Weitere ähnliche Inhalte Kürzlich hochgeladen (20) Chemical Supply Chain1. Lean E2E Supply Chain Planning
Meeting the Paradigm Change in the Chemical Industry
Logichem 2010, Düsseldorf
Dr. Jörg Schmid, Christoph Lieth
2. AGENDA
1 Camelot – Thought Leader in LEAN SCM
2 21st Century Supply Chain Planning Paradigm
3 Lean Planning & Scheduling for Chemical Champions
4 Your way forward
© Camelot IDPro AG 2
3. Camelot – Thought Leader in LEAN SCM
Camelot IDPro – Your partner of choice
Who we are
Who we are Where we are
Where we are
Management Consulting
from strategies to results Camelot Group Europe
Established 1996 in Germany
Camelot IDPro AG
and the US. Now top ranking for
Cologne
Cologne
the following industries: Mannheim (HQ)
Mannheim (HQ)
Munich
Munich
Zürich
Zürich
Chemicals & Basel
Basel
Petrochemicals
Pharmaceuticals & Camelot Group USA
Healthcare Camelot / /Bristlecone
Camelot Bristlecone
(Santa Clara, USA)
(Santa Clara, USA)
Camelot / /BPS
Camelot BPS
(Helsinki)
(Helsinki)
Camelot / /Profit Point
Camelot Profit Point
Consumer Products (Wynnewood, Philadelphia, USA)
(Wynnewood, Philadelphia, USA)
Camelot / /enowa Services
Camelot / /Spain
Camelot Spain
(Barcelona)
(Barcelona)
Camelot / /BPS
Camelot BPS
(Oslo)
(Oslo)
Camelot enowa Services Camelot / /Trilog Camelot / /BPS
(Exton, Philadelphia, USA) Camelot Trilog Camelot BPS
(Exton, Philadelphia, USA) (Milan) (Budapest) Camelot Group Asia
(Milan) (Budapest)
Operating worldwide, with an Camelot / /Coffra
Camelot Coffra
(Paris)
Camelot / /BPS
Camelot BPS
(Tallinn)
(Paris) (Tallinn)
international network of more Camelot / /IDPro Asia
Camelot IDPro Asia
(Singapore)
(Singapore)
than 320 consultants in Europe Camelot / /ISS Consulting
Camelot ISS Consulting
(Kuala Lumpur, Malaysia
(Kuala Lumpur, Malaysia
and 1.200 consultants within the
Camelot International Group
Camelot IDPro is an international consulting organization with leading expertise in the Chemical,
Camelot IDPro is an international consulting organization with leading expertise in the Chemical,
Pharmaceutical and Consumer Goods Industry
Pharmaceutical and Consumer Goods Industry
© Camelot IDPro AG 3
4. Camelot – Thought Leader in LEAN SCM
We provide holistic consulting services along the entire Value Chain
What we offer
Classic
Management
strategic
consultancy
Camelot
Camelot IDPro ITLab
Operations
Process and IT consultancy
Subcontractor
Process &
Strategy IM / Systems
Organization
Camelot Core Competences
Strategy & Operations Strategy Implementation
Process & Value Chain Management
Sourcing & Operations & Logistics & Sales &
Procurement SCM Transportation Customer Service
Organization & Business Transformation
A full-service consultancy – with core competences in operations strategy implementation, holistic reengineering
A full-service consultancy – with core competences in operations strategy implementation, holistic reengineering
of Value Chains, as well as organizational alignment and business transformation.
of Value Chains, as well as organizational alignment and business transformation.
5/5/2010
© Camelot IDPro AG 4
4
5. Camelot – Thought Leader in LEAN SCM
Camelot addresses the critical value chain levers of the process industry
with its key-services
Management & Business Assess Design Implement Sustain Processes & Information
Operational Strategy
Strateg y
Lean Operations
x Strateg y
x
Service x
SC Performance
Organizat ion Flo w design
Organizat ion Flo w design
SC Strategy Development and
x
Strateg y
x
Value Chain
Lean SCM
Flo w
Organizat ion
design
Excellence Processes
x
x
Processes
Assessment
Processes
Triangle
Costs
Working
Capital
Alignment Systems & Data
x
Operational Excellence
Systems & Data
Systems & Data
SC Model Design Benchmarking
Portfolio Management Opportunity Segmentation & Classification A B C
SKU Management Identification X
SCM Segmentation
Y
SC Customer Service Configuration Process Classification
Z
Supplier Management & Development Service
Network Optimization & Process Improvement
Working Capital Mgt Value Chain
SC Planning Processes (S&OP) Plan
Value Based Network Design Excellence Harmonization & Consolidation Source Make De liver
Triangle Logistics & Transportation Mgmt.
Active Asset Management Costs
Working
Capital SC Collaboration
Advanced Inventory Management
Business Transformation & Information Technology SCM APO
SCM APO
APO 5.0 ICH
APO 5.0 ICH XI
XI
ALE
Organization Software Evaluation BW 3.5
BW 3.5 CIF
CIF
R/3 4.7
R/3 4.7
Organizational Alignment
R/3 4.6
R/3 4.6
Blueprinting & Implementation
ALE ECC 5.0
ECC 5.0 Supplier/
Supplier/
Inter-
Inter- Inter--
Inter Customer
Customer
company
company company
company
Change Management
SC Compliance
Performance Management Data Quality
Vision,
M ission,
Corporate
Strategy
Sustainability
KPI
EBIT
Key
Stra te gy upda te ROI / ROCE
Performance
EVA
Indicators
Define & cascad e Stra te gic le arnin g
o bje cti ves
Strategic & fe edba ck
Planning
Strate gic
Business Planning
Strategy moni to ring
action pl ann ing
Sales
Master Data Management (Process & Organization)
BPI
CM
Business Unit Ta rget v lue s
a
Costs
Risk Management
Performance Indicators
COGS
Performance
Measu rement
Operational Detai led
op eration al pl ann ing
Planning
PPI Process Pl an executi on Forecast Accuracy
Process Performance optimizati on
Cycle times
Business Performance Management
Indicators
Data Quality Evaluation & Improvement
Activity costs
Strategy to results…
Strategy to results… and
and …Innovation to solution!
…Innovation to solution!
© Camelot IDPro AG 5
6. Camelot – Thought Leader in LEAN SCM
We have a profound industry expertise with strong focus on the process
industry
Where we work
Management
Classic
strategic
consultancy Strategic and
process consultancy
Camelot IDPro
Operations
Process and IT consultancy
Subcontractor
Strategy Process & Org. IM / Systems
Implementation
Camelot IDPro AG - -aafully committed partner to make effective and efficient Value Chain Management for
Camelot IDPro AG fully committed partner to make effective and efficient Value Chain Management for
the Process Industry happen. Strategy to results. Innovations to solutions.
the Process Industry happen. Strategy to results. Innovations to solutions.
© Camelot IDPro AG 6
7. AGENDA
1 Camelot – Thought Leader in LEAN SCM
2 21st Century Supply Chain Planning Paradigm
3 Lean Planning & Scheduling for Chemical Champions
4 Your way forward
© Camelot IDPro AG 7
8. 21st Century Supply Chain Planning Paradigm
Lean Planning and Scheduling
Lean Thinking
How do Lean Principles shape planning
and scheduling processes?
Processes
Processes LPS Organization
Organization
• Easy planning concept
• Low inventory levels
Modern production • Stable cap. utilization Current challenges in
systems • Reduced lead times the chemical industry
• Less planning effort
What are the How can the planning
requirements of Lean approach
Manufacturing to an dramatically increase
appropriate planning Information
Information customer service and
Systems
Systems
approach? reduce working capital
and costs?
© Camelot IDPro AG 8
9. 21st Century Supply Chain Planning Paradigm
Classic forecast-based planning often ends in the planning loop trap
Forecast
Forecast
Lead time required
required
Lead time
Forecast deviation
The longer the forecast
horizon, the higher the
forecast error
Longer lead time ε
Planning t
Loop Trap
LPS
Impact of forecast deviation
• Safety stock required
• Short term production adjustments
• Variability of capacity utilization
Think lean and avoid the planning loop trap
Think lean and avoid the planning loop trap
© Camelot IDPro AG 9
10. 21st Century Supply Chain Planning Paradigm
Classic planning approach
Forecast
Consumption
Production Inventory Customer
n Inventory
Capacity utilizatio
In classic planning, demand variations are translated into production
In classic planning, demand variations are translated into production
while inventories are hardly utilized and kept untouched
while inventories are hardly utilized and kept untouched
© Camelot IDPro AG 10
11. 21st Century Supply Chain Planning Paradigm
Lean Planning & Scheduling
Consumption trigger Order
Consumption
Production Inventory Customer
n Inventory
Capacity utilizatio
LPS actively uses inventories to manage demand variability while keeping capacity utilization constant
LPS actively uses inventories to manage demand variability while keeping capacity utilization constant
© Camelot IDPro AG 11
12. 21st Century Supply Chain Planning Paradigm
Pro
LPS: Paradigm change je ct E
xam
ple
Stock is target (Classic planning) Capacity is target (LPS)
140 140
120 120
100 100
80 80
60 60
40
40
20
20
0
0
Period: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Period: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Consumption Make Capacity usage Inventory Consumption Make Capacity usage Inventory
Main Characteristics: Main Characteristics:
• Asset reacts to demand variability • Inventories address demand variability
• Floating production quantities • Repetitive production cycles
• Inventory is hardly touched • Inventory actively used
• Sub-optimal capacity utilization • Stable capacity utilization
The lean planning & scheduling approach has clear benefits for not too volatile high-volume products
The lean planning & scheduling approach has clear benefits for not too volatile high-volume products
© Camelot IDPro AG 12
13. 21st Century Supply Chain Planning Paradigm
Lean SCM & LPS principles and benefits
Benefits of LPS at a glance:
• Simplified planning
E2E • Planning is reduced to few
segmentation & parameters
synchronization
Tactical • Less planning effort
parameter No forecast
trigger • Stable asset usage
driven
LPS • Smaller batches & shorter lead times
• Repetitive production patterns with
Leveled
Consumption stable make quantities
capacity
utilization Pull
• Learning effects
Active use of
inventories • Quality improvement
• Easier supply chain collaboration
• More transparency facilitates E2E SC
coordination
To adopt lean thinking in planning, various principles need to be followed to realize aawide range of benefits
To adopt lean thinking in planning, various principles need to be followed to realize wide range of benefits
© Camelot IDPro AG 13
14. AGENDA
1 Camelot – Thought Leader in LEAN SCM
2 21st Century Supply Chain Planning Paradigm
3 Lean Planning & Scheduling for Chemical Champions
4 Your way forward
© Camelot IDPro AG 14
15. Lean Planning & Scheduling for Chemical Champions
Lean SCM & Global LPS
S&OP
Intermediates Finished Bulks Finished Goods DC Customer
Strategic Segmentation Tactical E2E SC Planning Monitoring
SC Configuration Parameterization
WIP WIP FGI
F
E
A RW L
G
H
D
E B
Variability
high
Make to
order
Campaign
cycle L K J A
I F C
Planning
D
time
Production Form. Comp. Pack
Make to B Cards
medium
forecast C A
IRL / RW
/ Kanban
Flow
low
F F N O A
A A M
B
E E L
low medium high K C
Volume Working Stock J D
D D I
B B E
Other Cycle Time Stock WIP WIP H FGI
IRL
C C G F
Safety Stock Demand
Safety Stock Supply
Form. Comp. Pack
Policy Stock
Renewal
The LPS process is an end-to-end methodology,
The LPS process is an end-to-end methodology,
enabling the coordination and organization of the entire supply chain in an efficient and lean way
enabling the coordination and organization of the entire supply chain in an efficient and lean way
© Camelot IDPro AG 15
16. Lean Planning & Scheduling for Chemical Champions
Define decoupling points and allocate inventory within the global supply
chain
Customer
Mid Term Order
Forecast Customer
Order
Regional
Long Lead Raw Consolidated FG Operation FG Inner Distribution
Time Materials Intermediates Pack Centre
Materials Milling &
Working Stock
Other Cycle Time Stock IM Working Stock
Other Cycle Time Stock
Working Stock
Other Cycle Time Stock Outer Pack Working Stock
Other Cycle Time Stock
Safety Stock Demand Safety Stock Demand Synthesis Inner Safety Stock Demand Safety Stock Demand
Short Lead Safety Stock Supply Production Safety Stock Supply Safety Stock Supply To Order Safety Stock Supply
Policy Stock Policy Stock
Packing Policy Stock Policy Stock
Time
Materials FIFO
Push
Call Off Signal Pull Signal Consolidated Pull Signal Replenishment Order
• Inventory in the regional distribution centres is replenished in line with actual consumption
• Postponement of outer packaging enables optimization of FG inventory
• Decoupling inventories for intermediates stage reduces the planning complexity
• To minimize the “bullwhip effect”, the actual customer demand is communicated using consumption pull
Transparency and clarity in the E2E value streams regarding lead times, decoupling and inventory
Transparency and clarity in the E2E value streams regarding lead times, decoupling and inventory
tactics is key
tactics is key
© Camelot IDPro AG 16
17. Lean Planning & Scheduling for Chemical Champions
Segment the portfolio to determine the best fitting supply mode
Variability
Make to
order
high
Campaign
Planning
Make to
forecast
medium IRL / RW
/ Kanban
Flow
low
low medium high
Volume
The inventory and decoupling tactics as well as the supply mode set the framework for E2E lean planning
The inventory and decoupling tactics as well as the supply mode set the framework for E2E lean planning
© Camelot IDPro AG 17
18. Lean Planning & Scheduling for Chemical Champions
Supply mode simulation
^ /
^ d Variability MTO
Variability MTO MTF
MTF RW
Flow
Volume
Volume
OEE Service-level Cost
OEE Service-level Cost
Best supply modes
Simulation based analysis supports the optimal segmentation and allocation of supply modes regarding
Simulation based analysis supports the optimal segmentation and allocation of supply modes regarding
KPI trade-offs
KPI trade-offs
© Camelot IDPro AG 18
19. Lean Planning Scheduling for Chemical Champions
Forecast and product
Segmentation and life cycle management
Renewal
SC planning modes
Optimization of tactical
SC parameters
Network planning
and capacity
l Controlling
alignment Rhythm Whee
lanning
hain P
upply C
G lobal S
ment
RW Attain
l Scheduling
Rhythm Whee
IRL
Pull CTR
el Desig n
Rhythm Whe make skip
CI Order
PO
time
- Rhythm e
nc
- Seque RW As-Is
ior
- Behav
ity
- Capac
usage
esign ed
RW As-D
RW As-Designed
The rhythm wheel process is an integral part of global lean SCM
The rhythm wheel process is an integral part of global lean SCM
© Camelot IDPro AG 19
20. Lean Planning Scheduling for Chemical Champions
Value Chain Inter- Finished Finished
mediates bulks goods DC Customer
Supply
Modes Rhythm Wheel
Design
F
MTO A • Allocate products on the
E wheel
• Define optimal sequence
Kanban D • Define production quantities
B based on reference demand
IRL C • Define planned cycle time
RW upper / lower boundary
• KPI-based evaluation
(utilization, service level,
Flow Rhythm Wheel OEE, etc.)
leveled asset
The better the production levelling, the higher the performance of the production system
The better the production levelling, the higher the performance of the production system
© Camelot IDPro AG 20
21. Lean Planning Scheduling for Chemical Champions
Value Chain Inter- Finished Finished
mediates bulks goods DC Customer
Supply
Modes Rhythm Wheel
Scheduling
Current Inventory IRL ?
F MAKE
MTO A
E
D I nventory
B Current Inventory IRL ?
Kanban C
SKIP R eplenishment
L evel
IRL Working Stock
RW Other Cycle Stock
Safety Stock Demand
Safety Stock Supply
Policy Stock
Flow Rhythm Wheel
leveled asset Stock
The production decisions are based on aasimple rule and purely consumption pull driven
The production decisions are based on simple rule and purely consumption pull driven
© Camelot IDPro AG 21
22. Lean Planning Scheduling for Chemical Champions
Value Chain Inter- Finished Finished
mediates bulks goods DC Customer
Supply
Modes Rhythm Wheel
Scheduling
12d
F
MTO
VMI A
E Cycle
time
D
B
Kanban C
8d
IRL
IRL Working Stock
RW Other Cycle Stock Demand
Safety Stock Demand
Safety Stock Supply
Policy Stock
Flow Rhythm Wheel
leveled asset Stock
Cutting of outliers moves variability of response from production to inventory
Cutting of outliers moves variability of response from production to inventory
© Camelot IDPro AG 22
23. Lean Planning Scheduling for Chemical Champions
Value Chain Inter- Finished Finished
mediates bulks goods DC Customer
Supply
Modes Lean KPIs
Rhythm Time Attainment (RTA)
• Tracks cycle length over time Process Behavior Chart RTA
MTO
VMI F
12
• Evaluates the difference between E
A
10
the planned and actual cycle time 8
D 0 1 2 3 4 5 6 7
• Shows variations in capacity C
B
cycles
Kanban
utilization
Run To Target (RTT)
IRL qty RTT Quantities
RW • Shows required and actual
30 Total
production quantities in every cycle 20
orders
Total
qty
• Tracks order fulfillment 10
0 1 2 3 4 5 6 7
Flow • Evaluates the efficiency of the cycles
chosen cycle length boundaries
Measurable and comprehensible KPIs enable effective planning process management
Measurable and comprehensible KPIs enable effective planning process management
© Camelot IDPro AG 23
24. Lean Planning Scheduling for Chemical Champions
E2E Supply Chain synchronization with LPS
F F
F A
A A E
E E
D
B
D C
D B
B C
C
Intermediates Finished Finished DC Customer
Bulk Goods
IRL
tmax Calibrate synchronization
RW Working Stock
F via parameter setting Other Cycle Stock
Cycle A
length
E
API Safety Stock Demand
tmin D
C
B Safety Stock Supply
Policy Stock
The configuration of the few LPS parameters enables the synchronization of the global supply chain
The configuration of the few LPS parameters enables the synchronization of the global supply chain
© Camelot IDPro AG 24
25. Lean Planning Scheduling for Chemical Champions
E2E Supply Chain synchronization with LPS
SC response
SC response tmax
tmin = tmax
F F
A A
E E
D D
tmin C
B C
B
Trade-off
Flexible response Smooth SC
? E
F
A
? E
F
A
? E
F
A
Variability
D D
B D B
C C
B C
Intermediates Finished Bulk Finished Goods
Volume
Adjust the parameters and balance response and flexibility to synchronize your supply chain
Adjust the parameters and balance response and flexibility to synchronize your supply chain
© Camelot IDPro AG 25
26. Lean Planning Scheduling for Chemical Champions
Lean Planning process aligned organization
Process Performance
• Total
Total
Configuration • SC cost-to-serve
cost-to-serve
Strategic SCM Board • SC Continuity
Continuity
• Responsiveness
• Responsiveness
Segmentation
• Total
Total
Global Tactical SC Planning Inventories
• Inventories
Committee • Capacity util.
Capacity util.
• Service level
• Service level
Parameterization
SOP/ Renewal
Site
Site Tactical Site Tactical • Inventories
Planning Planning • Capacity util.
E2E LPS Department Department • Service level
• RTA, RTT,…
Execution Execution • Process stability
Process stability
Monitoring • Equipment avail.
Teams Teams Equipment avail.
LPS enables an agile planning organisation with clearly defined roles and responsibilities
LPS enables an agile planning organisation with clearly defined roles and responsibilities
© Camelot IDPro AG 26
27. Lean Planning Scheduling for Chemical Champions
IT landscape for lean supply chain planning scheduling
Reporting
Planning System
Global Components
SOP
MDM Demand Planning LEAN parameter planning and
EAI optimization
…
Network Planning LEAN planning
methods
configuration
Master Planning Monitoring
Lean planning
Fine Planning Scheduling methods application
The Lean Planning IT implementation extends organically the existing landscape and enables full leverage
The Lean Planning IT implementation extends organically the existing landscape and enables full leverage
of common components
of common components
© Camelot IDPro AG 27
28. AGENDA
1 Camelot – Thought Leader in LEAN SCM
2 21st Century Supply Chain Planning Paradigm
3 Lean Planning Scheduling for Chemical Champions
4 Your way forward
© Camelot IDPro AG 28
29. Lean Planning Scheduling (LPS) – Your way forward
Summary
Benefits of LPS at a glance:
• Simplified planning
E2E • Planning is reduced to few
segmentation parameters
synchronization
Tactical • Less planning effort
parameter No forecast
trigger • Stable asset usage
driven
LPS • Smaller batches shorter lead times
• Repetitive production patterns with
Leveled
Consumption stable make quantities
capacity
utilization Pull
• Learning effects
Active use of
inventories • Quality improvement
• Easier supply chain collaboration
• More transparency facilitates E2E SC
coordination
Adopting lean thinking in planning, various principles need to be followed to realize aawide range of benefits
Adopting lean thinking in planning, various principles need to be followed to realize wide range of benefits
© Camelot IDPro AG 29
30. Lean Planning Scheduling (LPS) – Your way forward
The journey to world class end-to-en value chain management
Supply Chain Configuration
Lean Supply Chain Planning
Lean Scheduling
Procurement Production Inventory Distribution Demand
Planning
Planning Planning Planning Planning Planning
Organization Change Management
Monitoring Reporting
Data IT
Execution
Source Make Warehousing Deliver Invoice
Vendor Lean Lean
Integration Manufacturing Lean Logistics Administration
Supply Chain Configuration
Benefits do not need to occur in area of implementation, but will materialise in the end-to-end process
5/5/2010
© Camelot IDPro AG 30
31. Lean Planning Scheduling (LPS) – Your way forward
Camelot offers the full toolset for lean SCM achieving operational excellence
Appr-
oach
Respect the Waste
Customer first
individual elimination
Princi-
ples
Continuous Standar-
Takt Flow Pull
Improvement dization
Simulation VSM
Event Lean Planning
Parameter- Segmentation (Value Stream
Management Scheduling Mapping)
optimization
5S Visualization KPIs Kaizen DMAIC
(problem solving)
Tools
Leveled Flow IRL Perfect Plant
Kanban Rhythm Wheel (Inventory (Shop-Floor
Design Target Setting) Integration)
OEE SMED Flexibility / JiS / JiT PCO
(Overall Equipment (Single Minute Complexity (Just in (Process Centric
Effectiveness) Exchange of Dies) Design Sequence / Time) Organization)
TPM VMI / SMI SOP and
Data Quality
(Total Productive Gemba (Vendor / supplier Parameter
Maintenance) Management mgd inventory) Renewal
All tools contribute to the overall approach and principles on the journey to lean SCM
5/5/2010
© Camelot IDPro AG 31
32. Lean Planning Scheduling (LPS) – Your way forward
As Lean Thought Leader we continuously explore the topic further
Multi-Stage LPS :
• SC topology optimization
• Global parameter optimization Prof. Thonemann
• Synchronization of lean planning Universität Mannheim,
Seminar für SCM und Management Science
instruments over entire SC RW cycle length RW cycle length RW cycle length
T T T
• Analytical multi-stage variation
analysis t t t
Global service level
Linkage: LPS and other areas:
Prof. Pfohl
• Root-cause analysis of Technische Universität Darmstadt,
Fachgebiet Unternehmensführung u. Logistik
deviations
• Mapping to financial KPIs
• Collaboration business models Required IRL
across the value chain
• Organizational deployment
Prof. Fleischmann
Universität Mannheim,
Lehrstuhl für ABWL und Logistik
LPS Tools:
• ERP / APS extensions
• Cloud computing
• Advanced planning methods
• Simultaneous optimization Prof. Rehof
Fraunhofer Institut für Software und
engines Systemtechnik ISST
© Camelot IDPro AG 32