My Business GPS powered by TOC Engine'

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My Business GPS powered by TOC Engine.
Reliable and focussed decision support in my
(complex) business environments.
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My Business GPS
My GPS supports my decisions

• Planning
• Goal
• Position
• The best route
• Time estimation

• Execution
• Current Position
• Traffic-information
• Warnings of critical points
• New estimated arrival time

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My Decision Tools
OUR ORGANISATION Operational Constraints
MARKET Market constraints
SUPPLY CHAIN Supply constraints
GPS4 Marketing Sales
GPS4OPERATIONS
GPS4PROJECTS
My Business GPS
The real challenge Be beter/faster than my
competitor..
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OPERATIONS
OUR ORGANISATION Operational Constraints
MARKET Market constraints
SUPPLY CHAIN Supply constraints
GPS4OPERATIONS
GPS4 Marketing Sales
GPS4PROJECTS
My Business GPS
A complex and crucial part of my
business OPERATIONS!
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GPS4Operations
My GPS for Operations also integrates the current
techniques like

Lean Elimination of waste 6 Sigma Measure
and improve. TOC THE ENGINE
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GPS4Operations
Operational planning I make my commitment to
my customer. I have to commit on a reliable due
date, while taking into account Limited
resources, (people, machines) Limited money and
inventories Limited time Complex environment
interfering with internal and external
constraints.
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GPS4Operations

• Execution.
• Current position gt Not always as planned.
• Too late start waiting for suppliers,
  customer-info...
• Traffic and queue information gt Bottlenecks.
• Queues at the critical resources.
• Warnings
• What is next? What priority? - How urgent.
• New estimated time of arrival. gt What is my
  probability for on-time delivery?
• Do I still have enough buffer?

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GPS4Operations

• OK, Now we have
• Planning
• Execution
• Is this sufficient to be and to stay in a good
  competitive position? HOW to improve ?

Income
Expenses
How do I secure the profit growth?
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GPS4Operations
Is this sufficient to be and to stay in a good
competitive position? HOW to improve ?
Income
Expenses
Profit Growth is not happening by luck, it is the
effect of well secured and on-going PROCESS.
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The Money - flow
SALES (paid invoices)
Purchase
Throughput
OUR ORGANISATION Operational Constraints
Vendors Vendor constraints
MARKET Market constraints
OE Operating Expenses
How do I secure the profit growth?
Profit
OE
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GPS4Operations
OUR ORGANISATION Operational Constraints
How do I secure the operational profit growth
while having so many operational constraints?
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SYSTEM APPROACH TO IMPROVEMENT
Fact/ Very Few factors govern the performance of
the Physical and Logical parts of a system at any
point in time (the law of the weakest link
significant few)
Physical View of System
Logical View of System
Effect
Effect
Effect
Flow of Cause-Effect ?
Effect
Effect
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Weakest Link
Cause
Root Cause
Flow of Goal units ?
The TOC- System approach should assist my
management to find the few physical and logical
leverage point(s) of the system (organisation)
where an improvement can cause a quantum
improvement for the system as a whole. I do
not want my managers to waste precious management
time and money in chasing symptoms.
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Those nice TOC-techniques are now embedded in
MyGPS4Operations! BUT...A different vehicles
needs different GPS-options ...
GPS4Operations
In the same way my specific environment will need
different GPS4Operations options.
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GPS4OperationsOptions

• .

• .
• CDS DBR (Make To Order)

. 2. CDS Make to Stock Replenishment .
. 3. Combined Make to Stock Make to Order
4. Combined Critical Chain DBR (Single pieces
Project type)
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CDS The Main modules

• .
• Manufacturing Logistical database. Can be used
  as the backbone for your operations or can be
  interfaced with the availbale ERP data.
• 2. Replenishment logic. High sevice levels with
  optimized inventory management. Reliable VMI
  support!
• 3. Master Schedule. (Capacity driven). The basis
  for commitment to your customer and for planning
  internal and external ressources and supplies.
• 4. Execution Buffermanagement and
  sequencing.Flexibel priority system and detailed
  sequencing of all the resources and supplies.
• 5. POOGI Process Of On-Going Improvement.
• Corrective actions, perfomance measurements and
  improvements

CDS Database
.
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1. Manufacturing Logistical database

• Creation Updates - Maintenance Consistency
  checks on
• Product data including stock-keeping and
  logistical parameters
• Bill Of Material Routing structure.
• Resource definitions maintenance.
• Calendars global and per resource.
• Orders Customer orders and prodcution/stock
  orders.
• Template architecture facilitates automatic
  creation.
• Active structure can be adapted on-the-fly.
• Includes facilites for sub-contracting and
  material management.

CDS Database
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1. Manufacturing Logistical Database Common
Modules

• Creation Updates Maintenance.
• All the data and structures needed for the
  manufacturing and logistical database can be
  obtained by direct Input or by download or
  up-to-date refresh from your main ERP.

CDS Database

• Oracle and SQL Server compatible.
• Specific interfaces. (like AS-400, SAP, Navision)
• Web interfaces.

Multi user client/ server applications. User
administration. Customization to your needs.
Company Database
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1. Manufacturing Logistical Database Options
CDS Database
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1. Manufacturing Logistical Database Common
Modules

• Creation Updates Maintenance.
• Product data
• Generic and extended data fields.
• Logical checks Product families and LT
  classes etc.
• Resource definitions maintenance.
• Internal and external resources
• Link to specific calendar (shifts)
• Default setting (drum)
• Calendars
• Global and per resource

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1. Manufacturing Logistical Database Common
Modules

• Creation Updates Maintenance.
• Bill Of Material
• Parent-component relations by drag-and-drop
  feature.
• Unlimited number of levels Assemblies
• Units/per Material needs - Scrap calculation
• Routing structure. (Including BOM)
• Creation by drag-and-drop feature.
• Coherence checks on items, resources, duplicates.
• Timing as pcs/hr or min/pc or time per batch..
• Set-up default or individual.
• Links with suppliers and sub-contractors.

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2. Single Piece Project Logic

• A different environment needs a different GPS!
• Engineering
• Projects
• Prototyping
• Single piece mfg.
• Small series

Critical Chain!
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2. Single Piece Project Logic

• The combination of all the advantages of the
  Critical Chain logic with DBR resource
  scheduling.
• Transformation of regular BOM Routing into
  Critical Chain logic.
• Calculation and positioning of the project buffer
  and feeding buffers.
• Build in checks with requested lead-time.
• Capacity checks on critical resources and drum
  algorithm.
• Full buffer management that supports execution
  schedules.

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3. Make to Stock Logic

• A different environment needs a different GPS!
• Finished goods inventories
• Raw materials availability
• Intermediate stocks
• Vendor Managed Inventories

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3. Replenishment Logic

• Based on the TOC- replenishment technique.
  More...

• High sevice levels with optimized inventory
  management. Reliable VMI support!

• Dynamic replenishment levels.
• Suggested or automated correction of the
  replenishment and alarm levels.
• Pro-active warnings and priorities.
• Risk analysis.

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3. Replenishment Logic
                         
 
         
Selective alarms on suggested productions. priorit
ies - risks proposed quantities.  
Detail per item.
The best view on reality for understanding the
requests, the alarms and the suggestions.
The stock transactions and the complete history
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3. Replenishment Logic

• The global inventory value (expressed in units or
  ) is permanently monitored within a selectable
  time window.

     
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3. Replenishment Logic
                 

• FOCUSSING on the right priorities.
•  .
• The calculation for replenishing the stock from
  production or supplier of by shipping from
  another warehouse, is taking in account
•  
• The inventory on-hand.
• The inventory under way. (or in WIP for
  production)
• The lead-time for transport.
• The lead-time for production.
• The minimum order quantity.Priorities
• The packing quantity.

 
 
Priorities
     
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4. Master Schedule

• The objective Do promise what you can deliver.
• Feasibility check
• Is the customers date far enough to meet our
  regular lead-time?
• Will we have the necessary capacity at that
  moment?
• What is the impact on other (already commited on)
  orders IF we take this additional one?
• Do we have all the necessary components? In
  stock/ or deliverd on-time?
• Do we have enough protection??
• COMMIT after checking keep your promises keep
  the protection on your side!

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4. Master Schedule

• The objective Do promise what you can deliver.
• Is the customers date far enough to meet our
  regular lead-time, taking in account the complete
  process?

OR...
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4. Master Schedule

• The objective Do promise what you can deliver.
• Will we have the necessary capacity on the
  critical resource at that moment?

Our critical resource is loaded to 98!
No regular gap before Nov 26 !
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4. Master Schedule

• The objective Do promise what you can deliver.
• What is the impact on other (already commited on)
  orders IF we push this additional one earlier?

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4. Master Schedule

• The objective Do promise what you can deliver.
• Do we have enough protection??

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4. Master Schedule
The objective Do promise what you can deliver.
COMMIT after checking keep your promises
keep the protection on your side!
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5. Execution

• The objective Execute what you promised.
• .
• The Launching dilemma
• Too early gt High WIP and Stocks.
• Difficult to comply with last minute changes.
• Too late gt Delivery risks.
• gt Urgencies, additional costs...

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5. Execution
The objective Execute what you promised. Do not
launch too early
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5. Execution
The objective Execute what you promised. .Do not
launch too late
Pragmatic risk management! The more buffer
penetration gt the higher the priority
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5. Execution
The objective Execute what you promised. Keep
the global chain synchronized!
My department
My responsibility
Coherent priorities through the global
organization
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6. POOGI Process Of On-Going Improvement.
The objective Do not waste time and money by
solving the symptoms!
Physical View of System
Logical View of System
Effect
Effect
Effect
Flow of Cause-Effect ?
Effect
Effect
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15
16
10
Weakest Link
Cause
Root Cause
Flow of Goal units ?

• The embedded mechanisms for identifying the core
  problems is transforming data into information!!!
• Objective quantified information.
• Automaticcaly generated.

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6. POOGI

• The embedded mechanisms for identifying the core
  problems is transforming data into information!
• Inputs from daily operational problems
• Detected by buffermanagement.
• Supported by structured operational
  cause-reporting.
• Measuring the operational damage.
• (Late deliveries, lost Throughput excess
  expenses)

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6. POOGI

• The embedded mechanisms for identifying the core
  problems is transforming data into information!
• 6 sigma analysis and S-curves are automatiqualy
  generated for
• Warnings of process-deteriorations
• Monitoring of the improvements
• Revealing available flexilibity and identifying
  the leaning possibilities.
• Identifying the most powerful leverage points !

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6. POOGI
The embedded mechanisms for identifying the core
problems is transforming data into
information! It is a powerful decision-tool for
supporting your organization in managing the
profit improvement process.
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• For implementation you can rely on
• Certified Application Experts Audit by TOC-Sr
  TOC- Experts
• Direct link to the Goldratt WW- network, which
  guarantees on-going update and and new
  developments.
• 20 years of local experience.
• www. goldratt.be
• www.gig-europe.eu