Beruflich Dokumente
Kultur Dokumente
Summary
Most
organiza,ons
expend
a
lot
of
,me
and
resources
constantly
re-priori,zing
workow
in
order
to
meet
customer
commitments.
Re- priori,zing
work
in
one
area
o=en
has
a
cascading
eect
requiring
work
in
other
areas
to
WHILE
YOUR
COST
OF
DELIVERY
DECREASES.
be
re-priori,zed.
Addi,onally,
the
need
to
repriori,ze
work
is
usually
not
recognized
un,l
Business
Issues
there
is
liDle
or
no
,me
Variability
in
customer
demand
and
resource
availability
makes
it
dicult
to
know
when
or
where
devasta,ng
stock-outs
will
occur.
remaining
in
which
to
make
the
Buering
variability
with
physical
buers
alone
increases
required
course
correc,ons.
inventory
and
reduces
working
capital.
The
results
are
a
larger
ongoing
Priori,za,on
without
visibility
into
the
eects
of
shi=ing
work- priority
causes
a
cascading
set
of
issues
with
other
jobs
and
expenditure
of
resources
(i.e.,
processes,
and
o=en
leads
to
excessive
expedi,ng
and
increase
over,me,
premium
freight,
costs.
cross
shipments,
outside
buys,
Costs
are
increasing
from
expedi,ng,
over,me,
premium
freight,
more
inventory,
etc.)
and
cross
shipments,
outside
buys,
etc.
Workload
and
priori,es
are
constantly
shi=ing.
customer
commitments
that
Inventory
turns
are
too
low.
s,ll
aren't
sa,sed.
The
Too
much
inventory
of
some
items
and
not
enough
of
others.
MANAGE
Capability
in
the
provides
an
easy
to
understand
Key
FuncNonality
of
MANAGE
priority
system
for
all
in-process
ONE
number
priority
system:
BRP
(Buer
Recover
Percent)
that
provides
focused
priori,za,on
and
enables
proac,ve
management.
work
which
signicantly
Integrated
Document
Planning
that
accounts
for
process
and
improves
execu,on
resource
variability
when
establishing
the
plan
start
and
nish
dates
of
each
control
document
(e.g.,
purchase
order,
work
order,
etc.)
for
management.
Problem
areas
a
realis,c,
viable
plan
.
are
iden,ed
and
priori,es
adjusted
while
there
is
s,ll
,me
Business
Benets
to
do
so
without
the
need
for
Improved
delivery
performance.
addi,onal
resources.
Reduced
delivery
costs.
The
results:
beDer
on-,me
Improved
customer
vendor
rela,onships.
Increased
resource
eec,veness
fewer
and
more
focused
shi=s
in
delivery
performance
with
priori,es.
shorter
more
reliable
lead
,mes
at
a
lower
overall
cost.
Learn
more
about
how
MANAGE
improves
your
bo8om-line
The leverages your investment in ERP and MRP solu,ons by turning exis,ng data into easily and ac,onable informa,on to provide greater control over opera,onal processes (e.g., produc,on, repair, logis,cs, vendor management, etc.). The results: beDer on ,me delivery, shorter more reliable lead ,mes, lower costs (e.g., over,me, premium freight, cross shipments, outside buys, etc.). MANAGE u,lizes a patented process that monitors actual to planned material movement in rela,on to ,me buers with a ONE number priority system where the lowest value always indicates highest priority. The boDom line: YOUR DELIVERY CAPABILITY IMPROVES
MANAGE
In today's world, a great deal of aDen,on is given to sizing and loca,ng physical inventory buers. Inventory buers serve two purposes. First, they absorb the variability in customer demand. Second, they account for the variability in the ,me that it takes to replenish those inventory buers. When all is said and done, relying on physical buers alone does not provide the visibility needed to see when variability in customer demand, and/or ,me to replenish, will result in out-of- stock condi,ons. While knowing the status of shelf stock may indicate a poten,al problem; eec,ve proac,ve ac,on requires knowing where our re-supply of inventory is in rela,on to where it is supposed to be, and where and when correc,ve ac,on is needed. The solu,on is to MANAGE the ow of material in ,me to ensure the reliability of the re- supply process.
Buering variability with physical buers alone increases inventory and reduces working capital. If the ,me to reliably replenish our inventory buers is not properly aligned with customer demand, then out of stock and/or over-stocked condi,ons are likely to occur. For more informa,on on establishing customer demand paDerns based on this alignment process see the ANALYZE Capability of The .
Document Planning (e.g., work order, repair order, purchase order, etc.) of the re-supply process takes into account the variability associated with resources not always being immediately available to begin working on a job as soon as it arrives in their queue. Resources not being immediately available to work on a job could be the result of other planned ac,vi,es (e.g., vaca,on, preven,ve maintenance, etc.), or other unplanned ac,vi,es (e.g., currently working on another job, a job is taking longer than planned, out sick, machine broken, etc.). These add to the ,me required to reliably complete all steps in the re-supply process. To compensate, the inclusion of properly posi,oned and sized Time Buers into the Document Planning process provides the means by which we account for these sources of variability in re-supply. Using properly sized and posi,oned Time Buers, in conjunc,on with the ,me required to perform the actual work and the desired delivery date, provides the basis for dening the planned movement; which is used as the baseline for monitoring actual movement. Actual movement is derived from exis,ng transac,on informa,on. With Time Buers dened it is now possible to monitor their actual consump,on of ,me compared to their planned consump,on. The result is we can determine where and when over consump,on is likely to jeopardize mee,ng the planned delivery date.
It is the rela,onship between actual and planned Time Buer Remaining that powers the "ONE number priority system you can rely on.
The
Buer
Recovery
Percent
(BRP)
is
the
key
measure
used
to
establish
prioriNes.
The
lowest
BRP
indicates
the
process
which
has
consumed
the
most
buer,
and
as
a
result
needs
the
most
immediate
a8enNon.
Tracking
the
consump,on
of
buers
is
the
key
because
it
allows
managers
to
respond
before
problems
cause
real
damage.
The
BRP
relies
on
comparing
actual
material-ow
movement
to
plan.
Actual
movements
are
based
on
transac,onal
data
taken
from
an
exis,ng
ERP
system.
Planned
movements
are
established
by
calcula,ng
the
document
plan,
taking
into
account
the
variability
associated
with
processing
and
resource
availability.
Using
a
patented
process,
MANAGE
is
able
to
normalize
these
values
for
a
ONE- number
priority
which
considers
the
varia,on
caused
by
resource
unavailability,
supply
channel
disrup,on,
demand
varia,on,
and
work
centers
that
operate
on
dierent
schedules
and
,me
zones.
DELIVERY
partners devastates an organiza,ons reputa,on. But all organiza,ons, whether vendor, manufacturer, wholesaler, or retailer, are challenged with not only accurately forecas,ng in the sales cycle, but in living up to promised delivery dates. Physical inventory buers only go so far in cushioning the eects of unpredicted supply chain problems or resource availability issues; this is why repriori,za,on of workow tends to consume more management-,me than it should. But, the problem with simply repriori,zing is that, while well-inten,oned, it results in sacricing delivery dates for one customer (or more) in order to sa,sfy another. In other words, the nega3ve cascading eect of workow repriori3za3on comes about because of lack of visibility into what ought to make up a priority, and an ability to see priori3es in rela3on to other priori3es. What is needed is a coherent, objec,ve, easy to understand priority system, for aligning all priori,es based on demand, resource availability, and supply chain performance, which accounts for the varia,on that impacts all three of these elements. MANAGE provides just such a measure.
and how MANAGE can put you in control of improving your delivery performance and reducing your costs of delivery; contact your AGI representa,ve today or visit www.goldraD.com.
Rising costs occur when we lack insight and a clear method to understand how
priori,es of work interplay with one another. Resources become stuck in a constant mode of expedi,ng, and managers are unable to accurately predict outcomes. Both issues are costly. The eects of over expedi,ng are well known, and add to opera,ng costs because of: (a) over-,me, (b) inecient alloca,on of resources where people are forced to work on the wrong thing at the wrong ,me, (c) increased reliance on costly physical inventory buers, (d) the eects of pira,ng inventories designated for other processes or customers, and (e) costs associated with acquiring addi,onal resources at short no,ce. All of these add up to unnecessary addi,onal opera,ng costs and lower boDom-line protability.
and
are
service
marks
or
trademarks
of
the
Avraham
Y.
GoldraD
Ins,tute,
LP
in
the
United
States
and
other
countries.
U.S.
Patent
No.
8,433,592
and
Japanese
Patent
No.
5039025
for
ANALYZE.
U.S.
Patent
No.
8,401,905
and
Foreign
Patents
Pending
for
MANAGE
and
IMPROVE.
U.S.
and
Foreign
Patents
Pending
for
PLAN
and
SCHEDULE
modules.
Data
contained
in
this
document
serves
informa,onal
purposes
only.
Na,onal
product
specica,ons
may
vary.
improve resource eec,veness while improving overall delivery performance. MANAGEs patented material management process monitors actual to planned material ow and provides the needed visibility into the status of material ow in ,me and in rela,onship to delivery performance.
These materials are subject to change without no,ce. These materials are provided by The Avraham Y. GoldraD Ins,tute, LP and its aliated companies for informa,onal purposes only, without representa,on of warranty of any kind, and The Avraham Y. GoldraD Ins,tute, LP shall not be liable for errors or omissions with respect to the materials. The only warran,es for the Avraham Y. GoldraD Ins,tute, LP group of products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as cons,tu,ng an addi,onal warranty.
MANAGE The ONE number priority system that works for you