Balancing customer demand shifts and just-in-time efficiency: Can you keep production on track?
Navigating the complexities of fluctuating customer demand while keeping production efficient can be challenging. Here's how you can stay on track:
How do you manage demand shifts in your operations? Share your strategies.
Balancing customer demand shifts and just-in-time efficiency: Can you keep production on track?
Navigating the complexities of fluctuating customer demand while keeping production efficient can be challenging. Here's how you can stay on track:
How do you manage demand shifts in your operations? Share your strategies.
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When supplying to a business customer, it's worth investigating their demand patterns as, very often, their orders on your operation can be completely disconnected from reality. A motorcycle component supplier suffered +/-50% demand fluctuation day to day but a visit to the OEM showed absolutely constant production. The variation came from their trying to minimise inventory. Level schedule fixed it and reduced inventory. An automotive aftermarket supplier had a 100% change in demand winter to summer. The underlying change was 10% but MRP settings at the various intermediaries, coupled to sales incentives produced 10x the variation in production and, for one model, a demand for 100 units to fit a vehicle of which only 2 were still in use!
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Yes , it can managed using first analysis tools for demand forecast and applying VSM and adapte the process to deal with such challenges also small inventory can be studied but without overburdening.
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Depende del tipo de producto que se va a producir, make to stock (MTS) o make to orden (MTO). En MTS, la Planeación de la Demanda y modelos de posibles escenearios futuros serán de utilidad para disminuir la incertidumbre y mejorar inidicadores como service level u OTIF ante el cliente. En MTO, la rápida reacción en procesos de cadena de abastecimiento, manufactura adaptable rápidamente, calidad y rapidez serán muy valorados por el cliente. Ahora en ambos casos, Just In Time JIT es parcialmente cuestionado; Por qué? Siempre se busca la mayor eficiencia o tasa de salida del sistema, sin embargo con un buffer o inventario de seguridad mayor que antes de estar hiperconectados a nivel global, ‘el mundo se convirtió en un pueblo grande.’
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1. Forecast Demand: Use data analytics to predict demand patterns and adjust production accordingly. 2. Prioritize Flexibility: Design processes and schedules that can adapt to demand shifts. 3. Maintain Safety Stock: Keep minimal inventory for high-demand items to avoid delays. 4. Strengthen Supplier Relations: Ensure reliable, quick responses to material needs. 5. Optimize Workflow: Streamline tasks and reduce bottlenecks to improve just-in-time efficiency. 6. Monitor and Adjust: Regularly review performance to make quick adjustments.
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Some of the ways to keep a check on the production 1. De-skilling of the manufacturing operations. So that there is less dependency on the skilled operators. 2. Have real-time insights and latest techniques to forecast the demand. 3. Build strong relationships with vendors but do not rely on a single vendor. Develop multiple vendors. 4. Reduce waste from the operations and encourage flexible manufacturing systems.
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Demand planing is becoming more complicated in a complex world of multiple constraints and competitive environment, hence a good reason to put a good demand planing and S&OP structure in place to serve both costumer and service provider’s supply chain. As far as raw materials planing a combination between consumption history as a base line and a forecasting system to mitigate fluctuations is a very effective tool. For main runners and key costumers it is recommended to setup a floor stock agreement with the costumer, one that takes into account avg consumption, lead time to produce and commitment form costumer to by the agreed inventory. You set an ROP (reorder point ) in you demand planing system that triggers production when needed.
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Supply chain important factor in business success and demand forecasting is key to meet on time and customer satisfaction.When customer need anything we can't delay because of do many alternatives available in market as we also know when customer leave because of unavailablilty they never come back so we need to meet there requirements whenever they asked.Happy selling
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In my experience, the first step is knowing what the demand is. It can be a forecast coming from customers or viewing the sales history. From this point on, it is possible to define which strategies and tools should be used. Some tools and developments that they use in the factory where I work: - Value stream mapping; - Production monitoring tables; - Process performance indicators (production, maintenance, safety, stocks); - Team training (I use the concept of multifunctionality here); - Leadership development.
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Here are my two cents:- 1. Use real-time data and predictive analytics to anticipate demand shifts more accurately, allowing production to adapt proactively. 2. Build strong relationships with suppliers and keep momentum of strong collaboration for rapid response capabilities and prioritize suppliers for flexibility. 3. Cross-Training Employees across group of area to increase back ups and efficiency 4. Implement Agile Manufacturing Techniques with Scrum Ceremonies
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Managing demand shifts is crucial for maintaining operational efficiency and customer satisfaction. Here are some strategies I often use: 1. Agile Workforce Management: Cross-train employees to handle multiple roles, enabling quick adjustments in labor allocation based on demand 2. Just-in-Time (JIT) Production: Align production schedules closely with demand forecasts to minimize excess inventory while ensuring timely fulfillment 3. Scenario Planning: Use historical data and market trends to simulate various demand scenarios and prepare contingency plans for each 4. Technology Integration: Leverage AI and IoT to monitor demand signals in real-time, ensuring proactive adjustments in production or supply chain activities.
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