RE: Need ideas please. Outside the Box(for us)

OK - not in line with current "lean" or "just-in-time" thinking but if
that's what management wants to do, then let's talk about how to do it.

For the assembly portion of the business, it sounds like you're doing OK
with MRP and MPSP driving from the forecast and customer orders. That
should continue.

For the components, you will have to generate your master schedule by hand.
You can do this in MPSP using the "manual" source of demand. This would
require that you code each of these component items as a "master scheduled
item" in order to have MPSP see them. You cannot "production plan" schedule
these items because you are not allowed to include anything but level 0
items in a planning family.
So, each component must be manually scheduled through MPSP.

You could also use master scheduling in MRP but this has some unique
problems. MRP master scheduling always "nets" inventory against demand.
This means that you would have to continually inflate the requirement to be
able to generate more planned orders for items that you already have in stock.

These topics are explored in my book "MAPICS Planning". I have about 100
copies left in stock if you're interested.

Just as another tip - I have been working with a company called Systems
Plus that has a product called OTTO that provides outstanding visibility
for those times when you are building components to fulfill customer orders
at the same time you're building for stock. It sorts out where everything
is going and allows you to properly prioritize the items that are really
needed soon against the ones being built for stock. Check out
www.systemspluscorp.com for more information. OTTO embodies a process I
call "RPM" which is explained in the press release found on my web site
www.daveturbide.com

Good luck.



Subject: RE: Need ideas please. Outside the Box(for us)
To: mapics-l@midrange.com
From: mbennett@kimray.com
Date: Thu, 27 Jun 2002 16:03:44 -0500
Reply-To: mapics-l@midrange.com

Manufacturing has the capacity to produce more parts than Assembly has the
capacity to transform into end items
based on a 40 hour week at the current manpower levels.
There is a no layoff and a no reduction in hours paradigm that must be
honored.
There is also a reluctance to move people from manufacturing to assembly.
Therefore the decision has been made to run manufacturing at its current
full capacity and build manufactured parts inventory.
They are aware of the higher inventory $ and that's OK.
We want to try to use inventory as a way to level capacity in manufacturing
and stick to 40 hour weeks
Our typical peak end unit periods are the winter months.
It is better for us to put in overtime in assembly because of the short
lead times (1 day), the smaller lot sizes (5 - 20) and less expertise.
Obsolescence is not a problem. 54 years old and still selling repair parts
for units built back then.


Dave Turbide
<dave@daveturbide To: mapics-l@midrange.com
Sent by: Subject: RE: Need ideas please. Outside the Box(for us)

Why does management want to drive the component operation differently from
the product?
Is it a matter of excess capacity at the component level and they're
looking for "efficiency" or "utilization"? If so, they'd netter be
prepared to swallow a higher inventory and some obsolescence risk.
If it's a lead-time issue - want to stockpile major parts and components to
support assemble-to-order, - the challenge is making the right components
and holding the right quantities. That's going to be tough to do if the
lower level items are not being driven by forecast.


Dave Turbide, CFPIM, CMfgE, CIRM
Market Analysis and Communication
883 Ocean Blvd
Hampton, NH 03842
phone(603) 926-1435
fax (603) 926-0862
www.daveturbide.com