Manufacturing Planning Excellence
Executive Summary
Boost your Company’s Performance combining the Best Operations Management Practices and a Powerful Mining of Operational Data.
Modern manufacturing management systems allow capturing a huge amount of data from the supply chain and the manufacturing process.
However most of the manufacturing data is ineffective in improving the operational performance: unreliable, too abundant, not structured enough to drive management actions.
Levanto Partners help You improve operational performances getting the most from the manufacturing management system:
- Statistical correlations, data mining and highlight of key information
- Flow and bottlenecks streamlining: get most of your equipment
- KPIs driven performance improvement: focus on real priorities
- Working Capital reduction and ROA optimization
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You are Happy: You have Great Products and Plentyful of Customers !
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...but then Customers begin to Ask More and to Complain
...it was late, it wasn’t that good, it wasn’t as expected......does he really expect us to pay !?!
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and Competitors start turning around Hungry, Ready, Cheap and Fast
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So You Make Efforts to Increase Customers’ Satisfaction…
- More (Idle) Capacity
- More Inventories
- More Discounts
- More Quality Controls
- More Customization
- Longer Receivables
- ...for the same price!
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...and eventually End up somewhat Tired
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It’s then High Time to Review Your Planning System !
- Reduce Batch Size
- Launch at the Right Time
- Make it Linear
- Reduce Setup times
- Improve Reliability
- Enlarge Bottlenecks
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Look at Your plant from the Product’s point of view: usually it is waiting in a queue
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Not convinced? Think a minute at the impact of Batch size...
...there is Always a Queue to Board a (Batch) Ferry Boat
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Invest then to reduce Setup Times
SMED: Single Minute Exchange Device
Plan every minute and every single operation required for setup
- Batch Size Before SMED
- Setup Lost Time: 5%
- Setup duration: 30min
- Batch duration: 600min = 30/0.05
- Throughput: 1pc/min
- Batch: 600pc
- Batch Size After SMED
- Setup Lost Time: 5%
- Setup duration: 3min
- Batch duration: 60min = 3/0.05
- Throughput: 1pc/min
- Batch: 60pc
Investing in shorter Setup times will always be cheaper than investing in additional capacity
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Understand and segment Your Product mix from a Manufacturing point of view
Data are captured from Database, Statistically adjusted, and validated on the Shop-floor
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Trace and Simplify the Layout
- HISTORICAL LAYOUT
- 10km / product, a lot of crossings
- Optimized for the Equipment
- Confusion and Diluted Responsibilities
- COMPACT LAYOUT
- Little transfers, no crossings
- Optimized for the Products
- Clarity and Dedicated Teams
- Reduce footprint, transfer costs and WIP by 30%
- Eliminate Crossings: to offset 4 minutes waiting at a traffic light, You need to drive 10% faster over 100 km of motorway
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Choose the Bottleneck, don’t let the Bottleneck choose You
- Optimize plant output and return on assets, with the right bottleneck
- Don’t invest in a larger Highway... simply enlarge the toll station
- Stop fighting for high OEE (Overall Equipment Efficiency) on secondary roads
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Finally connect the dots and launch at the Right Moment
- Mid Term Plan
- Capacity Equilibration and Safety Stocks
- Backlog Monitoring and Customer Service
- Anything Else?
- Daily Reality
- Today 10h30, do I launch product A or B or both or none…???
- The saw is broken, the press is idle, the finishing guys are overloaded
- ...and the Boss said that this other order must pass first!
- Avoid motorways on the first day of vacations
- Set clear priority rules and stick to them
- Fight Randomness everywhere
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Stop Bad Quality before it is too late
Prevent Rework from becoming a standard: its hidden cost are enormous, their value small
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Improve Reliability: Preventing is Better than Curing (worth investing)
Emergency teams are always busy: plan your operations
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Keep Communication Simple on the Shop-floor to Align People and Progress Faster
The four principles of Patrick Antier
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Efficiency, Planning and Data
- Most of the data required to analyze the flows and to set priorities for action are probably in your manufacturing database
- Improving the flows brings enormous returns as it requires very little investment, and often prevent spending in unnecessary capacity
- Effective planning is a job for highly competent people, requiring statistical understanding and specific knowledge
- Choose the bottleneck, don’t let the bottleneck choose you: all other equipment need to show some redundancy
- Key challenge is to condensate large quantities of data in simple, readable, operational and statistically significant KPIs, product families, flow maps
- Randomness - rework, bad quality, micro-aleas, breakdowns - are the enemies of efficiency
- Setup times and preventive maintenance are a spending decision, driven by the returns of better service rates
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Levanto Partners Modular Road Map to Manufacturing Excellence
- Process Matrix Analysis
- Bottlenecks and Cycles Optimization
- Batch Size Reduction and SMED
- Productive Maintenance and FMECA
- Layout and Capex Optimization
- Fast Diagnostic
- Key Performance Indicators
- Inventories Management
- Forecast and Planning Organization
- Training and Change Management
- Backlog and Sales Analysis
- Customers and Suppliers Quick Fix
- Variants and Customization Management
- Pricing and Receivables Optimization
- Suppliers Optimization
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