this Presentation

March 27th, 2015
Presented at the Demand Driven World Conference
Houston, TX
SATUERCA
INTRODUCTION
ACTIRO
ESTAMCAL
MECANIFRAN
MARKET
PRODUCTS
 Founded in 1967
PRODUCTION
PROCESS
DDMRP
 Horizontal forging (parts between 50g and 2kg)
Machining
 Focused on the automotive supply sector
RESULTS
 2 factories located in Spain and 1 in Romania
135 workers
15,000 m2 between the 3 factories
2
 Certificates
ISO 9001
ISO 14001
Quality
Management
Standard
Environmental
Management
Standard
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
 ISO/TS 16949
OSHAS 18001
Quality in Automotive
Sector
Occupational Health and
Safety Management
RESULTS
3
SALES (units)
INTRODUCTION
MARKET
70,000,000
54,153,346
60,000,000
60,297,075
46,503,914
50,000,000
39 million €
PRODUCTS
40,000,000
PRODUCTION
PROCESS
DDMRP
RESULTS
35 million €
30,000,000
SALES
31 million €
20,000,000
10,000,000
0
2012
2013
2014
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 Market
PORTUGAL
1.3%
ROMANIA
2,2%
CHINA
0.2%
OTHERS
2,0%
UK
0,8%
By country
SPAIN
10,4%
ITALY
1,4%
USA
5,1%
INTRODUCTION
MARKET
GERMANY
31,7%
PRODUCTS
PRODUCTION
PROCESS
FRANCE
44,8%
DDMRP
RESULTS
Main Customers
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 Our products
INTRODUCTION
MARKET
Gears
Clutch Bodies
Cams
PRODUCTS
PRODUCTION
PROCESS
Nuts
DDMRP
RESULTS
Bearings
6
 Our products
INTRODUCTION
MARKET
PRODUCTS
Bearings
Gears
Clutch bodies
PRODUCTION
PROCESS
DDMRP
RESULTS
Special
Nuts
Cams
7
 Our products
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
8
Hot and semi-hot forging of a variety of steel pieces
INTRODUCTION
 Fully integrated manufacturing process from raw material
to finished product
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
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 Production facilities
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
 Horizontal forging
 Heat treatments: Annealing, Quenching and tempering,
Isotermal annealing, Normalized
 Shot blasting
 Automatic 100% inspection (2D and 3D)
 Surface treatments
 Machining
 Technical characteristics
 Forging Temperature 1.200 ºC / 100 to 150 parts per
minute
 Lead Time 5-10 days
 Raw Material: steel round bars from 19mm to 55mm,
23.000 Tn / year 60 references
 400 finished products
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 Why DDMRP?
PLANNING  Critical process
Situation description
INTRODUCTION
MARKET
PRODUCTS
•
•
•
Customer forecast/orders varying even on due date
Delays of raw material deliveries
Daily consumption from consignment stocks
 Necessities
•
PRODUCTION
PROCESS
DDMRP
RESULTS
Methodology to manage this information on a daily basis:
• Stock levels
• Detection of new Work Orders (WO) requirements
• New raw material purchase requirements
• Which raw material Open Supply orders need to be
controlled
• In Process WO that need to be expedited
 Planning history
•
•
•
Until 2012, planning was dependant on a single person’s analysis
From 2012 to 2013 use of Excel
September 2013 until present day: DDMRP Methodology applied
along with Replenishment +)software
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 Changing to DDMRP
INTRODUCTION
MARKET
1st- Strategic Inventory Positioning
2nd- Buffer profiles and Level Determination
3rd- Dynamic Buffers
4th- Demand-Driven Planning
5th- Execution
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
DEMAND ANALYSIS
 Change in the way DEMAND is understood
 Forecast/Orders beyond a reliable horizon are no longer taken into
account 
 Only committed orders (date and quantity) are considered DEMAND
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 CUSTOMER BEHAVIOUR
 CUSTOMER “A”
INTRODUCTION
MARKET
•
•
•
•
•
Daily forecast for subsequent 3 months
Daily consumption - Real orders only one day in advance
Forecast precision - Quite good
LT = 10 days
Raw material and finished product buffers
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
 CUSTOMER “B” Forging and Machining
•
•
•
•
•
Weekly forecats for subsequent 6 months
Consignment stock - daily consumption
Forecast precision - Bad
LT = 20 days
Spike orders
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 CUSTOMER BEHAVIOUR
 CUSTOMER “C”
INTRODUCTION
MARKET
•
•
•
•
•
Weekly forecast for subsequent 9 months
Weekly consumption
Forecast precision - only the first week is reliable
LT = 15 days
150 references
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
 CUSTOMER “D”
• Enough time available to fulfill the demand from the moment
the order is placed. Raw material is procured and manufactured
to order .
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1st- Strategic Inventory Positioning
Raw material, semi-finished products, finished products
INTRODUCTION
OBJECTIVE:
• Lead Time reduction
• Reduce the “noise” which comes from customers’
bad forecasts or providers’ delivery problems
MARKET
2nd- Buffer profiles and Level Determination
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
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BUFFER EXAMPLE
RZ -- 5 working days
YZ -- 5 working days
GZ – Production batch (monthly)
R+ Alert – 10 days
M11M
A 35,503 PART BUFFER DOES NOT MEAN THAT THERE WILL BE 35,503 PARTS ON HAND
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4th- Demand-Driven Planning
- Does a new WO have to be placed?
- Does a new PO have to be placed?
• Daily info vs Weekly info
• Fast realization of whether there is a new need
INTRODUCTION
MARKET
Raw Material new Purchase Orders?
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
18
4th- Demand-Driven Planning
Production new Work Orders?
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
19
5th- Execution
 Which PO need to be followed up?
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
 We have around 60 raw material SKUs
 6 Raw Material SKUs need urgent follow up and 7 in the short
term
 Focus on 18% of SKU´s
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5th- Execution
 Which WO to be monitored?
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
21
3th- Dynamic Buffer Adjustments
INTRODUCTION
•
The Planning Manager should know of any extraordinary changes
to products so as to be able to indicate such changes in the buffer
parameters.
•
In addition to this, they must review the behaviour of the buffers
periodically to be aware of whether readjustments are necessary
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
22
INITIAL REQUIREMENTS
• Part and Inventory data must be correct and updated
• DEMAND has to be filtered
INTRODUCTION
MARKET
PRODUCTS
RESULTS
 Reduction in production planning changes  Machine
capacity improved
PRODUCTION
PROCESS
 Production for one week is planned
DDMRP
 Daily information updated vs Weekly information updated
Improved reaction to changes
RESULTS
 Facilities are used more efficiently maintaining same
service levels (98+%)
 Regulation of the stock levels - stock is available for all
production requirements
 Customer B is the best example
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BEFORE
CUSTOMER B
INTRODUCTION
MARKET
PRODUCTS
 The forecast for the next three weeks was the input to start the forging process
 2 weeks later, when the forged parts were delivered to Mecanifran, a new forecast
would tell us whether they were then required for the next process.
PRODUCTION
PROCESS
RESULTS:
 Bad forecasts meant that stock was out of control, what was needed wasn’t
available and the forged parts were no longer required
DDMRP
 Urgencies in both factories
RESULTS
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NOW
CUSTOMER B
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
RESULTS:
 Buffers controlled in every strategic position
 LT reduction of 50% (from 20 to 10 days)
 Stock reduction ( 3,700,000 parts to 2,700,000 parts 35% in three months)
 No more urgencies, the distortion that bad forecasts produced has been
eliminated
 Machine Capacity has increased by using them for what is really needed
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CUSTOMER B 445945 PART
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CAMS 13% OF TOTAL PRODUCTION
AVERAGE STOCK 175 TN
DDMRP TARGET: 184 TN
ADU 9,228 (3/16/2015)
RAW MATERIAL STOCK (2 WEEKS) = 92TN
MATERIAL IN PROCESS (2 WEEKS) = 92TN
TOTAL = 184 TN
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BECOMING DDMRP
INTRODUCTION
MARKET
PRODUCTS
PRODUCTION
PROCESS
DDMRP
RESULTS
31
THANK YOU
XABIER TUDANCA
Purchasing and Logistics Responsible
GRUPO SATUERCA