total quality brings benefit for company
... . Until recently, planning was a tedious, time consuming and largely manual task involving several Excel spreadsheets and Movex. A lot of human effort was required to cross check the systems to confirm they contained the same information. They are five steps for human resource competitiveness: 1. cooperation among business, labor and government. 2. high quality education and training. 3. employee involvement and empowerment. 4. leadership at all levels. 5. teamwork. So company should follow above steps for improvement of human. He works closely with production planner Phil Taylor, who is tasked to ensure the company meets 12 monthly forecasts based on accurate knowledge and confidence the wineries have enough wine for the next 12 months.Taylor’s forecasts cover capacity allocations and production schedules across more than 360 products including sparkling and fortified wines and still wines in traditional styles such as Bordeaux, Sauternes, Chardonnay, Cabernet Sauvignon, Merlot, Pinot Noir and Sauvignon Blanc."There was always a risk of old data or human error. Plans had to be changed far too often," says Taylor. "Our business is very complex in terms of the number and the difference within products. Commodity wines in the middle to lower value have a high turnaround. More expensive investment wines are only bottled perhaps once a year and there is a range of product that sells into many markets. Each has different methods of planning," he says. In 2003, the company upgraded to Movex version 12, which further improved the company’s ability to calculate requirement dates for the various products. It went live in April 2004 with Intentia’s multi-site planner module which determines how best to meet those requirement dates and if in fact they can be met before the material requirements planning module places orders for labels, bottles and other inventory. These were critical steps in greater supply chain integration enabling further improvements in production planning and distribution. Poirier and Houser describe the concept of parnering with suppliers : true supplier partnering requires an understanding of each party’s needs and capabilities to establish a clear vision for focusing the efforts of people who work for buyer and supplier. To understand the rational for partnering with suppliers, one must understand the goal. The goal is to create and maintain a loyal, trusting, reliable relationship that will allow both partners to win, while promoting the continuous improvement of quality, productivity, and competitiveness. While AD Wines NZ knows well in advance whether its wine will meet the forecast demand, MSP handles short-term capacity planning. It takes into account ongoing changes, for example, if there has been a run on a particular wine type because barbeque season came earlier or a promotion was more successful than expected. New export orders might also put pressure on production. In MSP, it’s all about managing the present by balancing between the wine at the wineries, production facilities and demand, Now we have a very visual look at the various options so we can see how each new allocation impacts on the production lines and make the decisions that are most efficient and have least impact on existing production runs. Sometimes it’s making the best out of the worst position," says Belcher. "It may mean we have to quickly change our production schedule to replenish a particular product without impacting time allocated to other products which are due for replenishment in the normal way. From the view of Quality and quantity control, we can clear know that supply chain project manager Peter Belcher says the new MSP system has proven ideal for capturing and retaining intellectual property. "Within Excel it was hard to quantify one option against another, so we were relying on Phil’s knowledge and expertise as a planner. Now we quantify each option and identify the exceptions. A lot of that specialist knowledge for effective product sequencing is now put into the system." AD Wines NZ can now take a multi-layered view of decisions, more effectively scheduling production and planning by taking into account forecast demand, export orders, stock requirements, line capacity and economic batch sizing with used its new systems,. Improved forecasting has also led to a stability of supply, and greater flexibility to experiment and innovate." It can respond more quickly and accurately to changing circumstances with a better understanding of customer needs. "If we move a batch back or forward, our dry goods procurement people who handle the bottles, packaging, cases and labels have short lead times. We need to make sure we’re not going to receive things we’re not going to use or find we haven’t ordered the labels if we move things ahead." Based on effective forecast and planning system, AD Wines NZ is now much more confident it is making the right product at the right time, and communicating changes to the right people.The company has been closely looking at other related areas where it can make improvements, while supply chain efficiency is being constantly improved by the availability of more accurate data for planning, ordering and distribution, The next challenge in the supply chain is to take a long hard look at pro-curement. AD Wines NZ has been looking at its processes and total cost of ownership (TCO) when purchasing goods and services. "We want to know if we’re getting the maximum value when we spend a dollar with our suppliers rather than just the lowest price per item. If it is cheap but has a high failure rate or doesn’t do the job, then we’re not getting value and it adds to the cost," says Belcher. "Whether it’s buying bottles, hydraulic pumps or tractors you have to look at reliability and everything else. We need to ensure our suppliers are supporting us and continually improving the products and services they supply."Part of that will impact production planning. "Rejecting products because of quality issues adds to the cost of ownership. We can’t afford to set up the line, begin production and then halfway through discover we have a problem. We need to take a fresh look at the way we do things." In the end, Belcher says to manage several projects you have to instil your passion for making things happen in your project teams and make sure you have their buy-in. "You need clear objectives that will provide significant benefits. If team leaders, supervisors and people involved in the detail believe in what you’re trying to do, when you come up against obstacles, they won’t say, ’I told you so’. They’d work for solutions." MSP has become the important part in a company. It is critical to Taylor as he weighs existing stock availability against reports from salespeople about expected demand for the next couple of months. The demand dat...