Arthur Vandebosch presents the implementation experience with Quick Response Manufacturing at Harol. QRM methodology and techniques are especially suited for high mix / low volume production. Learn why a Belgian company excels and inspires at a world class level.

1. Kristof Souwens Process Manager, PMP
Arthur Vandebosch Operations Manager
Founding Father QRM

2. Overview
1 The Company (History)
2 Problem Statement
3 What is QRM ?
4 QRM at Harol
5 How ERP supports QRM
6 First Results & Future Perspectives
Kristof Souwens, PMP

3. The Company (History)
 Started in 1946 (wooden shutters)
 One of the Leading European producers of sunscreens, shutters and
sectional doors
 320 employees
 Annual turnover = 44 million Euros
Kristof Souwens, PMP 1 The Company (History)

4. The Company (History)
 Till 1993: MS DOS
 1993: AS 400 - MRP
• PUSH-system
• No MRP for make-to-stock
• WIP level = extremely high → Delivery Reliability ↘ → Lead Time = 5 wks
 2000: AS 400 – LEAN (KANBAN) => Pull System
• No MRP for make-to-stock
• Production order produced by due date
• Bottleneck planned with unlimited capacity
• WIP buffer management through PULL-system
• Delivery Reliability ↗ → Lead Time = 5 d
 2010: Microsoft AX Dynamics => Push & Pull
• Production order by print date
• MRP for make-to-stock (through ERP implementation)
• Bottleneck planned with limited capacity
• WIP buffer management through CONWIP/KANBAN/POLCA) – MTO & MTS
• Delivery Reliability ↗ → Lead Time = 2 d
Kristof Souwens, PMP 1 The Company (History)

5. Problem Statement
3 DIMENSIONAL VARIABILITY
STRATEGIC DIMENSION
• Seasonality (Highly variable demand)
• Product variety
• Raw material cost (Aluminum)
TACTICAL DIMENSION
• Capacity planning (huge swings in capacity utilization)
• “Cross-functional” production process (painting & textile cell)
• Variety in shifts between different cells
OPERATIONAL DIMENSION
• Changeover times (color changes)
• Special orders (rework, repair, …)
• Unbalanced production lines ( partly Engineer-to-Order)
Kristof Souwens, PMP 2 Problem Statement

6. What is QRM ?
QRM = Quick Response Manufacturing
 QRM is a companywide strategy, aimed at increasing flexibility and
responsiveness by the continuous shortening the lead time, that
pursues the reduction of lead time in all aspects of a company’s
operations (Externally as Internally).
 A Competitive Strategy for High-Variability, Low-Volume or Custom-
Engineered Products
 Based on business strategy of Time-Base Competition (TBC)
 Using speed to gain competitive advantage
 QRM implies
 Rapid delivery of existing products
 ALSO, rapid development and introduction of new products
Source: Master class - Quick Response Manufacturing – Page 12-14 – Copyright © 2010 R. Suri
Kristof Souwens, PMP 3 What is QRM ?

7. QRM : The key to gaining your Competitive Advantage
Choice of
Strategy QRM: Your
Competitive
Edge
Exploit
Lean/sigma
Eliminate Tools
Lean
Type of
Dysfunctional Strategic Variability
Source: 2010, It’s About Time - The Competitive Advantage of Quick Response Manufacturing, Rajan Suri – p 5
Kristof Souwens, PMP 3 What is QRM ?

8. The Power of Time
 Requires major PARADIGM SHIFT in management
thinking
Cost-Based Time-Based
 Lead Time drives everything
 Business understanding
 Decisions
 Measurements
Source: Master class - Quick Response Manufacturing – Page 32 – Copyright © 2010 R. Suri
Kristof Souwens, PMP 3 What is QRM ?

9. Organizational Structure
The Response Time Spiral for make-to-order products
Master Schedule:
Planning organization
decides to use longer
Long Lead Need to plan way
Times ahead
lead times
Regular Jobs Inaccuracy
Delayed of Planning
Loss of focus
for regular jobs
@ Past
performance
problems
“Hot” Jobs, Safety Time
Expediting Inserted
Jobs started long before
Unacceptabel High WIP and they are due, also some
parts made but not used
lead times, Inventory till much later
planning orders
Source: 2010, It’s About Time - The Competitive Advantage of Quick Response Manufacturing, Rajan Suri – p 40
Kristof Souwens, PMP 3 What is QRM ?

10. Organizational Structure
Roots of the Spiral: Cost-Based Management
Minimize Break into simple Low Skills, Functional
Cost (specialized) steps Low Wages Departments
Ensure Minimize Resources,
Managers:
Backlog, Maximize Efficiency,
Minimize Cost
Batching Maximize Utilization
Long Feedback Loops, Poor Quality, Long
Backtracking, Lead Times and
Expediting OOPS! High Cost
 Can’t be controlled: must be killed!
 Focus on reducing the consumption of time throughout the system
Source: 2010, It’s About Time - The Competitive Advantage of Quick Response Manufacturing, Rajan Suri – p 46
Kristof Souwens, PMP 3 What is QRM ?

11. KANBAN vs POLCA
KANBAN
KANBAN board
M1 M2
KANBAN card
POLCA (Paired Overlapping Loops with Cards of Authorization)
B1
C1
C1
B1 B1 B1
A1 C1 C1 C2
B1
A1
B1 B1
C2
C2
Kristof Souwens, PMP 3 What is QRM ?

12. Implementation QRM Strategy
 DO’s:
 INSIDE-OUT approach
 Step-by-step
 Focusing on the things that
already work (direct results)
 Continuously improving &
optimizing the implemented
system
 Expanding gained knowledge
 DONT’s:
 Not starting from Time-Based Competition Strategy (nor MCT)
 Trying to get stakeholders buy-in by preaching (only theory)
 Big BANG
Kristof Souwens, PMP 4 QRM at Harol

13. Customized QRM Game
Kristof Souwens, PMP 3 QRM at Harol

14. QRM at HAROL
Orders
Buffer (Lacquer)
Buffer
Preparation
(raw)
Awnings
Awnings
Awnings - RAL
Assembly Line
- STD
Awnings
Buffer (Lacquer)
- RAL
Buffer (raw)
Awnings
Awnings
- STD
- STD
Buffer
Preparation
(raw)
- RAL
VZ 8h 9h 10h 11h ….
Buffer Textile Buffer Textile
Standard
Rush
(Awnings)
RS R
Textile
Dralon
PAINTING
Warehouse Textile MTS
Standard
(Screens,VZ,US)
Textile
Buffer (Lacquer)
Screens, VZ, US
8h 9h 10h 11h ….
Screens,VZ,US
Kunstof
Standard
Buffer (raw)
Rush
Orders
Screens,
VZ,US
Buffer (Lacquer)
Screens/VZ/US
- RAL
Assembly Line - STD
Buffer
Preparation
(raw)
Screens/VZ/US - RAL
Screens - RAL
- STD
Kristof Souwens, PMP 4 QRM at Harol

15. QRM at HAROL
Orders
Buffer (Lacquer)
Buffer
Preparation
(raw)
Awnings
Awnings
Awnings - RAL
R Assembly Line
- STD
Awnings
Buffer (Lacquer)
R
- RAL
Buffer (raw)
Awnings
Awnings
- STD
- STD
Buffer
Preparation
(raw)
- RAL
VZ 8h 9h 10h 11h ….
Buffer Textile Buffer Textile
Standard
Rush
(Awnings)
SR
R Textile
Dralon
PAINTING
Warehouse Textile MTS
Standard
(Screens,VZ,US)
Textile
Buffer (Lacquer)
Screens, VZ, US
8h 9h 10h 11h ….
Screens,VZ,US
Kunstof
Standard
Buffer (raw)
Rush
Orders
Screens,
VZ,US
Buffer (Lacquer)
Screens/VZ/US
- RAL
Assembly Line - STD
Buffer
Preparation
(raw)
Screens/VZ/US - RAL
Screens - RAL
- STD
Kristof Souwens, PMP 4 QRM at Harol

16. QRM at HAROL
Orders
Buffer (Lacquer)
Buffer
Preparation
(raw)
Awnings
Awnings
Awnings - RAL
R Assembly Line
- STD
Awnings
Buffer (Lacquer)
- RAL
Buffer (raw)
Awnings
Awnings
- STD
- STD
Buffer
Preparation
(raw)
- RAL
VZ 8h 9h 10h 11h ….
Buffer Textile Buffer Textile
Standard
Rush
(Awnings)
SR
R Textile
Dralon
PAINTING
Warehouse Textile MTS
Standard
(Screens,VZ,US)
Textile
Buffer (Lacquer)
Screens, VZ, US
8h 9h 10h 11h ….
Screens,VZ,US
Kunstof
Standard
Buffer (raw)
Rush
Orders
Screens,
VZ,US
Buffer (Lacquer)
Screens/VZ/US
- RAL
Assembly Line - STD
Buffer
Preparation
(raw)
Screens/VZ/US - RAL
Screens - RAL
- STD
Kristof Souwens, PMP 4 QRM at Harol

17. QRM at HAROL
S
Orders
Buffer (Lacquer)
Buffer
Preparation
(raw)
Awnings
Awnings
Awnings - RAL
Assembly Line
- STD
Awnings
Buffer (Lacquer)
- RAL
Buffer (raw)
Awnings
Awnings
- STD
- STD
Buffer
Preparation
(raw)
- RAL
VZ 8h 9h 10h 11h ….
Buffer Textile Buffer Textile
Standard
Rush
(Awnings)
R
Textile
Dralon
PAINTING
Warehouse Textile MTS
Standard
(Screens,VZ,US)
Textile
Buffer (Lacquer)
Screens, VZ, US
8h 9h 10h 11h ….
Screens,VZ,US
Kunstof
Standard
Buffer (raw)
Rush
Orders
Screens,
VZ,US
Buffer (Lacquer)
Screens/VZ/US
- RAL
Assembly Line - STD
Buffer
Preparation
(raw)
Screens/VZ/US - RAL
Screens - RAL
- STD
Kristof Souwens, PMP 4 QRM at Harol

18. QRM at HAROL
Orders
Buffer (Lacquer)
Buffer
Preparation
(raw)
Awnings
Awnings
Awnings - RAL
Assembly Line
S - STD
Awnings
Buffer (Lacquer)
- RAL
Buffer (raw)
Awnings
Awnings
- STD
- STD
Buffer
Preparation
(raw)
- RAL
VZ 8h 9h 10h 11h ….
Buffer Textile Buffer Textile
Standard
Rush
(Awnings)
Textile
Dralon
PAINTING
Warehouse Textile MTS
Standard
(Screens,VZ,US)
Textile
Buffer (Lacquer)
Screens, VZ, US
8h 9h 10h 11h ….
Screens,VZ,US
Kunstof
Standard
Buffer (raw)
Rush
Orders
Screens,
VZ,US
Buffer (Lacquer)
Screens/VZ/US
- RAL
Assembly Line - STD
Buffer
Preparation
(raw)
Screens/VZ/US - RAL
Screens - RAL
- STD
Kristof Souwens, PMP 4 QRM at Harol

19. How ERP supports QRM – Past State
Order entry Logistics
MTO MTS  Independent (duplicated)
authorizations
 Unsystematic MTS
MRP planning
 Unlimited Capacity
Planning
Planning
Preperation Cell Painting Cell  No synchronization
between production cells
 No possibility to level out
Execution
Assembly Cell order intake
 No mixed model
Textile Cell
scheduling
Kristof Souwens, PMP 5 How ERP supports QRM

20. How ERP supports QRM – Current & Future State
Order entry Logistics
MTO MTS
 1 authorization point
Planning
ERP  Systematic MTS planning
Capacity (Skill) Planning  Limited capacity planning
MRP
 Employee flexibility ↑
 High synchronization
between cells
Preperation Cell Painting Cell  Leveling out order intake
Execution
 Automated mixed model
Assembly Cell scheduling
Textile Cell
Kristof Souwens, PMP 5 How ERP supports QRM

21. First Results
QRM
Implementation
Kristof Souwens, PMP 6 First Results & Future Perspectives

22. Rajan Suri’s visit at Harol
Kristof Souwens, PMP 6 First Results & Future Perspectives

23. Future Perspective (Strategy)
CUSTOMER INTIMACY
Customer Focused Strategic Growth
Quality & Service Speed
Time-Based Competition
QUICK RESPONSE MANUFACTURING
Kristof Souwens, PMP 6 First Results & Future Perspectives

24. Future Perspective (Strategy)
QUICK RESPONSE MANUFACTURING
Time-Based Competition
in office operations => Q-roc
Speed Quality & Service
Strategic Growth Customer Focused
CUSTOMER INTIMACY
Kristof Souwens, PMP 6 First Results & Future Perspectives

25. More info on Quick Response Manufacturing
It’s About Time: The Competitive Advantage Quick Response Manufacturing: A
of Quick Response Manufacturing, by R. Companywide Approach to Reducing Lead
Suri, CRC Press, 2010. Times, by R. Suri, Productivity Press, 1998.
Kristof Souwens, PMP 1 What is QRM ?

26. Questions
Kristof Souwens, PMP