Presentation on theme: "Capacity Management. Trade offs The Fresh Connection is full of trade offs –Over multiple roles and within roles –Sometimes conflicting with role incentives."— Presentation transcript:
Trade offs The Fresh Connection is full of trade offs –Over multiple roles and within roles –Sometimes conflicting with role incentives Supplier mgt Capacity mgt Inventory mgt Demand mgt Capacity management Volatility manaagment
Capacity management in TFC Subcontracting in not an option TFC Levelling of capacity is impossible for a fresh product Two choices by varying the frozen period –Chasing –Hybrid What is the % runtime, breakdowntime, changeover time and unused for the filling line? How can you influence breakdown and change over time? Explore TFC
Capacity Planning Issues in the game Finished product Components SupplyProductionDistribution Palletlocations FTE Palletlocations FTE Shifts Improvements What is the utilization rate per resource? What is the overtime/overflow per resource? What can you conclude from this? Explore TFC
Capacity in time Capacity required Time Overtime Overflow Idle time Unused capacity Resulting in Overtime/Overflow% Utilization rate What is the optimal utilization rate?
Volatility of capacity required is important Costs Utilization rate High volatility capacity required Average volatility capacity required Low volatility capacity required How can you influence the volatility of capacity required? Inbound warehousing Production Outbound warehousing 90%80%70%
Capacity volatility reduction Small batches for high volume products (orange) Steady flow of incoming goods Decrease demand volatility caused by production (Increase intake time) Raw materials warehouse
Capacity volatility reduction Short fixed period (bullwhip effect) Decrease volatility caused by customer demand Short production intervals Production
Capacity volatility reduction Early order deadlines Pallet shipments Decrease customer demand volatility Stable production rate Finished goods warehouse
Utilization finished goods warehouse
Influence of overtime in TFC Overtime in production and warehousing will influence your costs. What is the other important effect of overtime?
Production reliability in the game Production reliability Terms of delivery Overtime% bottling linesAvailability components Fixed period Component stock
Overtime % bottling lines in the game # shifts per bottling line Overtime % bottling lines Improve- ment projects Past shelf lifeBottling line Raw materials inspection Decrease peaks