FOCUS ON CUSTOMER DEMAND
Questions to be answered:
1- What is your current production capacity or takt time?, can meet customer demand?
Action: Calculate the required takt time as follow:
Note: Takt time can be given in seconds, minutes or even hours depending on the production quantity required, for our examples production time will be given in seconds.
Takt Time = Available Production Time / Required Production Volume
Example: Assuming an available production time of 27600 seconds and a production requirement of 700 units per day to meet customer demand, what will be the required takt time? Takt Time = 27600 / 700 = 39.43 seconds
2- How much do your currently produce, do you meet, exceed or get short on demand?
Action: Calculate the required production capacity.
Based on the previous current state map we can see that we can not meet the 700 units per day demand on these stations: Cutting= 524, painting = 690, assembly= 593 and packing = 690 What is your current pitch?, with this pitch can you meet customer demand?
3- What is Your pitch time?
What is the pitch time?: Pitch time is the time required to complete a minimum shipping packing unit as specified by the customer.
Action: Calculate the required pitch time as follows:
Pitch time = Takt time X units per container (or packing unit)
Example: What is the pitch time for a product with a takt time of 100 seconds and a container with a 100 units?
Pitch time = 100 X 100 = 10,000 seconds =166.67 minutes or 2.78 hours
4- Do you will need buffer inventory? and how much and were
What is buffer Inventory? Buffer inventory is a stock of finished goods to assure that customer demand will be met during the future state in achieved and due to variations on takt time or due to small market demand changes.
Action: Define and calculate requirements, to do this you have to analyze each operation cycle time, capacity and define which one is the least productive and why, next apply the appropriate corrective actions for each one s required. For the current state mapping the capacity was already calculated for each operation, refer to the current state mapping page.
5- Do you will need safety inventory? and how much and were
What is Safety inventory? It is stock of finished goods provided as safety measure in case of process or parts supply disruption with the end of meeting customer demand.
Action: Define and calculate requirements based on possible production disruptions and past experience
6- What kind of production to shipment method you will use,
Do you will ship from the production line or from the finished goods warehouse?
Action: Analyze the ability of your process to deliver product directly at the end o the line
you have to know the tools changeover times, line balancing condition, load leveling, and judge if with such condition you can achieve a stable, smooth and continuous production flow with minimum problems, if this can not be assured, you will need to create a finished good supermarket.
7- What is a Finished Good Supermarket?
It is a stock of finished goods as part of a value stream strategy to smooth flow of delivery of finished goods to customers and that can be replenished as product is pulled out to fulfill customer demand /orders, the Finished Goods inventory is independent of buffer and safety inventories.
8- What changes do you have to do to assure customer demand?
Action: Review your whole process to improve changeover times, cycle times, improve load leveling and overall production.