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Onsite Seminar

Manufacturing and Production

Understanding Demand Management and Its Components

  1. Introduction

  2. Demand Flow (What it is, and What it is not)
    1. Demand Flow Defined
    2. Demand Penetration Point
      1. Defined
      2. Objective in Flow dynamics
        1. Purchasing and Manufacturing tied to Marketing (Customers) and the Marketplace (Suppliers)
        2. Postpone final commitment of products and services to final form
        3. Employing demand side economics to influence usage and consumption
    3. Information Iceberg
    4. Mutual recognition between Buyers and Sellers of Demand and Capacity Management
    5. Evolution of Supply Chain Management to Demand Flow
      1. Supply implies "push" philosophy (higher inventory, higher operating costs, and less responsive to customer needs)
        1. Why push systems are inferior
        2. The value to the supply chain using Pull techniques
      2. Demand uses "pull" philosophy (reduced inventory, reduced operating costs, and more responsive to customer needs)
    6. Benefits of Incorporating Demand Flow
      1. Customer
      2. Financial
      3. Company

  3. Demand Flow Applications
    1. How can we apply this technology
      1. Supply Management and Logistics Manufacturing using Pull techniques
      2. Three sided strategy and Synchronous Flow
        1. MRP II,
        2. Just-in-time, and
        3. Supplier/Customer linkage
    2. Purchasing and Logistics perspective of Demand Management
      1. Pre-Procurement Planning and Strategic Alliances
      2. Communicating Customer - Supplier Information and Controlling Resources
      3. Forecasting and Demand Management
        1. Principles of Forecasting
        2. Forecasting Techniques
        3. Replacing Forecast with Knowledge
        4. Tracking Forecast
        5. How Accurate is the Forecast of the
          1. Customer
          2. Your supplier
          3. Your supplier's supplier
          4. Your company
        6. Reasons for Inaccuracy
        7. Factors Influencing Forecasts
          1. Trends
          2. Cycles
          3. Seasonality
          4. Calendar Fluctuations
          5. Irregular patterns
        8. Forecast Accuracy
          1. Mean Absolute Deviation "MAD"
          2. Standard Deviation
          3. Normal Bell Curve
          4. Bias and Tracking Signals
        9. Improving Forecast Accuracy
          1. Visual Steps to improve Accuracy
          2. Forecasting Models
            1. Naïve
            2. Time series
            3. Causal Models
            4. Simplified Moving Averages
            5. Exponential Smoothing
            6. Focus forecasting
      4. Understanding the Strategic Planning and Control Process Models
        1. MPS and MRP relationship to Demand Flow
        2. Manufacturing Planning and Control Hierarchy
          1. Master Production Schedule "MPS"
            1. Objective
            2. Inputs and Outputs
            3. Process
          2. Materials Requirements Plan "MRP"
            1. Objective
            2. Inputs and Outputs
            3. Process
    3. Synchronous Demand Flow and Supply Coordination
      1. Understanding the Concept
        1. Theory of Constraints
        2. Drum-buffer-rope
          1. Drum-constraints of production
          2. Buffer- safety stock
            1. Statistical Safety Stock
            2. Time Period Safety Stock
            3. Fixed Safety Stock
          3. Rope- communication and pull signals
        3. Kanban
      2. Synchronous Production
        1. Principles
        2. Flexibility
        3. Reporting Activities
        4. Data Collection Techniques
        5. Count Points
        6. Work in Progress "WIP"
      3. Where to begin in Determining Synchronous Flow
        1. Demand Flow Mapping
        2. GAP Analysis
        3. Determining the Synchronized Ratios
        4. Identifying the Demand Flow Risk Assessment
      4. How to develop a Synchronized Flow
      5. Benefits and Risks in Determining Synchronization
        1. Benefits
        2. Risks
        3. Supply Chain Consequences
      6. Cost of Becoming Synchronized
      7. ROI Pay-back Chart for Investments
      8. Sample Management Summary for ROI
    4. The Rhythm of the Customer's Demand
      1. Developing Operational Mapping
        1. Mapping Example
        2. Sample Mapping Exercise
      2. Establishing a Takt Time Schedule
        1. What a Takt Schedule reviews
        2. Developing a Takt Schedule
      3. Materials of Kanban Sizing
        1. Sizing Materials for Usage
        2. How to Size Lots and Orders
      4. Developing an Implementation Schedule
    5. Materials Management and Warehousing (Extension of Demand perspective of Capacity)
      1. Inventory Management
        1. Inventory Functions
        2. Inventory Costs
        3. Order Quantities
        4. When to Order
        5. Product Delivery Strategies a.k.a. Manufacturing Strategies 'Where you stock is a strategic decision'
          1. ETO
          2. MTO
          3. ATO
          4. MTS
      2. Distribution Planning
    6. Operations and Demand Flow
      1. Improving Flow and Lean manufacturing
      2. High Quality through six-sigma
      3. Capacity Management Techniques ties into Demand
        1. Resource Requirements Planning "RRP"
        2. Rough-cut Capacity Planning "RCCP"
        3. Capacity Requirements Planning "CRP"
          1. Defining Capacity in Relationship to Demand Flow
          2. Capacity Planning Process
            1. Determine Available Capacity
            2. Determine Required Capacity (Based on Demand Flow)
            3. Compare Available Capacity with Required Capacity and resolve any differences.
          3. Determining Available Capacity
            1. Rated Capacity
              1. Availability
              2. Utilization
              3. Efficiency
            2. Demonstrated Capacity
    7. Quality on both side of the equation
      1. Preliminary Assessment
        1. How does the Quality of our Products Compare
          1. To design and specifications Standards
          2. In our Quality Assurance Metrics
          3. To the Customer most importantly
        2. What Quality Standards are important
          1. SPC v. Six-Sigma
          2. The Suppliers Appreciation of Quality
          3. Internal Processes
          4. Tools they employ to enhance Quality
            1. Employee Education
            2. Lean Implementation
            3. Review of Source Quality
        3. Improving Flow through SCOR


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