S&OP Optimization

Like many manufacturers, you have executed an improvement strategy — lean, six sigma, TPM, or any of the other handful of methods proven to impact performance. Now it’s time to sustain performance gains. Why lose ground when it is possible to build on achievements?

The Informance S&OP Module is an EMI solution to assess the accuracy of planning rates used in ERP, supply chain and scheduling systems. Manufacturing professionals can now address the financial and scheduling implications that cripple performance and sabotage the continuous improvement effort.

80% of planning rates fall outside of acceptable rate performance.

Idle lines and backlogs are often a result of inaccurate standard rates and old planning rates in the ERP system. When production runs finish sooner or later than expected, idle lines or backlogs create issues across inventory, customer service, labor costs and many other areas. These problems are telltale symptoms of faulty analysis or neglect toward standard rates and planning rates.

Serious implications with inaccurate standard and planning rates.

When production efficiency consistently exceeds 105%, planning rates may have been set according to budget standards. Alternately, when production efficiency routinely falls below 75%, it is advisable to review ideal machine speeds and standard rates.

Significant value with accurate standard and planning rates.

Accurate and timely analysis of downtime and cycle time can result in appropriately set standard and planning rates. The result is a validation of each existing rate or an adjustment, higher or lower. Furthermore, accurate standard and planning rates are a reflection of frequent, detailed analysis, ideally reviewed quarterly or semi-annually.

Combat inaccurate standard and planning rates with Informance.

With the Informance and the S&OP Module, you will: Understand why standard rates and planning rates may not be accurate Determine if existing standard rates and planning rates are accurate for your manufacturing operation Easily and efficiently set planning rates Protect performance gains

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