> Practice Areas > Production
and Materials Management
PRODUCTION AND MATERIALS
delivery promising is only one of the benefits enjoyed by companies
effectively using World Class techniques to manage production and
materials. Simplified planning that lowers costs, reduces
inventory, and enables faster reaction to customer demands are other significant
Customer orders are promised based on the ability to deliver,
determined by the availability of materials and capacity. In advanced
operations, capacity is often expressed in run rates by line
or cell. Order dates are valid at all times, and customer service
personnel can trust the “system” to update customers
on delivery inquiries.
production and materials management starts with agreement on sales
and production rates as well as the resulting inventory position.
Production planning rates flow from the SPI planning process. Orders
are promised against these rates by line/cell, then materials flow
to the operation based on planning items and actual orders. MRP
is used where applicable to plan long leadtime items and expensive
materials. Work orders apply when needed, but are eliminated where
possible. Suppliers and the shop floor are controlled through simplified
kanban and surveillance methods.
• Integrate production and materials management with an
ongoing World Class Manufacturing strategy.
• Ensure all organization levels understand high-performance
production and materials management practices.
• Create a single, integrated process to determine production
rates and material flows.
• Establish a rate-based and due date-driven method of production
• Simplify the use of traditional MRP and ATP (Available-To-Promise)
• Configure and align business systems (ERP/MRP II) to generate
required operating information.
• Structure performance measures to drive continuous improvement.
• Assess current operations to form a specific improvement
plan for practices, systems, and training.
• Instruct managers and process experts in high-performance
production and materials management methods.
• Work with internal teams to confirm required changes.
• Collect and analyze data.
• Recommend procedures and conduct pilot test.
• Advise on implementation and ongoing monitoring.
• 95+% on-time delivery to your original customer commitment.
• Inventory reduction of up to 50+%.
• Valid use of dates in all system functions.
• Simplified use of current ERP/MRP II systems.
• Teamwork at all levels, backed by a one-plan process.
• Suppliers that are an extension of your planning and execution
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