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Thoughts on Just-in-time to Just-in-Case inventory

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  An interesting article and statistics. 77% of respondents use safety stock and the same % use Just-In-Time. I think many of us would consider the answers mutually exclusive. However, hidden in the data, is how big those safety stocks are. If the safety stock is really buffer stock between cellular lines and amounts to a few hours, or a day, of consumption then not a big deal. If, due to long lead times and offshore suppliers, the safety stocks are weeks of supply then it's a different story. The key is near the end - it's about lead/cycle times and component availability instead of finished goods inventory . Shorter lead/cycle time is better. If you can assemble to order, in a short time, you retain flexibility while offering responsiveness. Buffer stocks of components, especially if there is commonality across product lines/families, are easier to plan and manage than a magnitude higher number of final SKUs. The investment will be less as well. Surprisingly, only 69% of res...
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THOUGHTS & (Free) ADVICE ON PRODUCTION SCHEDULING SOLUTIONS

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 This article arrived in my InBox today and I thought it was interesting enough to share.  What I really like is Figure# 2 which is really a scheduling maturity level chart. Nobody should be shocked, but many firms are still on the far-left hand side. And that might be all they need to suit their business needs. I like technology and used to be a strong proponent of software solutions. HOWEVER, as I learned more and gained more real-life experience, I firmly believe there is a strong case to be made for deeper and more thorough implementation of lean tools with “pull” signal and takt times driving scheduling based on bottlenecks.   Before going to far forward with software solutions, which tend to be VERY expensive, take a moment to reflect upon some wisdom acquired over 4 decades including multi-site, global production and supply chain management:  Read “ The Goal ” by Eliyahu M. Goldratt and Jeff Cox Read “ Creating A Lean Culture ” by David Mann...
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DON'T FORGET ABOUT LEAD TIME (REDUCTION)

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As an eS&OP practitioner, the headline caught my eye. Good article discussing the issues around forecasting NEW product families and specifically SKU's in a new family. There is some good high level and tactical advice. The one thing that I would have liked to see is "reduce product lead time" with a focus on cumulative lead time (i.e. the total lead time through all levels). Everything in supply chain is easier if the lead time is short(er). Unfortunately, life seems to be throwing a lot of curve balls at the supply chain so this is difficult but not impossible. Any initiative that can reduce lead time is worthy of consideration and validation as to its practicality. READ THE ARTICLE hashtag # supplychain hashtag # supplychainplanning hashtag # salesandoperationsplanning
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Obeya Management

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  I really like the materials and content from this organization. Below is a great summary read on Obeya Management. I particularly like point #6 having been in those meetings where senior management resorted to table pounding, usually in meetings held so very early in the day which prevented folks from getting the latest information to delivery as part of their updates. Those meetings were a great learning experience. I resolved to schedule reasonable meetings at reasonable times of day. I think more got done and in a more positive environment. Read the whole article ! hashtag # lean hashtag # management
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Killing The "Ghost Jobs" Legend In Manufacturing

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Wow ! Let this quote from the article sink in. "A recent Quickbase productivity survey of manufacturing workers in the U.S. and U.K. found that **58% are spending fewer than 20 hours a week** on meaningful work . The remaining 20 or more hours are devoted to “gray work” — chasing information from multiple systems and various teams throughout the company, and burdened by technology and processes that just don’t deliver." Manufacturers should consider an end-to-end as-is process mapping exercise for "office" processes. Such an effort easily shows up all the places where your teams have to work outside the system, use multiple systems, or are working entirely manually. These would include transfer of engineering data to production, sales order management, planning, purchasing, and so on through to fulfilment. A great place to find multiple silos comes when mapping human resources management, time and attendance, job charging and payroll ! We have found the BPMN2.0 fram...
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Leveraging Interim Talent in Operational Leadership - discussion with Stephen Cherlet

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  Excited to share my latest guest appearance on MetaPod with host Ron Crabtree of MetaExperts™ ! We tackle the challenges of operational leadership, including the aging workforce, high turnover, and recruitment difficulties. Check out our discussion for actionable advice and insights on navigating these issues. Watch on YouTube   or check out the   MetaPod site with a range of discussions. hashtag # OperationalLeadership hashtag # MetaPod hashtag # InterimTalent
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