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WEAKNESSES
AND LIMITATIONS IN ACTIVITY PLANNING FROM ERP MODULES
Operational activity
planning (marketing, sales, production, procurement, distribution etc ..)
conducted by traditional western ERP systems typically assumes linear
modelling techniques and features min-max stock level management rules as
they were introduced in the 60s 70s). The literature describing the science
of Heijunka and the statistical tools necessary to extract the value
associated to it is very poorly documented outside of Japan (Heijunka being typically
reduced to the efficient but simplistic “Heijunka Box”), and advanced
Heijunka algorithms enabling modern lean businesses to harness the power of
being able to optimize trade-offs between conflicting constraints are
virtually non-existent. Heijunka planning is not taught to graduates students
in Logistics, Operations nor in MBAs.
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STRENGTHS
OF HEIJUNKA PLANNING RULES
At Quantum BE, over the past 6 years, we have developed a number of IT
modular solutions that combine the power of advanced mathematical modelling
with the complexity of conflicting constraint management as they are
perceived at the operational business level (manufacturing sweet-points, HR
limitations, distribution rules, supply chain conditions etc,) to increase
productivity by focusing on the actual implementation of Heijunka principles
in tactical planning. In doing so, we have consistently demonstrated the
ability of our approach to systematically outperform all previously installed
ERP and business planning systems in both the area of material flow and in
financial results. Quantum BE KPIs associated to Heijunka not only provide
client with a faster and more efficient way to make daily tactical
operational decisions, they also provide higher quality insights into short
term market trends that often rightfully challenge the business “politically
correct” official forecasts.
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MAXIMIZE
HEIJUNKA’S EFFECTIVENESS IN THE FIELD with JIT and Jidohka
Heijunka planning is foundational to the Lean Philosophy. In the TPS temple
featured above, note that financial rewards (low cost, low waste, 6 sigma
quality and superior market reactivity) are located in the “roof” of the Temple. To achieve results that have a substantial impact on the company’s bottom line, it
is important to work simultaneously on critical projects in the areas of JIT
(continuous flow, pull systems …) and Jidohka (autoNOmation). These “pillars”
must be constructed robustly to enable the temple to sustain its roof. Also
note that the pillars (which feature most of the Lean “Tools”) by themselves
will not support the roof unless the foundation stones are strongly
implemented. Most western companies that consider themselves Lean actually
fail this test.
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BOOST
YOUR LEAN PROJECTS
If you want to learn more about efficient Heijunka planning strategies, or if
you want to contact us for a detailed quotation for how much Quantum BE
heijunka planning could help you save in your overall operation costs, please
contact us at:
heijunka-info@qbeonline.com
Tel = (61) 2 9345 5225
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VIEW
MORE IN RELATION TO A REAL APPLICATION BUSINESS CASE
Click on the 3
following links to see the Quantum BE approach applied to some real-life
business cases. The 3 following pages show examples of graphical displays for
typical KPIs, (sales, production, stock) their daily trends and how to use
them in decision making at the strategic and tactical levels. Click on the
words above to access these KPIs
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