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Manufacturing Technology DLA Apparel Research Network Defense Manufacturing Conference ‘99. Creating a Balanced Flow Supply Chain. Clemson Apparel Research EDI Integration Corporation. Determine Size. Scan Data. Retail Order. SM. Stock Sizes. Retail Stock. Fitted Uniforms. Inventory
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Manufacturing TechnologyDLA Apparel Research NetworkDefense Manufacturing Conference ‘99 Creating a Balanced Flow Supply Chain Clemson Apparel Research EDI Integration Corporation
Determine Size Scan Data Retail Order SM Stock Sizes Retail Stock Fitted Uniforms Inventory Control Point (VPV) Depot Stock Sizes Special Measurements Manufacturer ARN Customer Driven Uniform Concept DLA Apparel Research Network
Benefits of a Balanced Flow Supply Chain (ARN Objectives) • Minimum Retail Stock Outs • Minimum Inventory Investment • Minimum Manufacturing Costs • Minimum Operating Expenses Maximum Throughput at Minimum Cost! DLA Apparel Research Network
Supply Chain Core Problems: • - Large, Infrequent Retail Orders • - Large Production Runs of Same Item Results: Unbalanced Inventories and Inefficient Manufacturing Solution: Create a Balanced Flow of Orders and Product usingWeb-based Total Asset Visibilityand Constraints Management DLA Apparel Research Network
600 Manufacturer’s Work-in-process Distr. Center Inventory Manufacturer’s Finished Goods Intransit To Retail 400 Manufacturing, Distribution, and Retail Supply Chain 200 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 Segments and Items of a Typical Supply Chain Forecasted Annual Consumption Retail Inventory QTY Production Line Items DLA Apparel Research Network
Items Consumed per Year 600 Post Annual Forecast 400 200 ADOS 0.5 ADOS 0.5 ADOS 2 ADOS 1 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 From Items to an Annualized Day of Supply (ADOS) ADOS = Forecast/365 Next Convert the Chart from Items to ADOS = 365 Items/365 days SKU 2 ADOS = 1 Item 365 QTY ADOS 1 DLA Apparel Research Network
Days of Supply Supply Chain Goal DOS 60 Manufacturer’s Work-in-process Distr. Center Inventory Manufacturer’s Finished Goods Intransit To Retail Retail Inventory 40 Manufacturing, Distribution, and Retail Supply Chain Balanced Retail Goal DOS 20 1DOS 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 Establish Retail and Supply Chain DOS Goals 5 Days 15 Days 5 DOS 15 Days 20 DOS X QTY DLA Apparel Research Network
60 Manufacturer’s Work-in-process Distr. Center Inventory Manufacturer’s Finished Goods Intransit To Retail Retail Inventory 40 Manufacturing, Distribution, and Retail Supply Chain 20 1DOS 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 Balanced Supply Chain Goals in Days of Supply Days of Supply Supply Chain Goal DOS Retail Goal DOS DLA Apparel Research Network
Days of Supply Supply Chain Goal 60 Compute Capacity Variance Compute To Make Post Work In Process 40 Post Finished Goods Re-balanced Re-balanced Compute To Ship Intransit 20 Retail Goal Post Retail on Hand 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 Re-balancing the Supply Chain in Days of Supply Honors Production Capacity Manufacturing Requirement for Next Period DLA Apparel Research Network
VIM - Virtual Item Manager 1. Viewing 2. Tactical 3. Strategic 4. Balanced Flow 5. QLM Decision Support Production Status Order/NSN Tracking Shipment Status Supply Chain Balance Order Release Retail Status ARN Asset Visibility System (AAVS) Architecture Asset Visibility System DataMart ASAP Web Retail-QLM Decision Support Predictive Forecasting; Visibility of Local Assets; Visibility of Pertinent Wholesale Assets. (Requisition Status; Quantity On Hand; Quantity On Order) Mfrs’ Web Site (ASAP Web) Provides Ability to Track Orders; Work In Progress; Finished Goods; Shipping Status; Invoicing; Contracts & Delivery Orders Wholesale Item Managers SAMMS; Calculate Rebalance; Analyze Supply Chain Demand, Consumption, Stock Location; Rule-based Distribution. DLA Apparel Research Network
Balanced Flow Supply Chain Marine Corps Recruit ClothingAchievements to Date(for Items on Complete System) • Eliminated Retail Stock Outs • Reduced Inventory Investment $8M • Leveled Manufacturing Requirements • Reduced Operating Expenses DLA Apparel Research Network
Days of Supply Supply Chain Goal 60 Compute Capacity Variance Compute To Make Post Work In Process 40 Post Finished Goods Re-balanced Re-balanced Compute To Ship Intransit 20 Retail Goal Post Retail on Hand 0 SKU 1 SKU 2 SKU 3 SKU 4 SKU 5 Re-balancing the Supply Chain in Days of Supply Honors Production Capacity Manufacturing Requirement for Next Period ???? Question Time ???? DLA Apparel Research Network
