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Production Planning Redesign

 

Our leading international cosmetics client wanted to leverage the advanced planning and optimization capabilities of its enterprise software system.  Specifically, they wanted to evolve from a simple MRP process to a material and capacity feasible one.  Complicating factors included a global manufacturing network with multi-level bills of material,  high volumes of cross-plant work-in-process (WIP), severe seasonal capacity constraints, and very long lead times. The scope consisted of 10 global plant locations and 700 unique manufacturing resources.  In addition, the client wanted the new process to support their lean manufacturing initiatives. 

 

Client platform: SAP APO Production Planning and Detailed Scheduling (PP/DS).  

 

Summary of our contribution:

  • Overall design, implementation and project/program management.

  • Global collection, rationalization, and documented of the associated business requirements.

  • Design and implementation of all business process change management, training, and user acceptance training

  • Design and implementation of the new master data management processes.

 

Key elements of the innovative design:

  • Selected key manufacturing resources planned and scheduled in their optimal changeover sequence.

  • Secondary resources scheduled just-in-time to material and capacity constraints.

  • Key products systematically insulated from excessive demand fluctuations.

  • A stable procurement signal for long lead time components. 

 

Client benefits realized:

  • The long term production plan (38 week horizon) is seamless with near term lean scheduling practice.

  • Dramatic reduction in setup times and capacity utilization, up to 40% for select resources.

  • More effective capacity management process enabling seasonal pre-builds when necessary.

  • Better material alignment from the stable procurement signal leading to more precise component inventory and less excess/obsolete.

  • Systematic support to drive out supply variability, thereby lowering target stock levels for both finished goods, WIPs, and component materials.

 

 

 

 

 

 

 

 

 

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