Oded Cohen_Production_ENG_17 TOCPA_Vilnius_15 May 2015

17th International Conference of the TOC Practitioners Practitioners Alliance - TOCPA TOCPA www.tocpractice.com

15 May 2015 !ilni"s #ith"ania

Practical Advice on Implementing SDBR in Production Oded Cohen, TOC Strategic Solutions, Israel 15 May 2015

Oded Cohen Oded has over 35 years of experience in developing, teaching and implementing TOC methodology, solutions and implementation processes working direc rectly wit with Dr. Goldratt att all over over the wo worrld. Amo mon ng the countries to which Oded brings his expertise are the USA, Canada, Japan, India, China, the UK, Poland, Russia, Ukraine, Colombia, Chile, Peru, Turkey and many many othe others. rs. Oded has authored multiple TOC cont contri ribu bute ted d to nu nume mero rous us TOC bo book oks. s.

articles

and

Oded in the is the author of Ever Improve – A Guide to Managing Production the TOC Way , published in June 2010 2010.. Oded coco-authored red the book Deming & Goldratt: The Theory of Constraints and the System of Profound Knowledge – The Decalogue. Together with Jelena Fedurko Oded has co-authored the the bo boo ok Theory of Constraints Fundamentals. Oded is International Director of TOC Strategic Solutions Ltd and Founder and Co-President of TOCPA. www.tocpractice.com

[email protected] www.toc-strategicsolutions.com

17th International Conference of the TOC Practitioners Practitioners Alliance - TOCPA TOCPA

Practical Advice on Implementing SDBR in Production 

Introduction



Managing Production the TOC Way



Planning in MTO



Planning in MTA

3 www.tocpractice.com


SDBR The “Brand” Historically, the TOC approach to managing production was named as DBR – Drum Buffer Buffer Rope (The Race, Race, 1986). 1986). The DBR was the solution for production environments supplying supplying Customers’ Orders (MTO) and operating with bottleneck(s). The application of DBR expended to environments environments with no bottlenecks and therefore with market constraint . This application became significantly simpler (especially technically). technically). The name name given to the solution solution was changed changed to SDBR SDBR – Simplifi Simplified ed DBR The concepts of SDBR were w ere used in environments that produce stocks for availability . This TOC Solution is called MTA. Even though some of the mechanics of the solution differ from MTO, the solution is still call called ed - SDBR SDBR.. The “brand” name name of SDBR signifies - Managing Production Production the TOC Way covering the TOC Solutions for MTO and for MTA 4 www.tocpractice.com


Managing Production the TOC Wa

The approach stems from the TOC Way of Managing Flow, and includes:  Setting

up the Desired Service Level

 Three

basic managerial functions: Decision Making, Planning and Execution Control

 Three

major flows: Process, Information and Decision

 Buffers


and Buffer Management 17th International Conference of the TOC Practitioners Practitioners Alliance - TOCPA TOCPA

Setting up the De!ired Service "evel

High level of service means: • For MTO MTO Production Production (S-DBR) (S-DBR) – ensuring ensuring high high on time time deliveries (>99%) while having competitive quoted lead times (QLT). 

Measur Measuring ing:: DDP, DDP, T$D and QL QLT T

• For MTA MTA Production Production – ensuring ensuring high level level of availability (>95%) coupled with no excess inventory. inventory. For the portfolio of SKUs under MTA. MTA. 

Measuring: Measuring: Availab Availability ility,, Inventory Inventory Turns, DIOH



The Three Ba!ic Bloc#! o$ Managing Production Achieving the Performance in line with the set Service Level Decision Making

Planning

Execution Control

Setting up the objectives with the right measurements

Determining periodic plans (weekly, (weekly, monthly) monthly) and frequent detailed instructions (daily)

Tracking and controlling the execution of the plans

Decision Making is used also in Planning and throughout the Execution Control www.tocpractice.com


The Three Thr ee %lo&! %lo&! &ithin the S!tem Decisions Flow

Management / Workforce

Information Flow

Goal units Process flow

$

Blocking factor

Necessary Conditions (rules of the game): Such Su ch as - Ca Cash sh Flow Flow

www.tocpractice.com

Throughput

NP ROI


The TOC Production Bu$$er! Management / Workforce

Diagonal Buffer

Information Flow Decisions Flow

Production/Operation Production/Operation Buffer

1

Information Flow

Process flow www.tocpractice.com

% Order Complete

Stock Buffers

Goal units


TOC Bu$$er! %or Production Pr oduction

MTO Produc Productio tion n Buffer Buffer - Ti Time me Due Date Material Release

Process flow Time

MTA MTA

10

Material Release

Process flow

1 OH

www.tocpractice.com

t e g r a T l e y v r e o t L n e v n I


Production Planning

The TOC criteria for a good plan: 1. Prov Provid ides es fina financ ncia iall bene benefi fitt – supp suppor orts ts the the gene genera rati tion on of Throughput 2. Realistic – challenging but ac achievable 3. Co Cont ntai ains ns prot protec ecti tion on agai agains nstt dis disru rupt ptio ions ns (“Mu (“Murp rphy hy”) ”) The Buffers play important role in planning production.



Production Planning

The Production Plan should provide: The schedule for starting the production of the work orders orders - Work Orde Orders rs Rele Release ase • Instructions for loading the machine TOC splits the planning between the Planning Department (PPD) and Production Management PPD provides periodic plans for WOs Release. Usually weekly, weekly, but can be more frequent when needed. Production Management provides the detailed plan for the work of the machine for the very short term (Day, shift, next job, etc.) Priority is determined by the Buffer Status •



Bu$$er! and Planning MTO MTO Planning in the MTO environment is relatively simple. Once the company sets the delivery date of the customer’s customer’s order order – it becomes becomes the the Major Major Driver Driver of the system. Production Planning Department (PPD) determines the IDD – Internal Internal Due Due Date which which sets sets the the date for production to complete ALL the work which is needed for the Customer Order. Then PPD produces the plan for WOs release. The date for release is set to be Production Buffer (time) ahead of the IDD. Buffer Management tracks WO status starting from the date of release. 13 www.tocpractice.com


MTO Planning WO Relea!e

C"stomer Or$er %o.

&O Or$er 'eli(ery 'ate %o. re)"este$ *y the C"stomer

'eli(ery 'ate Promisse$

I'' Internal '"e 'ate

P+ Pro$"ction +"ffer ,&orin 'ays/

elease 'ate Planne$

CO- 01

WO-A01

5/5/2015

14/5/2015

12/5/2015

10

2/5/2015

CO- 02

WO-A02

18/5/2015

18/5/2015

16/5/2015

5

11/5/2015

CO- 03

WO-A03

18/5/2015

18/5/2015

16/5/2015

10

6/5/2015

CO- 04

WO-A04

18/5/2015

20/5/2015

18/5/2015

10

8/5/2015

CO- 05

WO-A05

18/5/2015

20/5/2015

18/5/2015

8

10/5/2015

CO- 06

WO-A06

28/5/2015

28/5/2015

26/5/2015

15

11/5/2015

CO- 06

WO-A07

5/6/2015

5/6/2015

3/6/2015

15

19/5/2015

CO- 07

WO-A08

28/5/2015

28/5/2015

26/5/2015

10

16/5/2015

CO- 08

WO-A09

12/6/2015

12/6/2015

10/6/2015

12

29/5/2015

CO- 09

WO-A09

12/6/2015

12/6/2015

10/6/2015

12

29/5/2015

CO- 10

WO-A09

18/6/2015

18/6/2015

16/6/2015

12

4/6/2015

www.tocpractice.com


MTO Planning Machine Schedule The work inst instruct ructions ions – assigni assigning ng jobs to machine machines s or operators is usually done by line management. The assignment is done at the beginning of a day or a shift or by the completion of a job. A job can be assigned when: • The WO is waiting in front of the machine • All the additional materials/components are available full “kit” “kit” – drawings, tools etc. is available available • The full Priority Priority – is dictated dictated by the color system system of the the status of the Buffers. www.tocpractice.com


Bu$$er! and Planning MTO MTO

Determining the Production Buffer • PB is set for the Customer’s Order • It must be challenging but achievable! • It can be: • Total Touch Time x 3 • ½ x Current Quoted Lead Time (QLT) • Any other formula that covers for the touch time, setup time and reasonable wait w ait times • Ideally PB should be as general as possible such as: per product family, family, per technological process etc.) • PB may vary with w ith order quantities or special causes 16 www.tocpractice.com


Plann lannin ing g in MTA MTA Planning in the MTA is shared between PPD and Production Management the same way w ay as in MTO. However, However, the role of PPD is more complicated than in the MTO. This is due to the dynamic nature of the “customer”. There is no IDD for the WO and also the quantity is not always predetermined. Production is expected to replenish stock that has been consumed consumed from from the FG stock stock – as planned planned by PPD. PPD is responsible to provide the desired desired service level with as little inventory as possible. Therefore, PPD has to make clever decisions on the timing and quantity of every new WO. 17 www.tocpractice.com


Stoc# Bu$$er $or MTA Repleni!hing Con!umption PPD is informed about the quantity to be replenished (TBR). PPD needs to decide when to release a WO and what quantity.

WO Release

To Be Replenished

Production


t e g r a T l e y v r e o t L n e v n I

Consumed

1 OH


MTA MTA Plannin Planning g WO Relea!e

For releasing a new WO PPD has to consider: 

The current status of the Stock Buffer



Availability of Raw Materials and components



Production capabilities



Changes to the planned level of stock as per Dynamic Buffer Management (DBM) recommendations.



The future situation of the stock buffer based on the expected arrivals and pattern of consumption (virtual buffer)



MTA MTA ' Bu$$e Bu$$er! r! and and Pla Plann nnin ing g ()*a ()*amp mple le ' arrival arrival! ! onl+ onl+



"in# ,et&een availa,ilit level level and production planning )*ample ,a!ed on a pilotThe availa,ilit level level o$ pilot S./! i! con!i!tentl con!i!tentl higher than that o$ non'pilot S./! Pilot S./!1

0on'pilot S./!1

Due to &hat1 www.tocpractice.com


"in# ,et&een availa,ilit level level and production planning Phas Phase e 2 – adde added d 28 28 SKU SKU = 47 SKU SKU

Phase 1 18 SKU Day 1 18.03.13

After 5 days 23.03.13

2.0.1 3.4

13.0.1 77.34

www.tocpractice.com

After 2 weeks 01.04.13

Day 1 19.04.13

After 10 days 29.04.13

2.0.1 1.54

01.0.1 3.4

One month later 30.05.13

0.05.1 7.4

1.0.1 66.74


Conclu!ion

The practical steps towards improving Planning: • Determine the mode of supply of your company: MTO, MTA or Mixed MTO with MTA. • Establish the desired level of service and relevant measurements. • Apply the relevant buffers • Monitor daily the buffers status and ask the right questions • Adjust the planning processes and procedures to support support acheivin acheiving g the Desired Desired Service Service Level. Level. 23 www.tocpractice.com


Oded Cohen_Production_ENG_17 TOCPA_Vilnius_15 May 2015

Recommend Documents