Blog

See what we have to say. We discuss everything supply chain.

The Ugly, Old and They Should Have Died with the Dinosaurs

By David Carroll November 15, 2017 by Kelly Kuhlman

Standard ECC Planning ReportsWhy do companies see the Standard ECC capacity planning reports, you know CM01,04,05 etc. and think, what a load of rubbish? Or reports can’t help us. They’re ugly, old and should have died with the dinosaurs.

There is a general fundamental lack of understanding of capacity planning and how its role is core to achieving the greater plan. Businesses seem to not understand capacity planning without it embedded back into the core. They think, “I will never be able to move forward and actually start to improve”. A very bold statement, I know, but it is true.

I have been fixing client’s systems for over 7 years in the production space and taking them back to the basics in understanding the role of capacity planning. There are a lot of reasons why capacity planning is not used. It is like being in school again, although, I have not heard, “the dog ate my homework”, excuse yet …

The common excuses are:

  • My spreadsheet is way better, SAP can’t do what this baby can.
  • It’s too clunky and takes up too much time.
  • The data maintenance is just too much.
  • I just can’t trust the data it’s never right and it takes too long to get it changed. (You’re showing just how bad you are right there!!!)
  • Production does not do what they’re supposed too, nothing is real time. (Silo time!!!)

I have heard a lot more than just these on the excuse-o-meter.

With all this being said, there is one problem, it’s almost too simple to believe that it is not done.  You see, it all starts with demand.  Yawn!!!!!!!  What does that have to do with capacity, you ask? Well, you need to understand that planning independently of your one system of record is FATAL.

Do you truly really have a picture of your true demand?
A lot of you are thinking, “Yes, I have a true picture of demand”. Well, I am going to challenge you and say, “you do not”.  There is a very simple way to see if you’re using your one system of record and I bet you that you don’t know how, and if you do, you are not using it.

Do you understand why planning outside the system just doesn’t work?
Over the next few months, I’m going to be talking about how important it is to get your capacity planning back into your one system of record. I will show you the benefits of doing so, from a business, planning, shop floor and continuous improvement side. The potential to actually use your system of record to run your business and make good decisions around the systematic evidence being generated by that crazy program MRP (you know the thing that also doesn’t work). It Just might seem crazy, but it’s totally doable. I will dive into the topics of the machine and labor planning, production tools (molds, racks, etc …) and more. We will talk about how you can use the Standard ECC capacity planning reports to see the future, make good planning decisions, and help with the continuous improvement that will help reduce the time of insight so that you’re not reacting.

Hold on to your hats people. Capacity planning is the future and the key to massive process efficiency savings, as well as, at the same time a key element to help support business growth.

To learn more about capacity planning and prove to me you know how to use your system, you need to attend the SCM Optimization Bootcamp where I personally will be providing hands-on training using your own SAP system. For more information, visit our website.

30 West Diehl Road
Naperville, IL 60563
Send us mail
info@revealvalue.com
Schedule a Call
+1.630.571.1730