TOCICO

The presentation goal is to share the details involved in adapting the TOC replenishment solution to improve parts availability and inventory turns when the traditional 3 X 1/3 zones approach to stock buffer design is not sufficient. Key learning points are: 1. Developing a replenishment policy matrix for make-to-stock / make-to-stock (MTS / MTO) connected to purchase-to-stock / purchase-to-order (PTS / PTO) provides a strong focus on results for any replenishment implementation. 2. Changes to the traditional 1/3, 1/3, 1/3 red, yellow and green zones are required to provide better visibility of long lead time items as well as buffer re-sizing based on consumption changes versus buffer zone penetration. 3. How the replenishment concepts can be used to better manage the on-order pipeline for long lead time items – predicting the timing of future shortages. (i.e. the zones tell you if the on-hand is sufficient / healthy, but how do you know if the timing and frequency of the multiple purchase orders in the on-order is sufficient / healthy?) 4. Collaborating with key suppliers on replenishment significantly improves responsiveness while reducing on-order liability. Three benefits are: 1. See the Standing on the Shoulders of Giants (SOSG) process applied to the traditional TOC replenishment solution. 2. Hear Teledyne DALSA talk about the ‘leap of faith’ required to abandon the forecast and migrate to replenishment when there was a 16 week gap (due to long lead times). 3. Specific methodologies, approaches and formulas are provided.