Decintell Falco Knowledge Platform is a complete enterprise suite consisting an array of modules to cover enterprise wide transactions and workflows. The platform comes with its own Admin Centre. Admin can create roles, create users, assign roles and access rights. Configure alerts, emails etc. Admin can also monitor users' login sessions in real time and can force logout or suspend a user. Admin Centre is a very powerful tool to grant user level access to ensure information integrity. Apart from Admin Centre, Falco combines a set of standard modules and customised modules to handle complicated workflows within an Enterprise. (for more about Admin Centre click Decintell Falco Admin Centre)
For the scope of this blog we will discuss CPC module in detail. CPC is a customized module to plan capacity loading, levelling the production load and tracking actual production against plan. It is designed to suite specific needs of an organisation. Many ERP systems normally assume infinite capacity model and therefore there is no visibility of available capacity.
Both, over and under capacity is highly risky. Definition of capacity includes installed capacity and manned capacity. In loose terms Installed capacity is the capacity of machines installed. And installed capacity can be productive only when it is adequately manned. Beyond these loose terms however, capacity is a very dynamic phenomenon, because of multitude of variables. The product mix, demand variations, equipment uptime, material availability, quality yield, absenteeism, to name a few.
Installed capacity is a sunk cost. It cannot be reduced. And addition to installed capacity has substantial cost and lead time. However manned capacity can be adjusted to cyclical variations in demand, with much lesser lead time. Even adding manpower can be a lengthy process due to learning curve of newly added headcount. And till the new hires achieve a certain degree of expertise, they tend to imbalance entire line.
Bottleneck neither is a fixed point, nor it is static. Bottleneck in a value stream is a completely dynamic phenomenon. For a given installed capacity, bottleneck keeps shifting due to multiple variables such as demand variation, product mix variation, manpower, equipment breakdown, input material quality. There are two types of bottlenecks. Short term and long term. Short term bottlenecks tend to be impacted more by near term reasons like, product mix variations, sudden demand fluctuations, equipment breakdowns, material shortages, poor quality of inputs. However, long term bottlenecks are governed by installed capacity, line balancing, pacemaker operation, process routing, product cycle time and two to five-year demand cycle.
Knowing the existing capacity or when and how to reduce or increase the capacity, is very critical to survival. It is like knowing where your off stump is. Capacity management is therefore a very complex subject, may be too complex to be handled manually. It is therefore highly desirable to digitise Capacity Planning.
Neither can one depend on standardised capacity planning, that is generally available as basic module in ERP systems. This workflow is a typical example of requiring a customised flow and therefore it is essential that this handled by domain experts.
At Decintell, we have deep domain knowledge to comprehend complexities of capacity planning and production tracking.
CPC brings instant visibility to existing as well as future capacity, based on the demand. If one were to load 12 months demand for viewing impact, CPC will show the stress areas and bottlenecks, both short and long term.
CPC considers all variables creating constraints on capacity, such as machine availability, manpower availability, material downtime, number of workdays, process routing, process cycle time.
Monthly demand, finished good stock and backlog is considered to arrive at net production load for the month. Net demand is uploaded to CPC Capacity module. Capacity module considers all near term constraints as explained above to arrive at loading. The capacity loading will show the under loading or overloading of various operations across all value streams. CPC Capacity module allows multiple iterations to arrive at best possible level loading of capacity to achieve max possible order fulfilment. Once the capacity loading is confirmed, CPC generates production tickets. Actual production can be filled against each operation. While production is in progress, Production Tickets allow change of route if there is any down time due to "man", "machine" or "material". Once the requisite production quantity is achieved production ticket can be closed. Production Tickets can be also short closed allowing back log to be transferred to next ticket or next production cycle.
CPC allows two methods of demand loading. "Regenerative" demand loading. New demand for monthly cycle is uploaded. Finished Goods stock is allocated against demand. This feature closes all open tickets. Transfers backlog to new demand.
New production tickets are generated. "Regenerative" run is normally taken once a month. The second method is "Net Change". Net Change method is used to accommodate small number of orders received during the month. Then instead running "Regenerative" cycle, it is better to run "Net Change". This method creates only net additional demand and generates additional tickets or adds to existing ticket, if same SKU ticket is already live. Existing production tickets are not affected.
CPC is a fully functional module of Decintell Falco. However, we appreciate that each organisation has its own specific needs and constraints. Leveraging our domain knowledge, we work closely with your team to map existing flow. Reengineer the same to remove non-value add activities. Optimise the flow to suite organisation specific requirements.
Decintell Falco Knowledge Platform helps your organisation to be a data driven, digitised enterprise.
Other relevant topics. decintellfalco.blogspot.com
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