Finnish measurement device and system manufacturer

Background:

As the production system evolved and customer requirements grew, delivery lead-time classifications decreased, and the punctuality of production planning and the timeliness of materials became increasingly important in relation to demand. Daily management continuously measured its own delivery reliability and the adequacy of materials and production capacity.

Problem:

Component shortages, no mechanism to choose the most suitable replenishment method, delivery reliability issues. Informal handling of problems outside of systems and processes.

Objective:

1. Ensure knowledge and use of existing processes

2. Agreement on responsibility roles and standard work models 

3. Drafting and implementation of new and improved processes

Implementation:
Delivery process: improving maturity levels over short (1 week), medium (1...4 weeks) and long (1…12 months) intervals, including: taking responsibility for the role of work planning, order freeze points; semi-automated handling of delivery confirmations and order books with capacity assurance, leveling large orders, implementation of the sales plan, visibility of human/machine/material resource levels; forecasting first from history and later through sales and customer interface discussions on demand-supply, measuring forecast accuracy and feedback; reducing plan changes and discontinuing the expediting function.

Inventory management and upstream suppliers:
definition of different trigger methods (min/max, VMI, MRP, purchase order, kanban), parameter calculation rules, ABC classification. Purchase proposals and exception notifications, shortage board process, sharing material levels and forecasts with key suppliers, operational and financial metrics for inventory, cycle inventory with root cause analysis of variances.

Result: 

Better delivery reliability going out and coming in, fewer material shortages, more stable inventory value.