Task: The Company had previously implemented project planning and production control systems but had a recognised weakness in the area of Sales and Operations Planning.

Approach: Other facilities in the division had already introduced their S&OP approach in accordance with the guidelines as provided in the company Production System. The approach was therefore to develop a bespoke system to suit the facility (with its especial business requirements) using this existing 'blue print' and to develop an effective rough-cut capacity modelling tool to underpin the approach.

The main steps were as follows:

• Review the best practice Sales and Operations Planning Process steps and make any necessary adjustments to suit the specific business needs.
• Establish the critical capacity resources
  • Manpower – e.g. project design resource
  • Special materials – e.g. fabrications, forgings
  • Manufacturing processes – m/c’s and skill-sets
• and their constraints
  • Normal capacity - demonstrated performance
  • Absolute capacity – additional shifts, and minor (e.g. tooling) expenditure
  • Operational reliability and flexibility – e.g. downtime, tool-change times etc.
  • Ramp-up reaction time – towards absolute capacity
• Determine the lead-time off-set ‘footprints’ for the main product types - to be used for indicative order promising and time fence traffic lights
  • Resource loadings against time backed-off from ‘due date’
  • Material lead-times
• Create an Excel model to incorporate the above and display load Vs capacity graphics, and Time Fence traffic-light tracking to ensure
  • Manageable cumulative loads (actual orders & forecast ‘probable’ and ‘possible’ orders)
  • Timely escalation of priorities if successful progression through the key project milestones is not maintained
• S&OP reviews held typically monthly unless exceptional circumstances dictate additional sessions

Benefits:

Improved quality and timeliness of decision-making enabling much improved Customer Service & further expansion at the site.