How to Control the Flow of a Rigid Production Environment With Flexible Demand and Seasonality
|Matias Birrell - Project Director / Chili, Goldratt Consulting |
Co-Presenter, Javier Arevalo Jimenez - Regional Director / Latin America, Goldratt Consulting
Glass container manufacturing requires high investments and the setups are relatively long for a demand of many SKUs that fluctuates with a high seasonality during half of the year.
This industry has been driven by high productivity of assets as the main KPI for more than a century. The results are typically high inventories of finished goods and poor service which results in killing demand that migrates from glass to cans or pet.
The challenge is to reduce the inventories and, at the same time, give an almost perfect service in two different situations; special products and standard products. On top of that, there is a season where demand can be 30%-40% more than the rest of the year.
Finally, the production process is such that production lead time is equal to touch time so there is no room for traditional DBR. A new application must be developed.
3 Learning objectives
- How a deep rooted paradigm in an industry can hinder improvement for many years.
- How to control a flow where PLT = TT.
- What MTO, MTA and MTS are and how they can coexist in the same system.
Matias Birrell - Industrial Engineer with an MBA, in more than 20 years of experience has occupied several managerial positions in manufacturing and projects companies in Chile. He started his journey in TOC in 1997 and could have the opportunity to feel the power of focus TOC provides in several occasions since then. One remarkable milestone was multiplying by three in two months the productivity of a manufacturing plant just by challenging one policy based on local efficiencies, against all best practices and internal opinions. That was the point where TOC took a main place in his professional development. He was invited to join Goldratt Consulting in 2006. In the last years he has participated in several Viable Vision implementations as Invited Expert, Project Director and Auditor. In 2004 published a book in Spanish entitled "Inherent Simplicity: Foundations of the Theory of Constraints”; in 2012 co-authored another TOC book, "Forget the Urgent!”, a business dialogue about how to use TOC thinking processes to better focus on the important. His favorite phrases are "I don’t know” and "I was wrong”, because those are opportunities to learn.
Javier Arevalo Jimenez - Ph.D , University of Notre Dame found the book "The Goal” and through it met the work of Dr. Eli Goldratt for the first time when he was working as R&D Manager at Procter & Gamble. After several managerial roles and functional responsibilities, to executive positions, today he finds himself dedicated to implementing the principles and solutions of Theory of Constraints in his role as Regional Director for Latin America at Goldratt Consulting, managing the Viable Vision programs in the region. His broad experience and scientific training of more than 25 yrs, carried him from his family business, to his own and then to help companies in areas such as: manufacturing, consumer goods and supply chain, product development and project management, sales and marketing, strategy and tactics, where now the focus is clearly on holistic implementations Enterprise wide. In 2012 co-authored a TOC book, "Forget the Urgent!”, a business dialogue about how to use TOC thinking processes to better focus on the important.