Cases

Redesigning the Central Planning Function and Implementing Changes to Improve the On-Time-In-Full Performance of a Glass Container Manufacturer

Challenge

The client, a global leader in glass container packaging serves different customers, industry segments with varying needs and different order-to-delivery (OTD) cycles. The customers were satisfied with the product quality of the company, but were very critical of the client’s ability to deliver the order on time and in full. Improving the OTIF performance became extremely critical for the client to grow in its strategic customer segment. Thus, the client turned to UC to redesign its central planning function and implement changes to improve its OTIF performance.

Our Approach 

To redesign the central planning function and improve the OTIF performance for the company, UC did a detailed assessment of the client environment. This led to the adressal of 7 major bottlenecks impacting the OTIF goal:

  • Planning Philosophy - Defined an open ended plan system and designed a shipment plan mechanism for end- to- end order tracking and OTIF measurement
  • Ancillary Capacity - Prepared a model to estimate the additional capacity required based on future demand.De-bottlenecking of capacity was initiated immediately, resulting in improvement of throughput
  • Organisation Structure - Re-aligned the planning and execution structure and facilitated recruitment for key vacant positions
  • Key performance indicators and review mechanism - Recommended and introduced ‘OTIF’ as an additional performance metric for key managers. Management review mechanism was modified to incorporate segment wise capacity booking status and OTIF non-compliance review
  • IT Infrastructure - Facilitated changes in the legacy IT software to get desired planning related information and reports. Defined functionality changes in statistical assignment package (SAP) to facilitate planning and OTD execution
  • Inventory Audit - Defined methodology for inventory classification and validation. Initiated stock counting process, to clear the variance between the system and physical stock at the plant locations
  • Manufacturing Capability - Designed pillar structure to facilitate cross learning and to recommended manufacturing excellence focus on premium business

 

Impact

The client had an improved visibility of future order booking status, in context of the business strategy to the senior management. UC introduced an end-to-end order tracking and OTIF performance measurement and improvement agenda. We facilitated better resource allocation to various customer segments, andan improved understanding on the capacity gaps in the system. Initiated a better informed marketing team and customers on the status of the order execution.