A Demand Capacity Planning FAQ

Posted by Nick Ostdick on Nov 14, 2017 9:00:00 AM

Imagine trying to walk a tightrope. You must have incredible balance, be extraordinary nimble, and understand the nuances of each step as you complete your journey from one side to other. You also have to account for the context in which you’re walking the tightrope: weather or climate conditions, barriers or impediments along the wire, or other significant hurdles along the way. In short, to successfully negotiate such a challenge, the tightrope walker has to execute a number of tasks in quick succession (or sometimes simultaneously) to make it from Point A to Point B.

The same is true for demand capacity planning in today’s manufacturing and logistics landscape.  Particularly in variant-rich industries, the proposition of balancing demand and capacity - the amount of product or component parts needed to successfully fill orders and maintain efficient production schedules versus the sheer volume of components and parts required on-hand at all times - is intricate and complex. Many supply chain analysts and manufacturing industry insiders believe, even given today’s technology via integrated planning systems, that this issue is at the core of supply network logistics, especially given expansion and growth into emerging markets in new parts of the world.

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Topics: Intelligent Planning, Planned Production Programs, Demand Capacity Planning

The Importance of Bringing Together Planning and Execution

Posted by Nick Ostdick on Nov 2, 2017 9:00:00 AM

To understand the importance of aligning planning and execution, think about the task of writing a memo or some kind of office communication. What’s the best strategy for effectively communicating ideas to peers? Do you compose the email in one session without filtering what you want to say or the information you want to convey, only then to go back and reread and edit the email at some later date? Or (and perhaps mostly likely, at least for many people), do you compose the email and edit as you go, deleting phrases, substituting words, or changing ideas and adapting the information in the moment as necessary for the best possible communication?

Odds are the most common method of emailing is the latter where edits and alterations are made in real-time as thoughts, ideas, and information hits you during the composing process. Where the first example may be a relic of the past when typewriters or handwritten correspondence was the norm, digital communication and the capacity to edit, rewrite, and revise in the moment means greater maneuverability in creating moments for effective, streamlined, and more productive communication. Where writing and editing/revising were at one time two distinct processes, today these functions are more or less integrated into one function with a greater level of process efficacy.

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Topics: Intelligent Planning, Planned Production Programs, Demand Capacity Planning

How Integrated Planning Drives Revenue Growth

Posted by Nick Ostdick on Oct 5, 2017 9:00:00 AM

Take a television set from the 1980’s and one from 2017. Sure, both devices will function appropriately and allow you to view your favorite television show or movie, but the set from the 1980’s will clearly have a very limited set of capabilities compared with the one from 2017. The 1980’s set may not even have a remote. The picture will likely be much less clear, more grainy, and ultimately compromised. It may take a few minutes of running before the set functions properly. And odds are the set will be much more prone to malfunctions or breakdowns. On the other hand, the television from 2017 will have a much cleaner, crisper picture, allow for synergy with other applications such as a streaming device, and likely have a much longer lifespan.

In short, the 2017 television set will operate at a much higher level with a more streamlined operational platform for a much longer amount of time. The probability for error will be quite low and the 2017 will work in conjunction with other modern technology.

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Topics: Intelligent Planning, Digitization, Demand Capacity Planning

Does Integrated Planning Reduce Transport Costs?

Posted by Nick Ostdick on Sep 26, 2017 8:00:00 AM

It’s a question each and every manufacturing company grapples with: How can we reduce our transport costs and attempt to normalize our transportation strategy given the number variables associated with shipping our products? In an industry like manufacturing where so much of how efficiency a company functions is dependent on getting the right product to the right customer at the right time in the right condition, transport logistics cannot be overlooked as a critical part of the value chain.

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Topics: Intelligent Planning, Transportation Management, Planned Production Programs

The Evolution of Planning and Execution in Manufacturing

Posted by Nick Ostdick on Aug 10, 2017 9:00:00 AM

Think about the process of writing an email for a moment. How do you go about this task? Do you compose the email in one session without filtering what you want to say or the information you want to convey, only then to go back and reread and edit the email at some later date? Or (and perhaps mostly likely, at least for many people), do you compose the email and edit as you go, deleting phrases, substituting words, or changing ideas and adapting the information in the moment as necessary for the best possible communication?

Odds are the most common method of emailing is the latter where edits and alterations are made in real-time as thoughts, ideas, and information hits you during the composing process. Where the first example may be a relic of the past when typewriters or handwritten correspondence was the norm, digital communication and the capacity to edit, rewrite, and revise in the moment means greater maneuverability in creating moments for effective, streamlined, and more productive communication. Where writing and editing/revising were at one time two distinct processes, today these functions are more or less integrated into one function with a greater level of process efficacy.

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Topics: Intelligent Planning, Industry 4.0, End-to-End (E2E) Visibility, Demand Capacity Planning

The Challenges of Supply Chain Integration

Posted by Nick Ostdick on Aug 8, 2017 9:00:00 AM

For all the bluster about the latest and greatest technological advancements and developments in today’s global supply chain management, it’s important to remember what the true essence of supply chain logistics revolves around: putting the right product in front of the right people at the right time. It may sound simplistic, but as global partner networks continue to expand and already variant-rich industries continue to diversify, it becomes increasingly difficult to execute a very basic premise.

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Topics: Intelligent Planning, Industry 4.0, End-to-End (E2E) Visibility

Integrating Planning and Execution in Today’s Supply Chain

Posted by Nick Ostdick on Jun 29, 2017 9:00:00 AM

Flash back 10 to 15 years ago in supply chain management and you’ll find pretty fine divide between the planning and execution stages of production programs. At one time, long before the advent and proliferation of lean manufacturing principles, real-time data and reporting, and sophisticated technology platforms, planning and execution were viewed as two distinct processes where the impact each had on the other was far from realized.

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Topics: Intelligent Planning, Industry 4.0, Sales & Operations Execution (S&OE)

What Is A Truly Digitized Supply Chain?

Posted by Nick Ostdick on May 23, 2017 9:00:00 AM

The term digitization pops up again and again as a critical value proposition for companies to leverage growth and viability in today’s manufacturing industry. The trouble is, many manufacturing companies don’t truly understand what is meant by a digitized supply chain. Is a digitized supply chain simply swapping outdated technology for the latest and greatest technological platforms? Is it merely a system of systems and solutions with the ability to communicate with each other? Or it a complete redefining of supply chain management to optimize processes and streamline planning and production strategies?

In fact, the digitized supply chain is comprised of a little of each of these statements. A completely digitized supply chain does rely on intelligent, integrated solutions rather than manual inputs or human intervention; the digital supply chain does incorporate advanced systems capable of communicating and data sharing for optimal workflows; and a digitized supply chain is a holistic reimagination of how manufacturing companies operate their supply chain management strategies from procurement to the production floor to the customer’s front door.

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Topics: Intelligent Planning, Supply Chain Logistics, Logistics, Digitization, Supply Chain Management

What We Talk About When We Talk About Postmodern ERP

Posted by Nick Ostdick on May 2, 2017 9:00:00 AM

There are some terms or concepts in today’s modern supply chain management landscape that even industry insiders have difficulty defining or understanding. Whether it’s because the lack of visibility surrounding these concepts or a failure to fully embrace them as part of lean manufacturing and supply chain management, postmodern ERP is perhaps one of the most least understood or realized element of manufacturing and supply logistics. Not only does postmodern ERP have the potential to transform a company’s manufacturing and supply logistics, but it’s a key element in cutting the complexity of global supply chain management and leveraging enhanced operational functionality.

The question becomes: Why is postmodern ERP such an important value proposition for global manufacturing companies lacking visibility and understanding? What is it about postmodern ERP that proves difficult for planners and managers to embrace? What do we mean when we use the term postmodern ERP?

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Topics: Intelligent Planning, Postmodern ERP, Supply Chain Logistics, Supply Chain Planning, Automotive Industry

5 Key Elements of Industry 4.0

Posted by Nick Ostdick on Apr 20, 2017 9:00:00 AM

So much in the discussion of modern manufacturing surrounds the subject of Industry 4.0 and its influence on the daily, weekly, monthly, and even annual processes associated with the global manufacturing industry. In fact, one could argue the term Industry 4.0 is tossed around by industry insiders without truly understanding its place in the context of manufacturing and supply chain processes on a global stage.

Whether it’s misinformation about how Industry 4.0 came to be or the ways in which manufacturing companies can deploy the concept of Industry 4.0 as a core driver of moderneized, intelligent production, there’s still much supply chain planners and managers can learn about Industry 4.0 and its applications in today’s global manufacturing and supply streams.

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Topics: Intelligent Planning, Industry 4.0, Supply Chain Logistics, Manufacturing, Supply Chain Management, Lean Manufacturing