operational excellence data accuracy – the foundation

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


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


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 %


WWe need one databasee need one database

Planning

Finance

Stores

Manufacturing Design

Development

Industrial

Engineering

Quality

Sales

Marketing

Purchasing


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


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


Definition of AccuracyDefinition of Accuracy

Number of Single Level Bills of Materials right

Number of Single Level Bills Audited

X 100 %


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


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 :


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



Number of Routings right

Number of Routings Audited

X 100 %


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


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



Inventory status

Stores Location ST001

Factory F0001

Part Number 91121 200 Location ST001 200 Location F0001 0

Count 100

Count 100



Number of correct counts

Number of items counted

Item = product by location

X 100 %


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



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


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


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


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`


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


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 %


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


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

operational excellence data accuracy – the foundation

Documents

accuracy of routing

location product class

routing accuracyidentify

bom accuracyidentify

bom meeting check

location f0001

limitshow accurate

valid mpsbills of materials