DDMRP Capacity Scheduling
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Transcript of DDMRP Capacity Scheduling
All material and © copyright Demand Driven Institute 2013, all rights reserved
Demand Driven Capacity Scheduling and Execution
Chad SmithPartner, Demand Driven InstituteCo-Author Orlicky’s Material Requirement Planning 3/ECo-Author Demand Driven Performance – Using Smart Metrics
All material and © copyright Demand Driven Institute 2013, all rights reserved
Planning and Scheduling is Harder Than Ever
• The Manufacturing and Supply Chain landscape is more volatile than ever – the bullwhip is alive and well in today’s environment
• Customer Tolerance Times have decreased substantially relative to the time it takes to procure, manufacture and distribute items
• Product variety, options and complexity has put tremendous pressure on planning and scheduling systems
• FLOW is the critical link between service, asset utilization and ROI
All material and © copyright Demand Driven Institute 2013, all rights reserved
The Demand Driven Operating Method
• The protection of FLOW is paramount• ROI is directly proportionate to the speed of flow
of relevant materials and information• Demand Driven operating methods seek to
protect the flow of both relevant information and materials
All material and © copyright Demand Driven Institute 2013, all rights reserved
DDMRP and Capacity Scheduling
• DDMRP has Implications for Capacity Scheduling• Advanced Session Webinars• Download the paper on DDMRP Master Scheduling for
more information
DDMRP Scheduling Basics
DDMRP uses buffered “Decoupling Points” to establish independent planned and scheduled horizons.
DDMRP creates resupply signals based on the “available stock” status of each buffer. This gives prioritized sequence based on actual need.
On-the-floor priority is then determined by the real time buffer status of the decoupling points that the open orders are feeding.
All material and © copyright Demand Driven Institute 2013, all rights reserved
When Will we Need More Scheduling Capability?
• When the use of better shop floor scheduling will compress lead times and reduce variability so that make item stock buffers can be reduced.
• When no decoupling point can be inserted before the shipping point. (Make or Configure to Order)
• Mixed-mode operation
Advanced Topics Webinar 3
All material and © copyright Demand Driven Institute 2013, all rights reserved
An Mixed-Mode Example
5 10 15
10 5 10
10
5
30 10 20 Customer
Supplier
Supplier
Purchased Components
Suppliers
In this case better scheduling and execution is required to synchronize and prioritize the make to stock and make to order business.
Better lead time and less variability within the plant will reduce the end item buffer.
All material copyright 2013 Constraints Management Group, LLC
Extending the Demand Driven Method
• The extension of Demand Driven methods to shop floor scheduling and execution can be seen in the new book Demand Driven Performance –Using Smart Metrics
• A series of articles in Strategic Finance Magazine previews the book – the articles are available for free download
All material copyright 2013 Constraints Management Group, LLC
Introducing Control Points
• Places to transfer, impose, and amplify control through a system.
• The 14th edition of the APICS Dictionary defines control points as “Strategic locations in the logical product structure for a product or family that simplify the planning, scheduling, and control functions. Control points include gating operations, convergent points, divergent points, constraints, and shipping points. Detailed scheduling instructions are planned, implemented, and monitored at these locations.”(p. 33)
C
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Placing Control Points
Placed between decoupling points with the objective of better controlling the lead‐time zones between those points. A shorter and less variable lead time results in less stock required at the decoupling point (a working capital reduction).
C
All material copyright 2013 Constraints Management Group, LLC
Placing Control Points
Placed between decoupling points and a customer when decoupling the end item is not possible or in a mixed mode operation.
Customer
Customer
Customer
C
Make/Configure to Order
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Determining Control Points
1. Points of Scarce Capacity determine the total system output potential. The slowest resource‐‐the most loaded resource—limits or defines the system total capacity.2. Exit and Entry Points are the boundaries of your effective control. Carefully controlling that entry and exit determines whether delays and gains are generated inside or outside your system.3. Common Points are points where product structures or manufacturing routings either come together (converge) or deviate (diverge). One place controls many things. 4. Points that Have Notorious Process Instability are good candidates because being a control point provides focus and visibility to the resource and forces the organization to bring it under control or plan for, manage, and block the effect of its variability from being passed forward.
All material copyright 2013 Constraints Management Group, LLC
Placing a Control Point
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Supplier
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Purchased Components
Suppliers
In this case we have a resource is both the slowest pace resource as well a major integration point in the routings
C →
→
→ →
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Scheduling a Control Point
5 10 15
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30 10 20 Customer
Supplier
Supplier
Purchased Components
Suppliers
→
→
→
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Replenishment orders
Sale
s O
rder
Dem
and
1 2 3 4 5 6 7 8 9 10 11 12
Capacity
The control point is finitely scheduled with both MTS and MTO orders
Sales orders→
Loading is important to see for lead time quotation
All material copyright 2013 Constraints Management Group, LLC
Synchronizing Material Release
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Supplier
Supplier
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Suppliers
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Schedule material release to the control point schedule
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Work orders
Work orders
Work orders
Late release will jeopardize the control point scheduleEarly release raises WIP levels unnecessarily
All material copyright 2013 Constraints Management Group, LLC
Control Point Schedules
30 Customer
Supplier
Supplier
Purchased Components
Suppliers
→
→
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C
We now have five schedules – all synchronized around a resource Control Point schedule (Drum)
→
DRUM
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Protecting the Schedule
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Supplier
Supplier
Purchased Components
Suppliers
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C
We must insulate the schedules against the accumulated variability that occurs in the sequences preceding the schedule – delays are passed on, gains are not
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How can we make sure that the schedules are maintained (not rescheduled)?
Note: the purchased part stock buffers protect the material release schedules against supplier variability
All material copyright 2013 Constraints Management Group, LLC
Time Buffers
Scheduled Start at Control Point
▼
Scheduled Entry to Buffer
▼
Early Late
WO 1595
WO 1781
WO 1601
WO 3279
WO 2001
WO 1626
C→
Upstream Processes
BUFFERGreen Yellow Red
Example: 9 hour buffer
All material copyright 2013 Constraints Management Group, LLC
Buffers Inserted
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All material copyright 2013 Constraints Management Group, LLC
The 10 Zone Buffer BoardScheduled Start at
Control Point
▼
Scheduled Entry to Buffer
▼
Early LateBUFFERGreen Yellow Red
Example: 9 hour buffer
Early LateBUFFERGreen Yellow Red
Yet to be Received
Received
WO 1626
WO 1626
Green
Yellow
Red
OK
Investigate
ACT
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
Received
Yet to Be Received
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Note: 16 hour work day
Current Day and Time: Monday, 7:00 am
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Current Day and Time: Wednesday, 10:00 am
Received
Yet to Be Received
Note: 16 hour work day
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Current Day and Time: Wednesday, 1:00 pm
Received
Yet to Be Received
Note: 16 hour work day
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Current Day and Time: Wednesday, 4:00 pm
Received
Yet to Be Received
Note: 16 hour work day
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Current Day and Time: Wednesday, 5:00 pm
Forced Reason CodeReceived
Yet to Be Received
Note: 16 hour work day
49322-0149527-03
All material copyright 2013 Constraints Management Group, LLC
How a Buffer Board works
48709-01
Early
Early
Green
Green Yellow
Yellow Red
Red
Late
Late
9 Hours of BufferTime scheduled
on Drum(Wed 7:00 pm)
48801-01
Current Day and Time: Wednesday, 7:00 pm
49322-0149527-03
Received
Yet to Be Received
Note: 16 hour work day
All material copyright 2013 Constraints Management Group, LLC
Reason Code Analysis
All material copyright 2013 Constraints Management Group, LLC
Analyzing Buffers Over Time
Early LateBUFFERGreen Yellow Red