Supply Chain Current system analysis (As IS) and Future System design (To BE) To analyze the production and inventory/material planning current system of the internal supply chain and the suppliers´ network (As IS), the decision system was monitored using GRAI Grid. The GRAI Grid showed the main characteristics (decision levels, decision centres, planning periods, planning frequency, decision alternatives, information,). The production and inventory/material planning is concerned with balancing supply and demand. It tries to keep the material flow and the value added activity in manufacturing going on without interruptions. In the case study, the production and material planning system worked as make to order once the engineering stage was done. It was a every two days based fix order point system called “D+20:2”, because the O.E.M. manufacturing plants supply to the distributors the orders received in the day “D”, 20 days later. Thus, the planning period was of two days and the planning horizon of twenty days. When monitoring the GRAI Grid a policy constraint was detected. The whole flow of materials was limited by the master production scheduling (MPS) decision level. In this decision level, the planning period and planning horizon of the master production scheduling had a great impact on the system lead time and consequently on the delivery date and on stocks needed to go on without interruptions. Thus, the analysis and design stage of the future system was set around the alternatives of reducing the planning period and the planning horizon of the MPS. In particular, “D+13; 2” planning system, with a planning period of two days and a planning horizon of thirteen days, was analysed. The other alternative was “D+13:1”, with a planning period of one day and a planning horizon of thirteen days. These replenishment systems could be expected to perform better, because the period and planning horizon were reduced. In theory, the new system could work with less work in process, because it supposed a quicker response of the manufacturing plants to the construction site. Nevertheless, in order to analyze the feasibility of the future system, the information technology, manufacturing technology and organisations of the internal and external suppliers/customers´ network critical factors and other efficient supply systems ( cross docking, milk run,...) were monitored (Figure 7) D+20:2 vs D 13:2 D+20:2 vs D13:1
INTERNAL SUPPLY CHAIN
EXTERNAL SUPPLY CHAIN
INFORMATION TECHNOLOGY
•Production order generation in Main Subcontractor • Purchasing order generation and submission to suppliers
•Suppliers order reception
MANUFACTURING TECHNOLOGY
•Lot or Batch size in the production system •Bottlenecks efficiency •Work in process
•Lot or Batch size in the suppliers´ production system
ORGANISATION
•Plant Manufacturing Pull System •Parts and Raw materials stored in Main Subcontractor warehouses •Efficiency of the Planning System. Management time •Efficiency of the Inventory System. Management time
•Parts stored in suppliers´ finished products warehouses •Efficient supply system from suppliers (Milk Run with third party logistics)
Figure 7: Critical information technology, manufacturing technology and organisation factors taking into account when implementing the Future system