Oded Cohen - Production - ENG - 17 TOCPA - Vilnius - 15 May 2015

17th International Conference of the
TOC Practitioners Alliance - TOCPA

www.tocpractice.com
15 May 2015, Vilnius, Lithuania
Practical Advice on
Implementing SDBR in
Production
Oded Cohen, TOC Strategic Solutions, Israel
15 May 2015
Oded Cohen
Oded has over 35 years of experience in developing,
teaching and implementing TOC methodology,
solutions and implementation processes working
directly with Dr. Goldratt all over the world. Among the
countries to which Oded brings his expertise are the
USA, Canada, Japan, India, China, the UK, Poland,
Russia, Ukraine, Colombia, Chile, Peru, Turkey and
many others.
Oded has authored multiple TOC
contributed to numerous TOC books.
articles
and
Oded in the is the author of Ever Improve A Guide to

Managing Production the TOC Way, published in June
2010. Oded co-authored the book Deming & Goldratt:
The Theory of Constraints and the System of
Profound Knowledge The Decalogue.
Together with Jelena Fedurko Oded has co-authored
the book Theory of Constraints Fundamentals.
Oded is International Director of TOC Strategic
Solutions Ltd and Founder and Co-President of
TOCPA.
www.tocpractice.com
[email protected]
www.toc-strategicsolutions.com
17th International Conference of the TOC Practitioners Alliance - TOCPA
Practical Advice on Implementing

SDBR in Production
Introduction
Managing Production the TOC Way
Planning in MTO
Planning in MTA
3
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SDBR
The Brand
Historically, the TOC approach to managing production was named as
DBR Drum Buffer Rope (The Race, 1986).
The DBR was the solution for production environments supplying
Customers Orders (MTO) and operating with bottleneck(s).
The application of DBR expended to environments with no bottlenecks
and therefore with market constraint . This application became
significantly simpler (especially technically). The name given to the
solution was changed to SDBR Simplified DBR
The concepts of SDBR were used in environments that produce stocks
for availability . This TOC Solution is called MTA. Even though some
of the mechanics of the solution differ from MTO, the solution is still
called - SDBR.
The brand name of SDBR signifies - Managing Production the TOC
Way covering the TOC Solutions for MTO and for MTA
4
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Managing Production
the TOC Way
The approach stems from the TOC Way of
Managing Flow, and includes:
Setting up the Desired Service Level
Three basic managerial functions: Decision
Making, Planning and Execution Control
Three major flows: Process, Information and
Decision
Buffers and Buffer Management
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Setting up the
Desired Service Level
High level of service means:
For MTO Production (S-DBR) ensuring high on time
deliveries (>99%) while having competitive quoted
lead times (QLT).
Measuring: DDP, T$D and QLT
For MTA Production ensuring high level of
availability (>95%) coupled with no excess inventory.
For the portfolio of SKUs under MTA.
Measuring: Availability, Inventory Turns, DIOH
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The Three Basic Blocks of

Managing Production
Achieving the Performance in line
with the set Service Level
Decision Making
Planning
Execution Control
Setting up the
objectives with the
right measurements
Determining periodic
plans (weekly,
monthly) and frequent
detailed instructions
(daily)
Tracking and
controlling the
execution of the
plans
Decision Making is used also in Planning and throughout the

Execution Control
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The Three Flows within

the System
Decisions
Flow
Information
Flow
Management / Workforce
Goal units
Process flow
Blocking factor
Necessary Conditions (rules of the game):

Such as - Cash Flow
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Throughput
NP
ROI
The TOC Production

Buffers
Management / Workforce
Diagonal Buffer
Information
Flow
Decisions
Flow
Production/Operation Buffer
Information
Flow
Process flow
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% Order Complete
Stock
Buffers
Goal units
TOC Buffers
For Production
MTO
Production Buffer - Time
Due Date
Material
Release
Process flow
MTA
10
Material
Release
Process flow
1
OH
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Inventory Target
Level
Time
Production Planning
The TOC criteria for a good plan:

1. Provides financial benefit supports the generation
of Throughput
2. Realistic challenging but achievable
3. Contains protection against disruptions (Murphy)
The Buffers play important role in planning production.
11
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Production Planning
The Production Plan should provide:
The schedule for starting the production of the work

orders - Work Orders Release
Instructions for loading the machine
TOC splits the planning between the Planning
Department (PPD) and Production Management
PPD provides periodic plans for WOs Release.
Usually weekly, but can be more frequent when
needed.
Production Management provides the detailed plan
for the work of the machine for the very short term
(Day, shift, next job, etc.)
Priority is determined by the Buffer Status
12
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Buffers and Planning

MTO
Planning in the MTO environment is relatively simple.
Once the company sets the delivery date of the
customers order it becomes the Major Driver of the
system.
Production Planning Department (PPD) determines the
IDD Internal Due Date which sets the date for
production to complete ALL the work which is needed
for the Customer Order.
Then PPD produces the plan for WOs release. The date
for release is set to be Production Buffer (time) ahead of
the IDD.
Buffer Management tracks WO status starting from the
date of release.
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MTO Planning
WO Release
Customer
Order No.
CO- 01
CO- 02
CO- 03
CO- 04
CO- 05
CO- 06
CO- 06
CO- 07
CO- 08
CO- 09
CO- 10
WO Order Delivery Date

Delivery Date
Promissed
No.
requested by the
Customer
WO-A01
WO-A02
WO-A03
WO-A04
WO-A05
WO-A06
WO-A07
WO-A08
WO-A09
WO-A09
WO-A09
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5/5/2015
18/5/2015
18/5/2015
18/5/2015
18/5/2015
28/5/2015
5/6/2015
28/5/2015
12/6/2015
12/6/2015
18/6/2015
14/5/2015
18/5/2015
18/5/2015
20/5/2015
20/5/2015
28/5/2015
5/6/2015
28/5/2015
12/6/2015
12/6/2015
18/6/2015
IDD Internal
Due Date
12/5/2015
16/5/2015
16/5/2015
18/5/2015
18/5/2015
26/5/2015
3/6/2015
26/5/2015
10/6/2015
10/6/2015
16/6/2015
PB Production
Buffer
[Working
Days]
10
5
10
10
8
15
15
10
12
12
12
Release
Date
Planned
2/5/2015
11/5/2015
6/5/2015
8/5/2015
10/5/2015
11/5/2015
19/5/2015
16/5/2015
29/5/2015
29/5/2015
4/6/2015
MTO Planning
Machine Schedule
The work instructions assigning jobs to machines
or operators is usually done by line management.
The assignment is done at the beginning of a day or
a shift or by the completion of a job.
A job can be assigned when:
The WO is waiting in front of the machine
All the additional materials/components are
available
The full kit drawings, tools etc. is available
Priority is dictated by the color system of the
status of the Buffers.
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Buffers and Planning

MTO
Determining the Production Buffer
PB is set for the Customers Order
It must be challenging but achievable!
It can be:
Total Touch Time x 3
x Current Quoted Lead Time (QLT)
Any other formula that covers for the touch
time, setup time and reasonable wait times
Ideally PB should be as general as possible such as:
per product family, per technological process etc.)
PB may vary with order quantities or special causes
16
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Planning in MTA
Planning in the MTA is shared between PPD and
Production Management the same way as in MTO.
However, the role of PPD is more complicated than in
the MTO.
This is due to the dynamic nature of the customer.
There is no IDD for the WO and also the quantity is not
always predetermined.
Production is expected to replenish stock that has been
consumed from the FG stock as planned by PPD.
PPD is responsible to provide the desired service level
with as little inventory as possible.
Therefore, PPD has to make clever decisions on the
timing and quantity of every new WO.
17
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Stock Buffer for MTA

Replenishing Consumption
PPD is informed about the quantity to be replenished (TBR).
PPD needs to decide when to release a WO and what
quantity.
Production
18
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Consumed
Inventory Target
Level
WO
Release
To Be
Replenished
1
OH
MTA Planning
WO Release
For releasing a new WO PPD has to consider:
The current status of the Stock Buffer
Availability of Raw Materials and components
Production capabilities
Changes to the planned level of stock as per Dynamic
Buffer Management (DBM) recommendations.
The future situation of the stock buffer based on the
expected arrivals and pattern of consumption (virtual
buffer)
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MTA - Buffers and Planning

(Example - arrivals only)
20
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Link between availability level

and production planning
Example based on a pilot:
The availability level of pilot SKUs is
consistently higher than that of non-pilot SKUs
Pilot SKUs?
Non-pilot SKUs?
Due to what?
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Link between availability level

and production planning
Phase 2 added 28 SKU = 47 SKU
Phase 1 18 SKU
Day 1
18.03.13
After 5 days
23.03.13
23.03.13
89.9%
18.03.13
77.8%
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After 2 weeks
01.04.13
Day 1
19.04.13
After 10 days
29.04.13
29.04.13
91.5%
01.04.13
83.3%
One month later

30.05.13
30.05.13
97.9%
19.04.13
66.7%
Conclusion
The practical steps towards improving Planning:

Determine the mode of supply of your company:
MTO, MTA or Mixed MTO with MTA.
Establish the desired level of service and relevant
measurements.
Apply the relevant buffers
Monitor daily the buffers status and ask the right
questions
Adjust the planning processes and procedures to
support acheiving the Desired Service Level.
23
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17th International Conference of the

TOC Practitioners Alliance - TOCPA

15 May 2015, Vilnius, Lithuania

Oded in the is the author of Ever Improve A Guide to

17th International Conference of the TOC Practitioners Alliance - TOCPA

Practical Advice on Implementing

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

The Three Basic Blocks of

Decision Making is used also in Planning and throughout the

17th International Conference of the TOC Practitioners Alliance - TOCPA

The Three Flows within

Necessary Conditions (rules of the game):

17th International Conference of the TOC Practitioners Alliance - TOCPA

The TOC Production

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

The TOC criteria for a good plan:

17th International Conference of the TOC Practitioners Alliance - TOCPA

The schedule for starting the production of the work

17th International Conference of the TOC Practitioners Alliance - TOCPA

Buffers and Planning

17th International Conference of the TOC Practitioners Alliance - TOCPA

WO Order Delivery Date

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

Buffers and Planning

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

Stock Buffer for MTA

17th International Conference of the TOC Practitioners Alliance - TOCPA

17th International Conference of the TOC Practitioners Alliance - TOCPA

MTA - Buffers and Planning

17th International Conference of the TOC Practitioners Alliance - TOCPA

Link between availability level

17th International Conference of the TOC Practitioners Alliance - TOCPA

Link between availability level

One month later

17th International Conference of the TOC Practitioners Alliance - TOCPA

The practical steps towards improving Planning:

17th International Conference of the TOC Practitioners Alliance - TOCPA

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