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Operational ExcellenceOperational Excellence
Data Accuracy – the Foundation
JM Data - 2 © The Delos Partnership 2004
The Delos ModelThe Delos ModelFor Business Integration For Business Integration
InnovationInnovation
VisionVision
StrategyStrategy
PrioritisationPrioritisation
DemandDemand
SupportSupport
SupplySupply
JM Data - 3 © The Delos Partnership 2004
Data QualityData Quality
Items that are foundation for valid Planning• Inventory• Bills of Materials• Routings• Planning Data
– Item Master– Lead Time– Order Quantity– Safety Stock
• Work Centre Data
JM Data - 4 © The Delos Partnership 2004
Requirements for Data Requirements for Data QualityQualityItems that are foundation for valid MPS• Bills of Materials > 98 %• Routings > 98 %• Inventory > 98 %• Planning Data
– Item Master > 98 %– Lead Time Valid– Order Quantity Thought
about– Safety Stock Thought about
• Work Centre Data > 98 %
JM Data - 5 © The Delos Partnership 2004
WWe need one databasee need one database
Planning
Finance
Stores
Manufacturing Design
Development
Industrial
Engineering
Quality
Sales
Marketing
Purchasing
JM Data - 6 © The Delos Partnership 2004
Steps to getting BOM Steps to getting BOM AccuracyAccuracy1. Identify how to get to one single Database2. Assign responsibility for accuracy3. Check accuracy of control group4. Get over emotional issues of part numbers5. Create BOM policies6. Get Control group to 100 %7. Fix Database8. Implement Strong Change control process9. Continuously Monitor accuracy
JM Data - 7 © The Delos Partnership 2004
Bill of Materials StructureBill of Materials Structure
CITRIC.CCitric Acid
934.5794 GCPurchased
40000178N_C1R1.239.7720 GM
Manufactured
0040.042143.8x108.0/400/0.165
1 EAPurchased
SIRALOX.PSiralox 30/200 (Si stabilised)
800 GCPurchased
ZEBETA.PBeta Zeolite (CP814E)
200 GCPurchased
200028AS1Z3_R1.1214.1000 GCManufactured
P10.2406DF88P(min)/40/1:0:0
1 EAManufactured
PU2406DF88P(min)/40/1:0:0
1 EAManufactured
PT/PTNIT.SPt as Pt Nitrate
65.4206 GMPurchased
One Single Level
BillOf Material
One Single Level
BillOf Material
Accurate ?
Accurate ?
Part Number
Description
Quantity per
Unit of Measure
Scrap Factor
Part Number
Description
Quantity per
Unit of Measure
Scrap Factor
JM Data - 8 © The Delos Partnership 2004
Definition of AccuracyDefinition of Accuracy
Number of Single Level Bills of Materials right
Number of Single Level Bills Audited
X 100 %
JM Data - 9 © The Delos Partnership 2004
Ways to check accuracy of Ways to check accuracy of BOM BOM
Knowledgeable experts review in BOM meeting Check as parts are issued from stores Follow the Bill of Material in manufacture ! Take the product to pieces : record and compare Serial over or underusage of raw materials
JM Data - 10 © The Delos Partnership 2004
ROUTING ACCURACYROUTING ACCURACY
Basis :Basis : Represents the way that the product is made and moves through the factory via work centres
Represents the way that the product is made and moves through the factory via work centres
Missing/Unnecessary Operation
Missing Work Centre
Wrong Operation Sequence
Wrong Work Centre
No REALISTIC Standard
Missing/Unnecessary Operation
Missing Work Centre
Wrong Operation Sequence
Wrong Work Centre
No REALISTIC Standard
Types of Error :
Types of Error :
JM Data - 11 © The Delos Partnership 2004
Steps to getting Routing Steps to getting Routing AccuracyAccuracy1. Identify how to get to one single Database
2. Assign responsibility for accuracy
3. Check accuracy of control group
4. Create Routing and Work Centre policies
5. Get Control group to 100 %
6. Fix Database
7. Implement Strong Change control process
8. Continuously Monitor accuracy
JM Data - 12 © The Delos Partnership 2004
Definition of AccuracyDefinition of Accuracy
Number of Routings right
Number of Routings Audited
X 100 %
JM Data - 13 © The Delos Partnership 2004
Ways to check accuracy of Ways to check accuracy of RoutingRouting
Check with knowledgeable people Track product through manufacture Assemble absolutely according to routing Performance measures shows Late or early completion of product
JM Data - 14 © The Delos Partnership 2004
How Accurate Is This How Accurate Is This Data ?Data ?
Item Counted Quantity
Value ( £’s) Computer Record
Value ( £’s)
12351 995 995 1000 1000
12352 996 996 1000 1000
12353 997 997 1000 1000
12357 998 998 1000 1000
12358 999 999 1000 1000
12359 1000 1000 1000 1000
12360 1001 1001 1000 1000
12372 1002 1002 1000 1000
12373 1003 1003 1000 1000
12374 1004 1004 1000 1000
12375 1005 1005 1000 1000
TOTAL 11,000 £ 11,000 11,000 £ 11,000
JM Data - 15 © The Delos Partnership 2004
How Accurate Is This How Accurate Is This Data ?Data ?
Inventory status
Stores Location ST001
Factory F0001
Part Number 91121 200 Location ST001 200 Location F0001 0
Count 100
Count 100
JM Data - 16 © The Delos Partnership 2004
Definition of AccuracyDefinition of Accuracy
Number of correct counts
Number of items counted
Item = product by location
X 100 %
JM Data - 17 © The Delos Partnership 2004
Definition of Accuracy - Definition of Accuracy - TolerancesTolerances
Count is accurate if item is within preset tolerance
Computer 100
Count 97 98 99 100 101 102 103
Computer 100
Count 97 98 99 100 101 102 103
E.g. suppose tolerance = +/- 2 % E.g. suppose tolerance = +/- 2 %
Accurate within these limits
JM Data - 18 © The Delos Partnership 2004
How Accurate Is This How Accurate Is This Data ?Data ?
Item Counted Quantity
Computer Record
Tolerance
=/- %
Hit/Miss
12351 995 1000
12352 996 1000 +/-2 %
12353 997 1000 +/-5 %
12357 998 1000 +/-2 %
12358 999 1000
12359 1000 1000
12360 1001 1000
12372 1002 1000 +/- 2 %
12373 1003 1000
12374 1004 1000 +/-5 %
12375 1005 1000
TOTAL 11,000 11,000
JM Data - 19 © The Delos Partnership 2004
Steps to Gaining Inventory Steps to Gaining Inventory AccuracyAccuracy
1. Establish levels of current accuracy2. Establish control group to identify causes of
errors3. Review material flows4. Create Limited Access5. Define systems and processes6. Educate users7. Train users8. Cycle count9. Eliminate annual physical10. Never give up the challenge
JM Data - 20 © The Delos Partnership 2004
88. Carry out cycle counting. Carry out cycle counting
Three recognised ways to cycle count1. By part number
1. Random selection of parts2. ABC Cycle Count
2. By Location
Product Class
% of Volume
% of Value % Tolerance
Counts per annum
Interval
- weeks
“A” Class 20 % 80 % +/- 0% 4 13
“B” Class 30 % 15 % +/- 2% 2 26
“C” Class 50 % 5% +/- 5% 1 52
JM Data - 21 © The Delos Partnership 2004
Process Control cycle Process Control cycle countingcounting
Divide Warehouse into locations For cycle counting
Divide Warehouse into locations For cycle counting
Week 1 Week 2 Week 3 Week 4 Week 5`
JM Data - 22 © The Delos Partnership 2004
Process ControlProcess Control
• Count– When Easy to count
• Low balance high exposure
– Obvious errors• Eyeball large quantities
– By Location• Efficient• All physical inventory• Ensures physical locations recognised• Reconciliation easier
JM Data - 23 © The Delos Partnership 2004
Process Control cycle Process Control cycle countingcounting
Location Part Quantity Count Hit/Number Miss
A3452 23654 100 100 Hit
A3453 24568 1245
A3454 24367 22 20 Miss
A3455 70659 2,234
A3456 39060 101 101 Hit
A3457 39081 43 43 Hit
A3458 42020 75 75 Hit
4 hits5 counts
= 90 %
JM Data - 24 © The Delos Partnership 2004
Item Master Data Used Item Master Data Used in Planningin Planning
• Part number• Description• Unit of measure• Make or buy• Lead time• Firm Planned Fence• Order quantity• Minimums and multiples• Safety stock• Scrap factor• Yield factor• Engineering drawing number• Commodity code• Family code• Planner/buyer code• Customer address and code number• Suppliers address and code number
All must be accurate And thought through
correctly
JM Data - 25 © The Delos Partnership 2004
Data AccuracyData Accuracy
1. Data quality essential for a valid plan to be calculated by the computer
2. Needs to be kept up to date all of the time
3. Needs to reflect the way products and parts are made.
4. Requires discipline and the right attitude