supplier scheduling systems min/max and pods suppliers
TRANSCRIPT
Supplier Scheduling SystemsMin/Max and PODS
Suppliers
Greg SmileyCentral Supply Chain
Procurement Systems
Slide 2
Min/Max Supplier Training
Min/Max Concept Min/Max History Min/Max Web Screens in the Portal Order Policy - Min and Max Values Min/Max System Updates PODS – Purchase Order Discrete Scheduling system Instructions and Reference Supplier Scorecard Assistance
Slide 3
Min/Max Supplier Training - Concept
Simple system where minimum and maximum inventory quantity are set for each part number Vought inventory levels are then managed by the
supplier between the minimum and maximum levels Replenishment: The supplier action of ordering,
producing and shipping product to Vought Vought receiving parts up to the max qty, prior to the
inventory quantity going below the min qty
Slide 4
Min/Max Supplier Training - Concept
5
10
15
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25
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0
Inventory Quantity
Time
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Consumption Consumption
Replenishment Replenishment
Minimum
Maximum
Consumption
Beginning Inventory = 25 pcs Monthly Demand = 2 pcs
Slide 5
Min/Max Supplier Training - History
Late 2001 Min/Max inventory management was identified as a process and system to replace APORs
In 2002 the first supplier began working to an early MM process (Excel spreadsheet)
In July 2009 we have 42 suppliers in MM and approximately 50% of all parts purchased by Vought are managed in the Min/Max system
2009 decision was announced to abandon APORs and move to Min/Max as much as possible
In August 2009 we moved most suppliers out of APORs and into Min/Max or PODS.
Slide 8
Min/Max Supplier Training - Portal
Part Number• Part Number as listed on Purchase Order• Only Part Numbers with open POs are listed
Slide 9
Min/Max Supplier Training - Portal
CH – Change Flag• An asterisk is shown when one of following conditions are
present: New Part Number, changed Min or Max value, new Purchase Order, or a new receipt is listed.
• The asterisk remains for 7 days
Slide 10
Min/Max Supplier Training - Portal
Site• Site that uses the part: STU, HAW, MSF, JSF, NAS,
MIL
Slide 11
Min/Max Supplier Training - Portal
Min Qty – Inv Qty – Max Qty• Min value that inventory is to be maintained above• Inventory Qty (updated nightly)• Max value that inventory is to be maintained below
Colors• Red = Under Min• Blue = Over Max• Green = Contact Buyer
Slide 12
Min/Max Supplier Training - Portal
Dir – Direction• Inventory vs Min or Max
– U = Under = Inventory < Minimum– O = Over = Inventory > Maximum– V = Vought = Contact Buyer
Slide 13
Min/Max Supplier Training - Portal
Priority Need Date (Initial sort of web screen)• If the Inv Qty does not support a manufacturing need date within
the next 30 days, a Priority Need Date is displayed• This is to help the supplier to identify critical PN requirements and
potential shortages
Slide 14
Min/Max Supplier Training - Portal
Metric Eff Date – Metric Effective Date (MED)• For purposes of measurement of seller’s performance to min/max inventory
management, the parties will agree to a metric effective date (MED) which shall be the date after which the seller agrees to manage the buyer’s inventory within the Min/Max range. If there is no date, the expectation is that the supplier is responsible for maintaining the inventory between the Min and the Max.
Slide 15
Min/Max Supplier Training - Portal
Behind Sch Demand – Behind Schedule Demand• If Vought’s manufacturing operation is behind schedule and did
not pull parts from inventory in a prior month, the qty of thoseparts is listed. These quantities will be consumed prior to consuming parts in the “current” month.
Slide 16
Min/Max Supplier Training - Portal
Monthly Demand / Planned Consumption• The web page displays 12 discrete months (rolling) of planned
consumption• Download file has 24 months of planned consumption• Suppliers may not have all the planned consumption on PO
Slide 17
Min/Max Supplier Training - Portal
Total Horizon Qty• Total quantity of parts loaded into Vought’s Master Schedule /
MRP System• Supplier may not have the Total Horizon Quantity on open POs
Slide 18
Min/Max Supplier Training - Portal
Lead Time Calendar Days• The supplier lead-time in calendar days for the specific PN
(includes raw material acquisition and fabrication time) • If these values are incorrect, please notify your Vought buyer that
your lead-times have changed
Slide 20
Min/Max Supplier Training - Portal
PO Number – PO Item – Open Qty• A listing of all open POs, item numbers & the remaining open qty• For a PN to show in MM there needs to be at least one open PO• There can be more than one PO open for a PN
Slide 21
Min/Max Supplier Training - Portal
Total Open Qty• This represents the sum of all open PO quantities
Slide 22
Min/Max Supplier Training - Portal
Last Receipt Date – Last Receipt Qty• The date of the last receipt of this PN• The quantity of the last receipt of this PN• The download file lists the last 5 receipts
Slide 23
Min/Max Supplier Training - Portal
Colorization of Consumption Plan
Current Inv = 22 – (0 + 3 + 7) = 12 still above MinCurrent Inv = 22 – (0 + 3 + 7+ 7) = 5 < Min = YellowCurrent Inv = 22 – (0 + 3 + 7+ 7 + 7 ) < 0 = Red
Slide 24
Min/Max Supplier Training - Portal
Online Sort Capability• Underlined headings indicate a data field that can be
sorted
Slide 26
Min/Max Supplier Training – Download File
Text file, tab delimited that can be opened by MicroSoft Excel
(from within Excel).The same data as displayed on
the web, but includes 24 months of demand and 5 receipt dates
and quantities.
Slide 27
Min/Max Supplier Training – Order Policy
Monthly Ship Qty/ Ships$ Usage Min Max Span YearUnder $160 2 Mo 14 Mo 12 Mo 1
$161 to $300 1.5 Mo 7.5 Mo 6 Mo 2
$301 to $1K 1 Mo 5 Mo 4 Mo 3
$1K to $2K 0.5 Mo 2.5 Mo 2 Mo 6
Over $2K 0.5 Mo 1.5 Mo 1 Mo 12
Slide 28
Min/Max Supplier Training – System Updates
Real-time Updates (if input or changed by buyer)• Metric Effective Dates (MED)• Min Values• Max Values
Nightly updates to MM system• Inventory values• Purchase Orders• Receipt information
Weekly Updates to MM system• Demand data
Slide 29
Min/Max and PODS Supplier Training
Min/Max and PODS• APORs was replaced by Purchase Order Discrete Scheduling
System (PODS) – August 2009• Vought will have the ability to control by PN those parts that are in
Min/Max vs PODS– PODS candidate PNs – High dollar, out of production spares, etc.
• Some suppliers will have parts in both systems• Part delivery requirements/dates will be per the schedule on the
paper PO and will be reflected on the PODS screen• Nothing automated. If the delivery requirements/dates change,
supplier will receive a revised PO with the new dates
Slide 37
Supplier Training – Supplier Scorecard
PODS• Measures rolling twelve month average reflecting
percentage of shipments that were shipped on or before the contract negotiated ship date
Min/Max• Measures ratio of Part Numbers with:
– At least one open Purchase Order;– Inventory under Min – Without a Metric Effective Date
(MED) in the future;– Inventory over Max – Without a Metric Effective Date (MED)
in the future
Slide 38
Min/Max and PODS – Assistance
Scheduling Standard Note – S121• Nick Dyer• (972) 946-3285• [email protected]
Min or Max Values and MEDs• Contact your Vought Buyer
Portal, Min/Max or PODS Systems & Training• Greg Smiley• (972) 946-3181• [email protected]