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Lean supply chain management essentials : a framework for by Dreckshage, Brian J.; Kerber, Bill

By Dreckshage, Brian J.; Kerber, Bill

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Example text

Sales and production are designed to be the same in the interval. For many environments, however, this strategy is not the least wasteful one, for instance, where a seasonal business pursues a level or a hybrid strategy, and therefore has many intervals E x ecu ti v e S & OP, F o rec a s tin g , a n d Cus t o m er Rel ati o nship s 31 where the production and the sales rate will not be equal. Note that one of the purposes of takt time and the definition based on demand is to bring focus on the needs of the customer as opposed to the needs of production.

Forecasting is a process. Any forecast that you create needs to keep these basic truths in mind. Trying to fight against these is not usually a good idea, for instance, trying to forecast by item number three years in advance. The first two of these points should be well understood by most supply chain managers, and are logical and almost self-evident. The third point should spur some thought, as there has been a trend for forecasting to become more the domain of the computer than of the human.

This is because sales and operations planning is largely an exercise in anticipating future markets and deciding how the manufacturing and production facilities will meet those markets. In the Lean manufacturing world the main purpose of the product family is to help facilitate the creation of flow in the value stream. Because of this, it is desirable to have a family of products that travel through roughly the same processes in the manufacturing facility. 3 shows how a set of simplifying assumptions is used to link the product family production plan to the resources used to produce the product family.

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