IT Integration of LEAN SCM

5.1. The Need to adjust IT System Architectures

5.2. Closing the Gap with C MELOT’s LE SCM Suite

Figure 13: Integration of Camelot´s LEAN Suite

These LEAN enhancements of the existing IT infrastructure address both of the key layers of supply chain planning—global and local planning:

1. End-to-End (global) LEAN SCM Planning Add-on 2. Site-level (local) LEAN SCM Planning Add-ons

The key challenge regarding end-to-end tactical supply chain planning is achieving real-time visibility into capacity and inventory. Companies already using integrated global supply network planning (SNP) on top of their ERP systems are well-prepared for the next step: adapting the new LEAN Supply Chain Planning approach to global planning. To provide the right system support, CAMELOTs LEAN Suite contains an IT-enabled planning decision support component for regular tactical supply chain parameter (re-)configurations on top of SNP. This so-called tactical renewal cockpit embeds a range of functionalities that support the decision on the right buffer size for capacity and inventory

according to the identified variability, lead times, and assigned service levels in the individual customer supply channels.

The inventory target-setting component (Stock Parameter Optimizer) is a core element of the tactical renewal cockpit, making dynamic inventory replenishment level (IRL) calculations possible.

This is further supported by optimization capabilities for multi-echelon inventory target-setting. In addition, the optimal inventory levels depend directly o n the Rhythm Wheel –managed cycle times.

Both cycle time and inventory targets must align with the global takt to achieve end-to-end product flow synchronization. Finally, simulation and what-if analysis features have been embedded into the IT add-on to make optimal evaluation of scenarios possible and to provide options regarding supply chain performance.

At the local plant level, the Rhythm Wheel Designer has been added to existing tools such as the SAP PP/DS application, hih is “APs detailed plaig ad shedulig odule. The Rhythm Wheel Designer supports planners effectively when identifying and configuring the best production

sequence, production quantities, and cycle times for their Rhythm Wheels. For such Rhythm Wheel 5.3. End-to-End global) LEAN Supply Chain Planning Add-on

5.4. Site-level local) LEAN Supply Chain Planning Add-ons

optimization, the latest findings from operations research have been considered and translated into appropriate algorithms.

Following Fig. depicts a screenshot of the Rhythm Wheel Designer when fully integrated into the SAP APO solution. State-of-the-art technology has been incorporated to maximize user-friendliness. Such features as an advanced graphic interface and drag-and-drop functionality ensure effective and convenient use for planners.

Figure 14: CAMELOT’s Rhyth Wheel Desiger

Once specific Rhythm Wheels have been pre-configured, they are combined with actual pull replenishment signals during local planning runs to generate only consumption-based production orders. In the LEAN Suite, this task falls to the LEAN Planning Heuristic, which creates the LEAN Rhythm Wheel –based production schedule. If the designed cy cle time boundaries are violated during execution, this heuristic also enables planners to apply short-term Factoring to move

production back within the designed boundaries. The Factoring functionality provides the required fleiilit fo eatig to olatilit aused  shot-term supply disruptions or unforeseen market events.

Deviations of the executed, consumption-based Rhythm Wheel schedule f rom the forecast-based Rhythm Wheel design parameters will always remain i todas VUCA old. To monitor such deviations and overall performance, the Rhythm Wheel Monitor has been developed as one of the core components of the LEAN Suite. Here cycle times, run-to-target results, capacity utilization, and IRL developments are monitored. With this IT component planners can continuously evaluate the adherence of executed plans to the optimal pre-configured Rhythm Wheel set-up. The same locally

monitored data—indicating cycle time variation and inventory developments—are passed on to the global supply chain level to allow for end-to-end supply chain synchronization and re-adjustments.

In the next Fig., a see shot of CAMELOTs ‘hth Wheel Moito is depited. By applying the in-memory technology of SAP HANA, outstanding system performance is achieved, making it possible to run sophisticated real-time analysis. Corresponding results are plotted on an advanced graphical interface.

Figure 15: Cycle ie i CAMELOT’s SAP-integrated Rhythm Wheel Monitor

Leading companies are increasingly adapting LEAN principles and concepts in their supply chains.

They realized that the efficient management of variability results in sustainable performance improvement. By reducing variability in the supply chain, both customer satisfaction and cost efficiency increased to a large extent. However promising the results are, bear in mind that LEAN SCM is an ongoing journey. The idea of continuous improvement is embedded in many L EAN SCM processes (e.g. in the renewal processes) and represents a major part of the LEAN philosophy. If you are willing and committed to embark, welcome aboard and have a safe

LEAN journey.

LEAN SCM Publication

For more details, see also Josef Packowski´s skillful and reader-friendly publication, containing dozens of self-explaining tables, charts, figures, case studies, etc. (available at Amazon).

6. Outlook

Additional Resources

 www.camelot-mc.com

 www.leansupplychainplanning.com

 www.rhythm-wheel.com