Supplier Capacity Assessment
With the world moving to new normal after the global issues seen after the last two years, the target to recover the lost opportunities moving forward should be beneficial to all. Working with OEMs in the industry, their targets are to recover all potential sales missed during 2020-2021 through the 2022 period what leads a target production uptick of up to 30% on top of previously planned builds. A part of the necessary planning is to ensure readiness and capability of suppliers to guarantee the continuous supply of components and build materials required to meet productions increased demand.
Together with one of our partners in the industry, the global IMIG team were tasked with creating a comprehensive, 3-day assessment that would give indication to the supply capability against the increased demand, with the tool being deployable at a diverse range of vendors, for an even more diverse range of products.
The tool was founded on the fundamental concepts around capacity, whilst including well-structured assumptions to give an accurate representation of capability within the condensed 3-day assessment period. The team started with the foundations of capacity, available time / required time. These foundations were then built upon to incorporate key aspects of a complex production system, such as quality impact, shared capacity, and bottleneck limitations.
Once the tool had been developed, and the team was equipped to adequately deploy the assessments, IMIG was set to task, planning out 12 assessments over a 3-week period. This was one of the most intense assessment deployments IMIG has carried out.
The data was presented to give a percentage utilisation of the process against the customers forecast demand, in both peak demand in instances of JIT production, and average demand, where the vendor could level load their production. If the capacity sat above a level of 90%, the recommended requirements to achieve this level drove the preventative actions recommended to improve the capacity capability.
Once the data was collected, capability outlined, and the results aligned with the supplier’s team, the collaborative effort was then fed back to the OEMs, and an action plan, if required, was compiled in collaboration with all teams to ensure the increased capacity target was achievable.
The After Care
If action had to be taken to mitigate the supply risk, IMIG was available for on hand support to work with the supplier. This included carrying out the necessary validation and confirmation of closed actions to ensure positive steps forward in supporting the end customers’ needs, as well as supporting the supplier’s growth with the increased customer demand.
Fig. 1: Example of presented data with achievable capacity based on corrective action plan
Consultant I IMIG UK Ltd.
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