· Customer delivery schedules must be a key driver for the business through the production schedule.
· Your production schedules have to be managed at three levels:
o long term for your business planning,
o medium term for ordering your production materials
o short term for customer deliveries
· If you are to achieve your delivery targets OTIF, then all members of your supply chain must also commit to 100% OTIF deliveries to you.
· Delivering 95% of items OTIF should be regarded as a failure to deliver
· To meet the 100% OTIF target:
o Items, as delivered, must meet all quality requirements and be free of any physical or environmental damage
o Packaging must protect your products in your factory and in transit and should be environmentally acceptable
o Delivery quantities from your suppliers should be negotiated by you, with your suppliers, based on their value, daily usage, storage requirements, shelf life and lead time
· Good production planning and control techniques reduce the disruptions in production, making supply chains easier to manage and more predictable
o Centralised computer systems (such as MRPII or ERP) that schedule, plan and control the delivery of parts, processing of materials and the dispatch of goods are helpful, but difficult to manage well due to the complexity of maintaining accurate information
o Documentation, paperwork and data on computer systems must be accurate or your scheduling will be wrong and delivery targets will suffer.
o Bills of materials should classify components as high, medium and low value items and also in terms of high, medium and low usage
o Different processes should be used for planning, purchasing, scheduling and controlling different classes of materials through the supply chain