be enough capacity available to catch-up if production falls behind Because Kanban sizes are not dynamic [Kanban has no inherent ability to self correct] Kanban is NOT actually tied to current demand patterns. For Heijunka to work properly, Kanban sizes must be just right 21

22 Advanced Planning & Scheduling 6 -APS (Advanced Planning and Scheduling) APS Definition applied to manufacturing*: Analysis, planning and scheduling of manufacturing over the short and intermediate time periods. Computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation based on finite capacity scheduling (FCS), resource planning and scheduling, material and constraints synchronization and others. Synchronize Demand- Resources-Supply-Constraints *Source: APICS, 2008 WMP, Source: The Little Blue Book on Scheduling 22

23 Advanced Planning & Scheduling APS: How does it work? Customer Orders GL AR Procurement AP ERP MPS ERP BOM & Inventory Tools Other Constraints Setup Matrix Sequencing Rules APS Resources Resource Groups Operator Skills Calendars APS Work-to-Lists SFDC Shop Floor 23

24 Advanced Planning & Scheduling APS: ACCURATE & detailed model of the plant 24

25 APS Myths Top Detailed Production Scheduling Myths and Misconceptions 1. APS is a PUSH System 2. APS and LEAN are incompatible 3. I am LEAN therefore I do not need APS 4. APS is hard to implement and too costly 5. APS are for big companies 6. My ERP planning tools are sufficient 7. My process is too complex to schedule 25

26 APS Maturity Model APS Maturity Model / Improvement Path Supply Demand OTD WIP Efficiency Cycle Time Agility Visibility Excel / Manual, MRP Supply OTD WIP Efficiency Cycle Time Agility Visibility Capacity Planning, Shop Floor Data Collection, LEAN Execution OTD WIP Efficiency Cycle Time Agility Visibility 1 Finite Capacity Production Scheduling, SFDC, LEAN Execution OTD WIP Efficiency Cycle Time Agility Visibility Advanced Production Scheduling (with Opt.), SFDC,LEAN Execution OTD, Fill Rate Margin $ optimization Integrated companywide S&OP (Financial metrics) Fill Rate OTD FCST Error Inv. Turns Sales & Ops Multi-user Collaboration (Top-Down, Bottom-Up Forecast) 2 5 Balanced Supply & Demand Process and System Driven 4 Fill Rate OTD FCST Error Inv. Turns 3 Systemdriven Statistical forecast Demand Fill Rate OTD FCST Error Inv. Turns Basic Excel Forecasting in place (driven from past history) Fill Rate OTD FCST Error Inv. Turns Sales or Ops centric (no fcst)

27 Introduction to Preactor Advanced Scheduling 27

28 Preactor Advanced Scheduling Preactor is an APS tool APS = Advanced Planning and Scheduling aimed primarily at manufacturers also used in service industries and logistics too.

29 Preactor Advanced Scheduling starting simple highly visual one-click scheduling drag and drop interaction multi-constraint finite scheduling = feasible schedule

30 Preactor Advanced Scheduling getting smarter what if? scenario planning optimize sequencing compare on multiple measures model specific processes support complex material constraints Large scale assembly Divergent processes Co-products, by-products etc.

31 Preactor Advanced Scheduling Preactor APS in Action

32 Let s see How Preactor APS can help Key Planning & Scheduling Challenges and their impact on overall competitivity 1. What should we be producing in the next days, weeks to come? 2. Which machine, operator should we use for a particular order? 3. Which sequence will yield the best results? 4. How can I balance WIP, OTD, Setup Reductions and Efficiency? 5. What should be my lot sizes? 6. How can I know the impact of a rush order <insert> on my commitments to other customers? 7. How can I plan and react for unexpected events such as downtime and key operator absence? 8. What is my right level of staffing for the next weeks, months to come? 9. What should I forecast and buy in the next months to balance service levels with inventory levels? 10. How can we integrate forecasting, planning, scheduling and execution in a reliable and efficient manner and promote better collaboration between the operations and sales teams? 34

33 Typical Project Costs 35

34 Typical Project Costs Typical Preactor APS Project Costs Different modules for different needs TOTAL project costs (excl. maintenance): Approx. $30K - $200K (single site configuration) Multi-sites Licensing available Sub-assy syncho. Optimize Sequencing Material constraints Simpler requirements Linear routings M i g r a t i o n Start Simple, get benefits rapidly, Migrate and leverage more advanced features when ready Typical project timeline: 2/3 months (FCS) 4/6 months (Simple APS) (Get it in) On-going improvements / optimization, stabilization (6-12 months) (Get it optimized) 36

35 Documented Benefits of Preactor Advanced Scheduling Up to +80% on-time delivery Up to -50% inventory levels Up to +25% plant utilization Up to -50% WIP stocks Up to -75% Scheduling Cycle Time Up to -50% Mfg Cycle Time Typical ROI in 6-12 months

36 Sample Case Studies Preactor APS sample case studies Sivaco Hoerbiger EuroCopter Mid-sized Wire manufacturer in Canada Large compression technology manufacturer Large Aerospace TIER1 OEM located in France Fully interfaced with internal homegrown ERP application The schedule time for the key department (core business) has been reduced by 50% Low-volume, High-mix manufacturing complexities with 180,000+ items, 10,000 active ops. Moved from a manual LEAN- pure pull system to a combined implementation of Preactor and Factory Viewer MES leveraging LEAN execution Before Preactor, The DAUPHIN Assembly line was not optimized. Many orders were delivered late. Preactor now manages 45,000 parts that constraints are applied to Setup Times reduction Fully interfaced with SAP Fully interfaced with SAP Better control on Raw material availability when launching new jobs Significant reduction of Late orders 20% increase in productivity A 30% Cycle Time Reduction was achieved

37 Summary Leverage APS integrated with ERPs to improve scheduling process. APS is Compatible with LEAN execution Fast ROI and real business impact. APS typically pays for itself in 6-12 months Simple to use, one-click scheduling, interactive UI Start simple, Scale up to more complex scheduling logic, what if s, etc. and get incremented benefits

38 WMP Contact Information For any questions, comments, or feedback on content please feel free to reach out to WMP contacts for assistance Thank you / Questions? Denis Ouellet Director Supply Chain Management Chriss Poliquin Senior Architect Supply Chain Management Tel [email protected] Tel [email protected] 40