The difference between "Planning Harder" and "Planning Ahead" is about $1MM per plant in annual cash flow
San Diego, CA (PRWEB) October 24, 2010
Supply Chain Toolworks (SCTW) continues to espouse their cutting edge yet practical angle of Production Run Strategy Planning. Steve Johanson’s presentation on “Reclaiming Your Trapped Capacity” was a breakthrough topic at the 2010 APICS International Conference and Expo. Mr. Johanson’s presentation drew a standing room only crowd and showed the interest supply planning visionaries have in the next generation of Capacity Planning.
SCTW has long been a thought leader in the advancement of Run Strategy Theory, also known as Strategic and Intermediate Capacity Planning. A cornerstone of proper strategic planning is accounting for variability on both the demand and supply side. Current methodologies do not properly account for this and often companies over commit their resources. The correct loading level for any asset can be accounted for if Trapped Capacity is measured.
Mr. Johanson’s presentation showed how this small calculation has far reaching and strategic impacts. In fact his data shows that in the 50 plants that were used in the study, using SCTW’s next generation techniques improved cash flow by an average of $1 million per manufacturing facility and could be used to ensure adherence to customer delivery and lean manufacturing constraints.
Many attendees rated this presentation best in show from a content and importance to their own companies. Measuring “Trapped Capacity” is considered a necessity for companies going lean and following six sigma programs.
About Supply Chain Toolworks:
Supply Chain Toolworks, Inc. provides solutions and support to forward thinking manufacturers who wish to plan their production for maximum cash flow and performance. It was founded by core team of operations experts with practical experience helping Chief Operating Officers and Vice Presidents of Supply Chain to achieve real, strategic change in their organizations. Supply Chain Toolworks focuses on creating new methods and tools for creating high impact Operations Strategies.
We believe that human knowledge and intuition is still the best tool to create a strategy -- that the “sandbox” approach of leveraging human and computational strengths will always beat the “black box” solution derived by blind computer optimization.