This insightful session is designed to show managers how they can leverage the principles of factory physics to drive innovation, enhance profitability, and achieve sustainability goals.
Don Lindsey introduces the fundamental concepts of factory physics, and …
explains how science and mathematics provide a deeper understanding of your manufacturing system
delves into the relationships between cycle time, WIP, and the flow of production and how understanding these relationships allows managers to design more efficient and effective systems
explores the relationship between factory physics and today’s ERP systems, demonstrating how integrating these principles can lead to more efficient and effective manufacturing operations
Khoa To from Systemized Partners showcases a real-world program that …
successfully implements factory physics concepts
demonstrates how these principles have been used to reduce costs, improve results, and boost customer service levels
How does factory physics meld with ERP and MRP calculations?
Factory physics’ emphasis is on variability.
Safety stock in QAD’s MRP calculations is critical. By understanding the variability of safety stock and measuring that variance, you can do a much better job of calculating what the safety stock should be at any point in time.
The same applies to lead time management. You can calculate the impact of the variability of lead times on the safety stock calculation.
Factory physics helps optimize inventory calculations and applies them directly to the MRP calculations in ERP.
So, factory physics is kind of the next step of MRP, MRP2, and ERP. And now, with the advancement of artificial intelligence, factory physics is a very, very effective tool for planning.
You mentioned the demo was a sample using one part, but that there could be hundreds or more. What would that look like?
As you saw in the demo, we just tested for a single part. But, you can have many more parts using the principle. Focus on creating the input and output. Using data analysis, you prepare a table where your first column is the part number and the subsequent columns are used to categorize the variation of supply and demand.
You can provide your forecast and forecast variation as demand and on the supply side you can provide the lead time and standard deviation of lead time. You can have separate calculations using a PO receipt and the performance data to prepare that data and the you feed it to the models. From this, you get the two columns for Q &R. You could make this a semi-automatic process. It can be evaluated periodically to make sure that you stay on top of your inventory management.
by Cathy Helmers | on 21st April 2024 | in Blog, Webinars
