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
- S&OP reviews held typically monthly unless exceptional circumstances dictate additional
Improved quality and timeliness of decision-making
enabling much improved Customer Service & further expansion at the site.