- Forecast inaccuracies?
- Frequent materials shortages?
- High premium freight expenses?
- Poor fill rates?
- Conflicts between Planning, Purchasing and Manufacturing?
What would these numbers mean in your environment?
- Fill-Rates ▲ to 99.6% (from 84%)
- Sales ▲20%
- Inventory Levels ▼60%
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Results reported by Oregon Freeze Dry on Mountain House Division after 12 full months
of implementation.
Actively Synchronized Replenishment (ASR) builds upon the traditional replenishment
approach of replacing what was taken to create a dynamic and effective pull-based
solution to answer the challenges of today’s manufacturing landscape. In addition,
through a new approach in materials planning and execution, ASR is designed to directly
tie material availability and supply to ACTUAL consumption. This is a prerequisite
to effectively utilize pull-based scheduling and execution methods like Lean and
Drum-Buffer-Rope (DBR).
ASR has four main components:
- Strategic Inventory Positioning
- Dynamic Buffer Level Profiling and Maintenance
- Pull-Based Demand Generation
- Highly Visible and Collaborative Execution
Download the whitepaper on ASR, "Beyond MRP"
here.
A Complete ASR Solution Package
Client Results with ASR and Replenishment+™
ASR versus MRP – A Head to Head Comparison
A Complete ASR Solution Package
Constraints Management Group (CMG) offers a complete ASR Materials and Supply Chain
Control solution made up of three components:
- ASR Consulting Services – ASR Education, ASR Design and Modeling Facilitation,
On-site Support and Follow-up Audits, ASR Metrics and Incentives Facilitation
- Proven ASR Compliant Software – Replenishment+™ (R+™)
- Software Implementation Services – Software Modeling, Interface Design and
Support, Software Training for all levels of appropriate personnel, Conference Room
Pilot Facilitation and "Go-Live" Support.
ASR Consulting Services
CMG has successfully implemented ASR in a variety of manufacturing environments
and complexities, including large vertically integrated $1+ billion enterprises.
Whether you organization has 600 part records or 600,000, CMG can guide your organization
through implementing a robust and sustainable ASR system that connects actual customer
pull through the entire enterprise and supplier base.
Replenishment+™ is a uniquely powerful solution to the compromises and ineffectiveness
of MRP in today’s manufacturing environment. It effectively facilitates pull-based
materials and supply chain management throughout a manufacturing enterprise (Purchasing,
Bill of Materials, and Fulfillment/Distribution). Web-based demonstrations are easy
to schedule and take about 1 hour. If you are located outside of the United States,
contact us to find an Authorized Service Provider in your area.
Through proprietary design, Replenishment+™ allows users to easily MODEL,
PLAN and then easily EXECUTE (View, Manage, Collaborate) an ASR solution in their
environment.
Click here for more details on Replenishment+™.
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ASR Versus MRP – A Head to Head Comparison
ASR is a powerful pull-based solution for Materials and Supply Chain Management.
By strategically positioning inventory protection with dynamic, actively controlled
and managed, independently planned buffers, ASR decouples the cascading effects
of variation throughout a manufacturing system from Purchasing, through the Bill
of Materials and into fulfillment.
ASR buffers are not mountains of inventory or Min-Max stock points. They are strategically
placed, dynamically sized, actively managed and replenished based on ACTUAL demand
pull.
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Typical MRP Attributes
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ASR Components
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MRP uses a forecast or master production schedule as an input to calculate parent
and component level part net requirements. Part planning becomes based on a "push"
created by these projected demand requirements.
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ASR uses known and planned part traits to set only the initial buffer size levels.
These buffer sizes are dynamically resized based on real demand and variability.
Buffer levels are replenished as actual demand forces buffers into their respective
rebuild zones.
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MRP pegs down the ENTIRE Bill of Material to the lowest component part level whenever
available stock is less than exploded demand.
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Component part requirements are calculated by pegging down through the bill of material.
However this planning is decoupled at any buffered component part that is independently
managed by an ASR buffer. This prevents the tsunami wave from rippling throughout
the company like it did under MRP when a disruption occurs.
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MRP allows the release of work orders to the shop floor without consideration of
component parts availability.
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Projected available stock for component part requirements is verified prior to work
order release to insure work is not released to the floor if parts are not available.
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Lead time for parent part is the manufacturing lead time ONLY for the parent, regardless
of the cumulative lead time for parent and lower level component parts.
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Lead time for parent parts recognizes both manufacturing lead time for the parent
as well as the cumulative lead time for non-buffered component parts on the longest
leg of the bill of material. Remember that the total cumulative lead time for the
end item is de-coupled at any necessary buffer points.
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Fixed reorder quantity, order points, and safety stock that do not adjust to actual
market demand or seasonality.
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Buffer levels are dynamically adjusted as the part specific traits change according
to actual performance over a rolling time horizon.
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Only parts hitting minimum or reorder point are flagged for reorder.
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All ASR buffered parts are managed using highly visible zone indicators including
the percentage encroachment into the buffer.
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No early warning indicators of potential stock outs or demand spikes.
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An Order Spike Horizon looks out over the cumulative lead times of parts to identify
large anomalous Sales Orders. This allows the plan to effectively compensate for
known upcoming spikes in demand.
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Past due requirements and orders to replenish safety stock are treated as "Due Now"
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All orders get an assigned due date based up on quoted lead time in a make to order
environment or based on cumulative lead time in the case of buffered stock.
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