2Trade offs The Fresh Connection is full of trade offs Over multiple roles and within rolesSometimes conflicting with role incentivesCapacity managementVolatility manaagmentCapacity mgtDemandmgtSupplier mgtInventory mgt
11Capacity management in TFC Subcontracting in not an option TFCLevelling of capacity is impossible for a fresh productTwo choices by varying the frozen periodChasingHybridExplore TFCWhat is the % runtime, breakdowntime, changeover time and unused for the filling line?How can you influence breakdown and change over time?
12Capacity Planning Issues in the game ComponentsFinished productSupplyProductionDistributionPalletlocationsFTEPalletlocationsFTEShiftsImprovementsExplore TFCWhat is the utilization rate per resource?What is the overtime/overflow per resource?What can you conclude from this?
13Capacity in time Resulting in Overtime Overflow Idle time Capacity requiredOvertimeOverflowIdle timeUnused capacityTimeResulting inOvertime/Overflow%Utilization rateWhat is the optimal utilization rate?
14Volatility of capacity required is important CostsHigh volatilitycapacity requiredAverage volatilitycapacity requiredLow volatilitycapacity required70%80%90%Utilization rateHow can you influence the volatility of capacity required?Inbound warehousingProductionOutbound warehousing
15Capacity volatility reduction Raw materials warehouseSmall batches for high volume products (orange)Steady flow of incoming goodsDecrease demand volatility caused by production(Increase intake time)
16Capacity volatility reduction ProductionShort fixed period (bullwhip effect)Decrease volatility caused by customer demandShort production intervals
17Capacity volatility reduction Finished goods warehouseEarly order deadlinesPallet shipmentsDecrease customer demand volatilityStable production rate