Optimized plant capacity loading for packaging manufacturer, increasing OTIF
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PROBLEM
A packaging manufacturer did not have a formal planning system and relied on plant schedulers to collaborate and balance demand and capacity across a network of 3 plants in the US.
One of the plants had a very poor OTIF of less than 60% and complained that it was overloaded with demand.
SOLUTION APPROACH
We created an “IBP-Light” project to map out demand and estimate supply. We created a process to get sales to commit to forecasted demand, and created tools to then turn that demand into supply plans based on plant capacity and capability.
The tool was rolled out in collaboration with a joint IBP monthly process, with the sponsorship of the CEO and VP of Operations.
RESULTS
On-Time-In-Full (OTIF) for the problematic plan was increased from less than 60% to over 95%.
The company got a data-based approach to planning in the short term and long term, which also helped inform capital decisions.