Maximum Flow Scheduling System Overview
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Overview of the Maximum Flow Scheduling Production Scheduling System more info can be found at http://maxflo.biz
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Maximum Flow Scheduling System Overview
- 1. Your plant runs on auto-pilot – people know what to do, and they do it! Every resource is synchronized to your customer’s need You deliver every order not only when you promised it, but sooner. Your team is engaged in more fire prevention than fire fighting http://maxflo.biz 1
- 2. Every order is delivered on time, in less time, with minimal management intervention. http://maxflo.biz 2
- 3. Pinnacle Strategies: http://pinnacle-strategies.com Maximum Flow System: http://Maxflo.biz 3 http://pinnacle-strategies.com
- 4. Benefits of Maximum Flow 20% more throughput 25% shorter lead times 15% more sales 20% more cash flow every month Improved labor productivity of 15% or more http://maxflo.biz 4
- 5. The order fulfillment process emphasizes efficiency, not on time delivery http://maxflo.biz 5
- 6. Maximum Flow Creates Synchronization http://maxflo.biz 6
- 7. Focus Activity around the Bottleneck A centralized scheduling system Measurements to emphasize on time delivery A simple capacity planning model Plan & manage the capacity Early warning mechanisms http://maxflo.biz 7
- 8. Maximum Flow System Process 6 Elements Create the right measurements Build a simplified capacity model Reconcile the demand to the supply, prioritizing existing work Communicate the priorities to the team Connect order promising to the capacity model Connect the capacity model to business planning http://maxflo.biz 8
- 9. No Special Software Full Time Scheduler No additional overhead Reduced operating expenses http://maxflo.biz 9
- 10. Economics of Maximum Flow http://maxflo.biz 10
- 11. Simple Solutions Get the Best Results Most data is inaccurate Range of inaccuracy well within planning parameters Buffers keep everything on track http://maxflo.biz 11
- 12. Change in Behavior » Changed Results Delivering on time becomes a team responsibility On time delivery is the primary measurement, not efficiency Capacity and demand is carefully controlled. Emphasis is on synchronization, not efficiency http://maxflo.biz 12
- 13. Cultural Benefits of Maximum Flow Your plant becomes a much easier and more profitable place to work. People work as a team Reduced stress Minimal firefighting http://maxflo.biz 13
- 15. Sales People &Managers http://maxflo.biz 15
- 16. http://maxflo.biz 16 Next Steps http://pinnacle-strategies.com http://maxflo.biz
- 17. Maximum Flow System Coaching Program Learn the details of the Maximum Flow System and how to implement Teaching and coaching for results Low cost Money back guarantee http://maxflo.biz 17 To enroll, visit http://maxflo.biz
- 18. Maximum Flow System: http://Maxflo.biz Pinnacle Strategies: http://pinnacle-strategies.com 18 http://pinnacle-strategies.com
Editor's Notes
- Imagine if your plant ran on auto-pilot; your people know with crystal clarity, what to do, and they do it!Every resource’s activity is synchronized to your customer’s need You deliver every order not only when you promised it, but sooner.Your team is engaged in more fire prevention than fire fighting
- Imagine everyorder your sell is delivered on time, in less time, with minimal management intervention.
- I’m Mark Woeppel, the developer of the maximum flow system.In short, the maximum flow system creates a simple structure to manage the order fulfillment process and the associated accountabilities to focus the entire organization around the goal of on time completion.
- Implementing the Maximum Flow System results in:20% more throughput 25% shorter lead times15% more sales20% more cash flow every monthImproved labor productivity of 15% or more
- Despite the advances in information technology and systems, most plants manage the order fulfillment process of prioritizing and managing customer orders as if it were an art, using a craftsman approach, rather than treating order fulfillment as a system, requiring a process to manage and control. Rarely is the order fulfillment process treated as a process, with sequential steps and appropriate controls. Instead, order fulfillment is delegated to the resource owners (the plant) who have more incentive is to be “efficient” than deliver on time. As a result, the important task of customer satisfaction is an afterthought in process improvement. In the end, orders are thrown over the wall from sales to production, like hand grenades that might explode into a product that satisfies the customer.
- The Maximum Flow System causes people to synchronize their day to day efforts towards the delivery requirements of the customer, which results in on time delivery of the customer’s order, with less effort and management intervention.
- The system is built around identifying the bottleneck resource in your order fulfillment process, then consistently focusing all activity around maximizing the output of that resource. This happens by:Implementation of a centralized scheduling systemChanging the measurements to emphasize on time delivery Developing a simple capacity planning model for your businessImplementing a structure to plan & manage the capacityImplementation of early warning mechanisms to drive early action on risks to on time delivery
- The process structure looks like this:Establish the right measurementsBuild a simplified capacity modelReconcile the demand to the supply, prioritizing existing workCommunicate the priorities to the teamConnect order promising to the capacity model to prioritize new workConnect the capacity model to senior management in a Sales & Operations Planning process
- Typically, there is no special software or additional overhead expenditure required to run the system, but the appointment of a full-time scheduler is required. This person is usually moved from another position and does not increase overhead. In fact, the implementation results in a reduction of costs related to poor process management in the form of reduced overtime spending, premium freight, and waste.
- Typically, there is no special software or additional overhead expenditure required to run the system, but the appointment of a full-time scheduler is required. This person is usually moved from another position and does not increase overhead. In fact, the implementation results in a reduction of costs related to poor process management in the form of reduced overtime spending, premium freight, and waste.For a small plant with about 100 people, the numbers would look like this:Overtime 50% - $140,000Scheduler - $70,000Increase in Sales 5% - $250,000 Reduction in Inventory 15% - $100,000 + $490,000- $70,000